Salomon Brothers Global High Income Fund Inc.

 

 

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- 21337

 

Salomon Brothers Global High Income Fund Inc.

(Exact name of registrant as specified in charter)

 

125 Broad Street, New York, NY 10004

(Address of principal executive offices) (Zip code)

 

Robert I. Frenkel, Esq.

Salomon Brothers Asset Management Inc

300 First Stamford Place

Stamford, CT 06902

(Name and address of agent for service)

 

Registrant’s telephone number, including area code: 1-800-725-6666

 

Date of fiscal year end: May 31

Date of reporting period: February 28, 2005

 

 



ITEM 1.    SCHEDULE OF INVESTMENTS


SALOMON BROTHERS

GLOBAL HIGH INCOME FUND INC.

 

FORM N-Q

FEBRUARY 28, 2005


SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.

 

Schedule of Investments (unaudited)

   February 28, 2005

 

FACE
AMOUNT


 

SECURITY (a)


   VALUE

  U.S. GOVERNMENT AGENCIES AND OBLIGATIONS (b)(c) - 26.7%       
      Federal Home Loan Mortgage Corporation (FHLMC) Gold:       
$ 70,000,000       5.000%, 30 year    $ 69,081,250
  10,000,000       5.500%, 30 year      10,096,880
  10,000,000       6.000%, 30 year      10,268,750
      Federal National Mortgage Association (FNMA):       
  40,000,000       4.500%, 30 year      38,487,520
  20,000,000       5.500%, 30 year      20,168,760
  55,000,000       6.000%, 30 year      56,426,590
          

      TOTAL U.S. GOVERNMENT AGENCIES AND OBLIGATIONS
    (Cost - $201,549,221)
     204,529,750
          

  CORPORATE BONDS & NOTES - 29.7%       
  Basic Industries - 5.5%       
  1,200,000   Ainsworth Lumber Co. Ltd., Sr. Notes, 7.250% due 10/1/12 (d)      1,236,000
  475,000   AK Steel Corp., Sr. Notes, 7.875% due 2/15/09      490,437
  750,000   Aleris International Inc., Sr. Secured Notes, 10.375% due 10/15/10      851,250
  700,000   Anchor Glass Container Corp., Sr. Secured Notes, 11.000% due 2/15/13      726,250
      Appleton Papers Inc.:       
  375,000  

Sr. Notes, 8.125% due 6/15/11

     398,437
  375,000  

Sr. Sub. Notes, Series B, 9.750% due 6/15/14

     404,063
  1,750,000   Applied Extrusion Technologies, Inc., Sr. Notes, Series B,       
     

10.750% due 7/1/11 (e)(f)

     997,500
  715,000   BCP Crystal U.S. Holdings, Corp., Sr. Sub. Notes,       
     

9.625% due 6/15/14 (d)

     829,400
  1,250,000   Berry Plastics Corp., Sr. Sub. Notes, 10.750% due 7/15/12      1,431,250
  300,000   Borden U.S. Finance Corp., Sr. Secured Notes, 9.000% due 7/15/14 (d)      335,250
  800,000   Bowater Inc., Debentures, 9.500% due 10/15/12      935,365
  1,500,000   Buckeye Technologies Inc., Sr. Sub. Notes, 8.000% due 10/15/10      1,526,250
  750,000   Equistar Chemicals L.P., Sr. Notes, 10.625% due 5/1/11      870,000
  1,200,000   Hercules Inc., Sr. Sub. Notes, 6.750% due 10/15/29      1,242,000
  1,000,000   Huntsman Advanced Materials LLC, Sr. Secured Notes,       
     

11.000% due 7/15/10 (d)

     1,182,500
  762,000   Huntsman International LLC, Sr. Sub. Notes, 10.125% due 7/1/09      804,862
  525,000   IPSCO Inc., Sr. Notes, 8.750% due 6/1/13      597,187
  50,000   ISP Holdings Inc., Sr. Secured Notes, Series B, 10.625% due 12/15/09      54,750
  341,000   Ispat Inland ULC, Sr. Secured Notes, 9.750% due 4/1/14      417,725
  275,000   Jefferson Smurfit Corp., Sr. Notes, 8.250% due 10/1/12      298,375
  1,250,000   JSG Funding PLC, Sr. Notes, 9.625% due 10/1/12      1,390,625
  1,500,000   Koppers Inc., Sr. Secured Notes, 9.875% due 10/15/13      1,717,500
  1,425,000   Lyondell Chemical Co., Sr. Secured Notes, Series A, 9.625% due 5/1/07      1,567,500
  1,000,000   Millennium America Inc., Sr. Notes, 9.250% due 6/15/08      1,117,500
  200,000   Mueller Group Inc., Sr. Sub. Notes, 10.000% due 5/1/12      221,000
  925,000   Mueller Holdings Inc., Discount Notes, zero coupon until 4/15/09,       
     

14.750% thereafter, due 4/15/14

     672,938
  1,125,000   Nalco Co., Sr. Sub. Notes, 8.875% due 11/15/13      1,248,750
  1,375,000   NewMarket Corp., Sr. Notes, 8.875% due 5/1/10      1,519,375

 

See Notes to Schedule of Investments.

 

1


SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)

   February 28, 2005

 

FACE

AMOUNT


 

SECURITY (a)


