UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number

811-22334

 

Western Asset Global Corporate Defined Opportunity Fund Inc.

(Exact name of registrant as specified in charter)

 

620 Eighth Avenue, 49th Floor, New York, NY

 

10018

(Address of principal executive offices)

 

(Zip code)

 

Robert I. Frenkel, Esq.

Legg Mason & Co., LLC

100 First Stamford Place

Stamford, CT 06902

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:

1-888-777-0102

 

 

Date of fiscal year end:

October 31

 

 

Date of reporting period:

July 31, 2013

 

 


 

ITEM 1.                 SCHEDULE OF INVESTMENTS.

 


 

WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.

 

FORM N-Q

JULY 31, 2013


 

WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.

 

Schedule of investments (unaudited)

July 31, 2013

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT †

 

VALUE

 

CORPORATE BONDS & NOTES — 106.9%

 

 

 

 

 

 

 

 

 

CONSUMER DISCRETIONARY — 15.2%

 

 

 

 

 

 

 

 

 

Auto Components — 1.1%

 

 

 

 

 

 

 

 

 

Europcar Groupe SA, Senior Notes

 

11.500%

 

5/15/17

 

175,000

EUR

$

265,405

(a)

Europcar Groupe SA, Senior Notes

 

9.375%

 

4/15/18

 

785,000

EUR

1,016,911

(a)

Hertz Holdings Netherlands BV, Senior Secured Bonds

 

8.500%

 

7/31/15

 

1,420,000

EUR

1,983,740

(a)

Total Auto Components

 

 

 

 

 

 

 

3,266,056

 

Automobiles — 0.5%

 

 

 

 

 

 

 

 

 

Fiat Finance & Trade Ltd. SA, Senior Notes

 

6.125%

 

7/8/14

 

146,000

EUR

201,321

 

Ford Motor Credit Co., LLC, Senior Notes

 

2.375%

 

1/16/18

 

1,300,000

 

1,278,845

 

Total Automobiles

 

 

 

 

 

 

 

1,480,166

 

Diversified Consumer Services — 0.4%

 

 

 

 

 

 

 

 

 

Co-operative Group Holdings 2011 Ltd., Senior Notes

 

6.875%

 

7/8/20

 

100,000

GBP

144,709

 

Co-operative Group Holdings 2011 Ltd., Senior Notes

 

7.500%

 

7/8/26

 

190,000

GBP

271,591

 

Dignity Finance PLC, Secured Bonds

 

6.310%

 

12/31/23

 

477,298

GBP

875,215

(a)

Total Diversified Consumer Services

 

 

 

 

 

 

 

1,291,515

 

Hotels, Restaurants & Leisure — 1.9%

 

 

 

 

 

 

 

 

 

Burger King Capital Holdings LLC/Burger King Capital Finance Inc., Senior Notes, step bond

 

0.000%

 

4/15/19

 

250,000

 

218,438

(a)

Caesars Entertainment Operating Co. Inc., Senior Secured Notes

 

11.250%

 

6/1/17

 

1,000,000

 

1,041,875

 

Caesars Entertainment Operating Co. Inc., Senior Secured Notes

 

9.000%

 

2/15/20

 

1,470,000

 

1,392,825

(a)

MGM Resorts International, Senior Notes

 

11.375%

 

3/1/18

 

1,000,000

 

1,270,000

(b)

Mitchells & Butlers Finance PLC, Secured Notes

 

5.965%

 

12/15/23

 

495,227

GBP

843,489

 

Mohegan Tribal Gaming Authority, Secured Notes

 

11.500%

 

11/1/17

 

1,000,000

 

1,131,250

(a)

Total Hotels, Restaurants & Leisure

 

 

 

 

 

 

 

5,897,877

 

Household Durables — 0.8%

 

 

 

 

 

 

 

 

 

Norcraft Cos. LP/Norcraft Finance Corp., Senior Secured Notes

 

10.500%

 

12/15/15

 

2,500,000

 

2,603,125

(b)

Media — 8.8%

 

 

 

 

 

 

 

 

 

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

 

8.125%

 

4/30/20

 

1,570,000

 

1,715,225

(b)

Cerved Technologies SpA, Senior Secured Notes

 

6.375%

 

1/15/20

 

100,000

EUR

135,696

(a)

Cerved Technologies SpA, Senior Subordinated Notes

 

8.000%

 

1/15/21

 

100,000

EUR

133,301

(a)

Comcast Corp., Senior Notes

 

5.700%

 

7/1/19

 

1,800,000

 

2,114,780

(b)

CSC Holdings LLC, Senior Notes

 

6.750%

 

11/15/21

 

1,000,000

 

1,100,000

(b)

Daily Mail & General Trust PLC, Senior Bonds

 

5.750%

 

12/7/18

 

1,280,000

GBP

2,127,609

 

Grupo Televisa SAB, Senior Bonds

 

6.625%

 

1/15/40

 

1,730,000

 

1,895,786

(b)

MDC Partners Inc., Senior Notes

 

6.750%

 

4/1/20

 

300,000

 

309,000

(a)

Nara Cable Funding Ltd., Senior Secured Notes

 

8.875%

 

12/1/18

 

1,000,000

EUR

1,395,204

(a)

NET Servicos de Comunicacao SA, Bonds

 

7.500%

 

1/27/20

 

920,000

 

1,009,700

 

Ono Finance II PLC, Senior Bonds

 

10.875%

 

7/15/19

 

684,000

 

714,780

(a)

Pearson PLC, Senior Bonds

 

7.000%

 

10/27/14

 

1,200,000

GBP

1,952,168

 

Time Warner Cable Inc., Senior Notes

 

8.750%

 

2/14/19

 

1,500,000

 

1,779,241

(b)

UBM PLC, Notes

 

5.750%

 

11/3/20

 

1,500,000

 

1,512,364

(a)(b)

UPC Holding BV, Junior Secured Subordinated Notes

 

6.375%

 

9/15/22

 

910,000

EUR

1,216,429

(a)

UPCB Finance II Ltd., Senior Notes

 

6.375%

 

7/1/20

 

1,000,000

EUR

1,416,956

(a)

Videotron Ltd, Senior Notes

 

7.125%

 

1/15/20

 

2,000,000

CAD

2,100,574

(a)

Virgin Media Secured Finance PLC, Senior Secured Notes

 

7.000%

 

1/15/18

 

900,000

GBP

1,437,582

 

Vivendi SA, Senior Notes

 

4.750%

 

7/13/21

 

1,300,000

EUR

1,958,298

 

 

See Notes to Schedule of Investments.

 

1


 

WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.

 

Schedule of investments (unaudited) (cont’d)

July 31, 2013

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT †

 

VALUE

 

Media — continued

 

 

 

 

 

 

 

 

 

Ziggo Bond Co. BV, Senior Notes

 

8.000%

 

5/15/18

 

750,000

EUR

$

1,072,595

(a)

Total Media

 

 

 

 

 

 

 

27,097,288

 

Multiline Retail — 0.1%

 

 

 

 

 

 

 

 

 

Neiman Marcus Group Inc., Senior Secured Notes

 

7.125%

 

6/1/28

 

180,000

 

181,800

 

Specialty Retail — 1.6%

 

 

 

 

 

 

 

 

 

AA Bond Co., Ltd., Secured Notes

 

9.500%

 

7/31/19

 

200,000

GBP

325,015

(a)

Edcon Pty Ltd., Senior Secured Notes

 

9.500%

 

3/1/18

 

300,000

EUR

372,165

(a)

Gap Inc., Senior Notes

 

5.950%

 

4/12/21

 

2,250,000

 

2,533,228

(b)

Spencer Spirit Holdings Inc./Spencer Gifts LLC/Spirit Halloween Superstores, Senior Notes

 

11.000%

 

5/1/17

 

1,740,000

 

1,874,850

(a)

Total Specialty Retail

 

 

 

 

 

 

 

5,105,258

 

TOTAL CONSUMER DISCRETIONARY

 

 

 

 

 

 

 

46,923,085

 

CONSUMER STAPLES — 6.4%

 

 

 

 

 

 

 

 

 

Food & Staples Retailing — 1.1%

 

 

 

 

 

 

 

 

 

CVS Caremark Corp., Senior Notes

 

6.125%

 

9/15/39

 

1,000,000

 

1,187,628

(b)

Tesco PLC, Senior Notes

 

6.125%

 

2/24/22

 

1,200,000

GBP

2,154,781

 

Total Food & Staples Retailing

 

 

 

 

 

 

 

3,342,409

 

Food Products — 0.9%

 

 

 

 

 

 

 

 

 

Boparan Holdings Ltd., Senior Notes

 

9.875%

 

4/30/18

 

700,000

GBP

1,180,148

(a)

Chiquita Brands International Inc./Chiquita Brands LLC, Senior Secured Notes

 

7.875%

 

2/1/21

 

910,000

 

969,150

(a)

Foodcorp Ltd., Senior Secured Notes

 

8.750%

 

3/1/18

 

360,000

EUR

520,233

(a)

Total Food Products

 

 

 

 

 

 

 

2,669,531

 

Personal Products — 0.2%

 

 

 

 

 

 

 

 

 

Hypermarcas SA, Notes

 

6.500%

 

