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.
c/o Citigroup Asset Management
300 First Stamford Place, 4th Floor
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: August 31, 2005
| ITEM 1. | SCHEDULE OF INVESTMENTS |
SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.
FORM N-Q
AUGUST 31, 2005
SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.
| Schedule of Investments (unaudited) | August 31, 2005 |
| FACE AMOUNT |
SECURITY (a) |
VALUE | ||||
| CORPORATE BONDS & NOTES - 30.2% | ||||||
| Advertising - 0.3% | ||||||
| $ | 625,000 | Bear Creek Corp., Senior Notes, 9.000% due 3/1/13 (b) |
$ | 659,375 | ||
| 500,000 | Interep National Radio Sales Inc., Senior Subordinated Notes, Series B, 10.000% due 7/1/08 |
402,500 | ||||
| 1,100,000 | Vertis Inc., Senior Second Lien Secured Notes, 9.750% due 4/1/09 |
1,160,500 | ||||
| Total Advertising | 2,222,375 | |||||
| Aerospace/Defense - 0.4% | ||||||
| 1,150,000 | DRS Technologies Inc., Senior Subordinated Notes, 6.875% due 11/1/13 |
1,170,125 | ||||
| 650,000 | Moog Inc., Senior Subordinated Notes, 6.250% due 1/15/15 |
653,250 | ||||
| Sequa Corp., Senior Notes: |
||||||
| 225,000 | 9.000% due 8/1/09 |
247,500 | ||||
| 1,250,000 | Series B, 8.875% due 4/1/08 |
1,337,500 | ||||
| Total Aerospace/Defense | 3,408,375 | |||||
| Airlines - 0.1% | ||||||
| Continental Airlines Inc., Pass-Through Certificates: |
||||||
| 296,013 | Series 974C, 6.800% due 7/2/07 |
273,126 | ||||
| 329,304 | Series 981C, 6.541% due 9/15/08 |
310,350 | ||||
| Total Airlines | 583,476 | |||||
| Apparel - 0.2% | ||||||
| Levi Strauss & Co., Senior Notes: |
||||||
| 300,000 | 8.254% due 4/1/12 (c) |
303,000 | ||||
| 225,000 | 12.250% due 12/15/12 |
253,969 | ||||
| 1,100,000 | 9.750% due 1/15/15 |
1,166,000 | ||||
| Total Apparel | 1,722,969 | |||||
| Auto Manufacturers - 0.9% | ||||||
| Ford Motor Co.: |
||||||
| Debentures: |
||||||
| 200,000 | 6.625% due 10/1/28 |
149,146 | ||||
| 275,000 | 8.900% due 1/15/32 |
242,773 | ||||
| 6,025,000 | Notes, 7.450% due 7/16/31 |
4,829,730 | ||||
| General Motors Corp., Senior Debentures: |
||||||
| 300,000 | 8.250% due 7/15/23 |
252,750 | ||||
| 1,925,000 | 8.375% due 7/15/33 |
1,626,625 | ||||
| Total Auto Manufacturers | 7,101,024 | |||||
| Auto Parts & Equipment - 0.3% | ||||||
| 225,000 | Delphi Corp., Notes, 6.500% due 8/15/13 |
172,687 | ||||
| 750,000 | Keystone Automotive Operations Inc., Senior Subordinated Notes, 9.750% due 11/1/13 |
765,000 | ||||
| 75,000 | Tenneco Automotive Inc., Senior Subordinated Notes, 8.625% due 11/15/14 |
78,188 | ||||
| 892,000 | TRW Automotive Inc., Senior Notes, 9.375% due 2/15/13 |
994,580 | ||||
| Total Auto Parts & Equipment | 2,010,455 | |||||
| Beverages - 0.1% | ||||||
| 1,075,000 | Constellation Brands Inc., Senior Subordinated Notes, Series B, 8.125% due 1/15/12 |
1,150,250 | ||||
| Building Materials - 0.1% | ||||||
| 450,000 | Nortek Inc., Senior Subordinated Notes, 8.500% due 9/1/14 |
439,875 | ||||
| Chemicals - 2.0% | ||||||
| 318,182 | Applied Extrusion Technologies Inc., Senior Notes, 12.000% due 3/15/12 (b)(d) |
313,409 | ||||
See Notes to Schedule of Investments.
