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<SEC-DOCUMENT>0000928816-06-000835.txt : 20060727
<SEC-HEADER>0000928816-06-000835.hdr.sgml : 20060727
<ACCEPTANCE-DATETIME>20060727151324
ACCESSION NUMBER:		0000928816-06-000835
CONFORMED SUBMISSION TYPE:	N-Q
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20060531
FILED AS OF DATE:		20060727
DATE AS OF CHANGE:		20060727
EFFECTIVENESS DATE:		20060727

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PUTNAM HIGH INCOME SECURITIES FUND
		CENTRAL INDEX KEY:			0000810943
		IRS NUMBER:				046562068
		STATE OF INCORPORATION:			MA
		FISCAL YEAR END:			0831

	FILING VALUES:
		FORM TYPE:		N-Q
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-05133
		FILM NUMBER:		06984328

	BUSINESS ADDRESS:	
		STREET 1:		ONE POST OFFICE SQ
		STREET 2:		MAILSTOP A 14
		CITY:			BOSTON
		STATE:			MA
		ZIP:			02109
		BUSINESS PHONE:		8002251581

	MAIL ADDRESS:	
		STREET 1:		PUTNAM LLC
		STREET 2:		ONE POST OFFICE SQ
		CITY:			BOSTON
		STATE:			MA
		ZIP:			02109

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PUTNAM HIGH INCOME BOND FUND
		DATE OF NAME CHANGE:	20030408

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PUTNAM HIGH BOND FUND
		DATE OF NAME CHANGE:	20021107

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PUTNAM HIGH INCOME CONVERTIBLE & BOND FUND
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-Q
<SEQUENCE>1
<FILENAME>a_highincsec.htm
<DESCRIPTION>PUTNAM HIGH INCOME SECURITIES FUND
<TEXT>
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<P align="left">
<FONT size=2 face="sans-serif">UNITED STATES</FONT><BR>
<FONT size=2 face="sans-serif">SECURITIES AND EXCHANGE COMMISSION </FONT><BR>
<FONT size=2 face="sans-serif">Washington, D.C. 20549 </FONT><BR>
</P>
<P align="left">
<B><FONT size=2 face="sans-serif">FORM N-Q </FONT></B></P>
<P align="left">
<B><FONT size=2 face="sans-serif">QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT </FONT></B><BR>
<B><FONT size=2 face="sans-serif">INVESTMENT COMPANY</FONT></B><FONT size=2 face="sans-serif"> </FONT><BR>
</P>
<P align="left">
<FONT size=2 face="sans-serif">Investment Company Act file number: (811- 05133 ) </FONT><BR>
</P>
<P align="left">
<FONT size=2 face="sans-serif">Exact name of registrant as specified in charter: Putnam High Income Securities Fund</FONT><BR>
</P>
<P align="left">
<FONT size=2 face="sans-serif">Address of principal executive offices: One Post Office Square, Boston, Massachusetts 02109 </FONT><BR>
</P>
<TABLE border=0 width=85% cellspacing=1 cellpadding=0>
<TR valign="bottom">
	<TD width=56% nowrap align=left>
<FONT size=2 face="sans-serif">Name and address of agent for service:</FONT>&nbsp;
	</TD>
	<TD width=43% nowrap align=left>
<FONT size=2 face="sans-serif">Beth S. Mazor, Vice President</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=56% nowrap align=left>
&nbsp;
	</TD>
	<TD width=43% nowrap align=left>
<FONT size=2 face="sans-serif">One Post Office Square</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=56% nowrap align=left>
&nbsp;
	</TD>
	<TD width=43% nowrap align=left>
<FONT size=2 face="sans-serif">Boston, Massachusetts 02109</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=2>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=56% nowrap align=left>
<FONT size=2 face="sans-serif">Copy to:</FONT>&nbsp;
	</TD>
	<TD width=43% nowrap align=left>
<FONT size=2 face="sans-serif">John W. Gerstmayr, Esq.</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=56% nowrap align=left>
&nbsp;
	</TD>
	<TD width=43% nowrap align=left>
<FONT size=2 face="sans-serif">Ropes &amp; Gray LLP</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=56% nowrap align=left>
&nbsp;
	</TD>
	<TD width=43% nowrap align=left>
<FONT size=2 face="sans-serif">One International Place</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=56% nowrap align=left>
&nbsp;
	</TD>
	<TD width=43% nowrap align=left>
<FONT size=2 face="sans-serif">Boston, Massachusetts 02110</FONT>&nbsp;
	</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="sans-serif">Registrant&#146;s telephone number, including area code: (617) 292-1000 </FONT><BR>
</P>
<P align="left">
<FONT size=2 face="sans-serif">Date of fiscal year end: August 31, 2006</FONT><BR>
</P>
<P align="left">
<FONT size=2 face="sans-serif">Date of reporting period: May 31, 2006 </FONT><BR>
</P>
<P align="left">
<U><FONT size=2 face="sans-serif">Item 1. Schedule of Investments:</FONT></U><FONT size=2 face="sans-serif"> </FONT><BR>
</P>

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<TABLE cellSpacing=1 cellPadding=0 width="85%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=5
     >Putnam High Income Securities
      Fund</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   >&nbsp; </TD>
    <TD noWrap align=left width="9%"
   >&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=4>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=4
     >&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif
     >The fund's portfolio</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   >&nbsp; </TD>
    <TD noWrap align=left width="9%"
   >&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=4
     >&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >5/31/06 (Unaudited)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp;</TD>
    <TD noWrap align=left width="13%"
   >&nbsp; </TD>
    <TD noWrap align=left width="9%"
   >&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><B><FONT face=sans-serif size=2
     >CORPORATE BONDS AND NOTES
      (41.5%)(a)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   >&nbsp; </TD>
    <TD noWrap align=left width="9%"
   >&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=4
     >&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   >&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >Principal amount</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >Value</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=4>
      <HR noShade SIZE=1>
      &nbsp;&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=4
     >&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><B><FONT face=sans-serif size=2
     >Basic Materials
      (5.1%)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   >&nbsp; </TD>
    <TD noWrap align=left width="9%"
   >&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Abitibi-Consolidated, Inc. debs. 8.85s,
      2030 (Canada)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >$60,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >$52,050</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Abitibi-Consolidated, Inc. notes 7
      3/4s, 2011 (Canada)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >55,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >51,837</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Abitibi-Consolidated, Inc. notes 6s,
      2013 (Canada)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >122,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >103,090</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >AK Steel Corp. company guaranty 7 3/4s,
      2012</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >375,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >369,375</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >BCP Crystal US Holdings Corp. sr. sub.
      notes 9 5/8s,</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   >&nbsp; </TD>
    <TD noWrap align=left width="9%"
   >&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >2014</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >170,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >186,575</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Century Aluminum Co. company guaranty 7
      1/2s, 2014</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >80,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >82,400</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Chaparral Steel Co. company guaranty
      10s, 2013</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >305,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >339,313</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Chesapeake Corp. sr. sub. notes 7s,
      2014</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   ><FONT face=sans-serif size=2
     >EUR</FONT>&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >135,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >154,222</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Cognis Holding GmbH &amp; Co. 144A sr.
      notes 11.644s, 2015</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   >&nbsp; </TD>
    <TD noWrap align=left width="9%"
   >&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >(Germany)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   ><FONT face=sans-serif size=2
     >EUR</FONT>&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >100,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >132,411</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Cognis Holding GmbH &amp; Co. 144A sr.
      notes 9 1/2s, 2014</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   >&nbsp; </TD>
    <TD noWrap align=left width="9%"
   >&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >(Germany)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   ><FONT face=sans-serif size=2
     >EUR</FONT>&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >275,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >396,094</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Compass Minerals International, Inc.
      sr. disc. notes</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   >&nbsp; </TD>
    <TD noWrap align=left width="9%"
   >&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >stepped-coupon Ser. B, zero % (12s,
      6/1/08), 2013 (STP)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >$65,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >59,800</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Compass Minerals International, Inc.
      sr. notes</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   >&nbsp; </TD>
    <TD noWrap align=left width="9%"
   >&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >stepped-coupon zero % (12 3/4s,
      12/15/07), 2012 (STP)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >310,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >297,600</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Covalence Specialty Materials Corp.
      144A sr. sub.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   >&nbsp; </TD>
    <TD noWrap align=left width="9%"
   >&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >notes 10 1/4s, 2016</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >405,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >409,050</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Crystal US Holdings, LLC sr. disc.
      notes</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   >&nbsp; </TD>
    <TD noWrap align=left width="9%"
   >&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >stepped-coupon Ser. A, zero % (10s,
      10/1/09), 2014</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   >&nbsp; </TD>
    <TD noWrap align=left width="9%"
   >&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >(STP)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >360,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >287,100</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Equistar Chemicals LP/Equistar Funding
      Corp. company</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   >&nbsp; </TD>
    <TD noWrap align=left width="9%"
   >&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >guaranty 10 1/8s, 2008</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >352,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >377,520</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Gerdau Ameristeel Corp. sr. notes 10
      3/8s, 2011</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   >&nbsp; </TD>
    <TD noWrap align=left width="9%"
   >&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >(Canada)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >240,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >259,800</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Graphic Packaging International Corp.
      sr. notes 8</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   >&nbsp; </TD>
    <TD noWrap align=left width="9%"
   >&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >1/2s, 2011</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >55,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >55,413</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Hercules, Inc. company guaranty 6 3/4s,
      2029</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >180,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >171,000</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Huntsman, LLC company guaranty 11 5/8s,
      2010</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >97,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >107,670</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Huntsman, LLC company guaranty 11 1/2s,
      2012</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >53,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >60,288</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Ineos Group Holdings PLC 144A bonds 7
      7/8s, 2016</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   >&nbsp; </TD>
    <TD noWrap align=left width="9%"
   >&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >(United Kingdom)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   ><FONT face=sans-serif size=2
     >EUR</FONT>&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >150,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >184,554</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Innophos, Inc. company guaranty 8 7/8s,
      2014</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >$425,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >432,438</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Invista 144A notes 9 1/4s,
      2012</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >60,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >63,600</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Ispat Inland ULC sec. notes 9 3/4s,
      2014</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >300,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >335,625</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Jefferson Smurfit Corp. company
      guaranty 8 1/4s, 2012</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >24,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >22,560</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Jefferson Smurfit Corp. company
      guaranty 7 1/2s, 2013</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >150,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >135,000</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >JSG Holding PLC 144A sr. notes 11 1/2s,
      2015 (Ireland)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   >&nbsp; </TD>
    <TD noWrap align=left width="9%"
   >&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >(PIK)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   ><FONT face=sans-serif size=2
     >EUR</FONT>&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >118,138</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >156,656</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Lyondell Chemical Co. company guaranty
      10 1/2s, 2013</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >$290,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >324,800</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >MDP Acquisitions PLC sr. notes 9 5/8s,
      2012 (Ireland)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >310,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >323,175</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Metals USA, Inc. 144A sec. notes 11
      1/8s, 2015</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >160,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >178,400</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Nalco Co. sr. sub. notes 9s,
      2013</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   ><FONT face=sans-serif size=2
     >EUR</FONT>&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >190,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >262,562</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Nalco Co. sr. sub. notes 8 7/8s,
      2013</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >$180,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >185,175</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Nell AF S.a.r.l. 144A sr. notes 8 3/8s,
      2015</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   >&nbsp; </TD>
    <TD noWrap align=left width="9%"
   >&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >(Luxembourg)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >265,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >261,688</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Nell AF S.a.r.l. 144A sr. notes 8 3/8s,
      2015</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   >&nbsp; </TD>
    <TD noWrap align=left width="9%"
   >&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >(Luxembourg)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   ><FONT face=sans-serif size=2
     >EUR</FONT>&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >50,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >65,339</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >NewPage Corp. sec. notes 10s,
      2012</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >$325,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >343,688</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Norske Skog Canada, Ltd. sr. notes 7
      3/8s, 2014</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   >&nbsp; </TD>
    <TD noWrap align=left width="9%"
   >&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >(Canada)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >280,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >257,600</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Novelis, Inc. 144A sr. notes 7 3/4s,
      2015</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >605,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >577,775</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >PCI Chemicals Canada sec. sr. notes
      10s, 2008 (Canada)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >98,714</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >103,033</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >PQ Corp. 144A company guaranty 7 3/4s,
      2013</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >265,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >255,394</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Rockwood Specialties Group, Inc.
      company guaranty 7</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   >&nbsp; </TD>
    <TD noWrap align=left width="9%"
   >&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >5/8s, 2014</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   ><FONT face=sans-serif size=2
     >EUR</FONT>&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >310,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >407,840</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Smurfit Capital Funding PLC debs. 7
      1/2s, 2025</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   >&nbsp; </TD>
    <TD noWrap align=left width="9%"
   >&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >(Ireland)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >$90,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >83,250</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Steel Dynamics, Inc. company guaranty 9
      1/2s, 2009</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >180,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >187,650</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Sterling Chemicals, Inc. sec. notes
      10s, 2007 (PIK)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >17,046</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >16,279</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Stone Container Corp. sr. notes 9 3/4s,
      2011</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >285,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >294,263</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Stone Container Finance company
      guaranty 7 3/8s, 2014</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   >&nbsp; </TD>
    <TD noWrap align=left width="9%"
   >&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >(Canada)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >115,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >102,925</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Ucar Finance, Inc. company guaranty 10
      1/4s, 2012</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >120,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >127,800</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >United States Steel Corp. sr. notes 9
      3/4s, 2010</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >154,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >165,550</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Wheeling-Pittsburgh Steel Corp. sr.
      notes Ser. B, 6s,</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   >&nbsp; </TD>
    <TD noWrap align=left width="9%"
   >&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >2010 (PIK)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >12,983</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >10,257</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Wheeling-Pittsburgh Steel Corp. sr.
      notes Ser. A, 5s,</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   >&nbsp; </TD>
    <TD noWrap align=left width="9%"
   >&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >2011 (PIK)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >23,486</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >18,554</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   >&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   >&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><B><FONT face=sans-serif size=2
     >9,836,038</FONT></B>&nbsp;
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=4>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=4
     >&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><B><FONT face=sans-serif size=2
     >Capital Goods
      (4.4%)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   >&nbsp; </TD>
    <TD noWrap align=left width="9%"
   >&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Aero Invest 1 SA 144A company guaranty
      FRN 11.269s,</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   >&nbsp; </TD>
    <TD noWrap align=left width="9%"
   >&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >2015 (Luxembourg) (PIK)</FONT>&nbsp;
</TD>
    <TD noWrap align=left width="24%"
   ><FONT face=sans-serif size=2
     >EUR</FONT>&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >389,647</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >516,988</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Alliant Techsystems, Inc. sr. sub.
      notes 6 3/4s, 2016</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >$315,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >309,094</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Allied Waste North America, Inc.
      company guaranty Ser.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   >&nbsp; </TD>
    <TD noWrap align=left width="9%"
   >&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >B, 8 1/2s, 2008</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >333,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >350,483</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Allied Waste North America, Inc. sec.
      notes Ser. B, 5</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   >&nbsp; </TD>
    <TD noWrap align=left width="9%"
   >&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >3/4s, 2011</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >30,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >28,350</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Amsted Industries, Inc. 144A sr. notes
      10 1/4s, 2011</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >475,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >513,000</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Argo-Tech Corp. sr. notes 9 1/4s,
      2011</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >165,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >173,250</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Blount, Inc. sr. sub. notes 8 7/8s,
      2012</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >200,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >206,000</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Browning-Ferris Industries, Inc. debs.
      7.4s, 2035</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >65,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >59,150</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Browning-Ferris Industries, Inc. sr.
      notes 6 3/8s, 2008</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >140,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >140,000</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Crown Americas, LLC/Crown Americas
      Capital Corp. 144A</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   >&nbsp; </TD>
    <TD noWrap align=left width="9%"
   >&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >sr. notes 7 5/8s, 2013</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >340,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >341,700</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"
   ><FONT face=sans-serif size=2
     >Crown Cork &amp; Seal Co., Inc. debs.
      8s, 2023</FONT>&nbsp; </TD>
    <TD noWrap align=left width="24%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >150,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"
   ><FONT face=sans-serif size=2
     >143,250</FONT>&nbsp;
</TD></TR></TABLE><BR>
<HR align=center width="100%" noShade SIZE=2>