4/20/21

 

760,000

 

768,550

(a)

Tobacco — 4.2%

 

 

 

 

 

 

 

 

 

Altria Group Inc., Senior Notes

 

9.700%

 

11/10/18

 

2,600,000

 

3,484,830

(b)

BAT International Finance PLC, Senior Notes

 

4.875%

 

2/24/21

 

1,450,000

EUR

2,284,658

 

Imperial Tobacco Finance PLC, Senior Notes

 

8.375%

 

2/17/16

 

1,150,000

EUR

1,803,086

 

Lorillard Tobacco Co., Senior Notes

 

8.125%

 

6/23/19

 

2,305,000

 

2,817,005

(b)

Reynolds American Inc., Senior Notes

 

6.750%

 

6/15/17

 

2,340,000

 

2,717,243

(b)

Total Tobacco

 

 

 

 

 

 

 

13,106,822

 

TOTAL CONSUMER STAPLES

 

 

 

 

 

 

 

19,887,312

 

ENERGY — 12.0%

 

 

 

 

 

 

 

 

 

Energy Equipment & Services — 0.4%

 

 

 

 

 

 

 

 

 

Parker Drilling Co., Senior Notes

 

9.125%

 

4/1/18

 

300,000

 

322,500

(b)

TMK OAO Via TMK Capital SA, Senior Notes

 

6.750%

 

4/3/20

 

820,000

 

798,475

(a)

Total Energy Equipment & Services

 

 

 

 

 

 

 

1,120,975

 

Oil, Gas & Consumable Fuels — 11.6%

 

 

 

 

 

 

 

 

 

Alliance Oil Co., Ltd., Senior Notes

 

7.000%

 

5/4/20

 

870,000

 

870,000

(a)

Anadarko Petroleum Corp., Senior Notes

 

6.450%

 

9/15/36

 

1,370,000

 

1,611,045

(b)

Dolphin Energy Ltd., Senior Secured Bonds

 

5.888%

 

6/15/19

 

1,529,295

 

1,701,341

(a)

Ecopetrol SA, Senior Notes

 

7.625%

 

7/23/19

 

1,650,000

 

1,971,750

(b)

EDC Finance Ltd., Senior Notes

 

4.875%

 

4/17/20

 

800,000

 

742,000

(a)

Energy Transfer Partners LP, Senior Notes

 

9.700%

 

3/15/19

 

1,000,000

 

1,301,070

(b)

Enterprise Products Operating LLC, Senior Notes

 

6.500%

 

1/31/19

 

1,290,000

 

1,538,673

(b)

EP Energy AS, Senior Secured Notes

 

5.875%

 

11/1/19

 

100,000

EUR

143,374

(a)

Globe Luxembourg SCA, Senior Secured Notes

 

9.625%

 

5/1/18

 

1,050,000

 

1,039,300

(a)

Indo Energy Finance BV, Senior Notes

 

7.000%

 

5/7/18

 

470,000

 

464,125

(a)

KazMunayGas Finance Sub BV, Senior Notes

 

11.750%

 

1/23/15

 

675,000

 

762,750

(a)

Kinder Morgan Energy Partners LP, Medium-Term Notes

 

6.950%

 

1/15/38

 

1,180,000

 

1,406,690

(b)

LUKOIL International Finance BV, Bonds

 

6.356%

 

6/7/17

 

310,000

 

344,162

(a)

LUKOIL International Finance BV, Bonds

 

6.656%

 

6/7/22

 

1,860,000

 

2,055,672

(a)

Novatek Finance Ltd., Notes

 

6.604%

 

2/3/21

 

750,000

 

814,575

(a)

Pemex Project Funding Master Trust, Senior Bonds

 

6.625%

 

6/15/35

 

910,000

 

978,250

 

 

See Notes to Schedule of Investments.

 

2


 

WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.

 

Schedule of investments (unaudited) (cont’d)

July 31, 2013

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT †

 

VALUE

 

Oil, Gas & Consumable Fuels — continued

 

 

 

 

 

 

 

 

 

Petrobras International Finance Co., Senior Notes

 

6.750%

 

1/27/41

 

760,000

 

$

736,720

 

Petroleum Co. of Trinidad & Tobago Ltd., Senior Notes

 

9.750%

 

8/14/19

 

2,590,000

 

3,256,925

(a)

Petronas Capital Ltd., Senior Notes

 

5.250%

 

8/12/19

 

1,780,000

 

1,991,078

(a)

Petronas Capital Ltd., Senior Notes

 

5.250%

 

8/12/19

 

700,000

 

783,008

(a)

Plains Exploration & Production Co., Senior Notes

 

8.625%

 

10/15/19

 

1,500,000

 

1,661,727

(b)

Quicksilver Resources Inc., Senior Notes

 

11.000%

 

7/1/21

 

500,000

 

450,000

(a)

Ras Laffan Liquefied Natural Gas Co., Ltd. III, Senior Secured Bonds

 

6.750%

 

9/30/19

 

2,280,000

 

2,700,660

(a)

Ras Laffan Liquefied Natural Gas Co., Ltd. III, Senior Secured Notes

 

5.500%

 

9/30/14

 

1,050,000

 

1,102,762

(a)

Rosneft Finance SA, Senior Notes

 

7.875%

 

3/13/18

 

4,150,000

 

4,834,750

(a)

Williams Partners LP, Senior Notes

 

5.250%

 

3/15/20

 

610,000

 

658,728

(b)

Total Oil, Gas & Consumable Fuels

 

 

 

 

 

 

 

35,921,135

 

TOTAL ENERGY

 

 

 

 

 

 

 

37,042,110

 

FINANCIALS — 31.7%

 

 

 

 

 

 

 

 

 

Capital Markets — 3.0%

 

 

 

 

 

 

 

 

 

Goldman Sachs Capital II, Junior Subordinated Bonds

 

4.000%

 

9/16/13

 

1,300,000

 

1,028,625

(b)(c)(d)

Goldman Sachs Group Inc., Subordinated Notes

 

4.750%

 

10/12/21

 

2,700,000

EUR

3,840,741

 

Goldman Sachs Group Inc., Subordinated Notes

 

5.500%

 

10/12/21

 

600,000

GBP

978,007

 

Merrill Lynch & Co. Inc., Senior Notes

 

7.750%

 

4/30/18

 

800,000

GBP

1,496,902

 

UBS AG London, Senior Notes

 

6.375%

 

7/20/16

 

1,050,000

GBP

1,820,938

 

Total Capital Markets

 

 

 

 

 

 

 

9,165,213

 

Commercial Banks — 17.6%

 

 

 

 

 

 

 

 

 

Australia & New Zealand Banking Group Ltd., Subordinated Notes

 

5.125%

 

9/10/19

 

1,250,000

EUR

1,884,201

(a)

Barclays Bank PLC, Subordinated Notes

 

7.625%

 

11/21/22

 

4,750,000

 

4,738,125

 

BBVA International Preferred SA Unipersonal

 

9.100%

 

10/21/14

 

400,000

GBP

626,755

(c)(d)

BNP Paribas Fortis SA, Junior Subordinated Notes

 

4.625%

 

10/27/14

 

1,900,000

EUR

2,521,345

(a)(c)(d)

BNP Paribas Fortis SA, Senior Subordinated Notes

 

5.757%

 

10/4/17

 

1,200,000

EUR

1,809,556

 

Commonwealth Bank of Australia, Subordinated Notes

 

5.500%

 

8/6/19

 

1,200,000

EUR

1,836,347

 

Credit Agricole SA, Junior Subordinated Notes

 

7.875%

 

10/26/19

 

400,000

EUR

574,711

(a)(c)(d)

Credit Agricole SA, Subordinated Notes

 

8.375%

 

10/13/19

 

2,530,000

 

2,732,400

(a)(c)(d)

HSBC Capital Funding LP, Junior Subordinated Bonds

 

5.369%

 

3/24/14

 

1,900,000

EUR

2,560,034

(c)(d)

ING Bank NV, Subordinated Notes

 

6.875%

 

5/29/23

 

2,850,000

GBP

4,833,256

(c)

Intesa Sanpaolo SpA, Senior Notes

 

3.625%

 

8/12/15

 

1,000,000

 

1,010,169

(a)

Intesa Sanpaolo SpA, Subordinated Notes

 

8.375%

 

10/14/19

 

450,000

EUR

617,994

(a)(c)(d)

M&T Bank Corp., Junior Subordinated Notes

 

6.875%

 

6/15/16

 

1,570,000

 

1,635,042

(a)(d)

Matalan Finance Ltd., Senior Notes

 

9.625%

 

3/31/17

 

66,000

GBP

97,641

(a)

National Australia Bank Ltd., Subordinated Notes

 

6.750%

 

6/26/23

 

2,750,000

EUR

4,313,736

(c)

National Capital Trust I

 

5.620%

 

12/17/18

 

266,000

GBP

404,653

(a)(c)(d)

Rabobank Nederland NV, Junior Subordinated Notes

 

11.000%

 

6/30/19

 

1,997,000

 

2,592,418

(a)(c)(d)

Royal Bank of Scotland Group PLC, Subordinated Notes

 

5.000%

 

10/1/14

 

4,000,000

 

4,097,668

 

Royal Bank of Scotland Group PLC, Subordinated Notes

 

6.100%

 

6/10/23

 

2,570,000

 

2,469,089

 

Santander Finance Preferred SA Unipersonal, Subordinated Bonds

 

11.300%

 

7/27/14

 

350,000

GBP

558,900

(c)(d)

Santander Issuances SAU, Notes

 

5.911%

 

6/20/16

 

2,000,000

 

2,121,966

(a)

Skandinaviska Enskilda Banken AB, Subordinated Notes

 

9.250%

 

3/31/15

 

450,000

EUR

651,040

(c)(d)

Societe Generale, Subordinated Notes

 

9.375%

 

9/4/19

 

1,550,000

EUR

2,299,177

(a)(c)(d)

Standard Chartered Bank, Subordinated Notes

 

5.875%

 

9/26/17

 

1,250,000

EUR

1,885,620

(a)

Standard Chartered Bank, Subordinated Notes

 

7.750%

 

4/3/18

 

1,000,000

GBP

1,822,469

 

 

See Notes to Schedule of Investments.