1
SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.
| Schedule of Investments (unaudited) (continued) | August 31, 2005 |
| FACE AMOUNT |
SECURITY (a) |
VALUE | ||||
| Chemicals - 2.0% (continued) | ||||||
| $ | 300,000 | Borden U.S. Finance Corp./Nova Scotia Finance ULC, Second Priority Senior Secured Notes, 9.000% due 7/15/14 (b) |
$ | 312,000 | ||
| 750,000 | Equistar Chemicals LP/Equistar Funding Corp., Senior Notes, 10.625% due 5/1/11 |
836,250 | ||||
| 1,375,000 | Ethyl Corp., Senior Notes, 8.875% due 5/1/10 |
1,447,188 | ||||
| 1,200,000 | Hercules Inc., Senior Subordinated Notes, 6.750% due 10/15/29 |
1,194,000 | ||||
| 1,000,000 | Huntsman Advanced Materials LLC, Senior Secured Notes, 11.000% due 7/15/10 |
1,140,000 | ||||
| Huntsman International LLC, Senior Subordinated Notes: |
||||||
| 762,000 | 10.125% due 7/1/09 |
788,670 | ||||
| 350,000 | 7.375% due 1/1/15 (b) |
355,250 | ||||
| 50,000 | ISP Holdings Inc., Senior Secured Notes, Series B, 10.625% due 12/15/09 |
53,250 | ||||
| 1,425,000 | Lyondell Chemical Co., Senior Secured Notes, Series A, 9.625% due 5/1/07 |
1,510,500 | ||||
| 1,000,000 | Millennium America Inc., Senior Notes, 9.250% due 6/15/08 |
1,082,500 | ||||
| 1,125,000 | Nalco Co., Senior Subordinated Notes, 8.875% due 11/15/13 |
1,216,406 | ||||
| 1,125,000 | OM Group Inc., Senior Subordinated Notes, 9.250% due 12/15/11 |
1,155,938 | ||||
| 600,000 | PQ Corp., Senior Subordinated Notes, 7.500% due 2/15/13 (b) |
606,000 | ||||
| 750,000 | Resolution Performance Products Inc., Senior Subordinated Notes, 13.500% due 11/15/10 |
813,750 | ||||
| 1,575,000 | Rhodia SA, Senior Subordinated Notes, 8.875% due 6/1/11 |
1,543,500 | ||||
| 894,000 | Westlake Chemical Corp., Senior Notes, 8.750% due 7/15/11 |
974,460 | ||||
| Total Chemicals | 15,343,071 | |||||
| Commercial Services - 0.9% | ||||||
| 225,000 | Allied Security Escrow Corp., Senior Subordinated Notes, 11.375% due 7/15/11 |
224,438 | ||||
| Cenveo Corp.: |
||||||
| 425,000 | Senior Notes, 9.625% due 3/15/12 |
456,875 | ||||
| 725,000 | Senior Subordinated Notes, 7.875% due 12/1/13 |
717,750 | ||||
| 600,000 | Corrections Corp. of America, Senior Notes, 6.250% due 3/15/13 |
592,500 | ||||
| 1,225,000 | DI Finance/DynCorp International LLC, Senior Subordinated Notes, 9.500% due 2/15/13 (b) |
1,215,812 | ||||
| Iron Mountain Inc., Senior Subordinated Notes: |
||||||
| 375,000 | 8.250% due 7/1/11 |
381,713 | ||||
| 750,000 | 8.625% due 4/1/13 |
792,187 | ||||
| 1,225,000 | 7.750% due 1/15/15 |
1,260,219 | ||||
| 1,000,000 | R.H. Donnelley Inc., Senior Subordinated Notes, 10.875% due 12/15/12 |
1,161,250 | ||||
| Total Commercial Services | 6,802,744 | |||||
| Computers - 0.0% | ||||||
| 325,000 | SunGard Data Systems Inc., Senior Notes, 9.125% due 8/15/13 (b) |
342,875 | ||||
| Containers & Packaging - 0.2% | ||||||
