Western Asset Premier Bond Fund (WEA)

 

 

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 811-10603

Western Asset Premier Bond Fund

(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: December 31

Date of reporting period: March 31, 2018

 

 

 


 

ITEM 1. SCHEDULE OF INVESTMENTS.


WESTERN ASSET PREMIER BOND FUND

FORM N-Q

MARCH 31, 2018


WESTERN ASSET PREMIER BOND FUND

 

Schedule of investments (unaudited)    March 31, 2018

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT†
    VALUE  
CORPORATE BONDS & NOTES - 100.9%          
CONSUMER DISCRETIONARY - 13.9%          

Auto Components - 1.7%

         

Adient Global Holdings Ltd., Senior Notes

     4.875     8/15/26        1,390,000     $ 1,320,500 (a) 

IHO Verwaltungs GmbH, Senior Secured Bonds (4.750% Cash or 5.500% PIK)

     4.750     9/15/26        800,000       773,000 (a)(b) 

ZF North America Capital Inc., Senior Notes

     4.750     4/29/25        680,000       691,050 (a) 
         

 

 

 

Total Auto Components

            2,784,550  
         

 

 

 

Automobiles - 1.4%

         

Daimler Finance NA LLC, Notes

     8.500     1/18/31        1,000,000       1,457,620  

General Motors Co., Senior Notes

     6.600     4/1/36        140,000       160,883  

General Motors Financial Co. Inc., Senior Notes

     4.000     10/6/26        750,000       729,146  
         

 

 

 

Total Automobiles

            2,347,649  
         

 

 

 

Diversified Consumer Services - 0.7%

         

VOC Escrow Ltd., Senior Secured Notes

     5.000     2/15/28        1,110,000       1,060,050 (a) 
         

 

 

 

Hotels, Restaurants & Leisure - 2.1%

         

Brinker International Inc., Senior Notes

     5.000     10/1/24        1,611,000       1,582,807 (a) 

Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp., Senior Notes

     4.625     4/1/25        750,000       750,937  

Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp., Senior Notes

     4.875     4/1/27        330,000       327,113  

Marstons Issuer PLC, Secured Bonds (5.641% to 7/15/19 then 3 mo. GBP LIBOR + 2.550%)

     5.641     7/15/35        260,000 GBP      334,568 (c)(d) 

Silversea Cruise Finance Ltd., Senior Secured Notes

     7.250     2/1/25        428,000       454,750 (a) 
         

 

 

 

Total Hotels, Restaurants & Leisure

            3,450,175  
         

 

 

 

Household Durables - 0.2%

         

Lennar Corp., Senior Notes

     4.500     4/30/24        140,000       137,550  

Lennar Corp., Senior Notes

     4.750     5/30/25        110,000       108,762  

Lennar Corp., Senior Notes

     4.750     11/29/27        97,000       93,363 (a) 
         

 

 

 

Total Household Durables

            339,675  
         

 

 

 

Media - 6.7%

         

21st Century Fox America Inc., Senior Debentures

     8.875     4/26/23        400,000       492,693  

Altice France SA, Senior Secured Bonds

     6.000     5/15/22        200,000       195,746 (a) 

Altice France SA, Senior Secured Notes

     7.375     5/1/26        2,270,000       2,170,688 (a) 

Altice Luxembourg SA, Senior Secured Notes

     7.750     5/15/22        980,000       913,840 (a) 

Charter Communications Operating LLC/Charter Communications Operating Capital Corp., Senior Secured Notes

     6.384     10/23/35        420,000       470,420  

Charter Communications Operating LLC/Charter Communications Operating Capital Corp., Senior Secured Notes

     6.484     10/23/45        1,130,000       1,244,523  

Comcast Corp., Notes

     7.050     3/15/33        1,000,000       1,325,709  

DISH DBS Corp., Senior Notes

     5.000     3/15/23        140,000       126,350  

DISH DBS Corp., Senior Notes

     5.875     11/15/24        1,790,000       1,602,050  

DISH DBS Corp., Senior Notes

     7.750     7/1/26        60,000       56,490  

Time Warner Cable LLC, Debentures

     7.300     7/1/38        720,000       865,664  

UPC Holding BV, Senior Secured Notes

     5.500     1/15/28        980,000       906,500 (a) 

Virgin Media Secured Finance PLC, Senior Secured Notes

     5.500     8/15/26        820,000       798,983 (a) 
         

 

 

 

Total Media

            11,169,656  
         

 

 

 

 

See Notes to Schedule of Investments.

 

1


WESTERN ASSET PREMIER BOND FUND

 

Schedule of investments (unaudited) (cont’d)    March 31, 2018

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT†
     VALUE  

Specialty Retail - 0.8%

          

American Greetings Corp., Senior Notes

     7.875     2/15/25        730,000      $ 739,125 (a) 

Hertz Corp., Senior Notes

     5.875     10/15/20        640,000        637,600  
          

 

 

 

Total Specialty Retail

             1,376,725  
          

 

 

 

Textiles, Apparel & Luxury Goods - 0.3%

          

Hanesbrands Inc., Senior Notes

     4.625     5/15/24        550,000        541,063 (a) 
          

 

 

 

TOTAL CONSUMER DISCRETIONARY

             23,069,543  
          

 

 

 
CONSUMER STAPLES - 2.8%           

Beverages - 0.9%

          

Anheuser-Busch InBev Finance Inc., Senior Notes

     3.650     2/1/26        1,000,000        995,728  

Anheuser-Busch InBev Finance Inc., Senior Notes

     4.700     2/1/36        540,000        573,066  
          

 

 

 

Total Beverages

             1,568,794  
          

 

 

 

Food & Staples Retailing - 1.2%

          

CVS Pass-Through Trust, Secured Bonds

     5.789     1/10/26        344,280        362,888 (a) 

CVS Pass-Through Trust, Secured Notes

     5.880     1/10/28        375,063        400,536  

CVS Pass-Through Trust, Secured Notes

     6.036     12/10/28        381,077        412,044  

CVS Pass-Through Trust, Secured Notes

     6.943     1/10/30        379,043        429,182  

CVS Pass-Through Trust, Secured Notes

     7.507     1/10/32        382,078        453,522 (a) 
          

 

 

 

Total Food & Staples Retailing

             2,058,172  
          

 

 

 

Food Products - 0.3%

          

Kraft Heinz Foods Co., Senior Notes

     3.950     7/15/25        440,000        438,754  
          

 

 

 

Household Products - 0.2%

          

Central Garden & Pet Co., Senior Notes

     6.125     11/15/23        250,000        262,187  
          

 

 

 

Tobacco - 0.2%

          

Reynolds American Inc., Senior Notes

     5.850     8/15/45        260,000        305,262  
          

 

 

 

TOTAL CONSUMER STAPLES

             4,633,169  
          

 

 

 
ENERGY - 20.9%           

Energy Equipment & Services - 0.2%

          

Transocean Inc., Senior Notes

     9.000     7/15/23        190,000        202,825 (a) 
          

 

 

 

Oil, Gas & Consumable Fuels - 20.7%

          

Anadarko Finance Co., Senior Notes

     7.500     5/1/31        570,000        729,835  

Anadarko Petroleum Corp., Senior Notes

     5.550     3/15/26        750,000        820,028  

Apache Corp., Senior Notes

     4.250     1/15/44        250,000        230,134  

Berry Petroleum Co. Escrow

     —         —          130,000        0 *(e)(f)(g) 

BP Capital Markets PLC, Senior Notes

     3.723     11/28/28        410,000        413,221  

Burlington Resources Finance Co., Senior Notes

     7.400     12/1/31        450,000        605,876  

Calumet Specialty Products Partners LP/Calumet Finance Corp., Senior Secured Notes

     11.500     1/15/21        550,000        614,969 (a) 

Cheniere Corpus Christi Holdings LLC, Senior Secured Notes

     5.125     6/30/27        520,000        518,050  

Chesapeake Energy Corp., Senior Notes

     5.375     6/15/21        320,000        312,800  

Chesapeake Energy Corp., Senior Notes

     8.000     1/15/25        230,000        223,100 (a) 

Continental Resources Inc., Senior Notes

     4.500     4/15/23        500,000        506,875  

Continental Resources Inc., Senior Notes

     3.800     6/1/24        270,000        260,887  

Continental Resources Inc., Senior Notes

     4.900     6/1/44        500,000        481,250  

Devon Energy Corp., Senior Notes

     3.250     5/15/22        500,000        494,439  

Ecopetrol SA, Senior Bonds

     4.125     1/16/25        510,000        497,760  

Ecopetrol SA, Senior Notes

     5.875     9/18/23        45,000        48,263  

Ecopetrol SA, Senior Notes

     5.375     6/26/26        1,000,000        1,044,500  

 

See Notes to Schedule of Investments.