 

3


 

WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.

 

Schedule of investments (unaudited) (cont’d)

July 31, 2013

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT †

 

VALUE

 

Commercial Banks — continued

 

 

 

 

 

 

 

 

 

Wachovia Capital Trust III, Junior Subordinated Bonds

 

5.570%

 

9/16/13

 

3,660,000

 

$

3,582,225

(c)(d)

Total Commercial Banks

 

 

 

 

 

 

 

54,276,537

 

Consumer Finance — 2.1%

 

 

 

 

 

 

 

 

 

American Express Co., Subordinated Debentures

 

6.800%

 

9/1/66

 

1,820,000

 

1,949,675

(b)(c)

SLM Corp., Medium-Term Notes

 

5.050%

 

11/14/14

 

2,400,000

 

2,484,000

(b)

SLM Corp., Medium-Term Notes, Senior Notes

 

8.000%

 

3/25/20

 

1,880,000

 

2,103,250

(b)

Total Consumer Finance

 

 

 

 

 

 

 

6,536,925

 

Diversified Financial Services — 5.0%

 

 

 

 

 

 

 

 

 

Bank of America Corp., Senior Notes

 

6.500%

 

8/1/16

 

110,000

 

124,735

(b)

Citigroup Inc., Senior Notes

 

7.375%

 

9/4/19

 

1,300,000

EUR

2,226,194

 

FCE Bank PLC, Senior Notes

 

5.125%

 

11/16/15

 

900,000

GBP

1,469,893

(a)

General Electric Capital Corp., Subordinated Bonds

 

5.500%

 

9/15/67

 

940,000

EUR

1,290,831

(a)(c)

General Electric Capital Corp., Subordinated Debentures

 

6.375%

 

11/15/67

 

1,200,000

 

1,282,500

(c)

International Lease Finance Corp., Senior Notes

 

8.750%

 

3/15/17

 

3,000,000

 

3,457,500

(b)

International Lease Finance Corp., Senior Notes

 

6.250%

 

5/15/19

 

1,130,000

 

1,197,800

(b)

JPMorgan Chase & Co., Junior Subordinated Bonds

 

5.150%

 

5/1/23

 

3,900,000

 

3,636,750

(c)(d)

MUFG Capital Finance 4 Ltd., Junior Subordinated Bonds

 

5.271%

 

1/25/17

 

550,000

EUR

782,033

(c)(d)

Total Diversified Financial Services

 

 

 

 

 

 

 

15,468,236

 

Insurance — 4.0%

 

 

 

 

 

 

 

 

 

American International Group Inc., Senior Notes

 

8.250%

 

8/15/18

 

1,200,000

 

1,504,642

(b)

Aviva PLC, Subordinated Notes

 

5.250%

 

10/2/23

 

1,300,000

EUR

1,735,940

(c)

AXA SA, Junior Subordinated Notes

 

5.777%

 

7/6/16

 

500,000

EUR

687,874

(c)(d)

AXA SA, Junior Subordinated Notes

 

6.463%

 

12/14/18

 

2,000,000

 

2,005,000

(a)(c)(d)

ELM BV, Subordinated Notes

 

5.252%

 

5/25/16

 

550,000

EUR

756,387

(c)(d)

Farmers Insurance Exchange, Subordinated Notes

 

8.625%

 

5/1/24

 

1,295,000

 

1,691,605

(a)

Generali Finance BV, Junior Subordinated Bonds

 

5.317%

 

6/16/16

 

500,000

EUR

635,242

(c)(d)

MetLife Capital Trust IV, Junior Subordinated Notes

 

7.875%

 

12/15/37

 

300,000

 

355,500

(a)

Muenchener Rueckversicherungs-Gesellschaft AG (MunichRe), Subordinated Bonds

 

5.767%

 

6/12/17

 

500,000

EUR

705,637

(c)(d)

QBE Insurance Group Ltd., Senior Notes

 

6.125%

 

9/28/15

 

550,000

GBP

911,815

(a)

Travelers Cos. Inc., Senior Notes

 

5.350%

 

11/1/40

 

1,150,000

 

1,290,835

(b)

Total Insurance

 

 

 

 

 

 

 

12,280,477

 

TOTAL FINANCIALS

 

 

 

 

 

 

 

97,727,388

 

HEALTH CARE — 3.4%

 

 

 

 

 

 

 

 

 

Health Care Equipment & Supplies — 0.3%

 

 

 

 

 

 

 

 

 

Biomet Inc., Senior Notes

 

6.500%

 

8/1/20

 

70,000

 

73,850

 

Lantheus Medical Imaging Inc., Senior Notes

 

9.750%

 

5/15/17

 

430,000

 

378,937

 

Ontex IV SA, Senior Notes

 

9.000%

 

4/15/19

 

430,000

EUR

598,365

(a)

Total Health Care Equipment & Supplies

 

 

 

 

 

 

 

1,051,152

 

Health Care Providers & Services — 2.1%

 

 

 

 

 

 

 

 

 

Crown Newco 3 PLC, Senior Subordinated Notes

 

8.875%

 

2/15/19

 

450,000

GBP

686,274

(a)

Humana Inc., Senior Notes

 

7.200%

 

6/15/18

 

2,700,000

 

3,227,307

(b)

Labco SAS, Senior Secured Notes

 

8.500%

 

1/15/18

 

200,000

EUR

283,365

(a)

Tenet Healthcare Corp., Senior Secured Notes

 

4.500%

 

4/1/21

 

770,000

 

719,950

(a)

UnitedHealth Group Inc., Senior Notes

 

6.000%

 

2/15/18

 

1,350,000

 

1,586,716

(b)

Total Health Care Providers & Services

 

 

 

 

 

 

 

6,503,612

 

Pharmaceuticals — 1.0%

 

 

 

 

 

 

 

 

 

ConvaTec Healthcare E SA, Senior Notes

 

10.875%

 

12/15/18

 

1,070,000

EUR

1,585,394

(a)

Mallinckrodt International Finance SA, Senior Notes

 

4.750%

 

4/15/23

 

1,500,000

 

1,454,735

(a)

Total Pharmaceuticals

 

 

 

 

 

 

 

3,040,129

 

TOTAL HEALTH CARE

 

 

 

 

 

 

 

10,594,893

 

 

See Notes to Schedule of Investments.

 

4


 

WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.

 

Schedule of investments (unaudited) (cont’d)

July 31, 2013

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT †

 

VALUE

 

INDUSTRIALS — 9.0%

 

 

 

 

 

 

 

 

 

Aerospace & Defense — 1.0%

 

 

 

 

 

 

 

 

 

Bombardier Inc., Senior Notes

 

6.125%

 

5/15/21

 

1,200,000

EUR

$

1,719,823

(a)

Erickson Air-Crane Inc., Senior Secured Notes

 

8.250%

 

5/1/20

 

1,340,000

 

1,360,100

(a)

Total Aerospace & Defense

 

 

 

 

 

 

 

3,079,923

 

Airlines — 3.9%

 

 

 

 

 

 

 

 

 

Air Canada, Pass-Through Trust, Secured Notes

 

6.625%

 

5/15/18

 

330,000

 

332,475

(a)

American Airlines, Pass-Through Trust, Secured Notes

 

6.125%

 

7/15/18

 

1,950,000

 

1,891,500

(a)

DAE Aviation Holdings Inc., Senior Notes

 

11.250%

 

8/1/15

 

1,385,000

 

1,395,387

(a)

Heathrow Finance PLC, Senior Secured Notes

 

7.125%

 

3/1/17

 

950,000

GBP

1,554,271

(a)

United Airlines Inc., Pass-Through Certificates

 

9.250%

 

5/10/17

 

2,671,277

 

2,951,761

 

United Airlines Inc., Pass-Through Certificates, Senior Secured Notes

 

10.400%

 

11/1/16

 

60,262

 

68,548

 

United Airlines Inc., Senior Secured Notes

 

6.750%

 

9/15/15

 

3,800,000

 

3,942,500

(a)(b)

Total Airlines

 

 

 

 

 

 

 

12,136,442

 

Building Products — 0.5%

 

 

 

 

 

 

 

 

 

Andrade Gutierrez International SA, Senior Notes

 