<!--$$/page=-->
<A name="page_2"></A>

<TABLE border=0 width=85% cellspacing=1 cellpadding=0>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Decrane Aircraft Holdings Co. company guaranty zero %,</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">2008 (acquired 7/23/04, cost &#36;78,000) (RES)</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">238,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">166,600</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Earle M. Jorgensen Co. sec. notes 9 3/4s, 2012</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">414,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">442,980</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Graham Packaging Co., Inc. company guaranty 8 1/2s,</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">2012</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">35,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">35,350</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Graham Packaging Co., Inc. sub. notes 9 7/8s, 2014</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">195,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">198,900</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Greenbrier Cos., Inc. company guaranty 8 3/8s, 2015</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">300,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">309,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Hexcel Corp. sr. sub. notes 6 3/4s, 2015</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">20,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">19,300</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Invensys PLC 144A notes 9 7/8s, 2011 (United Kingdom)</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">15,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">16,275</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">K&amp;F Acquisitions, Inc. company guaranty 7 3/4s, 2014</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">160,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">162,400</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">L-3 Communications Corp. company guaranty 7 5/8s, 2012</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">100,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">102,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">L-3 Communications Corp. company guaranty 6 1/8s, 2013</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">80,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">75,400</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">L-3 Communications Corp. sr. sub. notes Class B, 6</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">3/8s, 2015</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">215,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">203,175</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Legrand SA debs. 8 1/2s, 2025 (France)</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">405,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">475,875</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Manitowoc Co., Inc. (The) company guaranty 10 1/2s,</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">2012</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">139,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">151,163</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Manitowoc Co., Inc. (The) sr. notes 7 1/8s, 2013</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">155,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">158,100</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Milacron Escrow Corp. sec. notes 11 1/2s, 2011</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">320,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">301,600</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Mueller Group, Inc. sr. sub. notes 10s, 2012</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">230,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">251,275</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Owens Brockway Glass Container Inc. company guaranty 6</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">3/4s, 2014</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
<FONT size=2 face="sans-serif">EUR</FONT>&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">180,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">232,099</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Owens-Brockway Glass company guaranty 8 7/8s, 2009</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">&#36;5,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">5,169</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Owens-Brockway Glass company guaranty 8 1/4s, 2013</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">240,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">242,400</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Owens-Brockway Glass company guaranty 7 3/4s, 2011</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">55,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">55,688</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Owens-Brockway Glass sr. sec. notes 8 3/4s, 2012</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">157,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">166,028</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Owens-Illinois, Inc. debs. 7.8s, 2018</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">55,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">52,938</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Ray Acquisition SCA sr. notes 9 3/8s, 2015 (France)</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
<FONT size=2 face="sans-serif">EUR</FONT>&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">275,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">375,610</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Siebe PLC 144A sr. unsub. 6 1/2s, 2010 (United Kingdom)</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">&#36;195,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">200,491</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Solo Cup Co. sr. sub. notes 8 1/2s, 2014</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">380,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">342,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">TD Funding Corp. company guaranty 8 3/8s, 2011</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">310,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">329,375</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Tekni-Plex, Inc. 144A sec. notes 10 7/8s, 2012</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">320,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">356,800</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Terex Corp. company guaranty 9 1/4s, 2011</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">40,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">42,300</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Terex Corp. company guaranty 7 3/8s, 2014</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">24,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">24,060</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Terex Corp. company guaranty Ser. B, 10 3/8s, 2011</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">82,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">86,510</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<B><FONT size=2 face="sans-serif">8,362,126</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=4>
<HR noshade size=1>
	</TD>
</TR>
<TR>
	<TD colspan=4>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<B><FONT size=2 face="sans-serif">Communication Services (3.3%)</FONT></B>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">American Cellular Corp. company guaranty 9 1/2s, 2009</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">45,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">46,294</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">American Cellular Corp. sr. notes Ser. B, 10s, 2011</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">420,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">450,975</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">American Tower Corp. sr. notes 7 1/2s, 2012</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">90,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">91,800</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">American Towers, Inc. company guaranty 7 1/4s, 2011</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">165,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">168,713</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Centennial Cellular Operating Co., LLC company</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">guaranty 10 1/8s, 2013</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">90,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">96,975</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Centennial Communications Corp. sr. notes 10s, 2013</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">145,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">150,075</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Centennial Communications Corp. sr. notes FRN 10.74s,</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">2013</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">40,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">41,700</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Cincinnati Bell Telephone company guaranty 6.3s, 2028</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">35,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">30,275</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Cincinnati Bell, Inc. company guaranty 7s, 2015</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">80,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">77,400</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Cincinnati Bell, Inc. sr. sub. notes 8 3/8s, 2014</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">25,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">25,250</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Cincinnati Bell, Inc. unsub. notes 7 1/4s, 2023</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">80,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">76,200</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Citizens Communications Co. notes 9 1/4s, 2011</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">240,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">260,700</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Citizens Communications Co. sr. notes 6 1/4s, 2013</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">205,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">195,775</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Digicel, Ltd. 144A sr. notes 9 1/4s, 2012 (Jamaica)</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">165,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">173,250</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Dobson Cellular Systems sec. notes 9 7/8s, 2012</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">160,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">172,800</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Dobson Communications Corp. sr. notes FRN 9.318s, 2012</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">75,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">75,750</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Eircom Funding company guaranty Ser. US&#36;, 8 1/4s, 2013</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">(Ireland)</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">60,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">64,350</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Horizon PCS, Inc. company guaranty 11 3/8s, 2012</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">40,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">45,400</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Inmarsat Finance PLC company guaranty 7 5/8s, 2012</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">(United Kingdom)</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">150,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">153,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Inmarsat Finance PLC company guaranty stepped-coupon</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">zero % (10 3/8s, 10/15/08), 2012 (United Kingdom) (STP)</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">230,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">196,075</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Intelsat Subsidiary Holding Co., Ltd. company guaranty</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">8 7/8s, 2015 (Bermuda)</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">210,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">212,625</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Intelsat Subsidiary Holding Co., Ltd. sr. notes 8</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">1/2s, 2013 (Bermuda)</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">100,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">100,375</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">iPCS, Inc. sr. notes 11 1/2s, 2012</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">70,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">79,800</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">IWO Holdings, Inc. sec. FRN 8.818s, 2012</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">25,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">25,938</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Madison River Capital Corp. sr. notes 13 1/4s, 2010</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">41,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">42,845</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Nordic Telephone Co. Holdings ApS 144A sr. notes 8</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">7/8s, 2016 (Denmark)</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">75,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">77,438</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">PanAmSat Corp. company guaranty 9s, 2014</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">335,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">347,563</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Qwest Communications International, Inc. company</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">guaranty 7 1/2s, 2014</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">540,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">537,300</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Qwest Corp. debs. 7 1/4s, 2025</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">65,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">62,238</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Qwest Corp. notes 8 7/8s, 2012</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">430,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">461,175</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Qwest Corp. sr. notes 7 5/8s, 2015</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">150,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">152,625</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Rogers Cantel, Inc. debs. 9 3/4s, 2016 (Canada)</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">240,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">279,600</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Rogers Wireless, Inc. sec. notes 9 5/8s, 2011 (Canada)</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">265,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">291,831</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Rogers Wireless, Inc. sec. notes 6 3/8s, 2014 (Canada)</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">330,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">320,100</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Rural Cellular Corp. sr. notes 9 7/8s, 2010</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">150,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">157,875</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Rural Cellular Corp. sr. sub. notes 9 3/4s, 2010</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">70,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">70,700</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Rural Cellular Corp. 144A sr. sub. notes FRN 10.899s,</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">2012</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">50,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">52,125</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Syniverse Technologies, Inc. sr. sub. notes Ser. B, 7</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">3/4s, 2013</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">175,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">174,563</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Time Warner Telecom, Inc. company guaranty 9 1/4s, 2014</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">240,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">255,900</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Valor Telecommunications Enterprises, LLC/Finance</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Corp. company guaranty 7 3/4s, 2015</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">75,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">77,250</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<B><FONT size=2 face="sans-serif">6,372,623</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=4>
<HR noshade size=1>
	</TD>
</TR>
<TR>
	<TD colspan=4>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<B><FONT size=2 face="sans-serif">Consumer Cyclicals (10.2%)</FONT></B>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Affinion Group, Inc. 144A bonds 11 1/2s, 2015</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">135,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">137,363</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Affinion Group, Inc. 144A company guaranty 10 1/8s,</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">2013</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">525,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">543,375</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">American Media, Inc. company guaranty Ser. B, 10 1/4s,</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">2009</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">335,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">309,038</FONT>&nbsp;
	</TD>
</TR>
</TABLE><BR>