 

2


WESTERN ASSET PREMIER BOND FUND

 

Schedule of investments (unaudited) (cont’d)    March 31, 2018

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT†
     VALUE  

Oil, Gas & Consumable Fuels - (continued)

          

Ecopetrol SA, Senior Notes

     5.875     5/28/45        1,510,000      $ 1,494,447  

Enterprise Products Operating LLC, Senior Notes

     4.050     2/15/22        880,000        902,872  

Enterprise Products Operating LLC, Senior Notes

     5.100     2/15/45        1,000,000        1,091,353  

EOG Resources Inc., Senior Notes

     3.150     4/1/25        2,250,000        2,183,961  

Genesis Energy LP/Genesis Energy Finance Corp., Senior Bonds

     5.625     6/15/24        1,090,000        1,032,775  

KazMunayGas National Co. JSC, Senior Notes

     4.750     4/19/27        770,000        771,455 (a) 

Kinder Morgan Inc., Medium-Term Notes

     7.750     1/15/32        190,000        243,331  

Kinder Morgan Inc., Senior Bonds

     5.550     6/1/45        1,500,000        1,579,769  

Magnum Hunter Resources Corp. Escrow

     —         —          960,000        0 *(e)(f)(g) 

MEG Energy Corp., Senior Notes

     6.375     1/30/23        480,000        403,200 (a) 

MEG Energy Corp., Senior Notes

     7.000     3/31/24        300,000        249,000 (a) 

NGPL PipeCo LLC, Senior Bonds

     4.875     8/15/27        460,000        454,825 (a) 

NGPL PipeCo LLC, Senior Secured Notes

     7.768     12/15/37        490,000        595,350 (a) 

Noble Energy Inc., Senior Notes

     5.250     11/15/43        1,000,000        1,070,097  

Oasis Petroleum Inc., Senior Notes

     7.250     2/1/19        370,000        372,775  

Oasis Petroleum Inc., Senior Notes

     6.500     11/1/21        520,000        529,100  

Oasis Petroleum Inc., Senior Notes

     6.875     1/15/23        340,000        345,525  

Occidental Petroleum Corp., Senior Notes

     3.500     6/15/25        350,000        350,995  

Petrobras Global Finance BV, Senior Notes

     4.375     5/20/23        310,000        304,978  

Petrobras Global Finance BV, Senior Notes

     7.375     1/17/27        250,000        271,375  

Petrobras Global Finance BV, Senior Notes

     5.999     1/27/28        460,000        455,975 (a) 

Petrobras Global Finance BV, Senior Notes

     6.750     1/27/41        920,000        899,300  

Petroleos Mexicanos, Senior Notes

     5.500     1/21/21        400,000        416,900  

Rockies Express Pipeline LLC, Senior Notes

     7.500     7/15/38        350,000        420,875 (a) 

Sabine Pass Liquefaction LLC, Senior Secured Notes

     5.750     5/15/24        440,000        474,198  

Sabine Pass Liquefaction LLC, Senior Secured Notes

     5.000     3/15/27        1,850,000        1,923,306  

Sanchez Energy Corp., Senior Notes

     6.125     1/15/23        380,000        279,062  

Targa Resources Partners LP/Targa Resources Partners Finance Corp., Senior Bonds

     5.125     2/1/25        460,000        459,425  

Targa Resources Partners LP/Targa Resources Partners Finance Corp., Senior Bonds

     5.375     2/1/27        550,000        550,000  

Targa Resources Partners LP/Targa Resources Partners Finance Corp., Senior Notes

     5.000     1/15/28        760,000        727,700 (a) 

Transcontinental Gas Pipe Line Co., LLC, Senior Notes

     7.850     2/1/26        1,000,000        1,232,276  

Transportadora de Gas del Peru SA, Senior Notes

     4.250     4/30/28        1,500,000        1,498,125 (a) 

Whiting Petroleum Corp., Senior Notes

     6.250     4/1/23        100,000        101,500  

Williams Cos. Inc., Debentures

     7.500     1/15/31        443,000        541,291  

Williams Cos. Inc., Senior Notes

     3.700     1/15/23        780,000        762,450  

Williams Cos. Inc., Senior Notes

     4.550     6/24/24        330,000        333,950  

Williams Cos. Inc., Senior Notes

     8.750     3/15/32        39,000        51,870  

WPX Energy Inc., Senior Notes

     7.500     8/1/20        160,000        172,000  

WPX Energy Inc., Senior Notes

     8.250     8/1/23        210,000        236,250  

YPF Sociedad Anonima, Senior Notes

     8.500     3/23/21        720,000        788,112 (a) 
          

 

 

 

Total Oil, Gas & Consumable Fuels

             34,373,735  
          

 

 

 

TOTAL ENERGY

             34,576,560  
          

 

 

 

 

See Notes to Schedule of Investments.

 

3


WESTERN ASSET PREMIER BOND FUND

 

Schedule of investments (unaudited) (cont’d)    March 31, 2018

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT†
     VALUE  
FINANCIALS - 25.5%           

Banks - 17.1%

          

Bank of America Corp., Junior Subordinated (5.875% to 3/15/28 then 3 mo. USD LIBOR + 2.931%)

     5.875     3/15/28        350,000      $ 352,645 (d)(h) 

Bank of America Corp., Senior Notes

     5.000     5/13/21        1,100,000        1,159,464  

Bank of America Corp., Subordinated Notes

     4.250     10/22/26        1,700,000        1,713,742  

Barclays Bank PLC, Subordinated Notes

     10.179     6/12/21        610,000        716,514 (a) 

Barclays Bank PLC, Subordinated Notes

     7.625     11/21/22        2,750,000        3,022,869  

Barclays PLC, Subordinated Notes

     4.836     5/9/28        290,000        285,485  

BNP Paribas SA, Junior Subordinated Notes (7.375% to 8/19/25 then USD 5 year Swap Rate + 5.150%)

     7.375     8/19/25        510,000        555,900 (a)(d)(h) 

BPCE SA, Subordinated Notes

     5.150     7/21/24        1,000,000        1,044,871 (a) 

CIT Group Inc., Senior Notes

     4.125     3/9/21        240,000        241,800  

CIT Group Inc., Senior Notes

     5.000     8/15/22        250,000        256,562  

CIT Group Inc., Senior Notes

     5.250     3/7/25        330,000        338,686  

Citigroup Inc., Subordinated Notes

     3.500     5/15/23        500,000        494,594  

Citigroup Inc., Subordinated Notes

     5.500     9/13/25        200,000        216,874  

Citigroup Inc., Subordinated Notes

     4.450     9/29/27        500,000        506,503  

Citigroup Inc., Subordinated Notes

     6.625     6/15/32        1,000,000        1,221,475  

Cooperatieve Rabobank U.A., Subordinated Notes

     4.625     12/1/23        500,000        521,804  

Credit Agricole SA, Junior Subordinated Notes (8.125% to 12/23/25 then USD 5 year Swap Rate + 6.185%)

     8.125     12/23/25        1,080,000        1,233,235 (a)(d)(h) 

HBOS PLC, Subordinated Notes

     6.750     5/21/18        700,000        703,686 (a) 

Intesa Sanpaolo SpA, Senior Notes

     3.875     7/14/27        680,000        643,692 (a) 

Intesa Sanpaolo SpA, Subordinated Notes

     5.710     1/15/26        1,490,000        1,497,641 (a) 

JPMorgan Chase & Co., Junior Subordinated Bonds (6.000% to 8/1/23 then 3 mo. USD LIBOR + 3.300%)

     6.000     8/1/23        2,800,000        2,893,996 (d)(h) 

JPMorgan Chase & Co., Subordinated Notes

     4.950     6/1/45        500,000        542,262  

Lloyds Banking Group PLC, Subordinated Notes

     4.500     11/4/24        1,750,000        1,762,348  

Royal Bank of Scotland Group PLC, Junior Subordinated Notes (8.625% to 8/15/21 then USD 5 year Swap Rate + 7.598%)

     8.625     8/15/21        450,000        489,937 (d)(h) 

Royal Bank of Scotland Group PLC, Subordinated Notes

     6.000     12/19/23        150,000        159,986  

Royal Bank of Scotland Group PLC, Subordinated Notes

     5.125     5/28/24        1,330,000        1,354,708  

Royal Bank of Scotland NV, Subordinated Bonds

     7.750     5/15/23        140,000        160,595  

Santander UK Group Holdings PLC, Subordinated Notes

     5.625     9/15/45        1,000,000        1,107,757 (a) 