| 1,250,000 | JSG Funding PLC, Senior Notes, 9.625% due 10/1/12 |
1,284,375 | ||||
| Cosmetics/Personal Care - 0.2% | ||||||
| 1,225,000 | Del Laboratories Inc., Senior Subordinated Notes, 8.000% due 2/1/12 |
1,059,625 | ||||
| 585,000 | Elizabeth Arden Inc., Secured Notes, Series B, 11.750% due 2/1/11 |
637,650 | ||||
| Total Cosmetics/Personal Care | 1,697,275 | |||||
| Distribution/Wholesale - 0.1% | ||||||
| 857,000 | Wesco Distribution Inc., Senior Subordinated Notes, Series B, 9.125% due 6/1/08 |
869,855 | ||||
| Diversified Financial Services - 2.3% | ||||||
| Alamosa Delaware Inc.: |
||||||
| 679,000 | Senior Discount Notes, 12.000% due 7/31/09 |
760,480 | ||||
| 487,000 | Senior Notes, 11.000% due 7/31/10 |
553,963 | ||||
See Notes to Schedule of Investments.
2
SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.
| Schedule of Investments (unaudited) (continued) | August 31, 2005 |
| FACE AMOUNT |
SECURITY (a) |
VALUE | ||||
| Diversified Financial Services - 2.3% (continued) | ||||||
| $ | 715,000 | BCP Crystal U.S. Holdings Corp., Senior Subordinated Notes, 9.625% due 6/15/14 |
$ | 814,206 | ||
| 50,000 | Ford Motor Credit Co., Notes, 7.875% due 6/15/10 |
50,315 | ||||
| General Motors Acceptance Corp.: |
||||||
| 3,650,000 | Bonds, 8.000% due 11/1/31 |
3,385,568 | ||||
| 1,550,000 | Notes, 6.750% due 12/1/14 |
1,427,995 | ||||
| 750,000 | Global Cash Access LLC/Global Cash Finance Corp., Senior Subordinated Notes, 8.750% due 3/15/12 |
808,125 | ||||
| 800,000 | Sensus Metering Systems Inc., Senior Subordinated Notes, 8.625% due 12/15/13 |
754,000 | ||||
| 7,500,000 | Targeted Return Index Securities (TRAINS), Series HY-2005-1, 7.651% due 6/15/15 (b)(c) |
7,813,170 | ||||
| 1,475,000 | Vanguard Health Holdings Co. I LLC, Senior Discount Notes, step bond to yield 9.352% due 10/1/15 |
1,102,562 | ||||
| Total Diversified Financial Services | 17,470,384 | |||||
| Electric - 1.3% | ||||||
| AES Corp., Senior Notes: |
||||||
| 525,000 | 9.375% due 9/15/10 |
591,938 | ||||
| 950,000 | 7.750% due 3/1/14 |
1,036,688 | ||||
| 2,450,000 | Calpine Corp., Second Priority Senior Secured Notes, 8.500% due 7/15/10 (b) |
1,849,750 | ||||
| Edison Mission Energy, Senior Notes: |
||||||
| 1,525,000 | 10.000% due 8/15/08 |
1,704,187 | ||||
| 175,000 | 9.875% due 4/15/11 |
207,594 | ||||
| 1,193,000 | NRG Energy Inc., Second Priority Senior Secured Notes, 8.000% due 12/15/13 |
1,291,422 | ||||
| Reliant Energy Inc., Senior Secured Notes: |
||||||
| 25,000 | 9.250% due 7/15/10 |
27,375 | ||||
| 2,025,000 | 9.500% due 7/15/13 |
2,262,937 | ||||
| 575,000 | Texas Genco LLC/Texas Genco Financing Corp., Senior Notes, 6.875% due 12/15/14 (b) |
599,438 | ||||
| Total Electric | 9,571,329 | |||||
| Electrical Components & Equipment - 0.1% | ||||||
| 550,000 | Kinetek Inc., Senior Notes, Series D, 10.750% due 11/15/06 |