<HR noshade align="center" width="100%" size=2>



<!--$$/page=-->
<A name="page_3"></A>

<TABLE border=0 width=85% cellspacing=1 cellpadding=0>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">AMR Holding Co., Inc./EmCare Holding Co., Inc. sr.</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">sub. notes 10s, 2015</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">110,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">117,150</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">ArvinMeritor, Inc. notes 8 3/4s, 2012</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">85,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">85,425</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">ArvinMeritor, Inc. sr. unsecd. notes 8 1/8s, 2015</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">75,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">72,188</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Asbury Automotive Group, Inc. sr. sub. notes 8s, 2014</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">105,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">104,475</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Ashton Woods USA LLC/Ashton Woods Finance Co. sr. sub.</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">notes 9 1/2s, 2015</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">100,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">92,250</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Associated Materials, Inc. company guaranty 9 3/4s,</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">2012</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">350,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">362,250</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Autonation, Inc. 144A company guaranty 7s, 2014</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">40,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">39,800</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Autonation, Inc. 144A company guaranty FRB 7.045s, 2013</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">55,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">55,550</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Avis Budget Care Rental, LLC 144A sr. notes 7 3/4s,</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">2016</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">150,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">151,125</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Beazer Homes USA, Inc. company guaranty 8 5/8s, 2011</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">95,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">99,038</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Bon-Ton Stores Inc.(The) 144A sr. notes 10 1/4s, 2014</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">280,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">261,800</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Boyd Gaming Corp. sr. sub. notes 8 3/4s, 2012</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">30,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">31,725</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Boyd Gaming Corp. sr. sub. notes 7 3/4s, 2012</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">25,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">25,563</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Boyd Gaming Corp. sr. sub. notes 7 1/8s, 2016</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">195,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">191,588</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Boyd Gaming Corp. sr. sub. notes 6 3/4s, 2014</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">290,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">279,850</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Building Materials Corp. company guaranty 8s, 2008</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">70,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">70,875</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">CanWest Media, Inc. company guaranty 8s, 2012 (Canada)</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">231,394</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">233,129</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Cenveo Corp, sr. sub. notes 7 7/8s, 2013</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">189,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">182,385</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Delco Remy International, Inc. company guaranty 11s,</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">2009</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">4,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">2,340</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Dex Media West, LLC/Dex Media Finance Co. sr. notes</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Ser. B, 8 1/2s, 2010</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">245,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">253,575</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Dex Media, Inc. disc. notes stepped-coupon zero % (9s,</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">11/15/08), 2013 (STP)</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">115,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">96,600</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Dex Media, Inc. notes 8s, 2013</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">85,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">86,063</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">FelCor Lodging LP company guaranty 8 1/2s, 2008 (R)</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">100,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">107,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Ford Motor Co. notes 7.45s, 2031</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">340,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">246,500</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Ford Motor Credit Corp. bonds 7 3/8s, 2011</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">90,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">80,825</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Ford Motor Credit Corp. notes 7 7/8s, 2010</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">930,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">858,042</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Ford Motor Credit Corp. notes 7 3/8s, 2009</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">190,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">175,006</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Ford Motor Credit Corp. notes 6 1/2s, 2007</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">265,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">264,849</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">General Motors Acceptance Corp. notes 7 3/4s, 2010</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">555,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">543,749</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">General Motors Acceptance Corp. notes 6 7/8s, 2012</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">520,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">483,357</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">General Motors Acceptance Corp. notes 6 3/4s, 2014</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">375,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">340,410</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">General Motors Acceptance Corp. notes 5 1/8s, 2008</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">135,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">127,867</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">General Motors Acceptance Corp. sr. unsub. notes</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">5.85s, 2009</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">270,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">254,815</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Goodman Global Holding Co., Inc. sr. notes FRN Ser. B,</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">7.491s, 2012</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">39,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">39,488</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Goodman Global Holding Co., Inc. sr. sub. notes 7</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">7/8s, 2012</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">115,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">112,700</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Goodyear Tire &amp; Rubber Co. (The) notes 8 1/2s, 2007</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">60,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">60,450</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Goodyear Tire &amp; Rubber Co. (The) notes 7.857s, 2011</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">60,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">58,050</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Goodyear Tire &amp; Rubber Co. (The) sr. notes 9s, 2015</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">420,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">427,350</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Harry &amp; David Holdings, Inc. company guaranty 9s, 2013</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">75,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">69,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Hertz Corp. 144A sr. notes 8 7/8s, 2014</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">185,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">192,400</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Host Marriott LP sr. notes Ser. M, 7s, 2012 (R)</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">215,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">215,538</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Houghton Mifflin Co. sr. sub. notes 9 7/8s, 2013</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">405,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">427,275</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">iPayment, Inc. 144A sr. sub. notes 9 3/4s, 2014</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">75,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">75,188</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Jacuzzi Brands, Inc. sec. notes 9 5/8s, 2010</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">100,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">107,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Jostens IH Corp. company guaranty 7 5/8s, 2012</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">500,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">491,250</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">K. Hovnanian Enterprises, Inc. company guaranty 8</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">7/8s, 2012</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">130,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">133,900</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">K. Hovnanian Enterprises, Inc. sr. notes 6 1/2s, 2014</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">25,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">22,963</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">KB Home sr. sub. notes 9 1/2s, 2011</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">2,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">2,095</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Lamar Media Corp. company guaranty 7 1/4s, 2013</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">130,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">128,863</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Lear Corp. company guaranty Ser. B, 8.11s, 2009</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">145,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">141,375</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Lear Corp. sr. notes 8 1/8s, 2008</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
<FONT size=2 face="sans-serif">EUR</FONT>&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">35,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">45,894</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Levi Strauss &amp; Co. sr. notes 9 3/4s, 2015</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">&#36;253,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">261,223</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Levi Strauss &amp; Co. 144A sr. notes 8 7/8s, 2016</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">145,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">142,463</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Mail-Well I Corp. company guaranty 9 5/8s, 2012</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">180,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">192,150</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Meritage Homes Corp. company guaranty 6 1/4s, 2015</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">75,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">66,375</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Meritor Automotive, Inc. notes 6.8s, 2009</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">26,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">25,350</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">MGM Mirage, Inc. company guaranty 8 1/2s, 2010</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">95,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">100,225</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">MGM Mirage, Inc. company guaranty 6s, 2009</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">280,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">276,150</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">MGM Mirage, Inc. sr. notes 6 3/4s, 2012</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">2,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">1,965</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Mirage Resorts, Inc. debs. 7 1/4s, 2017</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">55,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">54,175</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Movie Gallery, Inc. sr. unsecd. notes 11s, 2012</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">70,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">53,200</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Neiman-Marcus Group, Inc. 144A sr. notes 9s, 2015</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">450,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">468,563</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">NTK Holdings, Inc. sr. disc. notes zero %, 2014</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">335,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">252,925</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Oxford Industries, Inc. sr. notes 8 7/8s, 2011</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">100,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">102,500</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Park Place Entertainment Corp. sr. notes 7s, 2013</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">165,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">169,984</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Park Place Entertainment Corp. sr. sub. notes 7 7/8s,</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">2010</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">278,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">291,205</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Penn National Gaming, Inc. sr. sub. notes 6 3/4s, 2015</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">65,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">62,156</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Pinnacle Entertainment, Inc. sr. sub. notes 8 1/4s,</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">2012</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">175,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">177,625</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Ply Gem Industries, Inc. sr. sub. notes 9s, 2012</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">40,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">37,700</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">PRIMEDIA, Inc. sr. notes 8s, 2013</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">330,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">297,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">R.H. Donnelley Corp. sr. notes 6 7/8s, 2013</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">85,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">77,988</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">R.H. Donnelley Corp. 144A sr. disc. notes 6 7/8s, 2013</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">70,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">64,050</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">R.H. Donnelley Corp. 144A sr. disc. notes Ser. A-2, 6</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">7/8s, 2013</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">145,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">132,675</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">R.H. Donnelley Corp. 144A sr. notes Ser. A-3, 8 7/8s,</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">2016</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">195,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">196,463</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Reader's Digest Association, Inc. (The) sr. notes 6</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">1/2s, 2011</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">440,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">427,900</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Resorts International Hotel and Casino, Inc. company</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">guaranty 11 1/2s, 2009</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">158,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">172,220</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Samsonite Corp. sr. sub. notes 8 7/8s, 2011</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">335,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">349,238</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Schuler Homes, Inc. company guaranty 10 1/2s, 2011</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">104,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">109,850</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Scientific Games Corp. company guaranty 6 1/4s, 2012</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">175,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">168,438</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Sealy Mattress Co. sr. sub. notes 8 1/4s, 2014</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">260,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">270,400</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Standard Pacific Corp. sr. notes 7s, 2015</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">115,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">104,075</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">Starwood Hotels &amp; Resorts Worldwide, Inc. company</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=51% nowrap align=left>
<FONT size=2 face="sans-serif">guaranty 7 7/8s, 2012</FONT>&nbsp;
	</TD>
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=14% nowrap align=left>
<FONT size=2 face="sans-serif">95,000</FONT>&nbsp;
	</TD>
	<TD width=8% nowrap align=left>
<FONT size=2 face="sans-serif">100,463</FONT>&nbsp;
	</TD>
</TR>
</TABLE><BR>

<HR noshade align="center" width="100%" size=2>



<!--$$/page=-->
<A name="page_4"></A>

<TABLE border=0 width=85% cellspacing=1 cellpadding=0>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Starwood Hotels &amp; Resorts Worldwide, Inc. debs. 7</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">3/8s, 2015</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">120,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">123,300</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Station Casinos, Inc. sr. notes 6s, 2012</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">383,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">366,723</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Station Casinos, Inc. sr. sub. notes 6 7/8s, 2016</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">120,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">115,950</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Technical Olympic USA, Inc. company guaranty 10 3/8s,</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">2012</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">75,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">76,125</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Tenneco Automotive, Inc. company guaranty 8 5/8s, 2014</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">175,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">175,875</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Tenneco Automotive, Inc. sec. notes Ser. B, 10 1/4s,</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">2013</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">275,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">302,500</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Texas Industries, Inc. sr. unsecd. notes 7 1/4s, 2013</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">300,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">306,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">THL Buildco, Inc. (Nortek Holdings, Inc.) sr. sub.</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">notes 8 1/2s, 2014</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">460,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">462,300</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Trump Entertainment Resorts, Inc. sec. notes 8 1/2s,</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">2015</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">345,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">338,100</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">TRW Automotive Inc. sr. notes 9 3/8s, 2013</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">245,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">263,988</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">TRW Automotive Inc. sr. sub. notes 11s, 2013</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">185,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">204,888</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">United Auto Group, Inc. company guaranty 9 5/8s, 2012</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">275,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">290,469</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Vertis, Inc. company guaranty Ser. B, 10 7/8s, 2009</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">446,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">437,638</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Vertis, Inc. 144A sub. notes 13 1/2s, 2009</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">160,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">129,600</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">WCI Communities, Inc. company guaranty 9 1/8s, 2012</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">201,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">196,226</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Wynn Las Vegas, LLC/Wynn Las Vegas Capital Corp. 1st</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">mtge. 6 5/8s, 2014</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">365,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">346,294</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<B><FONT size=2 face="sans-serif">19,460,389</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=3>
<HR noshade size=1>
	</TD>
</TR>
<TR>
	<TD colspan=3>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<B><FONT size=2 face="sans-serif">Consumer Staples (6.6%)</FONT></B>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Adelphia Communications Corp. sr. notes 10 7/8s, 2010</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">(In default) (NON)</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">20,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">9,350</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Adelphia Communications Corp. sr. notes Ser. B, 9</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">7/8s, 2007 (In default) (NON)</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">235,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">110,450</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Affinity Group, Inc. sr. sub. notes 9s, 2012</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">360,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">356,400</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">AMC Entertainment, Inc. sr. sub. notes 8s, 2014</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">29,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">27,043</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">AMC Entertainment, Inc. 144A company guaranty 11s, 2016</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">125,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">135,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Ashtead Holdings PLC 144A sr. notes 8 5/8s, 2015</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">(United Kingdom)</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">75,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">76,500</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Atlantic Broadband Finance, LLC company guaranty 9</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">3/8s, 2014</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">285,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">272,175</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Brand Services, Inc. company guaranty 12s, 2012</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">309,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">352,260</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Burlington Coat Factory Warehouse Corp. 144A sr. notes</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">11 1/8s, 2014</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">195,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">191,344</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Cablevision Systems Corp. sr. notes Ser. B, 8s, 2012</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">100,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">99,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">CCH I, LLC secd. notes 11s, 2015</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">692,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">589,930</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">CCH II 144A sr. notes 10 1/4s, 2010</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">430,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">427,850</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">CCH, LLC/Capital Corp. sr. notes 10 1/4s, 2010</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">280,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">279,300</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Church &amp; Dwight Co., Inc. company guaranty 6s, 2012</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">130,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">123,500</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Cinemark USA, Inc. sr. sub. notes 9s, 2013</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">80,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">85,200</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Cinemark, Inc. sr. disc. notes stepped-coupon zero %</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">(9 3/4s, 3/15/09), 2014 (STP)</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">325,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">254,719</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Constellation Brands, Inc. company guaranty Ser. B,</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">8s, 2008</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">115,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">117,875</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Constellation Brands, Inc. sr. sub. notes Ser. B, 8</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">1/8s, 2012</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">10,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">10,350</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">CSC Holdings, Inc. debs. 7 5/8s, 2018</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">50,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">49,750</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">CSC Holdings, Inc. debs. Ser. B, 8 1/8s, 2009</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">3,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">3,075</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">CSC Holdings, Inc. sr. notes Ser. B, 7 5/8s, 2011</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">255,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">256,275</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">CSC Holdings, Inc. sr. sub. debs. 10 1/2s, 2016</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">130,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">136,825</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">CSC Holdings, Inc. 144A sr. notes 7 1/4s, 2012</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">205,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">200,644</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Dean Foods Co. company guaranty 7s, 2016</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">240,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">235,200</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Dean Foods Co. sr. notes 6 5/8s, 2009</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">215,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">215,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Del Monte Corp. company guaranty 6 3/4s, 2015</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">105,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">99,488</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Del Monte Corp. sr. sub. notes 8 5/8s, 2012</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">270,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">281,475</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">DirecTV Holdings, LLC company guaranty 6 3/8s, 2015</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">690,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">648,600</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">DirecTV Holdings, LLC sr. notes 8 3/8s, 2013</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">185,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">195,869</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Doane Pet Care Co. sr. sub. notes 10 5/8s, 2015</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">350,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">435,166</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Domino's, Inc. sr. sub. notes 8 1/4s, 2011</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">106,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">109,180</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Echostar DBS Corp. company guaranty 6 5/8s, 2014</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">210,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">198,450</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Echostar DBS Corp. sr. notes 6 3/8s, 2011</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">500,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">480,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Elizabeth Arden, Inc. company guaranty 7 3/4s, 2014</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">155,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">155,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Gray Television, Inc. company guaranty 9 1/4s, 2011</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">87,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">91,350</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Jean Coutu Group, Inc. sr. notes 7 5/8s, 2012 (Canada)</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">150,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">145,875</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Jean Coutu Group, Inc. sr. sub. notes 8 1/2s, 2014</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">(Canada)</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">75,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">69,750</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">LIN Television Corp. company guaranty Ser. B, 6 1/2s,</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">2013</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">205,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">190,138</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">LIN Television Corp. sr. sub. notes 6 1/2s, 2013</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">165,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">153,038</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Marquee Holdings, Inc. sr. disc. notes stepped-coupon</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">zero % (12s, 8/15/09), 2014 (STP)</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">185,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">131,813</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Nutro Products, Inc. 144A sr. notes FRN 9.23s, 2013</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">80,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">81,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Paxson Communications Corp. 144A sec. FRN 11.318s, 2013</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">95,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">96,069</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Paxson Communications Corp. 144A sr. sec. notes FRN</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">8.318s, 2012</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">120,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">122,400</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Pinnacle Foods Holding Corp. sr. sub. notes 8 1/4s,</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">2013</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">375,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">368,438</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Playtex Products, Inc. sec. notes 8s, 2011</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">400,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">419,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Prestige Brands, Inc. sr. sub. notes 9 1/4s, 2012</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">342,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">343,710</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Rainbow National Services, LLC 144A sr. notes 8 3/4s,</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">2012</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">205,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">217,300</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Rainbow National Services, LLC 144A sr. sub. debs. 10</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">3/8s, 2014</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">200,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">223,500</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Remington Arms Co., Inc. company guaranty 10 1/2s, 2011</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">230,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">195,500</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Rite Aid Corp. company guaranty 9 1/2s, 2011</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">130,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">135,850</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Rite Aid Corp. company guaranty 7 1/2s, 2015</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">105,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">102,375</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Sbarro, Inc. company guaranty 11s, 2009</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">210,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">212,100</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Scotts Co. (The) sr. sub. notes 6 5/8s, 2013</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">55,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">53,900</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Sirius Satellite Radio, Inc. sr. unsecd. notes 9 5/8s,</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">2013</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">180,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">170,100</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Six Flags, Inc. sr. notes 8 7/8s, 2010</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">138,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">136,965</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Spectrum Brands, Inc. company guaranty 7 3/8s, 2015</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">445,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">361,563</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Spectrum Brands, Inc. sr. sub. notes 8 1/2s, 2013</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">100,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">87,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">United Rentals NA, Inc. company guaranty 6 1/2s, 2012</FONT>&nbsp;
	</TD>
	<TD width=31% nowrap align=left>
<FONT size=2 face="sans-serif">105,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">100,800</FONT>&nbsp;
	</TD>
</TR>
</TABLE><BR>