Santander UK PLC, Subordinated Notes

     5.000     11/7/23        510,000        528,328 (a) 

Standard Chartered PLC, Subordinated Notes

     5.700     3/26/44        300,000        331,659 (a) 

UBS Group Funding Switzerland AG, Senior Notes

     4.253     3/23/28        850,000        857,224 (a) 

Wells Fargo & Co., Subordinated Notes

     4.300     7/22/27        1,500,000        1,510,875  
          

 

 

 

Total Banks

             28,427,717  
          

 

 

 

Capital Markets - 3.1%

          

Credit Suisse Group Funding Guernsey Ltd., Senior Notes

     4.875     5/15/45        1,500,000        1,592,948  

Goldman Sachs Group Inc., Senior Notes

     6.150     4/1/18        1,000,000        1,000,000  

Goldman Sachs Group Inc., Senior Notes

     5.250     7/27/21        800,000        847,694  

Goldman Sachs Group Inc., Senior Notes

     3.500     11/16/26        500,000        482,249  

Goldman Sachs Group Inc., Subordinated Notes

     6.750     10/1/37        1,000,000        1,254,925  
          

 

 

 

Total Capital Markets

             5,177,816  
          

 

 

 

Consumer Finance - 0.2%

          

Ally Financial Inc., Senior Notes

     8.000     3/15/20        282,000        303,855  
          

 

 

 

 

See Notes to Schedule of Investments.

 

4


WESTERN ASSET PREMIER BOND FUND

 

Schedule of investments (unaudited) (cont’d)    March 31, 2018

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT†
    VALUE  

Diversified Financial Services - 4.4%

         

AerCap Ireland Capital DAC/AerCap Global Aviation Trust, Senior Bonds

     4.625     7/1/22        230,000     $ 236,009  

Ahold Lease USA Inc., Pass-Through Certificates

     8.620     1/2/25        686,921       800,929  

CPUK Finance Ltd., Senior Secured Notes

     7.239     2/28/24        1,000,000 GBP      1,752,354 (c) 

DAE Funding LLC, Senior Notes

     5.000     8/1/24        2,816,000       2,671,680 (a) 

International Lease Finance Corp., Senior Notes

     6.250     5/15/19        80,000       82,768  

International Lease Finance Corp., Senior Notes

     5.875     8/15/22        1,200,000       1,290,836  

International Lease Finance Corp., Senior Secured Notes

     7.125     9/1/18        400,000       406,704 (a) 
         

 

 

 

Total Diversified Financial Services

            7,241,280  
         

 

 

 

Insurance - 0.7%

         

Ambac Assurance Corp., Subordinated Notes

     3.094     6/7/20        21,355       28,403 (a) 

Ambac LSNI LLC, Senior Secured Notes (3 mo. USD LIBOR + 5.000%)

     6.811     2/12/23        102,671       103,954 (a)(d) 

Genworth Holdings Inc., Senior Notes

     4.900     8/15/23        330,000       272,250  

Metlife Inc., Junior Subordinated Notes

     10.750     8/1/39        500,000       786,250  
         

 

 

 

Total Insurance

            1,190,857  
         

 

 

 

TOTAL FINANCIALS

            42,341,525  
         

 

 

 
HEALTH CARE - 5.3%          

Biotechnology - 0.1%

         

Celgene Corp., Senior Notes

     5.000     8/15/45        250,000       261,429  
         

 

 

 

Health Care Providers & Services - 2.9%

         

Centene Corp., Senior Notes

     5.625     2/15/21        280,000       288,400  

Centene Corp., Senior Notes

     6.125     2/15/24        220,000       229,504  

Centene Corp., Senior Notes

     4.750     1/15/25        1,060,000       1,036,150  

CHS/Community Health Systems Inc., Senior Notes

     8.000     11/15/19        95,000       85,737  

DaVita Inc., Senior Notes

     5.750     8/15/22        270,000       277,290  

HCA Inc., Senior Secured Bonds

     4.500     2/15/27        1,000,000       967,500  

HCA Inc., Senior Secured Notes

     5.250     6/15/26        280,000       284,340  

Humana Inc., Senior Notes

     3.950     3/15/27        290,000       288,775  

Magellan Health Inc., Senior Notes

     4.400     9/22/24        1,000,000       996,572  

UnitedHealth Group Inc., Senior Notes

     2.875     12/15/21        370,000       366,873  
         

 

 

 

Total Health Care Providers & Services

            4,821,141  
         

 

 

 

Pharmaceuticals - 2.3%

         

Allergan Funding SCS, Senior Notes

     3.000     3/12/20        500,000       497,655  

Teva Pharmaceutical Finance Netherlands III BV, Senior Notes

     2.200     7/21/21        1,130,000       1,018,359  

Valeant Pharmaceuticals International Inc., Senior Notes

     6.375     10/15/20        630,000       637,087 (a) 

Valeant Pharmaceuticals International Inc., Senior Notes

     6.125     4/15/25        1,490,000       1,291,457 (a) 

Valeant Pharmaceuticals International Inc., Senior Secured Notes

     7.000     3/15/24        290,000       303,413 (a) 
         

 

 

 

Total Pharmaceuticals

            3,747,971  
         

 

 

 

TOTAL HEALTH CARE

            8,830,541  
         

 

 

 
INDUSTRIALS - 8.2%          

Aerospace & Defense - 0.8%

         

Boeing Co., Notes

     6.125     2/15/33        600,000       767,680  

Hexcel Corp., Senior Notes

     3.950     2/15/27        500,000       497,283  
         

 

 

 

Total Aerospace & Defense

            1,264,963  
         

 

 

 

 

See Notes to Schedule of Investments.

 

5


WESTERN ASSET PREMIER BOND FUND

 

Schedule of investments (unaudited) (cont’d)    March 31, 2018

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT†
     VALUE  

Airlines - 2.2%

          

Air 2 U.S., Notes

     8.027     10/1/19        262,680      $ 270,724 (a) 

America West Airlines Inc., Pass-Through Certificates, Ambac Assurance Corp.

     8.057     7/2/20        868,195        958,014  

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

     6.545     2/2/19        262,094        268,489 (f) 

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

     8.048     11/1/20        216,312        231,994  

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

     6.703     6/15/21        88,269        95,552  

Delta Air Lines Inc., Pass-Through Certificates, Secured Notes

     8.021     8/10/22        75,120        83,759  

Northwest Airlines Corp., Pass-Through Certificates

     7.575     3/1/19        37,834        38,213 (f) 

U.S. Airways, Pass-Through Certificates, Senior Secured Bonds

     7.125     10/22/23        1,249,457        1,395,456  

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

     4.750     4/11/22        269,510        274,173  
          

 

 

 

Total Airlines

             3,616,374  
          

 

 

 

Building Products - 0.9%

          

Standard Industries Inc., Senior Notes

     5.500     2/15/23        330,000        342,375 (a) 

Standard Industries Inc., Senior Notes

     5.000     2/15/27        660,000        642,305 (a) 

Standard Industries Inc., Senior Notes

     4.750     1/15/28        530,000        501,354 (a) 
          

 

 

 

Total Building Products

             1,486,034  
          

 

 

 

Commercial Services & Supplies - 0.3%

          

Brink’s Co., Senior Notes

     4.625     10/15/27        530,000        492,900 (a) 
          

 

 

 

Industrial Conglomerates - 1.4%

          

General Electric Co., Senior Notes

     6.875     1/10/39        1,750,000        2,270,856  
          

 

 

 

Machinery - 0.8%

          

Allison Transmission Inc., Senior Bonds

     5.000     10/1/24        1,150,000        1,142,812 (a) 

Allison Transmission Inc., Senior Notes

     4.750     10/1/27        270,000        255,150 (a) 
          

 

 

 

Total Machinery

             1,397,962  
          

 

 

 

Professional Services - 0.6%

          

IHS Markit Ltd., Senior Notes

     5.000     11/1/22        1,000,000        1,042,500 (a) 
          

 

 

 

Trading Companies & Distributors - 1.2%

          

Ashtead Capital Inc., Secured Notes

     4.125     8/15/25        1,700,000        1,634,125 (a) 

Ashtead Capital Inc., Secured Notes

     4.375     8/15/27        450,000        428,625 (a) 
          

 

 

 

Total Trading Companies & Distributors

             2,062,750  
          

 

 

 

TOTAL INDUSTRIALS

             13,634,339  
          

 

 

 
INFORMATION TECHNOLOGY - 5.3%           

Internet Software & Services - 0.9%

          

Match Group Inc., Senior Notes

     5.000     12/15/27        1,540,000        1,520,750 (a) 
          

 

 

 

IT Services - 0.6%

          

DXC Technology Co., Senior Notes

     7.450     10/15/29        500,000        616,244  

Travelport Corporate Finance PLC, Senior Secured Notes

     6.000     3/15/26        422,000        424,637 (a) 
          

 

 

 

Total IT Services

             1,040,881  
          

 

 

 

Semiconductors & Semiconductor Equipment - 0.9%

          

Analog Devices Inc., Senior Notes

     3.125     12/5/23        500,000        490,313  

Broadcom Corp./Broadcom Cayman Finance Ltd., Senior Notes

     3.125     1/15/25        1,000,000        946,735  
          

 

 

 

Total Semiconductors & Semiconductor Equipment

             1,437,048  
          

 

 

 

 

See Notes to Schedule of Investments.