4.000%

 

4/30/18

 

870,000

 

826,500

(a)

Spie BondCo 3 SCA, Secured Notes

 

11.000%

 

8/15/19

 

454,000

EUR

674,191

(a)

Total Building Products

 

 

 

 

 

 

 

1,500,691

 

Commercial Services & Supplies — 1.4%

 

 

 

 

 

 

 

 

 

Monitronics International Inc., Senior Notes

 

9.125%

 

4/1/20

 

1,570,000

 

1,636,725

 

Republic Services Inc., Senior Notes

 

5.250%

 

11/15/21

 

1,450,000

 

1,588,520

(b)

Taylor Morrison Communities Inc./Monarch Communities Inc., Senior Notes

 

7.750%

 

4/15/20

 

500,000

 

550,000

(a)

Taylor Morrison Communities Inc./Monarch Communities Inc., Senior Notes

 

5.250%

 

4/15/21

 

420,000

 

405,300

(a)

Total Commercial Services & Supplies

 

 

 

 

 

 

 

4,180,545

 

Electrical Equipment — 0.1%

 

 

 

 

 

 

 

 

 

Trionista Holdco GmbH, Senior Secured Notes

 

5.000%

 

4/30/20

 

100,000

EUR

135,696

(a)

Trionista TopCo GmbH, Senior Subordinated Notes

 

6.875%

 

4/30/21

 

100,000

EUR

137,026

(a)

Total Electrical Equipment

 

 

 

 

 

 

 

272,722

 

Machinery — 0.7%

 

 

 

 

 

 

 

 

 

KION Finance SA, Senior Secured Notes

 

6.750%

 

2/15/20

 

1,195,000

EUR

1,732,926

(a)

KM Germany Holdings GmbH, Senior Secured Notes

 

8.750%

 

12/15/20

 

280,000

EUR

394,848

(a)

Total Machinery

 

 

 

 

 

 

 

2,127,774

 

Marine — 0.3%

 

 

 

 

 

 

 

 

 

Horizon Lines LLC, Secured Notes

 

13.000%

 

10/15/16

 

299,306

 

281,348

(e)

Horizon Lines LLC, Senior Secured Notes

 

11.000%

 

10/15/16

 

177,000

 

176,115

 

Ultrapetrol Bahamas Ltd., Senior Secured Mortgage Notes

 

8.875%

 

6/15/21

 

540,000

 

553,500

(a)

Total Marine

 

 

 

 

 

 

 

1,010,963

 

Road & Rail — 0.4%

 

 

 

 

 

 

 

 

 

Gategroup Finance Luxembourg SA, Senior Notes

 

6.750%

 

3/1/19

 

150,000

EUR

204,625

(a)

Jack Cooper Holdings Corp., Senior Secured Notes

 

9.250%

 

6/1/20

 

880,000

 

910,800

(a)

Total Road & Rail

 

 

 

 

 

 

 

1,115,425

 

Transportation — 0.7%

 

 

 

 

 

 

 

 

 

CMA CGM, Senior Notes

 

8.500%

 

4/15/17

 

1,000,000

 

930,000

(a)

CMA CGM, Senior Notes

 

8.875%

 

4/15/19

 

1,100,000

EUR

1,353,631

(a)

Total Transportation

 

 

 

 

 

 

 

2,283,631

 

TOTAL INDUSTRIALS

 

 

 

 

 

 

 

27,708,116

 

 

See Notes to Schedule of Investments.

 

5


 

WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.

 

Schedule of investments (unaudited) (cont’d)

July 31, 2013

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT †

 

VALUE

 

INFORMATION TECHNOLOGY — 0.8%

 

 

 

 

 

 

 

 

 

Computers & Peripherals — 0.7%

 

 

 

 

 

 

 

 

 

Hewlett-Packard Co., Senior Notes

 

4.650%

 

12/9/21

 

2,000,000

 

$

2,031,942

(b)

Electronic Equipment, Instruments & Components — 0.1%

 

 

 

 

 

Techem GmbH, Senior Secured Notes

 

6.125%

 

10/1/19

 

250,000

EUR

360,857

(a)

TOTAL INFORMATION TECHNOLOGY

 

 

 

 

 

 

 

2,392,799

 

MATERIALS — 10.5%

 

 

 

 

 

 

 

 

 

Chemicals — 0.7%

 

 

 

 

 

 

 

 

 

INEOS Group Holdings SA, Senior Notes

 

7.875%

 

2/15/16

 

369,128

EUR

497,822

(a)

Kerling PLC, Senior Secured Notes

 

10.625%

 

2/1/17

 

606,000

EUR

859,804

(a)

Styrolution GmbH, Senior Secured Notes

 

7.625%

 

5/15/16

 

554,000

EUR

772,022

(a)

Total Chemicals

 

 

 

 

 

 

 

2,129,648

 

Construction Materials — 1.1%

 

 

 

 

 

 

 

 

 

Cemex SAB de CV, Senior Secured Notes

 

9.000%

 

1/11/18

 

610,000

 

666,425

(a)

HeidelbergCement AG, Senior Notes

 

8.500%

 

10/31/19

 

610,000

EUR

1,026,564

(a)

Lafarge SA, Senior Notes

 

6.625%

 

11/29/18

 

1,150,000

EUR

1,720,452

 

Total Construction Materials

 

 

 

 

 

 

 

3,413,441

 

Containers & Packaging — 0.5%

 

 

 

 

 

 

 

 

 

Ardagh Packaging Finance PLC/Ardagh MP Holdings USA Inc., Senior Notes

 

7.000%

 

11/15/20

 

500,000

 

493,750

(a)

Suzano Trading Ltd., Senior Notes

 

5.875%

 

1/23/21

 

970,000

 

931,200

(a)

Total Containers & Packaging

 

 

 

 

 

 

 

1,424,950

 

Metals & Mining — 7.0%

 

 

 

 

 

 

 

 

 

AngloGold Ashanti Holdings PLC, Senior Notes

 

8.500%

 

7/30/20

 

1,340,000

 

1,324,992

 

Barrick Gold Corp., Senior Notes

 

6.950%

 

4/1/19

 

500,000

 

547,056

 

Cliffs Natural Resources Inc., Senior Notes

 

3.950%

 

1/15/18

 

2,070,000

 

1,998,974

 

CSN Resources SA, Senior Bonds

 

6.500%

 

7/21/20

 

1,100,000

 

1,036,750

(a)

Evraz Group SA, Notes

 

9.500%

 

4/24/18

 

450,000

 

485,460

(a)

Evraz Group SA, Notes

 

6.750%

 

4/27/18

 

930,000

 

904,425

(a)

Evraz Group SA, Senior Notes

 

6.500%

 

4/22/20

 

340,000

 

308,550

(a)

FMG Resources (August 2006) Pty Ltd., Senior Notes

 

6.875%

 

4/1/22

 

1,500,000

 

1,490,625

(a)

Gerdau Holdings Inc., Senior Notes

 

7.000%

 

1/20/20

 

1,380,000

 

1,466,250

(a)

New World Resources NV, Senior Notes

 

7.875%

 

1/15/21

 

600,000

EUR

251,436

(a)

Rio Tinto Finance USA PLC, Senior Notes

 

2.250%

 

12/14/18

 

1,300,000

 

1,270,585

(b)

Southern Copper Corp., Senior Notes

 

6.750%

 

4/16/40

 

1,680,000

 

1,623,738

(b)

St. Barbara Ltd., Senior Secured Notes

 

8.875%

 

4/15/18

 

800,000

 

736,000

(a)

Vale Overseas Ltd., Notes

 

6.250%

 

1/23/17

 

670,000

 

754,119

 

Vale Overseas Ltd., Notes

 

8.250%

 

1/17/34

 

2,146,000

 

2,478,499

 

Vale Overseas Ltd., Notes

 

6.875%

 

11/21/36

 

340,000

 

337,385

 

Vedanta Resources PLC, Senior Notes

 

8.750%

 

1/15/14

 

1,570,000

 

1,613,175

(a)

Vedanta Resources PLC, Senior Notes

 

9.500%

 

7/18/18

 

260,000

 

293,150

(a)

Vedanta Resources PLC, Senior Notes

 

6.000%

 

1/31/19

 

990,000

 

970,200

(a)

Walter Energy Inc., Senior Notes

 

8.500%

 

4/15/21

 

460,000

 

376,050

(a)

Xstrata Finance Canada Ltd., Senior Notes

 

5.250%

 

6/13/17

 

950,000

EUR

1,401,840

 

Total Metals & Mining

 

 

 

 

 

 

 

21,669,259

 

Paper & Forest Products — 1.2%

 

 

 

 

 

 

 

 

 

Celulosa Arauco y Constitucion SA, Senior Notes

 

7.250%

 

7/29/19

 

1,220,000

 

1,414,796

(b)

Resolute Forest Products Inc., Senior Notes

 

5.875%

 

5/15/23

 

690,000

 

627,900

(a)

UPM-Kymmene OYJ, Senior Notes

 

6.625%

 

1/23/17

 

1,000,000

GBP

1,645,993

 

Total Paper & Forest Products

 

 

 

 

 

 

 

3,688,689

 

TOTAL MATERIALS

 

 

 

 

 

 

 

32,325,987

 

TELECOMMUNICATION SERVICES — 11.8%

 

 

 

 

 

 

 

 

 

Diversified Telecommunication Services — 9.1%

 

 

 

 

 

 

 

 

 

Axtel SAB de CV, Senior Secured Notes, step bond

 

7.000%

 

1/31/20

 

316,000

 

295,460

(a)

British Telecommunications PLC, Senior Bonds

 

8.500%

 

12/7/16

 

1,200,000

GBP

2,217,505

 

 

See Notes to Schedule of Investments.