<HR noshade align="center" width="100%" size=2>



<!--$$/page=-->
<A name="page_5"></A>

<TABLE border=0 width=85% cellspacing=1 cellpadding=0>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">United Rentals NA, Inc. sr. sub. notes 7 3/4s, 2013</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">24,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">23,520</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">United Rentals NA, Inc. sr. sub. notes 7s, 2014</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">230,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">216,200</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Universal City Florida Holding Co. sr. notes 8 3/8s,</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">2010</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">290,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">295,800</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Universal City Florida Holding Co. sr. notes FRN</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">9.899s, 2010</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">107,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">110,478</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Warner Music Group sr. sub. notes 7 3/8s, 2014</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">125,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">123,750</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Young Broadcasting, Inc. company guaranty 10s, 2011</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">374,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">338,470</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Young Broadcasting, Inc. sr. sub. notes 8 3/4s, 2014</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">85,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">71,400</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<B><FONT size=2 face="sans-serif">12,607,395</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=3>
<HR noshade size=1>
	</TD>
</TR>
<TR>
	<TD colspan=3>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<B><FONT size=2 face="sans-serif">Energy (3.6%)</FONT></B>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Arch Western Finance, LLC sr. notes 6 3/4s, 2013</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">340,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">329,800</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Bluewater Finance, Ltd. company guaranty 10 1/4s, 2012</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">(Cayman Islands)</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">92,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">95,220</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Chaparral Energy, Inc. 144A sr. notes 8 1/2s, 2015</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">145,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">146,813</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">CHC Helicopter Corp. sr. sub. notes 7 3/8s, 2014</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">(Canada)</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">240,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">235,200</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Chesapeake Energy Corp. company guaranty 7 3/4s, 2015</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">60,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">61,350</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Chesapeake Energy Corp. sr. notes 7 1/2s, 2013</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">190,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">194,275</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Chesapeake Energy Corp. sr. notes 7s, 2014</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">250,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">249,063</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Compton Petroleum Corp. company guaranty 7 5/8s, 2013</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">(Canada)</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">195,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">190,125</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Comstock Resources, Inc. sr. notes 6 7/8s, 2012</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">120,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">115,500</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Delta Petroleum Corp. company guaranty 7s, 2015</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">485,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">443,775</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Denbury Resources, Inc. sr. sub. notes 7 1/2s, 2015</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">100,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">101,250</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Dresser-Rand Group, Inc. company guaranty 7 3/8s, 2014</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">27,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">27,135</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Encore Acquisition Co. sr. sub. notes 6 1/4s, 2014</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">60,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">55,050</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Encore Acquisition Co. sr. sub. notes 6s, 2015</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">213,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">190,103</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">EXCO Resources, Inc. company guaranty 7 1/4s, 2011</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">235,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">229,125</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Forest Oil Corp. company guaranty 7 3/4s, 2014</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">100,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">102,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Forest Oil Corp. sr. notes 8s, 2011</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">135,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">140,063</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Forest Oil Corp. sr. notes 8s, 2008</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">94,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">95,880</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Hanover Compressor Co. sr. notes 9s, 2014</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">90,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">95,625</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Hanover Compressor Co. sr. notes 8 5/8s, 2010</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">60,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">61,800</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Hanover Equipment Trust sec. notes Ser. B, 8 3/4s, 2011</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">40,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">41,600</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Harvest Operations Corp. sr. notes 7 7/8s, 2011</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">(Canada)</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">365,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">356,788</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Inergy LP/Inergy Finance Corp. sr. notes 6 7/8s, 2014</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">485,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">457,113</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">KCS Energy, Inc. sr. notes 7 1/8s, 2012</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">85,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">85,213</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Massey Energy Co. sr. notes 6 5/8s, 2010</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">335,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">335,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Newfield Exploration Co. sr. notes 7 5/8s, 2011</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">150,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">153,750</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Newfield Exploration Co. sr. sub. notes 6 5/8s, 2014</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">210,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">201,075</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Pacific Energy Partners/Pacific Energy Finance Corp.</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">sr. notes 7 1/8s, 2014</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">95,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">94,763</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Peabody Energy Corp. sr. notes 5 7/8s, 2016</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">180,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">168,750</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Plains Exploration &amp; Production Co. sr. notes 7 1/8s,</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">2014</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">205,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">202,438</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Plains Exploration &amp; Production Co. sr. sub. notes 8</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">3/4s, 2012</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">190,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">198,550</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Pogo Producing Co. sr. sub. notes 6 7/8s, 2017</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">185,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">174,825</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Pride International, Inc. sr. notes 7 3/8s, 2014</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">400,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">409,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Quicksilver Resources, Inc. company guaranty 7 1/8s,</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">2016</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">135,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">128,925</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Stone Energy Corp. sr. sub. notes 6 3/4s, 2014</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">210,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">210,525</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Whiting Petroleum Corp. company guaranty 7s, 2014</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">575,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">554,875</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<B><FONT size=2 face="sans-serif">6,932,342</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=3>
<HR noshade size=1>
	</TD>
</TR>
<TR>
	<TD colspan=3>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<B><FONT size=2 face="sans-serif">Financial (0.2%)</FONT></B>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Crescent Real Estate Equities LP notes 7 1/2s, 2007 (R)</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">60,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">60,600</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">E*Trade Finance Corp. sr. notes 8s, 2011</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">230,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">238,050</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Finova Group, Inc. notes 7 1/2s, 2009</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">222,600</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">71,789</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<B><FONT size=2 face="sans-serif">370,439</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=3>
<HR noshade size=1>
	</TD>
</TR>
<TR>
	<TD colspan=3>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<B><FONT size=2 face="sans-serif">Health Care (2.6%)</FONT></B>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Athena Neurosciences Finance, LLC company guaranty 7</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">1/4s, 2008</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">355,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">353,225</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Community Health Systems, Inc. sr. sub. notes 6 1/2s,</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">2012</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">408,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">391,170</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">DaVita, Inc. company guaranty 6 5/8s, 2013</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">290,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">278,763</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">HCA, Inc. debs. 7.19s, 2015</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">82,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">81,304</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">HCA, Inc. notes 6 3/8s, 2015</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">65,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">61,576</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">HCA, Inc. sr. notes 6.95s, 2012</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">70,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">69,345</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">IASIS Healthcare/IASIS Capital Corp. sr. sub. notes 8</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">3/4s, 2014</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">80,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">80,900</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Insight Health Services Corp. company guaranty FRB</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">10.399s, 2011</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">305,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">274,881</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">MedQuest, Inc. company guaranty Ser. B, 11 7/8s, 2012</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">36,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">32,580</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Omnicare, Inc. sr. sub. notes 6 7/8s, 2015</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">95,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">92,150</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Omnicare, Inc. sr. sub. notes 6 1/8s, 2013</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">155,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">146,475</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Psychiatric Solutions, Inc. company guaranty 7 3/4s,</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">2015</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">360,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">362,700</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Select Medical Corp. company guaranty 7 5/8s, 2015</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">290,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">258,825</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Service Corporation International notes 6 1/2s, 2008</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">35,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">34,913</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Service Corporation International notes Ser. *, 7.7s,</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">2009</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">41,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">41,513</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Service Corporation International sr. notes 6 3/4s,</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">2016</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">180,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">168,750</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Service Corporation International 144A sr. notes 7</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">1/4s, 2017</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">65,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">61,750</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Stewart Enterprises, Inc. 144A sr. notes 7 3/4s, 2013</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">340,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">317,900</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Tenet Healthcare Corp. notes 7 3/8s, 2013</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">265,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">245,125</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Tenet Healthcare Corp. sr. notes 9 7/8s, 2014</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">245,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">249,288</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Triad Hospitals, Inc. sr. notes 7s, 2012</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">165,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">163,556</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Triad Hospitals, Inc. sr. sub. notes 7s, 2013</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">300,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">290,625</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">Universal Hospital Services, Inc. sr. notes 10 1/8s,</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=58% nowrap align=left>
<FONT size=2 face="sans-serif">2011 (Canada)</FONT>&nbsp;
	</TD>
	<TD width=32% nowrap align=left>
<FONT size=2 face="sans-serif">100,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">105,000</FONT>&nbsp;
	</TD>
</TR>
</TABLE><BR>

<HR noshade align="center" width="100%" size=2>



<!--$$/page=-->
<A name="page_6"></A>

<TABLE border=0 width=85% cellspacing=1 cellpadding=0>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">US Oncology, Inc. company guaranty 9s, 2012</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">160,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">167,600</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Vanguard Health Holding Co. II, LLC sr. sub. notes 9s,</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">2014</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">395,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">404,875</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Ventas Realty LP/Capital Corp. company guaranty 9s,</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">2012 (R)</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">65,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">71,825</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Ventas Realty LP/Capital Corp. company guaranty 6</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">3/4s, 2010 (R)</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">75,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">75,281</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Ventas Realty LP/Capital Corp. sr. notes 6 5/8s, 2014</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">(R)</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">50,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">48,875</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Ventas Realty LP/Capital Corp. sr. notes 6 1/2s, 2016</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">(R)</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">80,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">77,400</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<B><FONT size=2 face="sans-serif">5,008,170</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=3>
<HR noshade size=1>
	</TD>
</TR>
<TR>
	<TD colspan=3>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<B><FONT size=2 face="sans-serif">Technology (2.1%)</FONT></B>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Advanced Micro Devices, Inc. sr. notes 7 3/4s, 2012</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">168,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">173,460</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Amkor Technologies, Inc. sr. notes 7 3/4s, 2013</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">184,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">167,440</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Amkor Technologies, Inc. sr. unsecd. notes 9 1/4s,</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">2016</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">95,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">91,200</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Avago Technologies Finance 144A sr. notes 10 1/8s,</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">2013 (Singapore)</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">120,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">128,400</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Celestica, Inc. sr. sub. notes 7 7/8s, 2011 (Canada)</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">85,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">85,213</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Celestica, Inc. sr. sub. notes 7 5/8s, 2013 (Canada)</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">145,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">143,913</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Freescale Semiconductor, Inc. sr. notes Ser. B, 7</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">1/8s, 2014</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">210,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">214,200</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Iron Mountain, Inc. company guaranty 8 5/8s, 2013</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">355,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">364,763</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Iron Mountain, Inc. company guaranty 6 5/8s, 2016</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">390,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">362,700</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Lucent Technologies, Inc. debs. 6.45s, 2029</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">225,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">196,031</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Lucent Technologies, Inc. notes 5 1/2s, 2008</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">50,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">48,750</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">New ASAT Finance, Ltd. company guaranty 9 1/4s, 2011</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">(Cayman Islands)</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">90,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">79,200</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Sensata Technologies BV 144A 8s, 2014 (Netherlands)</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">95,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">93,575</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Serena Software, Inc. 144A sr. sub. notes 10 3/8s, 2016</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">40,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">41,800</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Solectron Corp. 144A sr. sub. notes 8s, 2016</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">175,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">175,875</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">SunGard Data Systems, Inc. 144A sr. sub. notes 10</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">1/4s, 2015</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">256,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">267,520</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">SunGard Data Systems, Inc. 144A sr. unsecd. notes 9</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">1/8s, 2013</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">426,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">446,768</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">UGS Corp. company guaranty 10s, 2012</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">350,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">379,750</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Unisys Corp. sr. notes 8s, 2012</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">140,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">131,425</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Xerox Capital Trust I company guaranty 8s, 2027</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">175,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">178,719</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Xerox Corp. company guaranty 9 3/4s, 2009</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">3,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">3,244</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Xerox Corp. sr. notes 7 5/8s, 2013</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">96,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">98,400</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Xerox Corp. sr. notes 6 7/8s, 2011</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">185,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">186,850</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Xerox Corp. sr. notes 6.4s, 2016</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">5,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">4,775</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<B><FONT size=2 face="sans-serif">4,063,971</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=3>
<HR noshade size=1>
	</TD>
</TR>
<TR>
	<TD colspan=3>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<B><FONT size=2 face="sans-serif">Transportation (0.3%)</FONT></B>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">CalAir, LLC/CalAir Capital Corp. company guaranty 8</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">1/8s, 2008</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">230,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">219,650</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Kansas City Southern Railway Co. company guaranty 9</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">1/2s, 2008</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">300,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">314,250</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Kansas City Southern Railway Co. company guaranty 7</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">1/2s, 2009</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">40,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">40,200</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<B><FONT size=2 face="sans-serif">574,100</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=3>
<HR noshade size=1>
	</TD>
</TR>
<TR>
	<TD colspan=3>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<B><FONT size=2 face="sans-serif">Utilities &amp; Power (3.1%)</FONT></B>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">AES Corp. (The) sr. notes 8 7/8s, 2011</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">22,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">23,375</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">AES Corp. (The) sr. notes 8 3/4s, 2008</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">14,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">14,595</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">AES Corp. (The) 144A sec. notes 9s, 2015</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">175,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">188,563</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">AES Corp. (The) 144A sec. notes 8 3/4s, 2013</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">240,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">258,600</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">ANR Pipeline Co. debs. 9 5/8s, 2021</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">180,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">214,368</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">CMS Energy Corp. sr. notes 8.9s, 2008</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">60,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">62,550</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">CMS Energy Corp. sr. notes 8 1/2s, 2011</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">70,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">73,850</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">CMS Energy Corp. sr. notes 7 3/4s, 2010</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">40,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">41,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Colorado Interstate Gas Co. debs. 6.85s, 2037</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">95,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">95,830</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Colorado Interstate Gas Co. sr. notes 5.95s, 2015</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">30,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">28,021</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Copano Energy, LLC. 144A sr. notes 8 1/8s, 2016</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">80,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">82,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Dynegy Holdings, Inc. 144A sr. unsecd. notes 8 3/8s,</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">2016</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">190,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">189,050</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Dynegy-Roseton Danskamme company guaranty Ser. A,</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">7.27s, 2010</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">90,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">91,688</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Dynegy-Roseton Danskamme company guaranty Ser. B,</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">7.67s, 2016</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">125,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">128,594</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Edison Mission Energy 144A sr. notes 7 3/4s, 2016</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">75,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">74,250</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Edison Mission Energy 144A sr. notes 7 1/2s, 2013</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">90,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">89,100</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">El Paso Corp. sr. notes 8.05s, 2030</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">115,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">114,713</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">El Paso Corp. sr. notes 7 3/8s, 2012</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">90,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">90,450</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">El Paso Corp. sr. notes Ser. MTN, 7.8s, 2031</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">85,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">82,981</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">El Paso Natural Gas Co. debs. 8 5/8s, 2022</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">40,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">44,051</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">El Paso Production Holding Co. company guaranty 7</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">3/4s, 2013</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">360,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">367,200</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Ferrellgas LP/Finance sr. notes 8 3/4s, 2012</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">280,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">285,600</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Ferrellgas LP/Finance sr. notes 6 3/4s, 2014</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">155,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">148,413</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Midwest Generation, LLC sec. sr. notes 8 3/4s, 2034</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">280,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">299,600</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Mirant North America, LLC 144A sr. notes 7 3/8s, 2013</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">230,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">227,125</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Mission Energy Holding Co. sec. notes 13 1/2s, 2008</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">155,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">174,956</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Monongahela Power Co. 1st mtge. 6.7s, 2014</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">90,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">93,232</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Nevada Power Co. 2nd mtge. 9s, 2013</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">62,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">67,767</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Northwestern Corp. sec. notes 5 7/8s, 2014</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">465,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">454,737</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">NRG Energy, Inc. sr. notes 7 3/8s, 2016 (acquired</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">1/26/06, cost &#36;480,000)</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">480,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">480,600</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Orion Power Holdings, Inc. sr. notes 12s, 2010</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">125,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">140,938</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">SEMCO Energy, Inc. sr. notes 7 3/4s, 2013</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">110,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">111,740</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">SEMCO Energy, Inc. 144A sr. notes 7 3/4s, 2013</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">145,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">147,356</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Sierra Pacific Power Co. general ref. mtge. 6 1/4s,</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">2012</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">35,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">34,723</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=57% nowrap align=left>
<FONT size=2 face="sans-serif">Sierra Pacific Resources sr. notes 8 5/8s, 2014</FONT>&nbsp;
	</TD>
	<TD width=33% nowrap align=left>
<FONT size=2 face="sans-serif">165,000</FONT>&nbsp;
	</TD>
	<TD width=9% nowrap align=left>
<FONT size=2 face="sans-serif">177,735</FONT>&nbsp;
	</TD>
</TR>
</TABLE><BR>