   VALUE

  Basic Industries - 5.5% (continued)       
$ 600,000   Novelis Inc., Sr. Notes, 7.250% due 2/15/15 (d)    $ 624,000
  775,000   OM Group, Inc., Sr. Sub. Notes, 9.250% due 12/15/11      837,000
  1,575,000   Owens-Illinois Inc., Sr. Notes, 7.350% due 5/15/08      1,661,625
  1,450,000   Plastipak Holdings, Inc., Sr. Notes, 10.750% due 9/1/11      1,645,750
      Pliant Corp.:       
          Sr. Secured Notes:       
  100,000           11.125% due 9/1/09      108,500
  400,000           Zero coupon until, 12/15/06, 11.125% thereafter, due 6/15/09      378,000
  225,000       Sr. Sub. Notes, 13.000% due 6/1/10      221,063
  600,000   PQ Corp., Sr. Sub. Notes, 7.500% due 2/15/13 (d)      624,750
  1,500,000   Radnor Holdings Corp., Sr. Notes, 11.000% due 3/15/10      1,327,500
  750,000   Resolution Performance Products, Inc., Sr. Sub. Notes, 13.500% due 11/15/10      826,875
  1,575,000   Rhodia S.A., Sr. Sub. Notes, 8.875% due 6/1/11      1,641,938
      Smurfit-Stone Container Enterprises Inc., Sr. Notes:       
  950,000       9.750% due 2/1/11      1,039,063
  1,000,000       8.375% due 7/1/12      1,087,500
  25,000   Stone Container Finance Company of Canada II., Sr. Notes, 7.375% due 7/15/14      26,406
  1,400,000   Tekni-Plex, Inc., Sr. Sub. Notes, Series B, 12.750% due 6/15/10      1,253,000
  1,129,000   United Agri Products., Sr. Notes, 9.000% due 12/15/11 (d)      1,224,965
  894,000   Westlake Chemical Corp., Sr. Notes, 8.750% due 7/15/11      1,001,280
  1,150,000   Wolverine Tube, Inc., Sr. Notes, 10.500% due 4/1/09      1,230,500
          

             41,843,754
          

  Consumer Cyclicals - 2.4%       
  1,100,000   AMF Bowling Worldwide, Inc., Sr. Sub. Notes, 10.000% due 3/1/10      1,138,500
  2,000,000   Buffets, Inc., Sr. Sub. Notes, 11.250% due 7/15/10      2,150,000
  1,600,000   Cinemark Inc., Sr. Discount Notes, zero coupon until 3/15/09,       
          9.750% thereafter, due 3/15/14      1,204,000
  875,000   Denny’s Corp., Sr. Notes, 10.000% due 10/1/12 (d)      955,937
      Eye Care Centers of America, Inc., Sr. Sub. Notes:       
  2,000,000       6.280% due 5/1/08 (g)      2,015,000
  325,000       9.125% due 5/1/08      336,505
  375,000       10.750% due 2/15/15 (d)      372,187
  675,000   FelCor Lodging L.P., Sr. Notes, 9.000% due 6/1/11      766,969
  800,000   Finlay Fine Jewelry Corp., Sr. Notes, 8.375% due 6/1/12      776,000
  600,000   Gaylord Entertainment Co., Sr. Notes, 6.750% due 11/15/14 (d)      609,000
  2,275,000   Host Marriott L.P., Sr. Notes, 7.125% due 11/1/13      2,428,562
  1,100,000   Interface, Inc., Sr. Sub. Notes, 9.500% due 2/1/14      1,201,750
  1,000,000   John Q. Hammons Hotels L.P., 1st Mortgage, Notes, Series B,       
          8.875% due 5/15/12      1,118,750
  75,000   LCE Acquisition Corp., 9.000% due 8/1/14 (d)      78,938
      Levi Strauss & Co., Sr. Notes:       
  225,000       12.250% due 12/15/12      258,750
  900,000       9.750% due 1/15/15 (d)      952,875
  1,000,000   MeriStar Hospitality Operating Partnership, L.P., Sr. Notes,       
          10.500% due 6/15/09      1,090,000

 

See Notes to Schedule of Investments.

 

2


SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)

   February 28, 2005

 

FACE

AMOUNT


 

SECURITY (a)


   VALUE

  Consumer Cyclicals - 2.4% (continued)       
      Six Flags, Inc., Sr. Notes:       
$ 250,000       9.750% due 4/15/13    $ 238,750
  200,000       9.625% due 6/1/14      188,500
  275,000       9.625% due 6/1/14 (d)      259,188
          

             18,140,161
          

  Consumer Non-Cyclicals - 6.3%       
  925,000   aaiPharma Inc., Sr. Sub. Notes, 12.000% due 4/1/10      666,000
  605,674   Ahold Lease U.S.A., Inc., Pass-Through Certificates, Series A-1,       
          7.820% due 1/2/20      674,191
  1,100,000   AmeriPath, Inc., Sr. Notes, 10.500% due 4/1/13      1,149,500
  337,000   Applica Inc., Sr. Sub. Notes, 10.000% due 7/31/08      338,685
  725,000   Athena Neurosciences Finance LLC, Sr. Notes, 7.250% due 2/21/08      670,625
  625,000   Bear Creek Corp., Sr. Notes, 9.000% due 3/1/13 (d)      643,750
  650,000   Caesars Entertainment Inc., Sr. Sub. Notes, 8.875% due 9/15/08      736,937
  575,000   Choctaw Resort Development Enterprise., Sr. Notes, 7.250% due 11/15/19 (d)      595,125
  775,000   Community Health Systems Inc., Sr. Sub. Notes, 6.500% due 12/15/12 (d)      783,719
  575,000   Dean Foods Co., Sr. Notes, 6.900% due 10/15/17      606,625
  1,225,000   DEL Laboratories, Inc., Sr. Sub. Notes, 8.000% due 2/1/12 (d)      1,215,812
  1,500,000   Doane Pet Care Co., Sr. Sub. Notes, 9.750% due 5/15/07      1,455,000
  1,125,000   Dole Food Co. Inc., Sr. Notes, 8.875% due 3/15/11      1,223,437
  80,000   Elan Pharmaceutical Investments, III Ltd., Notes, Series B,       
          7.720% due 3/15/05      78,800
  585,000   Elizabeth Arden, Inc., Sr. Secured Notes, Series B, 11.750% due 2/1/11      655,931
  750,000   Extendicare Health Services, Inc., Sr. Notes, 9.500% due 7/1/10      830,625
  1,075,000   Genesis HealthCare Corp., Sr. Sub. Notes, 8.000% due 10/15/13      1,187,875
  750,000   Global Cash Access LLC, Sr. Sub. Notes, 8.750% due 3/15/12      819,375
      HCA Inc.:       
  2,025,000       Debentures, 7.050% due 12/1/27      1,988,461
  400,000       Notes, 6.375% due 1/15/15      407,985
  825,000   Herbst Gaming Inc., Sr. Sub. Notes, 7.000% due 11/15/14 (d)      841,500
  1,400,000   Hines Nurseries, Inc., Sr. Notes, 10.250% due 10/1/11      1,536,500
  2,500,000   Home Interiors & Gifts, Inc., Sr. Sub. Notes, 10.125% due 6/1/08      2,112,500
  1,675,000   IASIS Healthcare LLC, Sr. Sub. Notes, 8.750% due 6/15/14      1,829,937
  1,625,000   Icon Health & Fitness, Inc., Sr. Sub. Notes, 11.250% due 4/1/12      1,259,375
  1,375,000   Inn of the Mountain Gods Resort & Casino, Sr. Notes, 12.000% due 11/15/10      1,636,250
  425,000   InSight Health Services Corp., Sr. Sub. Notes, Series B, 9.875% due 11/1/11      437,750
  1,150,000   Isle of Capri Casinos, Inc., Sr. Sub. Notes, 7.000% due 3/1/14      1,198,875
  990,000   Jafra Cosmetics International, Inc., Sr. Sub. Notes, 10.750% due 5/15/11      1,145,925
  375,000   Jean Coutu Group Inc., Sr. Sub. Notes, 8.500% due 8/1/14      386,250
  975,000   Las Vegas Sands Corp., Sr. Notes, 6.375% due 2/15/15 (d)      970,125
  415,000   Medical Device Manufacturing Inc., Sr. Sub. Notes, 10.000% due 7/15/12 (d)      454,425
      MGM MIRAGE, Sr. Notes:       
  1,600,000       6.750% due 9/1/12      1,700,000
  675,000       5.875% due 2/27/14      676,688