 

6


 

WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.

 

Schedule of investments (unaudited) (cont’d)

July 31, 2013

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT †

 

VALUE

 

Diversified Telecommunication Services — continued

 

 

 

 

 

 

CenturyLink Inc., Senior Notes

 

5.800%

 

3/15/22

 

500,000

 

$

501,250

(b)

Intelsat Jackson Holdings SA, Senior Notes

 

5.500%

 

8/1/23

 

3,680,000

 

3,551,200

(a)

Level 3 Financing Inc., Senior Notes

 

7.000%

 

6/1/20

 

375,000

 

390,938

 

Level 3 Financing Inc., Senior Notes

 

8.625%

 

7/15/20

 

625,000

 

690,625

 

Qtel International Finance Ltd., Senior Notes

 

4.750%

 

2/16/21

 

650,000

 

680,875

(a)

Qwest Corp., Senior Notes

 

6.750%

 

12/1/21

 

2,500,000

 

2,802,183

(b)

Sunrise Communications Holdings SA, Senior Secured Notes

 

8.500%

 

12/31/18

 

266,000

EUR

383,952

(a)

Sunrise Communications International SA, Senior Secured Notes

 

7.000%

 

12/31/17

 

224,000

EUR

318,858

(a)

Telecom Italia SpA, Senior Notes

 

5.375%

 

1/29/19

 

1,400,000

EUR

1,942,733

 

Telefonica Emisiones SAU, Senior Notes

 

5.134%

 

4/27/20

 

2,000,000

 

2,059,846

 

Telefonica Emisiones SAU, Senior Notes

 

7.045%

 

6/20/36

 

2,000,000

 

2,218,902

(b)

UBS Luxembourg SA for OJSC Vimpel Communications, Loan Participation Notes

 

8.250%

 

5/23/16

 

1,150,000

 

1,262,125

(a)

Unitymedia GmbH, Senior Subordinated Notes

 

9.625%

 

12/1/19

 

640,000

EUR

954,625

(a)

Unitymedia KabelBW GmbH, Senior Secured Notes

 

9.500%

 

3/15/21

 

300,000

EUR

453,982

(a)

Vimpel Communications, Notes

 

6.493%

 

2/2/16

 

200,000

 

210,500

(a)

Wind Acquisition Finance SA, Senior Secured Notes

 

7.250%

 

2/15/18

 

2,010,000

 

2,080,350

(a)

Wind Acquisition Holdings Finance SpA, Senior Notes

 

12.250%

 

7/15/17

 

2,296,001

EUR

3,161,391

(a)(e)

Windstream Corp., Senior Notes

 

6.375%

 

8/1/23

 

2,000,000

 

1,910,000

(b)

Total Diversified Telecommunication Services

 

 

 

 

 

 

 

28,087,300

 

Wireless Telecommunication Services — 2.7%

 

 

 

 

 

 

 

 

 

America Movil SAB de CV, Senior Notes

 

5.625%

 

11/15/17

 

2,050,000

 

2,371,727

(b)

America Movil SAB de CV, Senior Notes

 

6.125%

 

3/30/40

 

650,000

 

701,062

(b)

Matterhorn Midco & Cy SCA, Senior Notes

 

7.750%

 

2/15/20

 

560,000

EUR

747,231

(a)

Phones4u Finance PLC, Senior Secured Notes

 

9.500%

 

4/1/18

 

500,000

GBP

798,656

(a)

Softbank Corp., Senior Notes

 

4.500%

 

4/15/20

 

840,000

 

812,910

(a)(b)

Sprint Capital Corp., Senior Notes

 

6.875%

 

11/15/28

 

750,000

 

693,750

(b)

Sprint Capital Corp., Senior Notes

 

8.750%

 

3/15/32

 

2,000,000

 

2,120,000

(b)

Total Wireless Telecommunication Services

 

 

 

 

 

 

 

8,245,336

 

TOTAL TELECOMMUNICATION SERVICES

 

 

 

 

 

 

 

36,332,636

 

UTILITIES — 6.1%

 

 

 

 

 

 

 

 

 

Electric Utilities — 1.5%

 

 

 

 

 

 

 

 

 

Centrais Eletricas Brasileiras SA, Senior Notes

 

6.875%

 

7/30/19

 

1,680,000

 

1,797,600

(a)

ENW Capital Finance PLC, Notes

 

6.750%

 

6/20/15

 

600,000

GBP

997,520

 

Scottish & Southern Energy PLC, Senior Notes

 

5.750%

 

2/5/14

 

1,200,000

GBP

1,868,893

 

Total Electric Utilities

 

 

 

 

 

 

 

4,664,013

 

Gas Utilities — 0.4%

 

 

 

 

 

 

 

 

 

Wales & West Utilities Finance PLC, Senior Secured Bonds

 

5.125%

 

12/2/16

 

650,000

GBP

1,101,877

(a)

Independent Power Producers & Energy Traders — 2.4%

 

 

 

 

 

 

Calpine Corp., Senior Secured Notes

 

7.500%

 

2/15/21

 

900,000

 

967,500

(a)

Calpine Corp., Senior Secured Notes

 

7.875%

 

1/15/23

 

2,000,000

 

2,180,000

(a)

Colbun SA, Senior Notes

 

6.000%

 

1/21/20

 

1,370,000

 

1,467,747

(a)

Energy Future Intermediate Holding Co. LLC/EFIH Finance Inc., Senior Secured Notes

 

10.000%

 

12/1/20

 

512,000

 

556,800

 

Mirant Mid Atlantic LLC, Pass-Through Certificates

 

10.060%

 

12/30/28

 

1,948,589

 

2,166,587

 

Total Independent Power Producers & Energy Traders

 

 

 

 

7,338,634

 

Multi-Utilities — 1.8%

 

 

 

 

 

 

 

 

 

Centrica PLC, Senior Notes

 

6.375%

 

3/10/22

 

1,200,000

GBP

2,252,740

 

Empresas Publicas de Medellin ESP, Senior Notes

 

7.625%

 

7/29/19

 

1,210,000

 

1,421,750

(a)

 

See Notes to Schedule of Investments.

 

7


 

WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.

 

Schedule of investments (unaudited) (cont’d)

July 31, 2013

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT †

 

VALUE

 

Multi-Utilities — continued

 

 

 

 

 

 

 

 

 

Veolia Environnement, Senior Notes

 

6.750%

 

4/24/19

 

1,200,000

EUR

$

1,994,711

 

Total Multi-Utilities

 

 

 

 

 

 

 

5,669,201

 

TOTAL UTILITIES

 

 

 

 

 

 

 

18,773,725

 

TOTAL CORPORATE BONDS & NOTES (Cost — $315,390,124)

 

 

 

 

329,708,051

 

ASSET-BACKED SECURITIES — 2.5%

 

 

 

 

 

 

 

 

 

Argent Securities Inc., 2004-W10 A2

 

0.970%

 

10/25/34

 

816,891

 

770,790

(c)

Asset Backed Funding Certificates, 2003-WMC1 M1

 

1.165%

 

6/25/33

 

1,764,208

 

1,681,849

(c)

Countrywide Home Equity Loan Trust, 2006-HW 2A1B

 

0.341%

 

11/15/36

 

698,030

 

555,646

(c)

Home Equity Asset Trust, 2004-8 M1

 

1.060%

 

3/25/35

 

641,516

 

596,932

(c)

Park Place Securities Inc., 2004-WCW1 M2

 

0.870%

 

9/25/34

 

1,643,984

 

1,618,622

(c)

Residential Asset Mortgage Products Inc., 2003-RZ5 A7

 

4.970%

 

9/25/33

 

1,131,373

 

1,177,269

 

Residential Asset Securities Corp., 2003-KS10 AI6

 

4.540%

 

12/25/33

 

212,256

 

220,696

(c)

Soundview Home Equity Loan Trust, 2005-3 M2

 

0.970%

 

6/25/35

 

217,746

 

214,848

(c)

Structured Asset Securities Corp., 2002-HF1 A

 

0.770%

 

1/25/33

 

1,050,847

 

983,967

(c)

TOTAL ASSET-BACKED SECURITIES (Cost — $7,202,191)

 

 

 

 

7,820,619

 

COLLATERALIZED MORTGAGE OBLIGATIONS — 2.6%

 

 

 

 

 

 

ARM Trust, 2004-5 4A1

 

5.090%

 

4/25/35

 

601,863

 

591,877

(c)

Bear Stearns ARM Trust, 2005-12 24A1

 

5.535%

 

2/25/36

 

66,288

 

58,186

(c)

Credit Suisse Mortgage Capital Certificates, 2009-3R 25A1

 

2.803%

 

7/27/36

 

317,815

 