<HR noshade align="center" width="100%" size=2>

<!--$$/page=--><A name=page_7></A>
<TABLE cellSpacing=1 cellPadding=0 width="85%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Teco Energy, Inc. notes 7.2s,
      2011</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>35,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>36,006</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Teco Energy, Inc. notes 7s,
      2012</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>60,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>61,200</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Teco Energy, Inc. sr. notes 6
      3/4s, 2015</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>10,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>10,000</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Tennessee Gas Pipeline Co. debs.
      7s, 2028</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>15,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>14,283</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Tennessee Gas Pipeline Co.
      unsecd. notes 7 1/2s, 2017</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>40,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>41,295</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Transcontinental Gas Pipeline
      Corp. debs. 7 1/4s, 2026</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>150,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>152,438</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Utilicorp Canada Finance Corp.
      company guaranty 7</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>3/4s, 2011 (Canada)</FONT>&nbsp;
    </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>140,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>145,950</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Utilicorp United, Inc. sr. notes
      9.95s, 2011</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>95,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>106,163</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Williams Cos., Inc. (The) notes
      8 3/4s, 2032</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>30,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>33,600</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Williams Cos., Inc. (The) notes
      8 1/8s, 2012</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>35,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>37,100</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Williams Cos., Inc. (The) notes
      7 5/8s, 2019</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>50,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>51,625</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Williams Cos., Inc. (The) 144A
      notes 6 3/8s, 2010</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>65,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>64,188</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%">&nbsp; </TD>
    <TD noWrap align=left width="29%">&nbsp; </TD>
    <TD noWrap align=left width="9%"><B><FONT face=sans-serif
      size=2
     >5,953,199</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><B><FONT
      face=sans-serif size=2
     >Total corporate bonds and notes (cost
      $80,113,084)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="29%">&nbsp; </TD>
    <TD noWrap align=left width="9%"><B><FONT face=sans-serif
      size=2
     >$79,540,792</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><B><FONT
      face=sans-serif size=2
     >CONVERTIBLE PREFERRED STOCKS (35.4%)(a)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="29%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%">&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>Shares</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>Value</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>
      <HR noShade SIZE=1>
      &nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><B><FONT
      face=sans-serif size=2
     >Banking (3.0%)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="29%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Marshall &amp; Ilsley Corp.
      $1.625 cv. pfd.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>58,500</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>$1,556,100</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Sovereign Capital Trust IV
      $2.188 cv. pfd.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>46,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>2,110,250</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Washington Mutual Capital Trust
      I $2.688 cum. cv. pfd.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>38,400</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>2,171,520</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%">&nbsp; </TD>
    <TD noWrap align=left width="29%">&nbsp; </TD>
    <TD noWrap align=left width="9%"><B><FONT face=sans-serif
      size=2
     >5,837,870</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><B><FONT
      face=sans-serif size=2
     >Basic Materials (3.0%)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="29%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Freeport-McMoRan Copper &amp;
      Gold, Inc. 5.50% cv. pfd.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>1,900</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>2,382,363</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Huntsman Corp. $2.50 cv.
      pfd.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>25,500</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>1,061,438</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Smurfit-Stone Container Corp.
      Ser. A, $1.75 cum. cv.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>pfd. (S)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>101,920</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>2,280,460</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%">&nbsp; </TD>
    <TD noWrap align=left width="29%">&nbsp; </TD>
    <TD noWrap align=left width="9%"><B><FONT face=sans-serif
      size=2
     >5,724,261</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><B><FONT
      face=sans-serif size=2
     >Capital Goods (4.0%)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="29%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Allied Waste Industries Ser. D,
      6.25% cv. pfd.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>4,060</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>1,338,278</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Northrop Grumman Corp. Ser. B,
      $7.00 cum. cv. pfd.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>31,900</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>4,147,000</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Owens-Illinois, Inc. $2.375 cv.
      pfd.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>63,770</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>2,208,036</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%">&nbsp; </TD>
    <TD noWrap align=left width="29%">&nbsp; </TD>
    <TD noWrap align=left width="9%"><B><FONT face=sans-serif
      size=2
     >7,693,314</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><B><FONT
      face=sans-serif size=2
     >Communication Services (2.0%)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="29%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Cincinnati Bell, Inc. Ser. B,
      $3.378 cum. cv. pfd. (S)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>35,300</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>1,503,780</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Crown Castle International Corp.
      $3.125 cum. cv. pfd.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>42,014</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>2,279,260</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%">&nbsp; </TD>
    <TD noWrap align=left width="29%">&nbsp; </TD>
    <TD noWrap align=left width="9%"><B><FONT face=sans-serif
      size=2
     >3,783,040</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><B><FONT
      face=sans-serif size=2
     >Consumer Cyclicals (3.9%)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="29%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Emmis Communications Corp. Ser.
      A, $3.125 cum. cv. pfd.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>24,100</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>1,096,550</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Ford Motor Company Capital Trust
      II $3.25 cum. cv. pfd.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>66,700</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>1,934,300</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>General Motors Corp. Ser. A,
      $1.13 cv. pfd. (S)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>141,300</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>3,391,200</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Interpublic Group of Companies,
      Inc. 144A Ser. B,</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>5.25% cum. cv. pfd</FONT>&nbsp;
    </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>1,018</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>953,103</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%">&nbsp; </TD>
    <TD noWrap align=left width="29%">&nbsp; </TD>
    <TD noWrap align=left width="9%"><B><FONT face=sans-serif
      size=2
     >7,375,153</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><B><FONT
      face=sans-serif size=2
     >Consumer Staples (1.6%)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="29%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Rite Aid Corp. $1.375 cum. cv.
      pfd.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>20,800</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>520,416</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Six Flags, Inc. $1.813 cum. cv.
      pfd.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>63,200</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>1,477,300</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Universal Corp. 6.75% cv.
      pfd.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>1,070</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>1,044,588</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%">&nbsp; </TD>
    <TD noWrap align=left width="29%">&nbsp; </TD>
    <TD noWrap align=left width="9%"><B><FONT face=sans-serif
      size=2
     >3,042,304</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><B><FONT
      face=sans-serif size=2
     >Energy (2.0%)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="29%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Chesapeake Energy Corp. Ser. *,
      $4.50 cum. cv. pfd</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>21,700</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>2,018,100</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Hanover Compressor Capital Trust
      $3.625 cum. cv. pfd.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>32,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>1,736,000</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%">&nbsp; </TD>
    <TD noWrap align=left width="29%">&nbsp; </TD>
    <TD noWrap align=left width="9%"><B><FONT face=sans-serif
      size=2
     >3,754,100</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><B><FONT
      face=sans-serif size=2
     >Financial (1.0%)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="29%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Fannie Mae Ser. 04-1, 5.375% cv.
      pfd.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>20</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><B><FONT face=sans-serif
      size=2
     >1,891,358</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><B><FONT
      face=sans-serif size=2
     >Health Care (1.4%)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="29%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Schering-Plough Corp. $3.00 cv.
      pfd.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>55,300</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><B><FONT face=sans-serif
      size=2
     >2,771,913</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><B><FONT
      face=sans-serif size=2
     >Insurance (3.1%)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="29%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Aspen Insurance Holdings, Ltd.
      $2.813 cv. pfd.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>(Bermuda)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>20,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>960,000</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Chubb Corp. (The) $1.75 cv.
      pfd.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>55,500</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>1,970,250</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Conseco, Inc. $1.38 cum. cv.
      pfd.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>58,300</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>1,668,838</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>IPC Holdings, Ltd. 7.25% cv.
      pfd. (Bermuda)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>18,500</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>453,250</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Platinum Underwriters Holdings,
      Ltd. Ser. A, 6.00% cv.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>pfd. (Bermuda)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>34,500</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>944,438</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%">&nbsp; </TD>
    <TD noWrap align=left width="29%">&nbsp; </TD>
    <TD noWrap align=left width="9%"><B><FONT face=sans-serif
      size=2
     >5,996,776</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><B><FONT
      face=sans-serif size=2
     >Investment Banking/Brokerage (1.7%)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="29%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Affiliated Managers Group, Inc.
      144A $2.55 cv. pfd.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>21,500</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>1,007,813</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Lehman Brothers Holdings, Inc.
      $1.563 cv. pfd. (S)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>40,190</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>1,080,106</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>Merrill Lynch &amp; Co., Inc.
      Ser. JNC, 6.75% cv. pfd.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%"><FONT face=sans-serif
      size=2>30,260</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>1,202,079</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%">&nbsp; </TD>
    <TD noWrap align=left width="29%">&nbsp; </TD>
    <TD noWrap align=left width="9%"><B><FONT face=sans-serif
      size=2
     >3,289,998</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><B><FONT
      face=sans-serif size=2
     >Real Estate (1.8%)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="29%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif
      size=2>FelCor Lodging Trust, Inc. Ser.
      A, $1.95 cum. cv. pfd.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="29%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp;
</TD></TR></TABLE><BR>
<HR align=center width="100%" noShade SIZE=2>
<!--$$/page=--><A name=page_8></A>
<TABLE cellSpacing=1 cellPadding=0 width="85%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>(R)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>99,200</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>2,430,400</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>Simon Property Group, Inc. $3.00
      cv. pfd.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>15,100</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>1,007,925</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%">&nbsp; </TD>
    <TD noWrap align=left width="31%">&nbsp; </TD>
    <TD noWrap align=left width="9%"><B><FONT face=sans-serif
      size=2
     >3,438,325</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><B><FONT
      face=sans-serif size=2
     >Technology (1.9%)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="31%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>Lucent Technologies Capital
      Trust 1 7.75% cum. cv. pfd.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>2,100</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>2,117,588</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>Xerox Corp. $6.25 cv.
      pfd.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>12,700</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>1,443,038</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%">&nbsp; </TD>
    <TD noWrap align=left width="31%">&nbsp; </TD>
    <TD noWrap align=left width="9%"><B><FONT face=sans-serif
      size=2
     >3,560,626</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><B><FONT
      face=sans-serif size=2
     >Utilities &amp; Power (5.0%)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="31%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>El Paso Corp. 144A 4.99% cv.
      pfd.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>1,300</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>1,753,375</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>El Paso Energy Capital Trust I
      $2.375 cv. pfd.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>38,950</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>1,421,675</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>Entergy Corp. $3.813 cv.
      pfd.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>40,900</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>2,050,113</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>Great Plains Energy, Inc. $2.00
      cum. cv. pfd. (S)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>80,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>1,880,000</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>NRG Energy, Inc. 5.75% cv. pfd.
      (acquired from 1/25/06</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>to 1/26/06, cost $1,026,710)
      (RES)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>4,100</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>1,037,300</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>Southern Union Co. $2.50 cv.
      pfd.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>30,700</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>1,515,813</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%">&nbsp; </TD>
    <TD noWrap align=left width="31%">&nbsp; </TD>
    <TD noWrap align=left width="9%"><B><FONT face=sans-serif
      size=2
     >9,658,276</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><B><FONT
      face=sans-serif size=2
     >Total convertible preferred stocks (cost
      $64,726,285)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="31%">&nbsp; </TD>
    <TD noWrap align=left width="9%"><B><FONT face=sans-serif
      size=2
     >$67,817,314</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><B><FONT
      face=sans-serif size=2
     >CONVERTIBLE BONDS AND NOTES (18.5%)(a)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="31%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%">&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>Principal amount</FONT>&nbsp;
</TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>Value</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>
      <HR noShade SIZE=1>
      &nbsp;&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><B><FONT
      face=sans-serif size=2
     >Capital Goods (0.1%)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="31%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>DRS Technologies, Inc. 144A cv.
      unsec. notes 2s, 2026</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>$240,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><B><FONT face=sans-serif
      size=2
     >$248,700</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><B><FONT
      face=sans-serif size=2
     >Communication Services (0.5%)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="31%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>Charter Communications, Inc.
      144A cv. sr. notes 5</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>7/8s, 2009</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>1,300,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><B><FONT face=sans-serif
      size=2
     >940,875</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><B><FONT
      face=sans-serif size=2
     >Conglomerates (1.2%)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="31%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>GenCorp, Inc. cv. sub. notes 5
      3/4s, 2007</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>2,030,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><B><FONT face=sans-serif
      size=2
     >2,210,163</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><B><FONT
      face=sans-serif size=2
     >Consumer Cyclicals (4.5%)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="31%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>ArvinMeritor, Inc. 144A cv.
      unsec. sr. notes</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>stepped-coupon 4 5/8s (zero%,
      3/1/16) 2026 (STP)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>1,040,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>1,094,600</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>Mediacom Communications Corp.
      cv. sr. notes 5 1/4s,</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>2006</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>1,050,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>1,048,688</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>MeriStar Hospitality Corp. cv.
      sr. sub. notes 9 1/2s,</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>2010 (R)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>1,730,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>1,835,963</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>Pier 1 Imports, Inc. 144A cv.
      sr. unsub. notes</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>stepped-coupon 6 3/8s (6 1/8s,
      2/15/11) 2036 (STP)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>1,541,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>1,487,065</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>Sinclair Broadcast Group, Inc.
      cv. bonds 6s, 2012</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>2,055,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>1,790,419</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>Sinclair Broadcast Group, Inc.
      cv. sr. sub. notes</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>stepped-coupon 4 7/8s (2s,
      1/15/11) 2018 (STP)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>420,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>368,025</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>WCI Communities, Inc. cv. sr.
      sub. notes 4s, 2023</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>980,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>995,925</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%">&nbsp; </TD>
    <TD noWrap align=left width="31%">&nbsp; </TD>
    <TD noWrap align=left width="9%"><B><FONT face=sans-serif