 

See Notes to Schedule of Investments.

 

3


SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)

   February 28, 2005

 

FACE
AMOUNT


 

SECURITY (a)


   VALUE

  Consumer Non-Cyclicals - 6.3% (continued)       
      Mohegan Tribal Gaming Authority, Sr. Sub. Notes:       
$ 550,000       7.125% due 8/15/14    $ 575,438
  625,000       6.875% due 2/15/15      643,750
  775,000   National Mentor Inc., Sr. Sub. Notes, 9.625% due 12/1/12 (d)      823,438
      Pinnacle Entertainment, Inc., Sr. Sub. Notes:       
  1,000,000       8.250% due 3/15/12      1,072,500
  800,000       8.750% due 10/1/13      884,000
  600,000   Pinnacle Foods Holding Corp., Sr. Sub. Notes, 8.250% due 12/1/13      549,000
  667,000   Psychiatric Solutions, Inc., Sr. Sub. Notes, 10.625% due 6/15/13      775,388
  525,000   Sealy Mattress Co., Sr. Sub. Notes, 8.250% due 6/15/14      552,563
  1,150,000   Seneca Gaming Corp., Sr. Notes, 7.250% due 5/1/12      1,204,625
      Simmons Bedding Co.:       
  1,375,000  

    Sr. Discount Notes, zero coupon until 12/15/09, 10.000% thereafter,

        due 12/15/14 (d)

     900,625
  350,000       Sr. Sub. Notes, 7.875% due 1/15/14      366,625
  1,125,000   Station Casinos, Inc., Sr. Sub. Notes, 6.875% due 3/1/16      1,191,094
  250,000   Swift & Co., Sr. Notes, 10.125% due 10/1/09      280,625
  1,061,000   Tempur-Pedic Inc. & Tempur Production U.S.A. Inc., Sr. Sub. Notes,       
          10.250% due 8/15/10      1,214,845
      Tenet Healthcare Corp.:       
  125,000       Notes, 7.375% due 2/1/13      119,063
          Sr. Notes.:       
  1,250,000           6.500% due 6/1/12      1,159,375
  525,000           9.875% due 7/1/14 (d)      561,750
  2,000,000   Turning Stone Casino Resort Enterprise, Sr. Notes, 9.125% due 12/15/10 (d)      2,200,000
  650,000  

Vanguard Health Holding Co. I LLC, Sr. Discount Notes,

    zero coupon until 10/1/09, 11.250% thereafter, due 10/1/15

     476,125
          

             48,465,387
          

  Energy - 3.4%       
  1,350,000   Chesapeake Energy Corp., Sr. Notes, 6.375% due 6/15/15 (d)      1,434,375
  1,100,000   Dresser-Rand Group Inc., Sr. Sub. Notes, 7.375% due 11/1/14 (d)      1,155,000
      Dynegy Holdings Inc., Sr. Secured Notes.:       
  3,000,000       9.160% due 7/15/08 (d)(g)      3,266,250
  350,000       10.125% due 7/15/13 (d)      400,750
      El Paso Corp.:       
  125,000       Notes, 7.875% due 6/15/12      132,500
          Sr. Notes:       
  2,050,000           7.375% due 12/15/12      2,106,375
  1,400,000           7.750% due 1/15/32      1,417,500
  600,000   Holly Energy Partners, L.P., Sr. Notes, 6.250% due 3/1/15 (d)      606,000
  812,000   Magnum Hunter Resources, Inc., Sr. Notes, 9.600% due 3/15/12      929,740
      PEMEX Project Funding Master Trust:       
  5,000,000           8.625% due 12/1/23 (d)      6,012,500
  800,000           9.500% due 9/15/27 (d)      1,046,000
  3,625,000   Petronas Capital Ltd., 7.875% due 5/22/22 (d)      4,580,053
  275,000   Swift Energy Co., Sr. Sub. Notes, 9.375% due 5/1/12      307,313
  575,000   Texas Genco LLC, Sr. Notes, 6.875% due 12/15/14 (d)      616,688

 

See Notes to Schedule of Investments.

 

4


SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)

   February 28, 2005

 

FACE
AMOUNT


 

SECURITY (a)


   VALUE

  Energy - 3.4% (continued)       
      The Williams Cos., Inc., Notes:       
$ 1,000,000       7.625% due 7/15/19    $ 1,160,000
  950,000       8.750% due 3/15/32      1,206,500
          

             26,377,544
          

  Housing Related - 0.3%       
  125,000  

Collins & Aikman Floor Coverings Inc., Sr. Sub. Notes, Series B,
9.750% thereafter, due 2/15/10

     135,625
  1,400,000   Norcraft Cos. L.P., Sr. Sub. Notes, 9.000% due 11/1/11      1,512,000
  450,000   Nortek Inc., Sr. Sub.Notes, 8.500% due 9/1/14      461,250
          