321,025

(a)(c)

Greenwich Capital Commercial Funding Corp., 2006-GG7 AM

 

6.056%

 

7/10/38

 

1,500,000

 

1,648,084

(c)

GSMPS Mortgage Loan Trust, 2006-RP1 1A2

 

7.500%

 

1/25/36

 

300,700

 

308,225

(a)

Harborview Mortgage Loan Trust, 2004-10 4A

 

2.706%

 

1/19/35

 

361,204

 

359,011

(c)

JPMorgan Mortgage Trust, 2005-A5 1A2

 

2.872%

 

8/25/35

 

1,610,397

 

1,570,222

(c)

Residential Asset Mortgage Products Inc., 2003-SL1 M1

 

7.350%

 

4/25/31

 

1,697,697

 

1,676,904

(c)

Sequoia Mortgage Trust, 2003-3 A1

 

0.852%

 

7/20/33

 

688,314

 

658,364

(c)

Washington Mutual Inc., Mortgage Pass-Through Certificates, 2007-0A5 1A

 

0.919%

 

6/25/47

 

907,937

 

744,668

(c)

Washington Mutual Inc., Mortgage Pass-Through Certificates, 2007-HY4 4A1

 

2.361%

 

9/25/36

 

100,277

 

82,751

(c)

TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost — $7,199,784)

 

 

 

8,019,317

 

SENIOR LOANS — 0.2%

 

 

 

 

 

 

 

 

 

CONSUMER DISCRETIONARY — 0.1%

 

 

 

 

 

 

 

 

 

Gymboree Corp., Initial Term Loan

 

5.000%

 

2/23/18

 

370,000

 

358,785

(f)

ENERGY — 0.1%

 

 

 

 

 

 

 

 

 

Frac Tech International LLC, Term Loan B

 

8.500%

 

5/6/16

 

70,000

 

69,950

(f)

TOTAL SENIOR LOANS (Cost — $420,765)

 

 

 

 

428,735

 

CONVERTIBLE BONDS & NOTES — 0.0%

 

 

 

 

 

 

 

 

 

TELECOMMUNICATION SERVICES — 0.0%

 

 

 

 

 

 

 

 

 

Diversified Telecommunication Services — 0.0%

 

 

 

 

 

 

 

 

 

Axtel SAB de CV, Senior Secured Notes (Cost - $53,605)

 

7.000%

 

1/31/20

 

360,800

MXN

42,371

(a)

SOVEREIGN BONDS — 6.6%

 

 

 

 

 

 

 

 

 

Brazil — 1.3%

 

 

 

 

 

 

 

 

 

Brazil Nota do Tesouro Nacional, Notes

 

10.000%

 

1/1/14

 

556,000

BRL

244,853

 

Brazil Nota do Tesouro Nacional, Notes

 

10.000%

 

1/1/17

 

7,888,000

BRL

3,403,293

 

 

See Notes to Schedule of Investments.

 

8


 

WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.

 

Schedule of investments (unaudited) (cont’d)

July 31, 2013

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT †

 

VALUE

 

Brazil — continued

 

 

 

 

 

 

 

 

 

Brazil Nota do Tesouro Nacional, Notes

 

10.000%

 

1/1/21

 

687,000

BRL

$

289,552

 

Total Brazil

 

 

 

 

 

 

 

3,937,698

 

Chile — 0.5%

 

 

 

 

 

 

 

 

 

Banco del Estado de Chile, Senior Notes

 

4.125%

 

10/7/20

 

1,540,000

 

1,581,391

(a)

Peru — 0.2%

 

 

 

 

 

 

 

 

 

Republic of Peru, Senior Bonds

 

7.840%

 

8/12/20

 

1,249,000

PEN

519,389

 

Russia — 1.0%

 

 

 

 

 

 

 

 

 

RSHB Capital, Loan Participation Notes, Senior Notes

 

6.299%

 

5/15/17

 

3,070,000

 

3,281,062

(a)

United Arab Emirates — 0.6%

 

 

 

 

 

 

 

 

 

MDC-GMTN B.V., Senior Notes

 

5.750%

 

5/6/14

 

430,000

 

445,133

(a)

MDC-GMTN B.V., Senior Notes

 

7.625%

 

5/6/19

 

1,250,000

 

1,522,134

(a)

Total United Arab Emirates

 

 

 

 

 

 

 

1,967,267

 

United Kingdom — 0.6%

 

 

 

 

 

 

 

 

 

United Kingdom Treasury Gilt, Bonds

 

4.500%

 

3/7/19

 

1,019,000

GBP

1,810,788

 

Venezuela — 2.4%

 

 

 

 

 

 

 

 

 

Bolivarian Republic of Venezuela, Senior Bonds

 

5.750%

 

2/26/16

 

5,293,000

 

4,816,630

(a)

Bolivarian Republic of Venezuela, Senior Bonds

 

9.250%

 

9/15/27

 

3,000,000

 

2,505,000

 

Total Venezuela

 

 

 

 

 

 

 

7,321,630

 

TOTAL SOVEREIGN BONDS (Cost — $20,074,903)

 

 

20,419,225

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHARES

 

 

 

COMMON STOCKS — 0.9%

 

 

 

 

 

 

 

 

 

FINANCIALS — 0.8%

 

 

 

 

 

 

 

 

 

Diversified Financial Services — 0.8%

 

 

 

 

 

 

 

 

 

Citigroup Inc.

 

 

 

 

 

48,867

 

2,547,926

 

INDUSTRIALS — 0.1%

 

 

 

 

 

 

 

 

 

Marine — 0.1%

 

 

 

 

 

 

 

 

 

Horizon Lines Inc., Class A Shares

 

 

 

 

 

139,004

 

184,875

*

TOTAL COMMON STOCKS (Cost — $2,611,703)

 

 

 

 

 

 

 

2,732,801

 

PREFERRED STOCKS — 0.3%

 

 

 

 

 

 

 

 

 

ENERGY — 0.3%

 

 

 

 

 

 

 

 

 

Oil, Gas & Consumable Fuels — 0.3%

 

 

 

 

 

 

 

 

 

Sanchez Energy Corp., Series B

 

6.500%

 

 

 

13,700

 

834,467

(a)

FINANCIALS — 0.0%

 

 

 

 

 

 

 

 

 

Diversified Financial Services — 0.0%

 

 

 

 

 

 

 

 

 

Citigroup Capital XIII

 

7.875%

 

 

 

3,050

 

83,875

(c)

TOTAL PREFERRED STOCKS (Cost — $765,711)

 

 

 

 

 

 

 

918,342

 

TOTAL INVESTMENTS — 120.0% (Cost — $353,718,786#)

 

 

 

370,089,461

 

Liabilities in Excess of Other Assets — (20.0)%

 

 

 

 

 

 

 

(61,631,407

)

TOTAL NET ASSETS — 100.0%

 

 

 

 

 

 

 

$

308,458,054

 

 

†

Face amount denominated in U.S. dollars, unless otherwise noted.

*

Non-income producing security.

(a)

Security is exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid pursuant to guidelines approved by the Board of Directors, unless otherwise noted.

(b)

All or a portion of this security is held by the counterparty as collateral for open reverse repurchase agreements.

(c)

Variable rate security. Interest rate disclosed is as of the most recent information available.

 

See Notes to Schedule of Investments.

 

9


 

WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.

 

Schedule of investments (unaudited) (cont’d)

July 31, 2013

 

(d)

Security has no maturity date. The date shown represents the next call date.

(e)

Payment-in-kind security for which the issuer has the option at each interest payment date of making interest payments in cash or additional debt securities.

(f)

Interest rates disclosed represent the effective rates on senior loans. Ranges in interest rates are attributable to multiple contracts under the same loan.

#

Aggregate cost for federal income tax purposes is substantially the same.

 

 

 

Abbreviations used in this schedule:

 

ARM

- Adjustable Rate Mortgage

 

BRL

- Brazilian Real

 

CAD

- Canadian Dollar

 

EUR

- Euro

 

GBP

- British Pound

 

MXN

- Mexican Peso

 

OJSC

- Open Joint Stock Company

 

PEN

- Peruvian Nuevo Sol

 

Summary of Investments by Country ** 

 

United States

 

39.1

%

United Kingdom

 

14.7

 

France

 

4.8

 

Russia

 

4.6

 

Brazil

 

4.4

 

Australia

 

3.1

 

Netherlands

 

3.0

 

Italy

 

2.7

 

Spain

 

2.6

 

Mexico

 

2.3

 

Venezuela

 

2.0

 

Luxembourg

 

1.9

 

Germany

 

1.8

 

Canada

 

1.7

 

Belgium

 

1.3

 

Qatar

 

1.2

 

Chile

 

1.2

 

United Arab Emirates

 

1.0

 

Switzerland

 

0.9

 

Colombia

 

0.9

 

Trinidad and Tobago

 

0.9

 

India

 

0.8

 

Malaysia

 

0.8

 

South Africa

 

0.6

 

Finland

 

0.5

 

Japan

 

0.4

 

Kazakhstan

 

0.2

 

Sweden

 

0.2

 

Peru

 

0.1

 

Ireland

 

0.1

 

Indonesia

 

0.1

 

Czech Republic

 

0.1

 

 

 

100.0

%

 

** As a percentage of total investments.  Please note that the Fund holdings are as of July 31, 2013 and are subject to change.