      size=2
     >8,620,685</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><B><FONT
      face=sans-serif size=2
     >Consumer Staples (2.2%)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="31%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>Nash Finch Co. cv. sr. sub.
      notes stepped-coupon</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>1.631s (zero%, 3/15/13) 2035
      (STP)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>6,170,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>2,336,888</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>Rite Aid Corp. cv. notes 4 3/4s,
      2006</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>1,660,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>1,649,625</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>Rite Aid Corp. 144A cv. notes 4
      3/4s, 2006</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>264,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>262,350</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%">&nbsp; </TD>
    <TD noWrap align=left width="31%">&nbsp; </TD>
    <TD noWrap align=left width="9%"><B><FONT face=sans-serif
      size=2
     >4,248,863</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><B><FONT
      face=sans-serif size=2
     >Energy (0.5%)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="31%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>McMoran Exploration Co. cv. sr.
      notes 6s, 2008</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>690,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><B><FONT face=sans-serif
      size=2
     >900,450</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><B><FONT
      face=sans-serif size=2
     >Financial (0.6%)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="31%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>Rewards Network, Inc. cv. sub.
      debs. 3 1/4s, 2023</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>1,300,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><B><FONT face=sans-serif
      size=2
     >1,137,500</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><B><FONT
      face=sans-serif size=2
     >Health Care (0.9%)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="31%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>Connetics Corp. cv. sr. notes
      2s, 2015</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>1,300,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>1,108,250</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>EPIX Medical, Inc. cv. sr. notes
      3s, 2024</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>900,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>574,875</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>Manor Care, Inc. 144A cv. sr.
      notes 2 1/8s, 2035</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>30,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>33,413</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%">&nbsp; </TD>
    <TD noWrap align=left width="31%">&nbsp; </TD>
    <TD noWrap align=left width="9%"><B><FONT face=sans-serif
      size=2
     >1,716,538</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><B><FONT
      face=sans-serif size=2
     >Technology (6.1%)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="31%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>Agere Systems, Inc. cv. sub.
      notes 6 1/2s, 2009</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>980,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>967,750</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>Amkor Technologies, Inc. cv.
      sub. notes 5 3/4s, 2006</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>1,400,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>1,400,000</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>Cray, Inc. cv. sr. sub. notes
      3s, 2024</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>1,400,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>1,067,500</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>Fairchild Semiconductor
      International, Inc. cv.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>company guaranty 5s,
      2008</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>980,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>965,300</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>Kulicke &amp; Soffa Industries,
      Inc. cv. sub. notes 0</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>1/2s, 2008</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>2,050,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>1,706,625</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>Lucent Technologies, Inc. cv.
      debs. Ser. B, 2 3/4s,</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>2025</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>450,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>457,313</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>Mentor Graphics Corp. cv. sub.
      notes FRN 6.81s, 2023</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>1,700,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>1,646,960</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>ON Semiconductor Corp. 144A cv.
      bonds zero %, 2024</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>1,500,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>1,260,000</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>Safeguard Scientifics, Inc. cv.
      sr. notes 2 5/8s, 2024</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>200,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>151,750</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>Safeguard Scientifics, Inc. 144A
      cv. sr. notes 2 5/8s,</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>2024</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>2,800,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>2,124,500</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%">&nbsp; </TD>
    <TD noWrap align=left width="31%">&nbsp; </TD>
    <TD noWrap align=left width="9%"><B><FONT face=sans-serif
      size=2
     >11,747,698</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><B><FONT
      face=sans-serif size=2
     >Transportation (1.3%)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="31%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>Continental Airlines, Inc. cv.
      sr. unsub. notes 4</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif
      size=2>1/2s, 2007</FONT>&nbsp; </TD>
    <TD noWrap align=left width="31%"><FONT face=sans-serif
      size=2>1,200,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=2>1,176,000</FONT>&nbsp;
  </TD></TR></TABLE><BR>
<HR align=center width="100%" noShade SIZE=2>
<!--$$/page=--><A name=page_9></A>
<TABLE cellSpacing=1 cellPadding=0 width="85%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif
      size=2>Pinnacle Airlines Corp. cv. sr.
      notes 3 1/4s, 2025</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%"><FONT face=sans-serif
      size=2>1,500,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>1,336,875</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%">&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%">&nbsp; </TD>
    <TD noWrap align=left width="10%"><B><FONT
      face=sans-serif size=2
     >2,512,875</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><B><FONT
      face=sans-serif size=2
     >Utilities &amp; Power (0.6%)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif
      size=2>XCEL Energy, Inc. 144A cv. notes
      7 1/2s, 2007</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%"><FONT face=sans-serif
      size=2>720,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><B><FONT
      face=sans-serif size=2
     >1,109,700</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><B><FONT
      face=sans-serif size=2
     >Total convertible bonds and notes (cost
      $34,120,658)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%">&nbsp; </TD>
    <TD noWrap align=left width="10%"><B><FONT
      face=sans-serif size=2
     >$35,394,047</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><B><FONT
      face=sans-serif size=2
     >UNITS (1.1%)(a)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%">&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%"><FONT face=sans-serif
      size=2>Units</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>Value</FONT>&nbsp; </TD></TR>
  <TR>
    <TD noWrap align=left width="99%" background="" colSpan=5
     ><HR noShade SIZE=1>
      &nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif
      size=2>Hercules, Inc. cv.sub.debs
      Units, 6.50%, 2029</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%"><FONT face=sans-serif
      size=2>2,020</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>$1,636,200</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif
      size=2>XCL</FONT><B><FONT
      face=sans-serif size=2>,
      </FONT></B><FONT face=sans-serif size=2
     >Ltd. Equity Units (F)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%"><FONT face=sans-serif
      size=2>406</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>434,286</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><B><FONT
      face=sans-serif size=2
     >Total units (cost $2,205,238)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%">&nbsp; </TD>
    <TD noWrap align=left width="10%"><B><FONT
      face=sans-serif size=2
     >$2,070,486</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><B><FONT
      face=sans-serif size=2
     >COMMON STOCKS (0.9%)(a)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%">&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%"><FONT face=sans-serif
      size=2>Shares</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>Value</FONT>&nbsp; </TD></TR>
  <TR>
    <TD noWrap align=left width="99%" background="" colSpan=5
     ><HR noShade SIZE=1>
      &nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif
      size=2>Coinmach Service Corp. IDS
      (Income Deposit Securities)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif
      size=2>(S)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%"><FONT face=sans-serif
      size=2>20,266</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>$346,954</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif
      size=2>Compass Minerals International,
      Inc.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%"><FONT face=sans-serif
      size=2>147</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>3,746</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif
      size=2>Contifinancial Corp. Liquidating
      Trust Units</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%"><FONT face=sans-serif
      size=2>574,207</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>179</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif
      size=2>Crown Castle International Corp.
      (NON)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%"><FONT face=sans-serif
      size=2>309</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>9,817</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif
      size=2>Dobson Communications Corp.
      (NON)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%"><FONT face=sans-serif
      size=2>338</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>2,903</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif
      size=2>HCA, Inc.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%"><FONT face=sans-serif
      size=2>2,865</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>127,349</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif
      size=2>Knology, Inc. (NON)</FONT>&nbsp;
    </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%"><FONT face=sans-serif
      size=2>32</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>286</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif
      size=2>Legrand SA (France)</FONT>&nbsp;
    </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%"><FONT face=sans-serif
      size=2>3,943</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>115,611</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif
      size=2>Playtex Products, Inc. (NON)
      (S)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%"><FONT face=sans-serif
      size=2>12,585</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>144,728</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif
      size=2>Samsonite Corp.
      (NON)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%"><FONT face=sans-serif
      size=2>155,734</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>171,307</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif
      size=2>Sterling Chemicals, Inc.
      (NON)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%"><FONT face=sans-serif
      size=2>50</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>638</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif
      size=2>Sun Healthcare Group, Inc.
      (NON)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%"><FONT face=sans-serif
      size=2>202</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>1,658</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif
      size=2>Texas Industries,
      Inc.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%"><FONT face=sans-serif
      size=2>16,617</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>813,734</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif
      size=2>USA Mobility, Inc.</FONT>&nbsp;
    </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%"><FONT face=sans-serif
      size=2>56</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>1,136</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif
      size=2>VS Holdings, Inc.
      (NON)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%"><FONT face=sans-serif
      size=2>28,292</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>1</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif
      size=2>WHX Corp. (NON)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%"><FONT face=sans-serif
      size=2>3,964</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>36,667</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><B><FONT
      face=sans-serif size=2
     >Total common stocks (cost $2,576,271)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%">&nbsp; </TD>
    <TD noWrap align=left width="10%"><B><FONT
      face=sans-serif size=2
     >$1,776,714</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><B><FONT
      face=sans-serif size=2
     >FOREIGN GOVERNMENT BONDS AND NOTES (0.1%)(a)</FONT></B>&nbsp;
    </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%">&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%"><FONT face=sans-serif
      size=2>Principal amount</FONT>&nbsp;
</TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>Value</FONT>&nbsp; </TD></TR>
  <TR>
    <TD noWrap align=left width="99%" background="" colSpan=5
     ><HR noShade SIZE=1>
      &nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif
      size=2>Argentina (Republic of) FRB
      4.889s, 2012</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%"><FONT face=sans-serif
      size=2>$196,875</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>$180,833</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif
      size=2>Philippines (Republic of) bonds
      9 1/2s, 2024</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%"><FONT face=sans-serif
      size=2>15,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>17,235</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><B><FONT
      face=sans-serif size=2
     >Total foreign government bonds and notes (cost
      $197,318)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%">&nbsp; </TD>
    <TD noWrap align=left width="10%"><B><FONT
      face=sans-serif size=2
     >$198,068</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><B><FONT
      face=sans-serif size=2
     >PREFERRED STOCKS (--%)(a)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%">&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%"><FONT face=sans-serif
      size=2>Shares</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>Value</FONT>&nbsp; </TD></TR>
  <TR>
    <TD noWrap align=left width="99%" background="" colSpan=5
     ><HR noShade SIZE=1>
      &nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif
      size=2>Paxson Communications Corp.
      14.25% cum. pfd. (PIK)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%"><FONT face=sans-serif
      size=2>5</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>$42,750</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif
      size=2>Rural Cellular Corp. Ser. B,
      11.375% cum. pfd.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%"><FONT face=sans-serif
      size=2>43</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>52,890</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><B><FONT
      face=sans-serif size=2
     >Total preferred stocks (cost $75,612)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%">&nbsp; </TD>
    <TD noWrap align=left width="10%"><B><FONT
      face=sans-serif size=2
     >$95,640</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><B><FONT
      face=sans-serif size=2
     >WARRANTS (--%)(a)(NON)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%">&nbsp; </TD>
    <TD noWrap align=left width="16%"><FONT face=sans-serif
      size=2>Expiration
      date&nbsp;</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%" background=""><FONT
      size=2>Strike price</FONT>&nbsp;</TD>
    <TD noWrap align=left width="12%"><FONT face=sans-serif
      size=2>Warrants</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>Value</FONT>&nbsp; </TD></TR>
  <TR>
    <TD noWrap align=left width="99%" background="" colSpan=5
     ><HR noShade SIZE=1>
      &nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif
      size=2>Dayton Superior Corp.
      144A</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%"><FONT face=sans-serif
      size=2>6/15/09</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>$0.01</FONT>&nbsp; </TD>
    <TD noWrap align=left width="12%"><FONT face=sans-serif
      size=2>270</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>$3</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif
      size=2>MDP Acquisitions PLC 144A
      (Ireland)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%"><FONT face=sans-serif
      size=2>10/01/13</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>EUR 0.0001</FONT>&nbsp; </TD>
    <TD noWrap align=left width="12%"><FONT face=sans-serif
      size=2>119</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>3,332</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif
      size=2>Ubiquitel, Inc.
      144A</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%"><FONT face=sans-serif
      size=2>4/15/10</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>$22.74</FONT>&nbsp; </TD>
    <TD noWrap align=left width="12%"><FONT face=sans-serif
      size=2>420</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>4</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><B><FONT
      face=sans-serif size=2
     >Total warrants (cost $28,984)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%">&nbsp; </TD>
    <TD noWrap align=left width="10%"><B><FONT
      face=sans-serif size=2
     >$3,339</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><B><FONT
      face=sans-serif size=2
     >SHORT-TERM INVESTMENTS (6.2%)(a)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%">&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%"><FONT face=sans-serif
      size=2>Principal</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>Value</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%">&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%"><FONT face=sans-serif
      size=2>amount/shares</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD></TR>
  <TR>
    <TD noWrap align=left width="99%" background="" colSpan=5
     ><HR noShade SIZE=1>
      &nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif
      size=2>Putnam Prime Money Market Fund
      (e)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%"><FONT face=sans-serif
      size=2>4,019,600</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>$4,019,600</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif
      size=2>Short-term investments held as
      collateral for loaned</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif
      size=2>securities with yields ranging
      from 4.90% to 5.19% and</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif
      size=2>due dates ranging from June 1,
      2006 to June 29, 2006</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif
      size=2>(d)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%"><FONT face=sans-serif
      size=2>$7,810,203</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"><FONT face=sans-serif
      size=2>7,798,362</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><B><FONT
      face=sans-serif size=2
     >Total short-term investments (cost
      $11,817,962)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%">&nbsp; </TD>
    <TD noWrap align=left width="10%"><B><FONT
      face=sans-serif size=2
     >$11,817,962</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><B><FONT
      face=sans-serif size=2
     >TOTAL INVESTMENTS</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><B><FONT
      face=sans-serif size=2
     >Total investments (cost $195,861,412) (b)</FONT></B>&nbsp;
</TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=left width="12%">&nbsp; </TD>
    <TD noWrap align=left width="10%"><B><FONT
      face=sans-serif size=2
     >$198,714,362</FONT></B>&nbsp; </TD></TR></TABLE><BR>
<HR align=center width="100%" noShade SIZE=2>
<!--$$/page=--><A name=page_10></A>
<P align=left><B><FONT face=sans-serif size=2>FORWARD CURRENCY CONTRACTS TO SELL
at 5/31/06 (aggregate face value $2,908,771) (Unaudited)</FONT></B></P>
<TABLE cellSpacing=1 cellPadding=0 width="85%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="26%"
   >&nbsp; </TD>
    <TD noWrap align=left width="35%"
   >&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >Aggregate&nbsp;</FONT> </TD>
    <TD noWrap align=left width="12%" background=""
   ><FONT
      size=2>Delivery</FONT>&nbsp;</TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >Unrealized</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="26%"
   >&nbsp; </TD>
    <TD noWrap align=left width="35%"
   ><FONT face=sans-serif size=2
     >Value</FONT>&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >face value </FONT></TD>
    <TD noWrap align=left width="12%" background=""
   ><FONT
      size=2>date</FONT>&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >depreciation</FONT>&nbsp; </TD></TR>
  <TR>
    <TD noWrap align=left width="99%" background="" colSpan=5
   >
      <HR noShade SIZE=1>
      &nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="26%"
   ><FONT face=sans-serif size=2
     >Euro</FONT>&nbsp; </TD>
    <TD noWrap align=left width="35%"
   ><FONT face=sans-serif size=2
     >$3,113,572</FONT>&nbsp; </TD>
    <TD noWrap align=left width="13%"
   ><FONT face=sans-serif size=2
     >$2,908,771&nbsp;</FONT>&nbsp; </TD>
    <TD noWrap align=left width="12%" background=""
   ><FONT
    size=2>6/21/06</FONT>&nbsp;</TD>
    <TD noWrap align=left width="13%"
   ><B><FONT face=sans-serif size=2