             2,108,875
          

  Manufacturing - 2.3%       
  550,000   Case New Holland Inc., Sr. Notes, 9.250% due 8/1/11 (d)      607,750
  1,150,000   DRS Technologies Inc., Sr. Sub. Notes, 6.875% due 11/1/13 (d)      1,213,250
  1,350,000   Eagle-Picher Industries, Inc., Sr. Notes, 9.750% due 9/1/13      1,113,750
  2,450,000   Ford Motor Co., Notes, 7.450% due 7.450% due 7/16/31      2,368,929
  200,000   General Binding Corp., Sr. Sub. Notes, 9.375% due 6/1/08      199,000
      General Motors Acceptance Corp., Notes:       
  250,000       6.750% due 12/1/14      240,911
  1,775,000       8.000% due 11/1/31      1,785,446
  2,225,000   General Motors Corp., Debentures, 8.375% due 7/15/33      2,191,474
  750,000   Keystone Automotive Operations Inc., Sr. Sub. Notes, 9.750% due 11/1/13      802,500
  550,000   Kinetek, Inc., Sr. Notes, Series D, 10.750% due 11/15/06      537,625
  650,000   Moog Inc., Sr. Sub. Notes, 6.250% due 1/15/15      669,500
  800,000   Sensus Metering Systems, Inc., Sr. Sub. Notes, 8.625% due 12/15/13      830,000
      Sequa Corp., Sr. Notes.:       
  225,000       9.000% due 8/1/09      250,875
  1,250,000       Series B, 8.875% due 4/1/08      1,368,750
  75,000   Tenneco Automotive Inc., Sr. Sub. Notes, 8.625% due 11/15/14 (d)      80,250
  375,000   The Titan Corp., Sr. Sub. Notes, 8.000% due 5/15/11      405,000
  892,000   TRW Automotive Inc., Sr. Notes, 9.375% due 2/15/13      1,012,420
      Wesco Distribution, Inc., Sr. Sub. Notes:       
  1,000,000       9.125% due 6/1/08      1,030,420
  990,000       Series B, 9.125% due 6/1/08      1,020,116
          

             17,727,966
          

  Media-Cable - 4.0%       
      Cablevision Systems Corp., Sr. Notes:       
  1,825,000       6.669% due 4/1/09 (d)(g)      2,044,000
  1,450,000       8.000% due 4/15/12 (d)      1,638,500
  3,487,678   Canwest Media Inc., Sr. Sub. Notes, 8.000% due 9/1512 (d)      3,775,411
      Charter Communications Holdings, LLC:       
  2,500,000       Sr. Discount Notes, zero coupon until 5/15/06,      1,806,250
              11.750% thereafter, due 5/15/11       
          Sr. Notes:       
  650,000           8.250% due 4/1/07      611,000
  1,500,000           10.000% due 5/15/11      1,233,750

 

See Notes to Schedule of Investments.

 

5


SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)

   February 28, 2005

 

FACE

AMOUNT


 

SECURITY (a)


   VALUE

Media-Cable - 4.0% (continued)     
$ 1,050,000  

Dex Media Inc., Discount Notes, zero coupon until 11/15/08,
9.000% thereafter, due 11/15/13

   $ 832,125
  1,367,000  

Dex Media West LLC/Dex Media Finance Co., Sr. Sub. Notes, Series B,
9.875% due 8/15/13

     1,575,467
  2,100,000   DirecTV Holdings LLC, Sr. Notes, 8.375% due 3/15/13      2,383,500
  1,650,000   EchoStar DBS Corp., Sr. Notes, 6.625% due 10/1/14 (d)      1,703,625
  1,300,000  

Houghton Mifflin Co., Sr. Discount Notes, zero coupon until 10/15/08,
11.500% thereafter, due 10/15/13

     923,000
  1,000,000   Insight Midwest, L.P., Sr. Notes, 10.500% due 11/1/10      1,092,500
  500,000  

Interep National Radio Sales, Inc., Sr. Sub. Notes, Series B,
10.000% due 7/1/08

     398,750
  1,000,000   LodgeNet Entertainment Corp., Sr. Sub. Debentures, 9.500% due 6/15/13      1,115,000
  525,000   Mediacom Broadband LLC, Sr. Notes, 11.000% due 7/15/13      583,406
  275,000   Mediacom LLC, Sr. Notes, 9.500% due 1/15/13      288,063
  850,000   NextMedia Operating, Inc., Sr. Sub. Notes, 10.750% due 7/1/11      949,875
  175,000   NTL Cable PLC, Sr. Notes, 8.750% due 4/15/14 (d)      199,938
  1,100,000   PanAmSat Corp., Sr. Notes, 9.000% due 8/15/14      1,215,500
  1,850,000   Radio One, Inc., Sr. Sub. Notes, 6.375% due 2/15/13 (d)      1,896,250
  1,000,000   R.H. Donnelley Finance Corp. I, Sr. Sub. Notes, 10.875% due 12/15/12      1,177,500
  1,100,000   Rogers Cable Inc., Sr. Secured Notes, 7.875% due 5/1/12      1,223,750
  575,000   Sinclair Broadcast Group Inc., Sr. Sub. Notes, 8.000% due 3/15/12      612,375
  1,200,000   Young Broadcasting Inc., Sr. Sub. Notes, 8.750% due 1/15/14      1,194,000
          

             30,473,535
          

Services/Other - 1.3%     
  985,000   Advanstar Communications Inc., Sr. Secured Notes, 10.294% due 8/15/08 (g)      1,044,100
  225,000   Allied Security Escrow Corp., Sr. Sub. Notes, 11.375% due 7/15/11      236,531
      Allied Waste North America, Inc., Series B:       
  900,000       Sr. Notes, 7.375% due 4/15/14      868,500
  1,400,000       Sr. Secured Notes, 9.250% due 9/1/12      1,554,000
      Cenveo Corp.,       
  425,000       Sr. Notes, 9.625 due 3/15/12      469,625
  825,000       Sr. Sub. Notes, 7.875 due 12/1/13      771,375
  1,225,000   DI Finance LLC, Sr. Sub. Notes, 9.500% due 2/15/13 (d)      1,267,875
      Iron Mountain Inc., Sr. Sub. Notes:       
  375,000       8.250% due 7/1/11      384,525
  750,000       8.625% due 4/1/13      789,375
  1,225,000       7.750% due 1/15/15      1,252,563
  1,375,000   Muzak LLC, Sr. Notes, 10.000% due 2/15/09      1,237,500
          

             9,875,969
          

Technology - 0.5%     
      Amkor Technology, Inc.,       
  1,150,000       Sr. Notes, 9.250% due 2/15/08      1,132,750
  400,000       Sr. Sub. Notes, 10.500% due 5/1/09      379,000
  2,625,000   Lucent Technologies Inc., Debentures, 6.450% due 3/15/29      2,510,156
          

             4,021,906
          

 

See Notes to Schedule of Investments.