 

See Notes to Schedule of Investments.

 

10


 

Notes to schedule of investments (unaudited)

 

1. Organization and significant accounting policies

 

Western Asset Global Corporate Defined Opportunity Fund Inc. (the “Fund”) was incorporated in Maryland on September 17, 2009  and is registered as a non-diversified, limited-term, closed-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund’s primary investment objective is to provide current income and then to liquidate and distribute substantially all of the Fund’s net assets to stockholders on or about December 2, 2024. As a secondary investment objective, the Fund will seek capital appreciation. The Fund seeks to achieve its investment objectives by investing 80% of its managed assets in a portfolio of U.S. and foreign corporate fixed-income securities of varying maturities.

 

The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”).

 

(a) Investment valuation. The valuations for fixed income securities (which may include, but are not limited to, corporate, government, municipal, mortgage-backed, collateralized mortgage obligations and asset-backed securities) and certain derivative instruments are typically the prices supplied by independent third party pricing services, which may use market prices or broker/dealer quotations or a variety of valuation techniques and methodologies. The independent third party pricing services use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities.  Short-term fixed income securities that will mature in 60 days or less are valued at amortized cost, unless it is determined that using this method would not reflect an investment’s fair value. Futures contracts are valued daily at the settlement price established by the board of trade or exchange on which they are traded. Equity securities for which market quotations are available are valued at the last reported sales price or official closing price on the primary market or exchange on which they trade. When the Fund holds securities or other assets that are denominated in a foreign currency, the Fund will normally use the currency exchange rates as of 4:00 p.m. (Eastern Time). If independent third party pricing services are unable to supply prices for a portfolio investment, or if the prices supplied are deemed by the manager to be unreliable, the market price may be determined by the manager using quotations from one or more broker/dealers or at the transaction price if the security has recently been purchased and no value has yet been obtained from a pricing service or pricing broker. When reliable prices are not readily available, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund values these securities as determined in accordance with procedures approved by the Fund’s Board of Directors.

 

The Board of Directors is responsible for the valuation process and has delegated the supervision of the daily valuation process to the Legg Mason North American Fund Valuation Committee (the “Valuation Committee”). The Valuation Committee, pursuant to the policies adopted by the Board of Directors, is responsible for making fair value determinations, evaluating the effectiveness of the Fund’s pricing policies, and reporting to the Board of Directors. When determining the reliability of third party pricing information for investments owned by the Fund, the Valuation Committee, among other things, conducts due diligence reviews of pricing vendors, monitors the daily change in prices and reviews transactions among market participants.

 

The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making fair value determinations. Examples of possible methodologies include, but are not limited to, multiple of earnings; discount from market of a similar freely traded security; discounted cash-flow analysis; book value or a multiple thereof; risk premium/yield analysis; yield to maturity; and/or fundamental investment analysis. The Valuation Committee will also consider factors it deems relevant and appropriate in light of the facts and circumstances.  Examples of possible factors include, but are not limited to, the type of security; the issuer’s financial statements; the purchase price of the security; the discount from market value of unrestricted securities of the same class at the time of purchase; analysts’ research and observations from financial institutions; information regarding any transactions or offers with respect to the security; the existence of merger proposals or tender offers affecting the security; the price and extent of public trading in similar securities of the issuer or comparable companies; and the existence of a shelf registration for restricted securities.

 

For each portfolio security that has been fair valued pursuant to the policies adopted by the Board of Directors, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such back testing monthly and fair valuation occurrences are reported to the Board of Directors quarterly.

 

11


 

Notes to schedule of investments (unaudited) (continued)

 

The Fund uses valuation techniques to measure fair value that are consistent with the market approach and/or income approach, depending on the type of security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable securities. The income approach uses valuation techniques to discount estimated future cash flows to present value.

 

GAAP establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date.  These inputs are summarized in the three broad levels listed below:

 

·                  Level 1—quoted prices in active markets for identical investments

·                  Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

·                  Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

 

The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

 

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities carried at fair value:

 

ASSETS

Description

 

Quoted Prices
(Level 1)

 

Other Significant
Observable Inputs
(Level 2)

 

Significant
Unobservable
Inputs
(Level 3)

 

Total

 

Long-term investments†:

 

 

 

 

 

 

 

 

 

Corporate bonds & notes

 

—

 

$

329,708,051

 

—

 

$

329,708,051

 

Asset-backed securities

 

—

 

7,820,619

 

—

 

7,820,619

 

Collateralized mortgage obligations

 

—

 

8,019,317

 

—

 

8,019,317

 

Senior loans

 

—

 

428,735

 

—

 

428,735

 

Convertible bonds & notes

 

—

 

42,371

 

—

 

42,371

 

Sovereign bonds

 

—

 

20,419,225

 

—

 

20,419,225

 

Common stocks

 

$

2,732,801

 

—

 

—

 

2,732,801

 

Preferred stocks

 

83,875

 

834,467

 

—

 

918,342

 

Total investments

 

$

2,816,676

 

$

367,272,785

 

—

 

$

370,089,461

 

Other financial instruments:

 

 

 

 

 

 

 

 

 

Forward foreign currency contracts

 

—

 

$

828,984

 

—

 

$

828,984

 

Total

 

$

2,816,676

 

$

368,101,769

 

—

 

$

370,918,445

 

 

LIABILITIES

Description

 

Quoted Prices
(Level 1)

 

Other Significant
Observable Inputs
(Level 2)

 

Significant
Unobservable
Inputs
(Level 3)

 

Total

 

Other financial instruments:

 

 

 

 

 

 

 

 

 

Forward foreign currency contracts

 

—

 

$

962,141

 

—

 

$

962,141

 

 

† See Schedule of Investments for additional detailed categorizations.

 

(b) Repurchase agreements. The Fund may enter into repurchase agreements with institutions that its investment adviser has determined are creditworthy. Each repurchase agreement is recorded at cost. Under the terms of a typical repurchase agreement, the Fund acquires a debt security subject to an obligation of the seller to repurchase, and of the Fund to resell, the security at an agreed-upon price and time, thereby determining the yield during the Fund’s holding period. When entering into repurchase agreements, it is the Fund’s policy that its custodian or a third party custodian, acting on the Fund’s behalf, take possession of the underlying collateral securities, the market value of which, at all times, at least equals the principal amount of the repurchase transaction, including accrued interest. To the extent that any repurchase transaction maturity exceeds one business day, the value of the collateral is marked-to-market and measured against the value of the agreement in an effort to ensure the adequacy of the collateral. If the counterparty defaults, the Fund generally has the right to use the collateral to satisfy the terms of the repurchase transaction. However, if the market value of the collateral declines during the period in which the Fund seeks to assert its rights

 

12


 

Notes to schedule of investments (unaudited) (continued)

 

or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Fund may be delayed or limited.

 

(c) Reverse repurchase agreements. The Fund may enter into reverse repurchase agreements. Under the terms of a typical reverse repurchase agreement, a fund sells a security subject to an obligation to repurchase the security from the buyer at an agreed-upon time and price. In the event the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes insolvent, the Fund’s use of the proceeds of the agreement may be restricted pending a determination by the counterparty, or its trustee or receiver, whether to enforce the Fund’s obligation to repurchase the securities. In entering into reverse repurchase agreements, the Fund will maintain cash, U.S. government securities or other liquid debt obligations at least equal in value to its obligations with respect to reverse repurchase agreements or will take other actions permitted by law to cover its obligations.

 

(d) Futures contracts. The Fund uses futures contracts generally to gain exposure to, or hedge against, changes in interest rates or gain exposure to, or hedge against, changes in certain asset classes. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date.

 

Upon entering into a futures contract, the Fund is required to deposit cash or cash equivalents with a broker in an amount equal to a certain percentage of the contract amount. This is known as the ‘‘initial margin’’ and subsequent payments (‘‘variation margin’’) are made or received by the Fund each day, depending on the daily fluctuation in the value of the contract. For certain futures, including foreign denominated futures, variation margin is not settled daily, but is recorded as a net variation margin payable or receivable. Futures contracts are valued daily at the settlement price established by the board of trade or exchange on which they are traded.

 

Futures contracts involve, to varying degrees, risk of loss. In addition, there is the risk that the Fund may not be able to enter into a closing transaction because of an illiquid secondary market.

 

(e) Forward foreign currency contracts. The Fund enters into a forward foreign currency contract to hedge against foreign currency exchange rate risk on its non-U.S. dollar denominated securities or to facilitate settlement of a foreign currency denominated portfolio transaction. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price with delivery and settlement at a future date. The contract is marked-to-market daily and the change in value is recorded by the Fund as an unrealized gain or loss. When a forward foreign currency contract is closed, through either delivery or offset by entering into another forward foreign currency contract, the Fund recognizes a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value of the contract at the time it is closed.

 

When entering into a forward foreign currency contract, the Fund bears the risk of an unfavorable change in the foreign exchange rate underlying the forward foreign currency contract. Risks may also arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts.

 

(f) Foreign currency translation. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the date of valuation.  Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the respective dates of such transactions.

 

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar denominated transactions as a result of, among other factors, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.