     >$(204,801)</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>
      <HR noShade SIZE=1>
    </TD></TR></TABLE><BR>
<HR align=center width="100%" noShade SIZE=2>
<!--$$/page=--><A name=page_11></A>
<TABLE cellSpacing=1 cellPadding=0 width="85%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"><B><FONT
      face=sans-serif size=1
     >CREDIT DEFAULT CONTRACTS OUTSTANDING at 5/31/06
      (Unaudited)</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="15%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%">&nbsp; </TD>
    <TD noWrap align=left width="15%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD>
    <TD noWrap align=left width="13%"><FONT face=sans-serif
      size=1>Fixed payments</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=1>Unrealized</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"><FONT face=sans-serif
      size=1>Swap counterparty /</FONT>&nbsp;
    </TD>
    <TD noWrap align=left width="15%"><FONT face=sans-serif
      size=1>Notional</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=1>Termination</FONT>&nbsp; </TD>
    <TD noWrap align=left width="13%"><FONT face=sans-serif
      size=1>received (paid) by</FONT>&nbsp;
    </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=1>appreciation/</FONT>&nbsp;
</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"><FONT face=sans-serif
      size=1>Referenced Debt*</FONT>&nbsp;
</TD>
    <TD noWrap align=left width="15%"><FONT face=sans-serif
      size=1>amount</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=1>date</FONT>&nbsp; </TD>
    <TD noWrap align=left width="13%"><FONT face=sans-serif
      size=1>fund per annum</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=1>(depreciation)</FONT>&nbsp;
  </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>
      <HR noShade SIZE=1>
      &nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"><B><FONT
      face=sans-serif size=1
     >Bank of America, N.A.</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="15%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"><FONT face=sans-serif
      size=1>Abitibi-Consolidated, Inc.,
      8.375%, 4/1/15</FONT>&nbsp; </TD>
    <TD noWrap align=left width="15%"><FONT face=sans-serif
      size=1>$100,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=1>6/20/11</FONT>&nbsp; </TD>
    <TD noWrap align=left width="13%"><FONT face=sans-serif
      size=1>365 bp</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=1>$(2,857)</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"><B><FONT
      face=sans-serif size=1
     >Citibank, N.A.</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="15%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"><FONT face=sans-serif
      size=1>Ford Motor Co., 7.45%,
      7/16/31</FONT>&nbsp; </TD>
    <TD noWrap align=left width="15%"><FONT face=sans-serif
      size=1>80,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=1>6/20/07</FONT>&nbsp; </TD>
    <TD noWrap align=left width="13%"><FONT face=sans-serif
      size=1>620 bp</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=1>1,479</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"><FONT face=sans-serif
      size=1>Lear Corp., 8.11%,
      5/15/09</FONT>&nbsp; </TD>
    <TD noWrap align=left width="15%"><FONT face=sans-serif
      size=1>60,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=1>6/20/08</FONT>&nbsp; </TD>
    <TD noWrap align=left width="13%"><FONT face=sans-serif
      size=1>845 bp</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=1>5,789</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"><FONT face=sans-serif
      size=1>Visteon Corp., 7%,
      3/10/14</FONT>&nbsp; </TD>
    <TD noWrap align=left width="15%"><FONT face=sans-serif
      size=1>100,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=1>6/20/09</FONT>&nbsp; </TD>
    <TD noWrap align=left width="13%"><FONT face=sans-serif
      size=1>535 bp</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=1>(266)</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"><B><FONT
      face=sans-serif size=1
     >Deutsche Bank AG</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="15%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"><FONT face=sans-serif
      size=1>Ford Motor Co., 7.45%,
      7/16/31</FONT>&nbsp; </TD>
    <TD noWrap align=left width="15%"><FONT face=sans-serif
      size=1>112,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=1>6/20/07</FONT>&nbsp; </TD>
    <TD noWrap align=left width="13%"><FONT face=sans-serif
      size=1>595 bp</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=1>1,735</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"><FONT face=sans-serif
      size=1>Lear Corp., 8.11%,
      5/15/09</FONT>&nbsp; </TD>
    <TD noWrap align=left width="15%"><FONT face=sans-serif
      size=1>200,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=1>6/20/08</FONT>&nbsp; </TD>
    <TD noWrap align=left width="13%"><FONT face=sans-serif
      size=1>860 bp</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=1>19,896</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"><FONT face=sans-serif
      size=1>Visteon Corp., 7%,
      3/10/14</FONT>&nbsp; </TD>
    <TD noWrap align=left width="15%"><FONT face=sans-serif
      size=1>100,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=1>6/20/09</FONT>&nbsp; </TD>
    <TD noWrap align=left width="13%"><FONT face=sans-serif
      size=1>535 bp</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=1>(266)</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"><B><FONT
      face=sans-serif size=1
     >Goldman Sachs Capital Markets, L.P.</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="15%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"><FONT face=sans-serif
      size=1>Ford Motor Co., 7.45%,
      7/16/31</FONT>&nbsp; </TD>
    <TD noWrap align=left width="15%"><FONT face=sans-serif
      size=1>80,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=1>6/20/07</FONT>&nbsp; </TD>
    <TD noWrap align=left width="13%"><FONT face=sans-serif
      size=1>630 bp</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=1>1,621</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"><FONT face=sans-serif
      size=1>Visteon Corp., 7%,
      3/10/14</FONT>&nbsp; </TD>
    <TD noWrap align=left width="15%"><FONT face=sans-serif
      size=1>60,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=1>6/20/09</FONT>&nbsp; </TD>
    <TD noWrap align=left width="13%"><FONT face=sans-serif
      size=1>545 bp</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=1>(12)</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"><B><FONT
      face=sans-serif size=1
     >Goldman Sachs International</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="15%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"><FONT face=sans-serif
      size=1>One of the underlying securities
      in the basket of BB CMBS securities</FONT>&nbsp; </TD>
    <TD noWrap align=left width="15%"><FONT face=sans-serif
      size=1>108,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=1>(a)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="13%"><FONT face=sans-serif
      size=1>2.461%</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=1>5,253</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"><B><FONT
      face=sans-serif size=1
     >JPMorgan Chase Bank, N.A.</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="15%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"><FONT face=sans-serif
      size=1>Abitibi-Consolidated, Inc.,
      8.375%, 4/1/15</FONT>&nbsp; </TD>
    <TD noWrap align=left width="15%"><FONT face=sans-serif
      size=1>60,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=1>6/20/11</FONT>&nbsp; </TD>
    <TD noWrap align=left width="13%"><FONT face=sans-serif
      size=1>365 bp</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=1>(1,720)</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"><FONT face=sans-serif
      size=1>Ford Motor Co., 7.45%,
      7/16/31</FONT>&nbsp; </TD>
    <TD noWrap align=left width="15%"><FONT face=sans-serif
      size=1>80,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=1>6/20/07</FONT>&nbsp; </TD>
    <TD noWrap align=left width="13%"><FONT face=sans-serif
      size=1>635 bp</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=1>1,664</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"><FONT face=sans-serif
      size=1>Ford Motor Co., 7.45%,
      7/16/31</FONT>&nbsp; </TD>
    <TD noWrap align=left width="15%"><FONT face=sans-serif
      size=1>100,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=1>6/20/07</FONT>&nbsp; </TD>
    <TD noWrap align=left width="13%"><FONT face=sans-serif
      size=1>665 bp</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=1>2,423</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"><FONT face=sans-serif
      size=1>Visteon Corp., 7%,
      3/10/14</FONT>&nbsp; </TD>
    <TD noWrap align=left width="15%"><FONT face=sans-serif
      size=1>40,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=1>6/20/09</FONT>&nbsp; </TD>
    <TD noWrap align=left width="13%"><FONT face=sans-serif
      size=1>530 bp</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=1>(155)</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"><B><FONT
      face=sans-serif size=1
     >Lehman Brothers Special Financing, Inc.</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="15%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"><FONT face=sans-serif
      size=1>General Motors Corp., 7
      1/8%,7/15/13</FONT>&nbsp; </TD>
    <TD noWrap align=left width="15%"><FONT face=sans-serif
      size=1>200,000</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=1>12/20/06</FONT>&nbsp; </TD>
    <TD noWrap align=left width="13%"><FONT face=sans-serif
      size=1>750 bp</FONT>&nbsp; </TD>
    <TD noWrap align=left width="9%"><FONT face=sans-serif
      size=1>(853)</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="53%"><B><FONT
      face=sans-serif size=1
     >Total</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="15%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp; </TD>
    <TD noWrap align=left width="9%"><B><FONT face=sans-serif
      size=1
     >$33,731</FONT></B>&nbsp; </TD></TR></TABLE><BR>
<P align=left><B><FONT face=sans-serif size=1>* </FONT></B><B><I><FONT
face=sans-serif size=1>Payments related to the reference debt are made upon a
credit default event.</FONT></I></B></P>
<P align=left><B><FONT face=sans-serif size=1>(a) </FONT></B><B><I><FONT
face=sans-serif size=1>Terminating on the date on which the notional amount is
reduced to zero or the date on which the assets securing the reference entity
are liquidated.</FONT></I></B></P>
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<P align=left><FONT face=sans-serif size=2>NOTES</FONT></P>
<P align=left><FONT face=sans-serif size=2>(a) Percentages indicated are based
on net assets of $191,482,364.</FONT></P>
<P align=left><FONT face=sans-serif size=2>(b) The aggregate identified cost on
a tax basis is $195,900,818, resulting in gross unrealized appreciation and
depreciation of $9,885,323 and $7,071,779, respectively, or net unrealized
appreciation of $2,813,544.</FONT></P>
<P align=left><FONT face=sans-serif size=2>(NON) Non-income-producing
security.</FONT></P>
<P align=left><FONT face=sans-serif size=2>(S) Securities on loan, in part or in
entirety, at May 31, 2006.</FONT></P>
<P align=left><FONT face=sans-serif size=2>(STP) The interest rate and date
shown parenthetically represent the new interest rate to be paid and the date
the fund will begin accruing interest at this rate.</FONT></P>
<P align=left><FONT face=sans-serif size=2>(RES) Restricted, excluding 144A
securities, as to public resale. The total market value of restricted securities
held at May 31, 2006 was $1,203,900 or 0.6% of net assets.</FONT></P>
<P align=left><FONT face=sans-serif size=2>(PIK) Income may be received in cash
or additional securities at the discretion of the issuer.</FONT></P>
<P align=left><FONT face=sans-serif size=2>(R) Real Estate Investment
Trust.</FONT></P>
<P align=left><FONT face=sans-serif size=2>(d) The fund may lend securities,
through its agents, to qualified borrowers in order to earn additional income.
The loans are collateralized by cash and/or securities in an amount at least
equal to the market value of the securities loaned. </FONT><FONT face=sans-serif
size=2>The market value of securities loaned is determined daily and any
additional required collateral is allocated to the fund on the next business
day. The risk of borrower default will be borne by the fund&#146;s agents; the fund
will bear the risk of loss with respect to the investment of the cash
collateral. Income from securities lending is included in investment income on
the statement of operations. At May 31, 2006, the value of securities loaned
amounted to $7,594,619. The fund received cash collateral of $7,798,362 which is
pooled with collateral of other Putnam funds into 27 issues of high-grade,
short-term investments.</FONT></P>
<P align=left><FONT face=sans-serif size=2>(e) Pursuant to an exemptive order
from the Securities and Exchange Commission, the fund invests in Putnam Prime
Money Market Fund, an open-end management investment company managed by Putnam
Investment Management, LLC ("Putnam Management"), the fund's manager, an
indirect wholly-owned subsidiary of Putnam, LLC. Management fees paid by the
fund are reduced by an amount equal to the management and administrative fees
paid by Putnam Prime Money Market Fund with respect to assets invested by the
fund in Putnam Prime Money Market Fund. Income distributions earned by the fund
totaled $176,528 for the period ended May 31, 2006. During the period ended May
31, 2006, cost of purchases and cost of sales of investments in Putnam Prime
Money Market Fund aggregated $52,468,115 and $54,007,985,
respectively.</FONT></P>
<P align=left><FONT face=sans-serif size=2>(F) Security is valued at fair value
following procedures approved by the Trustees.</FONT></P>
<P align=left><FONT face=sans-serif size=2>At May 31, 2006, liquid assets
totaling $1,547,611 have been designated as collateral for open swap contracts
and forward contracts.</FONT></P>
<P align=left><FONT face=sans-serif size=2>144A after the name of an issuer
represents securities 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.</FONT></P>
<P align=left><FONT face=sans-serif size=2>The rates shown on Floating Rate
Bonds (FRB) and Floating Rate Notes (FRN) are the current interest rates at May
31, 2006.</FONT></P>
<P align=left><B><FONT face=sans-serif size=2>Security valuation
</FONT></B><FONT face=sans-serif size=2>Investments for which market quotations
are readily available are valued at the last reported sales price on their
principal exchange, or official closing price for certain markets. If no sales
are reported -- as in the case of some securities traded over-the-counter -- a
security is valued at its last reported bid price. Market quotations are not
considered to be readily available for certain debt obligations; such
investments are valued at fair value on the basis of valuations furnished by an
independent pricing service or dealers, approved by the Trustees. Such services
or dealers determine valuations for normal institutional-size trading units of
such securities using methods based on market transactions for comparable
securities and various relationships, generally recognized by institutional
traders, between securities. Many securities markets and exchanges outside the
U.S. close prior to the close of the New York Stock Exchange and therefore the
closing prices for securities in such markets or on such exchanges may not fully
reflect events that occur after such close but before the close of the New York
Stock Exchange. Accordingly, on certain days, the fund will fair value foreign
equity securities taking into account multiple factors, including movements in
the U.S. securities markets. The number of days on which fair value prices will
be used will depend on market activity and it is possible that fair value prices
will be used by the fund to a significant extent.</FONT></P>
<P align=left><FONT face=sans-serif size=2>Securities quoted in foreign
currencies, if any, are translated into U.S. dollars at the current exchange
rate.</FONT></P>
<P align=left><FONT face=sans-serif size=2>Other investments, including certain
restricted securities, are valued at fair value following procedures approved by
the Trustees. Such valuations and procedures are reviewed periodically by the
Trustees. The fair value of securities is generally determined as the amount
that the fund could reasonably expect to realize from an orderly disposition of
such securities over a reasonable period of time. By its nature, a fair value
price is a good faith estimate of the value of a security at a given point in
time and does not reflect an actual market price.</FONT></P>
<P align=left><B><FONT face=sans-serif size=2>Forward currency
contracts</FONT></B><FONT face=sans-serif size=2> The fund may buy and sell
forward currency contracts, which are agreements between two parties to buy and
sell currencies at a set price on a future date. These contracts are used to
protect against a decline in value relative to the U.S. dollar of the currencies
in which its portfolio securities are denominated or</FONT></P>
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<P align="left">
<FONT size=2 face="sans-serif">quoted (or an increase in the value of a currency in which securities a fund intends to buy are denominated, when a fund holds cash reserves and short term investments). The U.S. dollar value of forward currency
contracts is determined using current forward currency exchange rates supplied by a quotation service. The market value of the contract will fluctuate with changes in currency exchange rates. The contract is marked to market daily and the change in
market value is recorded as an unrealized gain or loss. When the contract is closed, the fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was
closed. The fund could be exposed to risk if the value of the currency changes unfavorably, if the counterparties to the contracts are unable to meet the terms of their contracts or if the fund is unable to enter into a closing position. Risks may
exceed amounts recognized on the statement of assets and liabilities. Forward currency contracts outstanding at period end, if any, are listed after the fund&#146;s portfolio.</FONT></P>
<P align="left">
<B><FONT size=2 face="sans-serif">Credit default contracts </FONT></B><FONT size=2 face="sans-serif">The fund may enter into credit default contracts where one party, the protection buyer, makes an upfront or periodic payment to a counterparty, the
protection seller, in exchange for the right to receive a contingent payment. The maximum amount of the payment may equal the notional amount, at par, of the underlying index or security as a result of a related credit event. An upfront payment
received by the fund, as the protection seller, is recorded as a liability on the fund&#146;s books. An upfront payment made by the fund, as the protection buyer, is recorded as an asset on the fund&#146;s books. Periodic payments received or paid
by the fund are recorded as realized gains or losses. The credit default contracts are marked-to-market daily based upon quotations from an independent pricing service or market makers and the change, if any, is recorded as unrealized gain or loss.
Payments received or made as a result of a credit event or termination of the contract are recognized, net of a proportional amount of the upfront payment, as realized gains or losses. In addition to bearing the risk that the credit event will
occur, the fund could be exposed to market risk due to unfavorable changes in interest rates or in the price of the underlying security or index, the possibility that the fund may be unable to close out its position at the same time or at the same
price as if it had purchased comparable publicly traded securities or that the counterparty may default on its obligation to perform. Risks of loss may exceed amounts recognized on the statement of assets and liabilities. Credit default contracts
outstanding at period end, if any, are listed after the fund&#146;s portfolio.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">For additional information regarding the fund please see the fund's most recent annual or semiannual shareholder report filed on the Securities and Exchange Commission's Web site, www.sec.gov, or visit Putnam's
Individual Investor Web site at www.putnaminvestments.com</FONT></P>