 

6


SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)    February 28, 2005

 

FACE

AMOUNT


 

SECURITY (a)


   VALUE

  Telecommunications - 2.3%       
      Alamosa (Delaware), Inc.:       
$ 679,000  

    Sr. Discount Notes, zero coupon until 7/31/05,
  12.000% thereafter, due 7/31/09

   $ 743,505
  487,000       Sr. Notes, 11.000% due 7/31/10      572,225
  277,000   American Tower Corp., Sr. Notes, 9.375% due 2/1/09      292,235
  900,000   AT&T Corp., Sr. Notes, 9.750% due 11/15/31      1,148,625
  375,000   Centennial Cellular Communication Corp., Sr. Notes, 10.125% due 6/15/13      436,875
      Crown Castle International Corp., Sr. Notes:       
  675,000       7.500% due 12/1/13      735,750
  1,000,000       Series B, 7.500% due 12/1/13      1,090,000
  250,000   Dobson Cellular Systems Inc., Sr. Secured Notes, 9.875% due 11/1/12 (d)      266,250
  900,000   Intelsat Ltd., Sr. Discount Notes, zero coupon until 2/1/10,       
          9.250% thereafter, due 2/1/15 (d)      605,250
  300,000   Intelsat (Bermuda) Ltd., Sr. Notes, 7.805% due 1/15/12 (d)(g)      309,750
  1,700,000   MCI Inc., Sr. Notes, 8.735% due 5/1/14      1,914,625
  175,000   Nextel Communications, Inc., Sr. Notes, 7.375% due 8/1/15      192,500
      Qwest Services Corp., Notes:       
  1,000,000       14.000% due 12/15/10 (d)      1,192,500
  2,875,000       14.500% due 12/15/14 (d)      3,622,500
  1,125,000   Rogers Wireless Communications Inc., Sr. Secured Notes, 7.500% due 3/15/15      1,237,500
      SBA Communications Corp.:       
  275,000       Sr. Discount Notes, zero coupon until 12/15/07,      242,000
              9.750% thereafter, due 12/15/11       
  900,000       Sr. Notes, 8.500% due 12/1/12 (d)      976,500
  700,000   UbiquiTel Operating Co., Sr. Notes, 9.875% due 3/1/11 (d)      794,500
  700,000   U.S. Unwired Inc., Sr. Secured Notes, Series B, 10.000% due 6/15/12      798,000
  775,000   Western Wireless Corp., Sr. Notes, 9.250% due 7/15/13      903,844
          

             18,074,934
          

  Transportation - 0.1%       
      Continental Airlines, Inc., Pass-Through Certificates:       
  296,013       Series 974C, 6.800% due 7/2/07      250,325
  674,148       Series 981C, 6.541% due 9/15/08      617,059
          

             867,384
          

  Utilities - 1.3%       
      The AES Corp., Sr. Notes:       
  525,000       9.375% due 9/15/10      614,250
  950,000       7.750% due 3/1/14      1,055,687
  1,000,000  

Allegheny Energy Supply Statutory Trust 2001, Sr. Secured Notes,
10.250% due 11/15/07 (d)

     1,128,750
  2,450,000   Calpine Corp., Sr. Secured Notes, 8.500% due 7/15/10 (d)      2,027,375
      Edison Mission Energy, Sr. Notes:       
  1,525,000       10.000% due 8/15/08      1,761,375
  175,000       9.875% due 4/15/11      210,000
  1,193,000   NRG Energy, Inc., Sr. Secured Notes, 8.000% due 12/15/13 (d)      1,324,230

 

See Notes to Schedule of Investments.

 

7


SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)    February 28, 2005

 

FACE

AMOUNT


     

SECURITY (a)


   VALUE

  Utilities - 1.3% (continued)       
          Reliant Energy, Inc., Sr. Secured Notes:       
$ 25,000           9.250% due 7/15/10    $ 27,781
  1,425,000           9.500% due 7/15/13      1,610,250
              

                 9,759,698
              

         

TOTAL CORPORATE BONDS & NOTES

(Cost - $219,317,065)

     227,737,113
              

FACE

AMOUNT†


            
  SOVEREIGN BONDS - 28.5%       
  Argentina - 1.2%       
          Republic of Argentina (e)(f):       
  75,000   EUR       9.000% due 5/24/05 (d)      32,326
  60,000   DEM       7.875% due 7/29/05      13,019
  80,000   DEM       11.250% due 4/10/06      17,630
  100,000   EUR       10.250% due 1/26/07      43,433
  215,000   EUR       8.000% due 2/26/08      92,204
  275,000   DEM       9.000% due 11/19/08      57,806
  130,000   EUR       8.250% due 7/6/10      54,739
  115,000   DEM       10.250% due 2/6/49      25,343
  2,490,000   DEM       7.000% due 3/18/49      536,069
  125,000   EUR       9.000% due 6/20/49      52,219
  60,000   EUR       8.500% due 7/1/49      25,065
  60,000   DEM       9.000% due 9/19/49      12,714
  75,000   EUR       9.250% due 10/21/49      30,585
  130,000   DEM       10.500% due 11/14/49      27,238
  8,700,000           Discount Bond, Series L-GL, 3.500% due 3/31/23 (g)      5,111,250
              Medium-Term Notes:       
  620,000,000   ITL           4.649% due 7/8/05 (g)      129,520
  190,000   EUR           10.000% due 2/22/07      82,523
  305,000,000   ITL           7.625% due 8/11/07      64,969
  315,000,000   ITL           8.000% due 10/30/09      66,343
  115,000   EUR           8.500% due 7/30/10      48,423
  150,000   EUR           8.750% due 2/4/49      62,663
  95,000,000   ITL           7.000% due 3/18/49      20,008
  75,000   EUR           7.125% due 6/10/49      31,580
  60,000   EUR           9.250% due 7/20/49      25,463
  60,000   EUR           8.125% due 10/4/49      24,866
  3,600,000       Par Bond, Series L-GP, 6.000% due 3/31/23      2,106,000
              

                 8,793,998
              

  Brazil - 6.7%           
          Federative Republic of Brazil:       
  3,805,000           12.250% due 3/6/30      4,965,525
  3,305,000           11.000% due 8/17/40      3,828,842
  7,013,448           C Bonds, 8.000% due 4/15/14      7,144,950

 

See Notes to Schedule of Investments.