 

6


WESTERN ASSET PREMIER BOND FUND

 

Schedule of investments (unaudited) (cont’d)    March 31, 2018

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT†
     VALUE  

Software - 0.8%

          

j2 Cloud Services LLC/j2 Global Co.-Obligor Inc., Senior Notes

     6.000     7/15/25        520,000      $ 534,950 (a) 

Microsoft Corp., Senior Notes

     2.875     2/6/24        800,000        786,775  
          

 

 

 

Total Software

             1,321,725  
          

 

 

 

Technology Hardware, Storage & Peripherals - 2.1%

          

Dell International LLC/EMC Corp., Senior Notes

     5.875     6/15/21        350,000        360,500 (a) 

Dell International LLC/EMC Corp., Senior Notes

     7.125     6/15/24        320,000        342,475 (a) 

Dell International LLC/EMC Corp., Senior Secured Notes

     4.420     6/15/21        1,300,000        1,334,465 (a) 

Seagate HDD Cayman, Senior Bonds

     4.750     1/1/25        1,220,000        1,189,056  

Seagate HDD Cayman, Senior Bonds

     4.875     6/1/27        260,000        246,849  
          

 

 

 

Total Technology Hardware, Storage & Peripherals

             3,473,345  
          

 

 

 

TOTAL INFORMATION TECHNOLOGY

             8,793,749  
          

 

 

 
MATERIALS - 6.1%           

Chemicals - 1.1%

          

Braskem America Finance Co., Senior Notes

     7.125     7/22/41        920,000        1,075,526 (c) 

Braskem Finance Ltd., Senior Notes

     5.375     5/2/22        230,000        238,913 (a) 

Valvoline Inc., Senior Notes

     5.500     7/15/24        550,000        565,812  
          

 

 

 

Total Chemicals

             1,880,251  
          

 

 

 

Construction Materials - 0.3%

          

U.S. Concrete Inc., Senior Notes

     6.375     6/1/24        420,000        437,850  
          

 

 

 

Containers & Packaging - 0.6%

          

ARD Securities Finance SARL, Senior Secured Notes (8.750% PIK)

     8.750     1/31/23        690,000        724,500 (a)(b) 

Pactiv LLC, Senior Notes

     7.950     12/15/25        50,000        55,875  

Suzano Austria GmbH, Senior Notes

     5.750     7/14/26        300,000        315,780 (a) 
          

 

 

 

Total Containers & Packaging

             1,096,155  
          

 

 

 

Metals & Mining - 4.1%

          

Alcoa Nederland Holding BV, Senior Notes

     6.750     9/30/24        300,000        322,500 (a) 

Alcoa Nederland Holding BV, Senior Notes

     7.000     9/30/26        560,000        606,200 (a) 

Anglo American Capital PLC, Senior Notes

     3.625     5/14/20        450,000        451,772 (a) 

Anglo American Capital PLC, Senior Notes

     4.125     9/27/22        210,000        213,005 (a) 

Anglo American Capital PLC, Senior Notes

     3.625     9/11/24        200,000        192,890 (a) 

ArcelorMittal SA, Senior Notes

     7.750     10/15/39        430,000        510,625  

Freeport-McMoRan Inc., Senior Notes

     6.875     2/15/23        630,000        678,825  

Freeport-McMoRan Inc., Senior Notes

     5.450     3/15/43        800,000        739,760  

Teck Resources Ltd., Senior Notes

     8.500     6/1/24        470,000        523,439 (a) 

Teck Resources Ltd., Senior Notes

     6.250     7/15/41        210,000        223,650  

Vale Overseas Ltd., Senior Notes

     6.875     11/10/39        940,000        1,118,600  

Vale SA, Senior Notes

     5.625     9/11/42        1,090,000        1,155,945  
          

 

 

 

Total Metals & Mining

             6,737,211  
          

 

 

 

TOTAL MATERIALS

             10,151,467  
          

 

 

 
REAL ESTATE - 1.5%           

Equity Real Estate Investment Trusts (REITs) - 1.3%

          

MPT Operating Partnership LP/MPT Finance Corp., Senior Notes

     6.375     3/1/24        260,000        274,305  

MPT Operating Partnership LP/MPT Finance Corp., Senior Notes

     5.250     8/1/26        1,560,000        1,561,950  

Sabra Health Care LP, Senior Notes

     5.125     8/15/26        250,000        241,412  
          

 

 

 

Total Equity Real Estate Investment Trusts (REITs)

             2,077,667  
          

 

 

 

 

See Notes to Schedule of Investments.

 

7


WESTERN ASSET PREMIER BOND FUND

 

Schedule of investments (unaudited) (cont’d)    March 31, 2018

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT†
     VALUE  

Real Estate Management & Development - 0.2%

          

Hunt Cos. Inc., Senior Secured Notes

     6.250     2/15/26        370,000      $ 358,112 (a) 
          

 

 

 

TOTAL REAL ESTATE

             2,435,779  
          

 

 

 
TELECOMMUNICATION SERVICES - 9.6%           

Diversified Telecommunication Services - 6.0%

          

Cogent Communications Group Inc., Senior Secured Notes

     5.375     3/1/22        470,000        482,925 (a) 

Orange SA, Notes

     9.000     3/1/31        600,000        879,974  

Telecom Italia SpA, Senior Notes

     5.303     5/30/24        2,800,000        2,859,500 (a) 

Telefonica Emisiones SAU, Senior Notes

     5.134     4/27/20        2,000,000        2,078,438  

Verizon Communications Inc., Senior Notes

     5.150     9/15/23        2,280,000        2,462,800  

Windstream Services LLC/Windstream Finance Corp., Senior Notes

     7.750     10/15/20        1,480,000        1,243,200  
          

 

 

 

Total Diversified Telecommunication Services

             10,006,837  
          

 

 

 

Wireless Telecommunication Services - 3.6%

          

CSC Holdings LLC, Senior Notes

     6.625     10/15/25        610,000        631,350 (a) 

CSC Holdings LLC, Senior Notes

     10.875     10/15/25        201,000        236,675 (a) 

Sprint Capital Corp., Senior Notes

     6.875     11/15/28        420,000        392,700  

Sprint Capital Corp., Senior Notes

     8.750     3/15/32        30,000        31,425  

Sprint Communications Inc., Senior Notes

     9.000     11/15/18        500,000        516,250 (a) 

Sprint Communications Inc., Senior Notes

     7.000     8/15/20        260,000        271,050  

Sprint Communications Inc., Senior Notes

     11.500     11/15/21        280,000        326,200  

Sprint Corp., Senior Notes

     7.875     9/15/23        760,000        777,100  

Sprint Corp., Senior Notes

     7.625     3/1/26        560,000        547,792  

Sprint Spectrum Co., LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC, Senior Secured Notes

     3.360     9/20/21        1,566,250        1,560,377 (a) 

VEON Holdings BV, Senior Notes

     5.950     2/13/23        570,000        596,226 (a) 
          

 

 

 

Total Wireless Telecommunication Services

             5,887,145  
          

 

 

 

TOTAL TELECOMMUNICATION SERVICES

             15,893,982  
          

 

 

 
UTILITIES - 1.8%           

Electric Utilities - 1.8%

          

FirstEnergy Corp., Notes

     7.375     11/15/31        1,770,000        2,333,543  

Pampa Energia SA, Senior Notes

     7.500     1/24/27        670,000        694,288 (a) 
          

 

 

 

TOTAL UTILITIES

             3,027,831  
          

 

 

 

TOTAL CORPORATE BONDS & NOTES
(Cost - $158,225,911)

             167,388,485  
          

 

 

 
ASSET-BACKED SECURITIES - 4.8%           

AAA Trust, 2005-1A 1A3B (1 mo. USD LIBOR + 0.410%)

     2.287     2/27/35        452,312        414,472 (a)(d) 

Argent Securities Inc., 2003-W3 M1 (1 mo. USD LIBOR + 1.125%)

     2.997     9/25/33        32,125        30,780 (d) 

Bayview Financial Asset Trust, 2007-SR1A M1 (1 mo. USD LIBOR + 0.800%)

     2.672     3/25/37        665,703        631,949 (a)(d) 

Bayview Financial Asset Trust, 2007-SR1A M3 (1 mo. USD LIBOR + 1.150%)

     3.022     3/25/37        252,508        238,135 (a)(d) 

Bayview Financial Asset Trust, 2007-SR1A M4 (1 mo. USD LIBOR + 1.500%)

     3.372     3/25/37        68,866        65,053 (a)(d) 

Bear Stearns Asset-Backed Securities Trust, 2006-SD3 1P0, STRIPS, PO

     0.000     8/25/36        316,578        266,327  

 

See Notes to Schedule of Investments.