 

(g) Foreign investment risks. The Fund’s investments in foreign securities may involve risks not present in domestic investments. Since securities may be denominated in foreign currencies, may require settlement in foreign currencies or pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Fund. Foreign investments may also subject the Fund to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which affect the market and/or credit risk of the investments.

 

(h) Credit and market risk. The Fund invests in high-yield and emerging market instruments that are subject to certain credit and market risks. The yields of high-yield and emerging market debt obligations reflect, among other things, perceived credit and

 

13


 

Notes to schedule of investments (unaudited) (continued)

 

market risks. The Fund’s investments in securities rated below investment grade typically involve risks not associated with higher rated securities including, among others, greater risk related to timely and ultimate payment of interest and principal, greater market price volatility and less liquid secondary market trading. The consequences of political, social, economic or diplomatic changes may have disruptive effects on the market prices of investments held by the Fund. The Fund’s investments in non-U.S. dollar denominated securities may also result in foreign currency losses caused by devaluations and exchange rate fluctuations.

 

Investments in securities that are collateralized by residential real estate mortgages are subject to certain credit and liquidity risks. When market conditions result in an increase in default rates of the underlying mortgages and the foreclosure values of underlying real estate properties are materially below the outstanding amount of these underlying mortgages, collection of the full amount of accrued interest and principal on these investments may be doubtful. Such market conditions may significantly impair the value and liquidity of these investments and may result in a lack of correlation between their credit ratings and values.

 

(i) Counterparty risk and credit-risk-related contingent features of derivative instruments. The Fund may invest in certain securities or engage in other transactions, where the Fund is exposed to counterparty credit risk in addition to broader market risks. The Fund may invest in securities of issuers, which may also be considered counterparties as trading partners in other transactions. This may increase the risk of loss in the event of default or bankruptcy by the counterparty or if the counterparty otherwise fails to meet its contractual obligations. The Fund’s investment manager attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. Market events and changes in overall economic conditions may impact the assessment of such counterparty risk by the investment manager. In addition, declines in the values of underlying collateral received may expose the Fund to increased risk of loss.

 

The Fund has entered into master agreements with certain of its derivative counterparties that provide for general obligations, representations, agreements, collateral, events of default or termination and credit related contingent features. The credit related contingent features include, but are not limited to, a percentage decrease in the Fund’s net assets or NAV over a specified period of time. If these credit related contingent features were triggered, the derivatives counterparty could terminate the positions and demand payment or require additional collateral.

 

Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives while collateral terms are contract specific for over-the-counter traded derivatives. Securities pledged as collateral, if any, to cover the obligations of the Fund under derivative contracts, are noted in the Schedule of Investments.

 

As of July 31, 2013, the Fund held forward foreign currency contracts with credit related contingent features which had a liability position of $962,141. If a contingent feature in the master agreements would have been triggered, the Fund would have been required to pay this amount to its derivatives counterparties.

 

(j) Loan participations. The Fund may invest in loans arranged through private negotiation between one or more financial institutions. The Fund’s investment in any such loan may be in the form of a participation in or an assignment of the loan. In connection with purchasing participations, the Fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement related to the loan, or any rights of off-set against the borrower and the Fund may not benefit directly from any collateral supporting the loan in which it has purchased the participation.

 

The Fund assumes the credit risk of the borrower, the lender that is selling the participation and any other persons interpositioned between the Fund and the borrower. In the event of the insolvency of the lender selling the participation, the Fund may be treated as a general creditor of the lender and may not benefit from any off-set between the lender and the borrower.

 

(k) Security transactions.  Security transactions are accounted for on a trade date basis.

 

14


 

Notes to schedule of investments (unaudited) (continued)

 

2.  Investments

 

At July 31, 2013, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:

 

Gross unrealized appreciation

 

$

24,001,445

 

Gross unrealized depreciation

 

(7,630,770

)

Net unrealized appreciation

 

$

16,370,675

 

 

Transactions in reverse repurchase agreements for the Fund during the period ended July 31, 2013 were as follows:

 

Average

 

Weighted

 

Maximum

 

Daily

 

Average

 

Amount

 

Balance*

 

Interest Rate*

 

Outstanding

 

$

54,853,480

 

0.722

%

$

68,000,000

 

 

* Averages based on the number of days that Fund had reverse repurchase agreements outstanding.

 

Interest rates on reverse repurchase agreements ranged from 0.759% to 0.813% during the period ended July 31, 2013. Interest expense incurred on reverse repurchase agreements totaled $300,527.

 

At July 31, 2013, the Fund had the following open reverse repurchase agreements:

 

Counterparty

 

Rate**

 

Effective Date

 

Maturity Date

 

Face Amount of

 

Barclays

 

0.766

%

04/29/2013

 

10/31/2013

 

$

50,000,000

 

Barclays

 

0.766

%

05/03/2013

 

10/31/2013

 

5,000,000

 

Barclays

 

0.766

%

06/28/2013

 

10/31/2013

 

13,000,000

 

 

 

 

 

 

 

 

 

$

68,000,000

 

 

** Interest rate on reverse repurchase agreement resets daily. Interest rate disclosed is as of July 31, 2013.

 

On July 31, 2013, the total market value of underlying collateral (refer to the Schedule of Investments for positions held at the counterparty as collateral for reverse repurchase agreements) for open reverse repurchase agreements was $82,120,338.

 

At July 31, 2013, the Fund had the following open forward foreign currency contracts:

 

FOREIGN CURRENCY

 

COUNTERPARTY

 

LOCAL
CURRENCY

 

MARKET
VALUE

 

SETTLEMENT
DATE

 

UNREALIZED
GAIN (LOSS)

 

Contracts to Buy:

 

 

 

 

 

 

 

 

 

 

 

British Pound

 

UBS AG

 

1,500,000

 

$

2,281,595

 

8/16/13

 

$

6,935

 

Euro

 

Citibank N.A.

 

1,000,000

 

1,330,424

 

8/16/13

 

32,823

 

Euro

 

Citibank N.A.

 

200,000

 

266,085

 

8/16/13

 

2,587

 

Euro

 

Morgan Stanley

 

2,300,000

 

3,059,976

 

8/16/13

 

45,006

 

 

 

 

 

 

 

 

 

 

 

87,351

 

Contracts to Sell:

 

 

 

 

 

 

 

 

 

 

 

British Pound

 

Citibank N.A.

 

200,000

 

304,213

 

8/16/13

 

633

 

British Pound

 

Morgan Stanley

 

13,032,869

 

19,823,823

 

8/16/13

 

362,722

 

British Pound

 

UBS AG

 

13,912,187

 

21,161,322

 

8/16/13

 

345,945

 

Canadian Dollar

 

Morgan Stanley

 

1,583,776

 

1,541,340

 

8/16/13

 

32,333

 

Euro

 

Citibank N.A.

 

3,500,000

 

4,656,486

 

8/16/13

 

(60,216

)

Euro

 

Citibank N.A.

 

50,000

 

66,521

 

8/16/13

 

(785

)

Euro

 

Morgan Stanley

 

46,096,740

 

61,328,230

 

8/16/13

 

(782,006

)

Euro

 

UBS AG

 

5,471,247

 

7,279,081

 

8/16/13

 

(119,134

)

 

 

 

 

 

 

 

 

 

 

(220,508

)

Net unrealized loss on open forward foreign currency contracts

 

 

 

$

(133,157

)

 

15


 

Notes to schedule of investments (unaudited) (continued)

 

3. Derivative instruments and hedging activities

 

GAAP requires enhanced disclosure about an entity’s derivative and hedging activities.

 

The following is a summary of the Fund’s derivative instruments categorized by risk exposure at July 31, 2013.

 

 

 

Forward Foreign Currency Contracts

 

 

 

Primary Underlying Risk

 

Unrealized Appreciation

 

Unrealized Depreciation

 

Total

 

Foreign Exchange Risk

 

$

828,984

 

$

(962,141

)

$

(133,157

)

 

During the period ended July 31, 2013, the volume of derivative activity for the Fund was as follows:

 

 

 

Average market value

 

Futures contracts (to sell) †

 

$

542,650

 

Forward foreign currency contracts (to buy)

 

3,846,483

 

Forward foreign currency contracts (to sell)

 

119,478,014

 

†At July 31, 2013, there were no open positions held in this derivative.

 

 

 

 

16


 

ITEM 2.                                                  CONTROLS AND PROCEDURES.

 

(a)                                 The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a- 3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934.

 

(b)                                 There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are likely to materially affect the registrant’s internal control over financial reporting.

 

ITEM 3.                                                  EXHIBITS.

 

Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are attached hereto.

 


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Western Asset Global Corporate Defined Opportunity Fund Inc.

 

By

/s/ Kenneth D. Fuller_

 

 

Kenneth D. Fuller

 

 

Chief Executive Officer

 

 

 

Date: September 25, 2013

 

 

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.

 

By

/s/ Kenneth D. Fuller

 

 

Kenneth D. Fuller

 

 

Chief Executive Officer

 

 

 

Date: September 25, 2013

 

 

 

By

/s/ Richard F. Sennett

 

 

Richard F. Sennett

 

 

Principal Financial Officer

 

 

 

Date: September 25, 2013