 

8


SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)   February 28, 2005

 

FACE

AMOUNT†


  

SECURITY (a)


   VALUE

Brazil - 6.7% (continued)       
         DCB, Series L:       
28,301,697            Bearer, 3.125% due 4/15/12 (g)    $ 27,381,892
220,589            Registered, 3.125% due 4/15/12 (g)      213,420
7,788,461        FLIRB, Series L, 3.063% due 4/15/09 (g)      7,661,899
         

            51,196,528
         

Bulgaria - 0.2%       
1,446,429    Republic of Bulgaria, FLIRB, Series A, 3.750% due 7/28/12 (g)      1,453,661
         

Chile - 0.5%       
3,325,000    Republic of Chile, 5.500% due 1/15/13      3,463,276
         

Colombia - 1.5%       
     Republic of Colombia:       
950,000        11.750% due 2/25/20      1,201,750
1,150,000        8.125% due 5/21/24      1,104,000
8,170,000        10.375% due 1/28/33      9,303,587
         

            11,609,337
         

Ecuador - 0.7%       
     Republic of Ecuador:       
4,155,000        12.000% due 11/15/12 (d)      4,228,751
1,375,000        8.000% due 8/15/30 (d)(g)      1,287,344
         

            5,516,095
         

EL Salvador - 0.2%       
1,700,000    Republic of El Salvador, 7.750% due 1/24/23 (d)      1,874,250
         

Mexico - 4.5%       
     United Mexican States:       
4,325,000        11.375% due 9/15/16      6,368,563
         Medium-Term Notes, Series A:       
13,465,000            6.375% due 1/16/13      14,272,900
294,000            5.875% due 1/15/14      300,762
3,275,000            6.625% due 3/3/15      3,511,619
9,160,000            7.500% due 4/8/33      10,204,240
         

            34,658,084
         

Panama - 1.0%       
     Republic of Panama:       
900,000        7.250% due 3/15/15      927,000
1,850,000        9.375% due 4/1/29      2,238,500
4,915,205        IRB, 3.750% due 7/17/14 (g)      4,866,053
         

            8,031,553
         

 

See Notes to Schedule of Investments.

 

9


SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)   February 28, 2005

 

FACE

AMOUNT†


 

SECURITY (a)


   VALUE

Peru - 1.2%       
    Republic of Peru:       

695,000

      9.125% due 2/21/12    $ 807,938

9,275,000

      FLIRB, 4.500% due 3/7/17 (g)      8,718,500
        

           9,526,438
        

The Philippines - 1.1%       
    Republic of the Philippines:       

1,475,000

      9.000% due 2/15/13      1,556,125

3,500,000

      9.375% due 1/18/17      3,768,975

2,950,000

      10.625% due 3/16/25      3,300,313
        

           8,625,413
        

Russia - 5.5%       

3,100,000

 

Aries Vermogensverwaltungs GmbH, Russian Federation
Credit-Linked Notes, Series C, 9.600% due 10/25/14 (d)

     3,855,625
    Russian Federation:       

9,075,000

      12.750% due 6/24/28 (d)      15,518,250

21,310,000

      5.000% due 3/31/30 (d)(g)      22,408,797
        

           41,782,672
        

South Africa - 0.5%       
    Republic of South Africa:       

1,350,000

      9.125% due 5/19/09      1,576,125

2,325,000

      6.500% due 6/2/14      2,551,688
        

           4,127,813
        

Turkey - 1.6%       
    Republic of Turkey:       

475,000

      11.750% due 6/15/10      600,875

4,725,000

      11.500% due 1/23/12      6,118,875

1,100,000

      11.000% due 1/14/13      1,413,500

1,670,000

      11.875% due 1/15/30      2,421,500

1,225,000

      Collective Action Securities, 9.500% due 1/15/14      1,476,125
        

           12,030,875
        

Ukraine - 0.5%       
    Republic of Ukraine:       

2,100,060

      11.000% due 3/15/07 (d)      2,247,064

1,300,000

      7.650% due 6/11/13 (d)      1,433,250
        

           3,680,314
        

Uruguay - 0.3%       

2,075,000

  Republic of Uruguay, Benchmark Bond, 7.500% due 3/15/15      2,065,663
        

 

See Notes to Schedule of Investments.

 

10


SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)   February 28, 2005

 

FACE

AMOUNT†


 

SECURITY (a)


   VALUE

Venezuela - 1.3%       
    Bolivarian Republic of Venezuela:       

3,245,000

      5.375% due 8/7/10      3,005,681

2,275,000

      8.500% due 10/8/14      2,337,563

300,000

      9.250% due 9/15/27      309,600
Venezuela - 1.3% (continued)       
    Collective Action Serurities:       

3,250,000

      10.750% due 9/19/13    $ 3,761,875

350,000

      9.375% due 1/13/34      362,250
        

           9,776,969
        

   

TOTAL SOVEREIGN BONDS

(Cost - $204,334,068)

     218,212,939
        

FACE
AMOUNT


        
LOAN PARTICIPATION (g)(h) - 0.1%       

$634,142

 

Kingdom of Morocco, Tranche A, 3.803% due 1/2/09

    (UBS Financial Services Inc.) (Cost - $623,536)

     626,215
        

ASSET-BACKED SECURITIES - 2.1%       

844,859

 

AQ Finance Net Interest Margin Trust, Series 2004-RN5,
Class A, 5.193% due 6/25/34 (d)

     842,254
    Bear Stearns Asset-Backed Securities, Net Interest Margin Trust:       
        Series 2004-HE5N:       

1,006,053

          Class A1, 5.000% due 7/25/34 (d)      1,003,597

158,000

          Class A2, 5.000% due 7/25/34 (d)      156,581

600,232

      Series 2004-HE6N, Class A1, 5.250% due 8/25/34 (d)      598,312

1,230,153

 