 

8


WESTERN ASSET PREMIER BOND FUND

 

Schedule of investments (unaudited) (cont’d)    March 31, 2018

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT†
     VALUE  
ASSET-BACKED SECURITIES - (continued)           

Contimortgage Home Equity Trust, 1997-4 B1F (6 mo. USD LIBOR + 5.520%)

     7.330     10/15/28        67,027      $ 99,085 (d) 

Countrywide Asset-Backed Certificates, 2004-3 3A3 (1 mo. USD LIBOR + 0.760%)

     2.632     8/25/34        256,278        254,037 (d) 

Countrywide Asset-Backed Certificates, 2007-13 2A1 (1 mo. USD LIBOR + 0.900%)

     2.772     10/25/47        542,381        541,359 (d) 

Countrywide Asset-Backed Certificates, 2007-SEA2 1A1 (1 mo. USD LIBOR + 1.000%)

     2.872     8/25/47        13,719        13,499 (a)(d) 

Firstfed Corp. Manufactured Housing Contract, 1996-1 B

     8.060     10/15/22        177,679        3,669 (a) 

Greenpoint Manufactured Housing, 2001-2 IA2 (Auction Rate Security)

     4.944     2/20/32        225,000        225,164 (d) 

Greenpoint Manufactured Housing, 2001-2 IIA2 (Auction Rate Security)

     5.088     3/13/32        350,000        350,245 (d) 

GSAA Home Equity Trust, 2004-8 A3A (1 mo. USD LIBOR + 0.740%)

     2.612     9/25/34        34,622        34,756 (d) 

GSAMP Trust, 2003-SEA2 A1

     4.422     7/25/33        798,952        792,631  

Indymac Manufactured Housing Contract, 1997-1 A5

     6.970     2/25/28        71,983        73,277  

Indymac Manufactured Housing Contract, 1998-2 A2

     6.170     8/25/29        4,114        4,120  

Morgan Stanley Capital Inc., 2003-SD1 A1 (1 mo. USD LIBOR + 1.000%)

     2.872     3/25/33        10,724        10,599 (d) 

Morgan Stanley Capital Inc., 2004-HE7 M1 (1 mo. USD LIBOR + 0.900%)

     2.772     8/25/34        1,539,471        1,549,459 (d) 

Oakwood Mortgage Investors Inc., 2002-B A3

     6.060     6/15/32        102,653        109,426 (d) 

Origen Manufactured Housing, 2006-A A2

     3.535     10/15/37        1,212,871        1,139,040 (d) 

Origen Manufactured Housing, 2007-A A2

     4.072     4/15/37        1,261,096        1,163,296 (d) 

Renaissance Home Equity Loan Trust, 2004-2 AF4

     5.392     7/25/34        20,461        20,461  
          

 

 

 

TOTAL ASSET-BACKED SECURITIES
(Cost - $6,542,071)

             8,030,839  
          

 

 

 
COLLATERALIZED MORTGAGE OBLIGATIONS(i) - 2.5%           

American Home Mortgage Investment Trust, 2007-A 4A (1 mo. USD LIBOR + 0.900%)

     2.772     7/25/46        533,335        250,269 (a)(d) 

Banc of America Funding Corp., 2004-B 6A1

     2.208     12/20/34        205,637        160,824 (d) 

Bear Stearns Alt-A Trust, 2004-03 A1 (1 mo. USD LIBOR + 0.640%)

     2.512     4/25/34        174,900        175,220 (d) 

Bear Stearns Asset-Backed Securities Trust, 2002-AC1 B4

     7.000     1/25/32        156,961        2 (a) 

Chevy Chase Mortgage Funding Corp., 2004-4A A1 (1 mo. USD LIBOR + 0.460%)

     2.208     10/25/35        765,402        745,659 (a)(d) 

Countrywide Home Loans, 2005-7 1A1 (1 mo. USD LIBOR + 0.540%)

     2.412     3/25/35        485,629        468,407 (d) 

HarborView Mortgage Loan Trust, 2004-10 4A (6 mo. USD LIBOR + 2.170%)

     3.603     1/19/35        108,952        108,300 (d) 

Impac CMB Trust, 2005-2 2A2 (1 mo. USD LIBOR + 0.800%)

     2.672     4/25/35        50,071        48,783 (d) 

Impac CMB Trust, 2A-10 (1 mo. USD LIBOR + 0.640%)

     2.512     3/25/35        154,161        144,555 (d) 

LB-UBS Commercial Mortgage Trust, 2001-C3 X, IO, STRIPS

     0.230     6/15/36        8,962        1 (a)(d) 

Merit Securities Corp., 11PA 3A1 (1 mo. USD LIBOR + 0.620%)

     2.497     4/28/27        59,902        57,031 (a)(d) 

Merit Securities Corp., 11PA B3 (1 mo. USD LIBOR + 2.250%)

     4.127     9/28/32        591,128        526,411 (a)(d) 

Metropolitan Asset Funding Inc., 1998-BI B1

     8.000     11/20/24        314,928        293,945 (d) 

Prime Mortgage Trust, 2005-2 2XB, STRIPS, IO

     1.743     10/25/32        1,287,002        99,210 (d) 

Prime Mortgage Trust, 2005-5 1X, STRIPS, IO

     1.058     7/25/34        2,881,743        114,542 (d) 

Regal Trust IV, 1999-1 A (11th District Cost of Funds + 1.500%)

     2.253     9/29/31        5,241        4,969 (a)(d) 

 

See Notes to Schedule of Investments.

 

9


WESTERN ASSET PREMIER BOND FUND

 

Schedule of investments (unaudited) (cont’d)    March 31, 2018

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT†
     VALUE  
COLLATERALIZED MORTGAGE OBLIGATIONS(i) - (continued)          

Residential Asset Mortgage Products Inc., 2005-SL2 AP0, STRIPS, PO

     0.000     2/25/32        5,928      $ 5,097  

Sequoia Mortgage Trust, 2003-2 A2 (6 mo. USD LIBOR + 0.680%)

     2.312     6/20/33        16,128        16,114 (d) 

Sequoia Mortgage Trust, 2004-10 A1A (1 mo. USD LIBOR + 0.620%)

     2.442     11/20/34        10,911        10,854 (d) 

Structured Asset Securities Corp., 1998-RF2 A

     5.282     7/15/27        141,914        139,092 (a)(d) 

Structured Asset Securities Corp., 2002-9 A2 (1 mo. USD LIBOR + 0.600%)

     2.472     10/25/27        260,221        257,650 (d) 

Structured Asset Securities Corp., 2003-9A 2A2 (6 mo. USD LIBOR + 1.990%)

     3.517     3/25/33        84,299        84,218 (d) 

Washington Mutual Inc., Mortgage Pass-Through Certificates, 2004-AR06 A (1 mo. USD LIBOR + 0.420%)

     2.292     5/25/44        215,402        213,687 (d) 

Washington Mutual Inc., Mortgage Pass-Through Certificates, 2004-AR12 A2A (1 mo. USD LIBOR + 0.390%)

     2.262     10/25/44        197,954        197,826 (d) 

Washington Mutual Inc., MSC Pass-Through Certificates, 2004-RA1 2A

     7.000     3/25/34        9,103        9,947  
          

 

 

 

TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost - $3,354,045)

             4,132,613  
          

 

 

 
CONVERTIBLE BONDS & NOTES - 0.7%           
CONSUMER DISCRETIONARY - 0.5%           

DISH Network Corp., Senior Bonds

     3.375     8/15/26        830,000        801,531  
          

 

 

 
INFORMATION TECHNOLOGY - 0.2%           

Internet Software & Services - 0.2%

          