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<P align=left><U><FONT face=sans-serif size=2>Item 2. Controls and
Procedures:</FONT></U><BR></P>
<P align=left><FONT face=sans-serif size=2>(a) The registrant's principal
executive officer and principal financial officer have concluded, based on their
evaluation of the effectiveness of the design and operation of the registrant's
disclosure controls and procedures as of a date within 90 days of the filing
date of this report, that the design and operation of such procedures are
generally effective to provide reasonable assurance that information required to
be disclosed by the registrant in this report is recorded, processed, summarized
and reported within the time periods specified in the Commission's rules and
forms. </FONT></P>
<P align=left><FONT face=sans-serif size=2>(b) Changes in internal control over
financial reporting: Not applicable </FONT></P>
<P align=left><U><FONT face=sans-serif size=2>Item 3.
Exhibits:</FONT></U><BR></P>
<P align=left><FONT face=sans-serif size=2>Separate certifications for the
principal executive officer and principal financial officer of the registrant as
required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended,
are filed herewith.</FONT></P>
<P align=left><U><FONT face=sans-serif size=2>SIGNATURES</FONT></U><BR></P>
<P align=left><FONT face=sans-serif size=2>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. </FONT></P>
<P align=left><U><FONT face=sans-serif size=2>Putnam High Income
Securities</FONT></U><BR><FONT face=sans-serif size=2><BR>By (Signature and
Title): </FONT><BR><U><FONT face=sans-serif size=2><BR>/s/ Michael T.
Healy</FONT></U><FONT face=sans-serif size=2> </FONT><BR><FONT face=sans-serif
size=2>Michael T. Healy </FONT><BR><FONT face=sans-serif size=2>Principal
Accounting Officer </FONT><BR><FONT face=sans-serif size=2>Date: July 27, 2006
</FONT><BR></P>
<P align=left><FONT face=sans-serif size=2>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. </FONT></P>
<P align=left><FONT face=sans-serif size=2>By (Signature and Title):
</FONT><BR><U><FONT face=sans-serif size=2><BR>/s/ Charles E.
Porter</FONT></U><FONT face=sans-serif size=2> </FONT><BR><FONT face=sans-serif
size=2>Charles E. Porter </FONT><BR><FONT face=sans-serif size=2>Principal
Executive Officer</FONT><BR><FONT face=sans-serif size=2>Date: July 27, 2006
</FONT><BR><FONT face=sans-serif size=2><BR>By (Signature and Title):
</FONT><BR><U><FONT face=sans-serif size=2><BR>/s/ Steven D.
Krichmar</FONT></U><FONT face=sans-serif size=2> </FONT><BR><FONT
face=sans-serif size=2>Steven D. Krichmar </FONT><BR><FONT face=sans-serif
size=2>Principal Financial Officer </FONT><BR><FONT face=sans-serif size=2>Date:
July 27, 2006 </FONT><BR></P>
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<TEXT>
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<P align="left">
<U><FONT size=2 face="sans-serif">Certifications</FONT></U><FONT size=2 face="sans-serif"> </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">I, Charles E. Porter, the Principal Executive Officer of the funds listed on Attachment A, certify that: </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">1. I have reviewed each report on Form N-Q of the funds listed on Attachment A: </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">2. Based on my knowledge, each report does not contain any untrue statements of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by each report; </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">3. Based on my knowledge, the schedules of investments included in each report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is
filed;</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal
control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrants and have: </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which each report is being prepared; </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">c) evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date
within 90 days prior to the filing date of this report, based on such evaluation; and </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">d) disclosed in this report any change in the registrant&#146;s internal control over financial reporting that occurred during the registrant&#146;s most recent fiscal quarter that has materially affected, or is
reasonably likely to materially affect, the registrant&#146;s internal control over financial reporting; and </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">5. The registrant&#146;s other certifying officer and I have disclosed to each registrant&#146;s auditors and the audit committee of each registrant&#146;s board of directors (or persons performing the equivalent
functions): </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect each registrant&#146;s ability to record,
process, summarize, and report financial information; and </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">b) any fraud, whether or not material, that involves management or other employees who have a significant role in each registrant&#146;s internal control over financial reporting. </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">/s/ Charles E. Porter </FONT><BR>
<FONT size=2 face="sans-serif">_____________________________ </FONT><BR>
<FONT size=2 face="sans-serif">Date: July 21, 2006 </FONT><BR>
<FONT size=2 face="sans-serif">Charles E. Porter </FONT><BR>
<FONT size=2 face="sans-serif">Principal Executive Officer </FONT><BR>
</P>

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<P align="left">
<U><FONT size=2 face="sans-serif">Certifications</FONT></U><FONT size=2 face="sans-serif"> </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">I, Steven D. Krichmar, the Principal Financial Officer of the funds listed on Attachment A, certify that: </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">1. I have reviewed each report on Form N-Q of the funds listed on Attachment A: </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">2. Based on my knowledge, each report does not contain any untrue statements of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by each report; </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">3. Based on my knowledge, the schedules of investments included in each report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is
filed;</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal
control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrants and have: </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which each report is being prepared; </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">c) evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date
within 90 days prior to the filing date of this report, based on such evaluation; and </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">d) disclosed in this report any change in the registrant&#146;s internal control over financial reporting that occurred during the registrant&#146;s most recent fiscal quarter that has materially affected, or is
reasonably likely to materially affect, the registrant&#146;s internal control over financial reporting; and </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">5. The registrant&#146;s other certifying officer and I have disclosed to each registrant&#146;s auditors and the audit committee of each registrant&#146;s board of directors (or persons performing the equivalent
functions): </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect each registrant&#146;s ability to record,
process, summarize, and report financial information; and </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">b) any fraud, whether or not material, that involves management or other employees who have a significant role in each registrant&#146;s internal control over financial reporting. </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">/s/ Steven D. Krichmar</FONT><BR>
<FONT size=2 face="sans-serif">_______________________________ </FONT><BR>
<FONT size=2 face="sans-serif">Date: July 21, 2006 </FONT><BR>
<FONT size=2 face="sans-serif">Steven D. Krichmar</FONT><BR>
<FONT size=2 face="sans-serif">Principal Financial Officer </FONT><BR>
</P>

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<P align="left">
<FONT face="sans-serif"> </FONT><FONT size=1 face="sans-serif">Attachment A </FONT><BR>
<FONT size=1 face="sans-serif">NQ </FONT><BR>
<FONT size=1 face="sans-serif">Period (s) ended May 31, 2006</FONT><BR>
</P>
<TABLE border=0 width=85% cellspacing=1 cellpadding=0>
<TR valign="bottom">
	<TD width=11% nowrap align=left>
<FONT size=2 face="sans-serif">2AZ</FONT>&nbsp;
	</TD>
	<TD width=88% nowrap align=left>
<FONT size=2 face="sans-serif">Putnam International Capital Opportunities Fund</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=11% nowrap align=left>
<FONT size=2 face="sans-serif">274</FONT>&nbsp;
	</TD>
	<TD width=88% nowrap align=left>
<FONT size=2 face="sans-serif">Putnam New Value Fund</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=11% nowrap align=left>
<FONT size=2 face="sans-serif">2MF</FONT>&nbsp;
	</TD>
	<TD width=88% nowrap align=left>
<FONT size=2 face="sans-serif">Putnam Small Cap Value Fund</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=11% nowrap align=left>
<FONT size=2 face="sans-serif">014</FONT>&nbsp;
	</TD>
	<TD width=88% nowrap align=left>
<FONT size=2 face="sans-serif">Putnam High Yield Trust</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=11% nowrap align=left>
<FONT size=2 face="sans-serif">021</FONT>&nbsp;
	</TD>
	<TD width=88% nowrap align=left>
<FONT size=2 face="sans-serif">Putnam Health Sciences Trust</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=11% nowrap align=left>
<FONT size=2 face="sans-serif">018</FONT>&nbsp;
	</TD>
	<TD width=88% nowrap align=left>
<FONT size=2 face="sans-serif">Putnam Global Natural Resources Fund</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=11% nowrap align=left>
<FONT size=2 face="sans-serif">061</FONT>&nbsp;
	</TD>
	<TD width=88% nowrap align=left>
<FONT size=2 face="sans-serif">Putnam High Income Securities Fund</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=11% nowrap align=left>
<FONT size=2 face="sans-serif">7BF</FONT>&nbsp;
	</TD>
	<TD width=88% nowrap align=left>
<FONT size=2 face="sans-serif">Putnam Income Strategies Fund</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=11% nowrap align=left>
<FONT size=2 face="sans-serif">29X</FONT>&nbsp;
	</TD>
	<TD width=88% nowrap align=left>
<FONT size=2 face="sans-serif">Putnam Floating Rate Income Fund</FONT>&nbsp;
	</TD>
</TR>
</TABLE><BR>

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