Countrywide Asset-Backed Certificates, Series 2004-5N, Class N1,
5.500% due 10/25/35 (d)

     1,228,076

829,874

 

Finance America Net Interest Margin Trust, Series 2004-1,
Class A, 5.250% due 6/27/34 (d)

     826,470

743,986

  First Consumers Master Trust, Series 2001-A, Class A, 2.900% due 9/15/08 (g)      738,871

460,876

 

Long Beach Asset Holdings Corp., Series 2004-6, Class N2,
7.500% due 11/25/34 (d)

     444,169

1,065,581

  Novastar Net Interest Margin Trust, Series 2004-N2, 4.458% due 6/26/34 (d)      1,060,604
    Sail Net Interest Margin Notes,       
        Class A:       

195,773

          Series 2003-6A, 7.000% due 7/27/33 (d)      196,588

248,504

          Series 2003-7A, 7.000% due 7/27/33 (d)      249,770

1,296,758

          Series 2004-8A, 5.000% due 9/27/34 (d)      1,291,554

2,158,101

          Series 2004-AA, 4.500% due 10/27/34 (d)      2,156,913

350,000

          Series 2005-1A, 4.250% due 2/27/35 (d)      348,767
        Class B,       

1,376,973

          Series 2004-AA, 7.500% due 10/27/34 (d)      1,344,270

468,219

          Series 2004-BN2A, 7.000% due 12/27/34 (d)      443,893

675,000

          Series 2005-1A, 7.500% due 2/27/35 (d)      657,743

794,575

 

Sharps SP I LLC Net Interest Margin Trust, 2004-HS1N,
5.920% due 2/25/34 (d)

     776,167

1,500,000

 

Structured Asset Investment Loan Trust, Series 2003-BC10, Class M2,
4.500% due 10/25/33 (g)

     1,522,677
        

   

TOTAL ASSET BACKED SECURITIES

(Cost - $15,924,595)

     15,887,276
        

 

See Notes to Schedule of Investments.

 

11


SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)   February 28, 2005

 

FACE

AMOUNT


 

SECURITY (a)


   VALUE

  COLLATERALIZED MORTGAGE OBLIGATIONS - 0.9%       
      Fannie Mae Strip:       
$ 13,375,838       Series 329, Class 2, 5.500% due 1/1/33 - Interest Only    $ 2,953,374
  16,370,512       Series 338, Class 2, 5.500% due 6/1/33 - Interest Only      3,660,443
          

     

TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS

(Cost - $7,279,979)

     6,613,817
          

  OTHER SECURITIES - 1.0%       
  7,140,695  

Targeted Return Index Securities, Sr. Secured Notes, Series HY-2004-1,
8.156% due 8/1/15 (d) (Cost - $7,781,922)

     7,698,769
          

SHARES

        
  PREFERRED STOCK - 0.2%       
  1,394  

Alamosa Holdings, Inc., 7.500%, Cumulative Convertible, Series B

    (Cost - $431,471)

     1,333,361
          

WARRANTS

        
  WARRANTS (f) -0.0%       
  450   Mueller Holdings, Inc., (Exercise price of $0.01 per share expiring on 4/15/14.       
     

    Each warrant exercisable for 109.820 shares of common stock.) (d)

        (Cost - $19,992)

     42,862
          

FACE
AMOUNT


        
  REPURCHASE AGREEMENTS - 10.8%       
  32,831,000  

Deutsche Bank Securities Inc. dated 2/28/05, 2.620% due 3/1/05; Proceeds at maturity - $32,833,389; (Fully collateralized by various U.S. Treasury obligations, 0.000% to 3.000% due 7/15/12 to 8/15/19; Market value - $33,708,860)

     32,831,000
  25,000,000  

Merrill Lynch Government Securities Inc. dated 2/28/05, 2.600% due 3/1/05; Proceeds at maturity - $25,001,806; (Fully collateralized by various U.S. government agency obligations, 1.500% to 6.000% due 6/15/05 to 1/21/25; Market value - $25,500,125)

     25,000,000
  25,000,000  

UBS Securities LLC dated 2/28/05, 2.630% due 3/1/05; Proceeds at maturity - $25,001,826; (Fully collateralized by various U.S. government agency obligations, 2.000% to 5.000% due 1/15/06 to 10/15/14; Market value - $25,500,103)

     25,000,000
          

     

TOTAL REPURCHASE AGREEMENTS

(Cost - $82,831,000)

     82,831,000
          

     

TOTAL INVESTMENTS - 100.0%

(Cost - $740,092,849*)

   $ 765,513,102
          

 

See Notes to Schedule of Investments.

 

12


Face amount denominated in U.S. dollars unless otherwise indicated.

 

(a) All securities are segregated as collateral pursuant to revolving credit facility or “to-be-anounced” securities.

 

(b) Security acquired under mortgage dollar roll agreement (See Note 2).

 

(c) Security is traded on a “to-be-announced” basis (See Note 2). Security is traded on a “to-be-announced” basis (See Note 2).

 

(d) Security is exempt form 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.

 

(e) Security is currently in default.

 

(f) Non- income producing security.

 

(g) Rate shown reflects current rate on instrument with variable rate or step coupon rates.

 

(h) Participation interests were acquired through the financial institutions indicated parenthetically.

 

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

 

Abbreviations used in this schedule:


 

C BOND   - Capitalization Bond.
DCB   - Debt Conversion Bond.
DEM   - German Mark.
EUR   - Euro.
FLIRB   - Front-Loaded Interest Reduction Bond.
IRB   - Interest Reduction Bond.
ITL   - Italian Lira.
NMB   - New Money Bond.
PDI   - Past Due Interest.

 

See Notes to Schedule of Investments.

 

13


Notes to Schedule of Investments (unaudited)

 

1. Organization and Significant Accounting Policies

 

Salomon Brothers Global High Income Fund Inc. (“Fund”) was incorporated in Maryland on April 16, 2003 and is registered as a non-diversified, closed-end, management investment company under the Investment Company Act of 1940, as amended.