Twitter Inc., Senior Bonds

     1.000     9/15/21        410,000        384,422  
          

 

 

 

TOTAL CONVERTIBLE BONDS & NOTES
(Cost - $1,228,464)

             1,185,953  
          

 

 

 
MORTGAGE-BACKED SECURITIES - 0.1%           

FNMA - 0.1%

          

Federal National Mortgage Association (FNMA), Whole Loan
(Cost - $123,517)

     6.500     8/25/44        122,244        136,484  
          

 

 

 
SENIOR LOANS - 19.1%           
CONSUMER DISCRETIONARY - 9.9%           

Auto Components - 0.5%

          

American Axle & Manufacturing Inc., Term Loan B (1 mo. LIBOR + 2.250%)

     4.130     4/6/24        811,690        816,002 (d)(j)(k) 
          

 

 

 

Diversified Consumer Services - 0.4%

          

Weight Watchers International Inc., 2017 Term Loan B

     6.430 - 6.450     11/29/24        691,250        697,730 (d)(j)(k) 
          

 

 

 

Hotels, Restaurants & Leisure - 4.3%

          

Aramark Services Inc., 2017 Term Loan B1 (1 mo. LIBOR + 2.000%)

     3.877     3/11/25        2,992,500        3,021,177 (d)(j)(k)(l) 

Hilton Worldwide Finance LLC, Term Loan B2

     —         10/25/23        1,695,718        1,706,894 (l) 

Las Vegas Sands LLC, 2018 Term Loan B

     —         3/29/24        2,000,000        2,006,500 (l) 

Wyndham Hotels & Resorts Inc., Term Loan B

     —         3/28/25        410,000        410,000 (l) 
          

 

 

 

Total Hotels, Restaurants & Leisure

             7,144,571  
          

 

 

 

 

See Notes to Schedule of Investments.

 

10


WESTERN ASSET PREMIER BOND FUND

 

Schedule of investments (unaudited) (cont’d)    March 31, 2018

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT†
     VALUE  

Media - 3.0%

          

Charter Communications Operating LLC, 2017 Term Loan B (1 mo. LIBOR + 2.000%)

     3.880     4/30/25        2,911,437      $ 2,925,267 (d)(j)(k)(l) 

Lamar Media Corp., 2018 Term Loan B

     —         2/16/25        2,000,000        2,013,334 (l) 
          

 

 

 

Total Media

             4,938,601  
          

 

 

 

Specialty Retail - 1.7%

          

PetSmart Inc., Term Loan B2 (1 mo. LIBOR + 3.000%)

     4.680     3/11/22        2,243,172        1,805,753 (d)(j)(k) 

Sally Holdings LLC, Term Loan B1 (1 mo. LIBOR + 2.250%)

     4.130     7/5/24        965,150        969,976 (d)(f)(j)(k) 
          

 

 

 

Total Specialty Retail

             2,775,729  
          

 

 

 

TOTAL CONSUMER DISCRETIONARY

             16,372,633  
          

 

 

 
ENERGY - 0.0%           

Energy Equipment & Services - 0.0%

          

Hercules Offshore Inc. (wind-down lender claim)

     —         —          36,804        31,284 *(e)(f) 
          

 

 

 
FINANCIALS - 0.5%           

Finance - 0.5%

          

Travelport Finance (Luxembourg) SARL, 2018 Term Loan B

     —         3/17/25        920,000        922,875 (l) 
          

 

 

 
HEALTH CARE - 1.1%           

Health Care Providers & Services - 1.1%

          

DaVita HealthCare Partners Inc., Term Loan B (1 mo. LIBOR + 2.750%)

     4.627     6/24/21        1,741,610        1,759,162 (d)(j)(k) 
          

 

 

 
INDUSTRIALS - 3.8%           

Avolon TLB Borrower 1 (Luxembourg) SARL, Term Loan B2 (1 mo. LIBOR + 2.250%)

     4.072     4/3/22        3,489,956        3,496,985 (d)(j)(k)(l) 

Beacon Roofing Supply Inc., 2017 Term Loan B (1 mo. LIBOR + 2.250%)

     3.936     1/2/25        800,000        804,889 (d)(j)(k) 

Delos Finance SARL, 2018 Term Loan B (3 mo. LIBOR + 1.750%)

     4.052     10/6/23        1,500,000        1,508,250 (d)(j)(k) 

Ply Gem Industries Inc., 2018 Term Loan

     —         3/28/25        450,000        448,312 (l) 
          

 

 

 

TOTAL INDUSTRIALS

             6,258,436  
          

 

 

 
INFORMATION TECHNOLOGY - 2.1%           

Software - 0.9%

          

Dell Inc., 2017 Term Loan A2 (1 mo. LIBOR + 1.750%)

     3.630     9/7/21        1,462,260        1,463,349 (d)(j)(k) 
          

 

 

 

Technology Hardware, Storage & Peripherals - 1.2%

          

Western Digital Corp., 2017 Term Loan B3

     —         4/29/23        2,000,000        2,014,376 (l) 
          

 

 

 

TOTAL INFORMATION TECHNOLOGY

             3,477,725  
          

 

 

 
MATERIALS - 1.5%           

Containers & Packaging - 1.5%

          

Berry Global Inc., Term Loan Q (1 mo. LIBOR + 2.000%)

     3.740 - 3.877     10/1/22        2,000,000        2,010,468 (d)(j)(k) 

Reynolds Group Holdings Inc., USD 2017 Term Loan (1 mo. LIBOR + 2.750%)

     4.627     2/5/23        498,737        501,854 (d)(j)(k) 
          

 

 

 

TOTAL MATERIALS

             2,512,322  
          

 

 

 
TELECOMMUNICATION SERVICES - 0.1%           

Diversified Telecommunication Services - 0.1%

          

Level 3 Financing Inc., 2017 Term Loan B (1 mo. LIBOR + 2.250%)

     4.111     2/22/24        250,000        250,645 (d)(j)(k) 
          

 

 

 

 

See Notes to Schedule of Investments.

 

11


WESTERN ASSET PREMIER BOND FUND

 

Schedule of investments (unaudited) (cont’d)    March 31, 2018

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT†
    VALUE  
UTILITIES - 0.1%          

Electric Utilities - 0.1%

         

Panda Temple Power LLC, Second Lien Term Loan (1 mo. LIBOR + 8.000%)

     9.702     2/7/23        149,191     $ 153,294 (d)(j)(k) 
         

 

 

 

TOTAL SENIOR LOANS
(Cost - $32,059,869)

            31,738,376  
         

 

 

 
SOVEREIGN BONDS - 7.6%          

Argentina - 1.3%

         

Provincia de Buenos Aires, Senior Notes

     9.125     3/16/24        500,000       558,005 (a) 

Republic of Argentina, Bonds (Argentina Central Bank 7 Day Repo Reference Rate)

     27.935     6/21/20        8,140,000 ARS      428,585 (d) 

Republic of Argentina, Senior Bonds

     6.875     4/22/21        340,000       361,038  

Republic of Argentina, Senior Bonds

     7.500     4/22/26        210,000       224,595  

Republic of Argentina, Senior Notes

     5.875     1/11/28        550,000       518,306  
         

 

 

 

Total Argentina

            2,090,529  
         

 

 

 

Brazil - 0.7%

         

Federative Republic of Brazil, Notes

     10.000     1/1/23        1,400,000 BRL      442,410  

Federative Republic of Brazil, Notes

     10.000     1/1/27        2,600,000 BRL      810,199  
         

 

 

 

Total Brazil

            1,252,609  
         

 

 

 

Colombia - 1.7%

         

Republic of Colombia, Senior Bonds

     4.000     2/26/24        1,500,000       1,513,875  

Republic of Colombia, Senior Notes

     4.500     1/28/26        1,250,000       1,294,219  
         

 

 

 

Total Colombia

            2,808,094  
         

 

 

 

Indonesia - 0.8%

         

Republic of Indonesia, Notes

     3.750     4/25/22        1,370,000       1,374,872 (a) 
         

 

 

 

Mexico - 0.6%

         

United Mexican States, Senior Notes

     3.600     1/30/25        970,000       959,330  
         

 

 

 

Peru - 0.6%

         

Republic of Peru, Senior Bonds

     7.350     7/21/25        750,000       931,875  
         

 

 

 

Poland - 0.7%

         

Republic of Poland, Bonds

     4.000     10/25/23        3,470,000 PLN      1,092,095  
         

 

 

 

Russia - 1.2%

         

Russian Federal Bond, Bonds

     7.050     1/19/28        67,029,000 RUB      1,179,675  

Russian Foreign Bond - Eurobond, Senior Bonds

     4.875     9/16/23        800,000       842,958 (a) 
         

 

 

 

Total Russia

            2,022,633  
         

 

 

 

TOTAL SOVEREIGN BONDS
(Cost - $12,327,234)

            12,532,037  
         

 

 

 
U.S. GOVERNMENT & AGENCY OBLIGATIONS - 2.0%          

U.S. Government Obligations - 2.0%

         

U.S. Treasury Notes

     1.500     10/31/19        1,500,000       1,482,656  

U.S. Treasury Notes

     1.375     1/15/20        1,000,000       984,512  

U.S. Treasury Notes

     2.000     1/15/21        500,000       494,941  

U.S. Treasury Notes

     1.125     2/28/21        350,000       337,579  
         

 

 

 

TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS
(Cost - $3,299,961)

            3,299,688  
         

 

 

 

 

See Notes to Schedule of Investments.