 

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

 

(a) Investment Valuation. In valuing the Fund’s assets, all securities for which market quotations are readily available are valued (i) at the last sale price prior to the time of determination if there were a sale on the date of determination, (ii) at the mean between the last current bid and asked prices if there were no sales on such date and bid and asked quotations are available, and (iii) at the bid price if there were no sales price on such date and only bid quotations are available. Publicly traded foreign government debt securities are typically traded internationally in the over-the-counter market, and are valued at the mean between the last current bid and asked price as of the close of business of that market. Securities may also be valued by independent pricing services which use prices provided by market-makers or estimates of market values obtained from yield data relating to instruments or securities with similar characteristics. When market quotations are not readily available, or are determined not to reflect accurately fair value, 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 may value these investments at fair value as determined in accordance with the procedures approved by the Fund’s Board of Directors. Short-term investments having a maturity of 60 days or less are valued at amortized cost, which approximates market value.

 

(b) Repurchase Agreements. When entering into repurchase agreements, it is the Fund’s policy that a custodian takes possession of the underlying collateral securities, the value of which at least equals the principal amount of the repurchase transaction, including accrued interest. To the extent that any repurchase transaction exceeds one business day, the value of the collateral is marked-to market to ensure the adequacy of the collateral. If the seller defaults and the value of the collateral declines 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) Financial Futures Contracts. The Fund may enter into futures contracts to the extent permitted by its investment policies and objectives. Upon entering into a futures contract, the Fund is required to deposit cash or securities as initial margin. Additional securities are also segregated up to the current market value of the futures contracts. Subsequent payments, which are dependent on the daily fluctuations in the value of the underlying financial instrument, are made or received by the Fund each day (daily variation margin) and are recorded as unrealized gains or losses until the contracts are closed. When the contracts are closed, the Fund records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transactions and the Fund’s basis in the contracts. The Fund enters into such contracts typically to hedge a portion of the portfolio. The risks associated with entering into futures contracts include the possibility that a change in the value of the contract may not correlate with the changes in the value of the underlying financial instruments. In addition, investing in futures contracts involves the risk that the Fund could lose more than the original margin deposit and subsequent payments required for a futures transaction.

 

14


Notes to Schedule of Investments (unaudited) (continued)

 

(d) Securities Traded on a To-Be-Announced Basis. The Fund may trade securities on a to-be-announced (“TBA”) basis. In a TBA transaction, the Fund commits to purchasing or selling securities, which have not yet been issued by the issuer, for which specific information is not known, for example the face amount and maturity date in U.S. government agency mortgage pass-through transactions. Securities purchased on a TBA basis are not settled until they are delivered to the Fund, normally 15 to 45 days later. Beginning on the date the Fund enters into a TBA transaction, cash, U.S. government securities or other liquid high-grade debt obligations are segregated in an amount equal in value to the purchase price of the TBA security. These transactions are subject to market fluctuations and their current value is determined in the same manner as for other securities.

 

(e) Mortgage Dollar Rolls. The Fund enters into dollar rolls in which the Fund sells mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase substantially similar (same type, coupon and maturity) securities to settle on a specified future date. During the roll period, the Fund forgoes principal and interest paid on the securities. The Fund is compensated by a fee paid by the counterparty. Dollar rolls are accounted for as financing arrangements; the fee is accrued into interest income ratably over the term of the dollar roll and any gain or loss on the roll is deferred and realized upon disposition of the rolled security. Dollar roll transactions involve the risk that the market value of the securities sold by the Fund may decline below the repurchase price of the similar securities.

 

(f) Loan Participations. The Fund may invest in loans arranged through private negotiations between one or more financial institutions (“Lender”). 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 relating to the loan, nor any rights of set-off against the borrower, and the Fund may not benefit directly from any collateral supporting the loan in which it has purchased the participation. As a result, the Fund will assume the credit risk of both the borrower and the lender that is selling the participation. 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 set-off between the lender and the borrower.

 

(g) Foreign Currency Translation. Investment securities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of investment securities denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions.

 

(h) Credit and Market Risk. The yields of emerging markets debt obligations and high-yield corporate debt obligations reflect, among other things, perceived credit and market risk. The Fund’s investment in securities rated below investment grade typically involves risks not associated with higher rated securities including, among others, overall greater risk of 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.

 

15


Notes to Schedule of Investments (unaudited) (continued)

 

(i) Investment Transactions. Investment transactions are recorded on a trade date basis.

 

2. Investments

 

At February 28, 2005, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:

 

Gross unrealized appreciation

   $ 29,865,117  

Gross unrealized depreciation

     (4,444,864 )
    


Net unrealized appreciation

   $ 25,420,253  
    


 

At February 28, 2005, the Fund had the following open futures contracts:

 

    

# of

Contracts


  

Expiration

Date


  

Basis

Value


  

Market

Value


  

Unrealized

Gain


Contracts to sell:                               

U.S. Treasury 5-Year Note

   534    3/05    $ 58,661,109    $ 57,738,750    $ 922,359

U.S. Treasury 10-Year Note

   998    3/05      111,375,343      110,653,250      722,093
                            

                             $ 1,644,452
                            

 

At February 28, 2005, the Fund held TBA securities with a total cost of $201,549,221.

 

At February 28, 2005, the average monthly balance of mortgage dollar rolls outstanding was $219,112,273. For the period ended February 28, 2005, the Fund had outstanding mortgage dollar rolls with a total cost of $201,549,221. Counterparties with mortgage dollar rolls outstanding in excess of 10% of total net assets at February 28, 2005 included Barclays Capital Inc. ($77,186,233).

 

At February 28, 2005, the Fund held one loan participation with a total cost of $623,536 and a total market value of $626,215.

 

3. Loan

 

At February 28, 2005, the Fund had outstanding a $100,000,000 loan pursuant to a revolving credit and security agreement with Three Pillars Funding Corp. and Citicorp North America Inc. (“CNA”), an affiliate of SBAM. The loans generally bear interest at a variable rate based on the weighted average interest rates of the underlying commercial paper or LIBOR, plus any applicable margin. Securities held by the Fund are subject to a lien, granted to the lenders, to the extent of the borrowing outstanding and any additional expenses

 

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.

 

Salomon Brothers Global High Income Fund Inc.

 

By  

/S/    R. JAY GERKEN


    R. Jay Gerken
    Chief Executive Officer

 

Date: April 27, 2005

 

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/    R. JAY GERKEN


    R. Jay Gerken
    Chief Executive Officer
Date: April 27, 2005

By

 

/S/    FRANCES M. GUGGINO


    Frances M. Guggino
    Chief Financial Officer

 

Date: April 27, 2005