 

12


WESTERN ASSET PREMIER BOND FUND

 

Schedule of investments (unaudited) (cont’d)    March 31, 2018

 

SECURITY

                SHARES      VALUE  
COMMON STOCKS - 0.4%           
ENERGY - 0.3%           

Energy Equipment & Services - 0.0%

          

Hercules Offshore Inc. (Escrow)

          16,942      $ 4,778 *(f)(g) 
          

 

 

 

Oil, Gas & Consumable Fuels - 0.3%

          

Berry Petroleum Co.

          5,092        47,738

Blue Ridge Mountain Resources Inc.

          52,812        459,464 *(f)(g) 
          

 

 

 

Total Oil, Gas & Consumable Fuels

             507,202  
          

 

 

 

TOTAL ENERGY

             511,980  
          

 

 

 
INDUSTRIALS - 0.0%           

Marine - 0.0%

          

Tricer HoldCo, S.C.A.

          4,654        18,383 *(f)(g) 
          

 

 

 
UTILITIES - 0.1%           

Electric Utilities - 0.1%

          

Panda Temple Power LLC

          10,597        180,149 *(f)(g) 
          

 

 

 

TOTAL COMMON STOCKS
(Cost - $2,265,595)

             710,512  
          

 

 

 
     RATE                      
CONVERTIBLE PREFERRED STOCKS - 0.0%           
ENERGY - 0.0%           

Oil, Gas & Consumable Fuels - 0.0%

          

Berry Petroleum Co., (6.000% Cash or 6.000% PIK)

     6.000        5,554        64,334 (b) 

Berry Petroleum Co., (6.000% Cash or 6.000% PIK)

     6.000        84        973 (b)(n) 
          

 

 

 

TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost - $51,770)

             65,307  
          

 

 

 
PREFERRED STOCKS - 1.3%           
FINANCIALS - 1.3%           

Diversified Financial Services - 1.3%

          

Citigroup Capital XIII (3 mo. USD LIBOR + 6.370%)

     8.137        75,725        2,058,963 (d) 

Corporate-Backed Trust Certificates, Series 2001-8, Class A-1

     7.375        33,900        0 *(e)(f)(g)(m) 
          

 

 

 

TOTAL FINANCIALS

             2,058,963  
          

 

 

 
INDUSTRIALS - 0.0%           

Marine - 0.0%

          

Tricer Tracking Preferred Equity Certificates (8.000% PIK)

     8.000        2,233,838        22,338 (b)(f)(g) 
          

 

 

 

TOTAL PREFERRED STOCKS
(Cost - $2,153,801)

             2,081,301  
          

 

 

 

TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS
(Cost - $221,632,238)

             231,301,595  
          

 

 

 
SHORT-TERM INVESTMENTS - 0.7%           

Western Asset Government Cash Management Portfolio LLC
(Cost - $1,200,000)

     1.590        1,200,000        1,200,000 (o) 
          

 

 

 

TOTAL INVESTMENTS** - 140.1%
(Cost - $222,832,238)

             232,501,595  

Liabilities in Excess of Other Assets - (40.1)%

             (66,602,694
          

 

 

 

TOTAL NET ASSETS - 100.0%

           $ 165,898,901  
          

 

 

 

 

 

See Notes to Schedule of Investments.

 

13


WESTERN ASSET PREMIER BOND FUND

 

Schedule of investments (unaudited) (cont’d)    March 31, 2018

 

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

 

* Non-income producing security.

 

** The entire portfolio is subject to lien, granted to the lender, to the extent of the borrowing outstanding and any additional expenses.

 

(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 Trustees.

 

(b) 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.

 

(c) Security is exempt from registration under Regulation S of the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States. This security has been deemed liquid pursuant to guidelines approved by the Board of Trustees.

 

(d) Variable rate security. Interest rate disclosed is as of the most recent information available. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above.

 

(e) Value is less than $1.

 

(f) Security is valued using significant unobservable inputs (See Note 1).

 

(g) Security is valued in good faith in accordance with procedures approved by the Board of Trustees (See Note 1).

 

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

 

(i) Collateralized mortgage obligations are secured by an underlying pool of mortgages or mortgage pass-through certificates that are structured to direct payments on underlying collateral to different series or classes of the obligations. The interest rate may change positively or inversely in relation to one or more interest rates, financial indices or other financial indicators and may be subject to an upper and/or lower limit.

 

(j) Senior loans may be considered restricted in that the Fund ordinarily is contractually obligated to receive approval from the agent bank and/or borrower prior to the disposition of a senior loan.

 

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

 

(l) All or a portion of this loan is unfunded as of March 31, 2018.

 

(m) The coupon payment on these securities is currently in default as of March 31, 2018.

 

(n) Restricted security (See Note 3).

 

(o) In this instance, as defined in the Investment Company Act of 1940, an “Affiliated Company” represents Fund ownership of at least 5% of the outstanding voting securities of an issuer, or a company which is under common ownership or control. At March 31, 2018, the total market value of investments in Affiliated Companies was $1,200,000 and the cost was $1,200,000 (See Note 2).

 

See Notes to Schedule of Investments.

 

14


WESTERN ASSET PREMIER BOND FUND

 

Schedule of investments (unaudited) (cont’d)    March 31, 2018

 

Abbreviations used in this schedule:

 

ARS    — Argentine Peso
BRL    — Brazilian Real
CMB    — Cash Management Bill
GBP    — British Pound
IO    — Interest Only
JSC    — Joint Stock Company
LIBOR    — London Interbank Offered Rate
PLN    — Polish Zloty
PO    — Principal Only
RUB    — Russian Ruble
STRIPS    — Separate Trading of Registered Interest and Principal Securities

At March 31, 2018, the Fund had the following open futures contracts:

 

     Number of
Contracts
     Expiration
Date
     Notional
Amount
     Market
Value
    
Unrealized
Depreciation
 
Contracts to Sell:               

U.S. Treasury 10-Year Notes

     91        6/18      $ 10,977,524      $ 11,023,797      $ (46,273

At March 31, 2018, the Fund had the following open forward foreign currency contracts:

 

Currency
Purchased
     Currency
Sold
    

Counterparty

   Settlement
Date
     Unrealized
Appreciation
(Depreciation)
 
GBP      40,000        USD        55,682      Barclays Bank PLC      4/19/18      $ 474  
USD      2,063,850        GBP        1,502,200      Barclays Bank PLC      4/19/18        (45,074
                 

 

 

 
Total                   $ (44,600
                 

 

 

 

Abbreviations used in this table:

 

GBP    — British Pound
USD    — United States Dollar

This Schedule of Investments is unaudited and is intended to provide information about the Fund’s investments as of the date of the schedule. Other information regarding the Fund is available in the Fund’s most recent annual or semi-annual shareholder report.

 

See Notes to Schedule of Investments.

 

15


Notes to Schedule of Investments (unaudited)

 

1. Organization and significant accounting policies

Western Asset Premier Bond Fund (the “Fund”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversified, closed-end management investment company. The Fund commenced investment operations on March 28, 2002.

The Fund’s investment objective is to provide current income and capital appreciation by investing primarily in a diversified portfolio of investment grade bonds.

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. Prior to December 1, 2017, short-term fixed income securities that would mature in 60 days or less were valued at amortized cost, unless it was determined that using this method would not reflect an investment’s fair value. Investments in open-end funds are valued at the closing net asset value per share of each fund on the day of valuation. 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 Trustees.

The Board of Trustees is responsible for the valuation process and has delegated the supervision of the daily valuation process to the Legg Mason North Atlantic Fund Valuation Committee (the “Valuation Committee”). The Valuation Committee, pursuant to the policies adopted by the Board of Trustees, is responsible for making fair value determinations, evaluating the effectiveness of the Fund’s pricing policies, and reporting to the Board of Trustees. 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 Trustees, 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 Trustees quarterly.

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.

 

16


Notes to Schedule of Investments (unaudited) (continued)

 

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:

       

Energy

    —       $ 34,576,560     $ 0   $ 34,576,560  

Industrials

    —         13,327,637       306,702       13,634,339  

Other Corporate Bonds & Notes

    —         119,177,586       —         119,177,586  

Asset-Backed Securities

    —         8,030,839       —         8,030,839  

Collateralized Mortgage Obligations

    —         4,132,613       —         4,132,613  

Convertible Bonds & Notes

    —         1,185,953       —         1,185,953  

Mortgage-Backed Securities

    —         136,484       —         136,484  

Senior Loans:

       

Consumer Discretionary

    —         15,402,657       969,976       16,372,633  

Energy

    —         —         31,284       31,284  

Other Senior Loans

    —         15,334,459       —         15,334,459  

Sovereign Bonds

    —         12,532,037       —         12,532,037  

U.S. Government & Agency Obligations

    —         3,299,688       —         3,299,688  

Common Stocks:

       

Energy

    —         47,738       464,242       511,980  

Industrials

    —         —         18,383       18,383  

Utilities

    —         —         180,149       180,149  

Convertible Preferred Stocks

    —         65,307       —         65,307  

Preferred Stocks:

       

Financials

  $ 2,058,963       —         0     2,058,963  

Industrials

    —         —         22,338       22,338  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total Long-Term Investments

    2,058,963       227,249,558       1,993,074       231,301,595  
 

 

 

   

 

 

   

 

 

   

 

 

 

Short-Term Investments†

    —         1,200,000       —         1,200,000  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total Investments

    2,058,963       228,449,558       1,993,074       232,501,595  
 

 

 

   

 

 

   

 

 

   

 

 

 

Other assets

    —         —         7,743       7,743  

Other Financial Instruments:

       

Forward Foreign Currency Contracts

    —         474       —         474  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 2,058,963     $ 228,450,032     $ 2,000,817     $ 232,509,812  
 

 

 

   

 

 

   

 

 

   

 

 

 

 

17


Notes to Schedule of Investments (unaudited) (continued)

 

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

     —        $ 45,074        —        $ 45,074  

Futures Contracts

   $ 46,273        —          —          46,273  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 46,273      $ 45,074        —        $ 91,347  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

See Schedule of Investments for additional detailed categorizations.

 

* Amount represents less than $1.

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:

 

     CORPORATE BONDS & NOTES  

INVESTMENTS IN SECURITIES

   ENERGY     INDUSTRIALS  

Balance as of December 31, 2017

   $ 0   $ 627,306  

Accrued premiums/discounts

     —         (46

Realized gain (loss)

     —         (22

Change in unrealized appreciation (depreciation)1

     —         (7,313

Purchases

     —         —    

Sales

     —         (351,436

Transfers into Level 32

     —         38,213  

Transfers out of Level 3

     —         —    
  

 

 

   

 

 

 

Balance as of March 31, 2018

   $ 0   $ 306,702  
  

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) for investments in securities still held at March 31, 20181

     —       $ (5,586
  

 

 

   

 

 

 
     SENIOR LOANS  

INVESTMENTS IN SECURITIES (cont’d)

   CONSUMER
DISCRETIONARY
    ENERGY  

Balance as of December 31, 2017

   $ 968,784     $ 84,928  

Accrued premiums/discounts

     (163     (526

Realized gain (loss)

     (17     (3,801

Change in unrealized appreciation (depreciation)1

     3,796       13,793  

Purchases

     —         —    

Sales

     (2,424     (63,110

Transfers into Level 3

     —         —    

Transfers out of Level 3

     —         —    
  

 

 

   

 

 

 

Balance as of March 31, 2018

   $ 969,976     $ 31,284  
  

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) for investments in securities still held at March 31, 20181

   $ 3,796     $ 13,793  
  

 

 

   

 

 

 

 

18


Notes to Schedule of Investments (unaudited) (continued)

 

     COMMON STOCKS  

INVESTMENTS IN SECURITIES (cont’d)

   ENERGY      INDUSTRIALS      UTILITIES  

Balance as of December 31, 2017

   $ 4,778      $ 13,543        —    

Accrued premiums/discounts

     —          —          —    

Realized gain (loss)

     —          —          —    

Change in unrealized appreciation (depreciation)1

     —          4,840      $ (52,945

Purchases

     —          —          233,094  

Sales

     —          —          —    

Transfers into Level 32

     459,464        —          —    

Transfers out of Level 3

     —          —          —    
  

 

 

    

 

 

    

 

 

 

Balance as of March 31, 2018

   $ 464,242      $ 18,383      $ 180,149  
  

 

 

    

 

 

    

 

 

 

Net change in unrealized appreciation (depreciation) for investments in securities still held at March 31, 20181

     —        $ 4,840      $ (52,945
  

 

 

    

 

 

    

 

 

 

 

     PREFERRED STOCKS                

INVESTMENTS IN SECURITIES (cont’d)

   FINANCIAL     INDUSTRIALS      OTHER ASSETS      TOTAL  

Balance as of December 31, 2017

   $ 3     $ 20,685      $ 7,743      $ 1,727,770  

Accrued premiums/discounts

     —         —          —          (735

Realized gain (loss)

     —         —          —          (3,840

Change in unrealized appreciation (depreciation)1

     (3     —          —          (37,832

Purchases

     —         1,653        —          234,747  

Sales

     —         —          —          (416,970

Transfers into Level 32

     —         —          —          497,677  

Transfers out of Level 3

     —         —          —          —    
  

 

 

   

 

 

    

 

 

    

 

 

 

Balance as of March 31, 2018

   $ 0   $ 22,338      $ 7,743      $ 2,000,817  
  

 

 

   

 

 

    

 

 

    

 

 

 

Net change in unrealized appreciation (depreciation) for investments in securities still held at March 31, 20181

   $ (3     —          —        $ (36,105
  

 

 

   

 

 

    

 

 

    

 

 

 

The Fund’s policy is to recognize transfers between levels as of the end of the reporting period.

 

* Amount represents less than $1.

 

1 

Change in unrealized appreciation (depreciation) includes net unrealized appreciation (depreciation) resulting from changes in investment values during the reporting period and the reversal of previously recorded unrealized appreciation (depreciation) when gains or losses are realized.

 

2 

Transferred into Level 3 as a result of the unavailability of a quoted price in an active market for an identical investment or the unavailability of other significant observable inputs.

2. Transactions with affiliated companies

As defined by the 1940 Act, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control. The Fund may invest in Western Asset Government Cash Management Portfolio, LLC (“Cash Management Portfolio”), an affiliated private money market fund managed by Western Asset, the Fund’s investment adviser. Cash Management Portfolio is available as a cash management vehicle for certain proprietary investment companies affiliated with Legg Mason. While Cash Management Portfolio is not a registered money market fund, it conducts all of its investment activities in accordance with the requirements of Rule 2a-7 under the 1940 Act. Based on the Fund’s relative ownership, the following companies were considered affiliated companies for all or some portion of the period ended March 31, 2018. The following transactions were effected in shares of such companies for the period ended March 31, 2018.

 

19


Notes to Schedule of Investments (unaudited) (continued)

 

     Affiliate
Value at
December 31,
2017
     Purchased      Sold      Realized
Gain (Loss)
     Interest
Income
     Net Increase
(Decrease)  in
Unrealized
Appreciation
(Depreciation)
        
        Cost      Shares      Cost      Shares               Affiliate
Value at
March 31,
2018
 
Western Asset Government Cash Management Portfolio LLC    $ 200,000      $ 20,202,866        20,202,866      $ 19,202,866        19,202,866        —        $ 4,754        —        $ 1,200,000  

3. Restricted securities

The following Fund investments are restricted as to resale.

 

Security

   Number of
Shares
     Acquisition
Date
     Cost      Value
at 3/31/2018
     Value per
Share
     Percent of
Net Assets
 

Berry Petroleum Co., Convertible Preferred Stock

     84        2/17      $ 840      $ 973      $ 11.58        0.00

 

20


 

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 Premier Bond Fund

 

By   /s/    JANE TRUST        
  Jane Trust
  Chief Executive Officer

Date:

 

May 25, 2018

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/    JANE TRUST        
  Jane Trust
  Chief Executive Officer

Date:

 

May 25, 2018

By   /s/    RICHARD F. SENNETT        
  Richard F. Sennett
  Principal Financial Officer

Date:

 

May 25, 2018