530,750 | ||||
| Electronics - 0.2% | ||||||
| 1,375,000 | Muzak LLC/Muzak Finance Corp., Senior Notes, 10.000% due 2/15/09 |
1,203,125 | ||||
| Entertainment - 1.3% | ||||||
| 575,000 | Choctaw Resort Development Enterprise, Senior Notes, 7.250% due 11/15/19 (b) |
592,250 | ||||
| 1,600,000 | Cinemark Inc., Senior Discount Notes, step bond to yield 9.658% due 3/15/14 |
1,150,000 | ||||
| 825,000 | Herbst Gaming Inc., Senior Subordinated Notes, 7.000% due 11/15/14 |
839,437 | ||||
| 1,150,000 | Isle of Capri Casinos Inc., Senior Subordinated Notes, 7.000% due 3/1/14 |
1,135,625 | ||||
| 75,000 | Loews Cineplex Entertainment Corp., Senior Subordinated Notes, 9.000% due 8/1/14 (b) |
74,063 | ||||
| Mohegan Tribal Gaming Authority, Senior Subordinated Notes: |
||||||
| 550,000 | 7.125% due 8/15/14 |
580,250 | ||||
| 625,000 | 6.875% due 2/15/15 |
651,562 | ||||
| 1,150,000 | Penn National Gaming Inc., Senior Subordinated Notes, 6.750% due 3/1/15 |
1,144,250 | ||||
| Pinnacle Entertainment Inc., Senior Subordinated Notes: |
||||||
| 1,000,000 | 8.250% due 3/15/12 |
1,015,000 | ||||
| 800,000 | 8.750% due 10/1/13 |
832,000 | ||||
| 1,150,000 | Seneca Gaming Corp., Senior Notes, 7.250% due 5/1/12 |
1,201,750 | ||||
| Six Flags Inc., Senior Notes: |
||||||
| 250,000 | 9.750% due 4/15/13 |
251,875 | ||||
See Notes to Schedule of Investments.
3
SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.
| Schedule of Investments (unaudited) (continued) | August 31, 2005 |
| FACE AMOUNT |
SECURITY (a) |
VALUE | ||||
| Entertainment - 1.3% (continued) | ||||||
| $ | 475,000 | 9.625% due 6/1/14 |
$ | 478,563 | ||
| Total Entertainment | 9,946,625 | |||||
| Environmental Control - 0.4% | ||||||
| 750,000 | Aleris International Inc., Series B, Senior Secured Notes, 10.375% due 10/15/10 |
830,625 | ||||
| Allied Waste North America Inc.: |
||||||
| Senior Notes: |
||||||
| 400,000 | 7.250% due 3/15/15 (b) |
399,000 | ||||
| 900,000 | Series B, 7.375% due 4/15/14 |
850,500 | ||||
| 933,000 | Senior Secured Notes, Series B, 9.250% due 9/1/12 |
1,023,967 | ||||
| Total Environmental Control | 3,104,092 | |||||
| Food - 0.7% | ||||||
| 605,674 | Ahold Lease USA Inc., Pass-Through Certificates, Series 2001 A-1, 7.820% due 1/2/20 |
651,478 | ||||
| 575,000 | Dean Foods Co., Senior Notes, 6.900% due 10/15/17 |
602,312 | ||||
| 1,275,000 | Doane Pet Care Co., Senior Subordinated Notes, 9.750% due 5/15/07 |
1,275,000 | ||||
| 432,000 | Dole Food Co. Inc., Senior Notes, 8.875% due 3/15/11 |
462,240 | ||||
| 600,000 | Pinnacle Foods Holding Corp., Senior Subordinated Notes, 8.250% due 12/1/13 |
582,000 | ||||
| 250,000 | Swift & Co., Senior Notes, 10.125% due 10/1/09 |
272,813 | ||||
| 1,129,000 | United Agri Products Inc., Senior Notes, 8.250% due 12/15/11 |
1,202,385 | ||||
| Total Food | 5,048,228 | |||||
| Forest Products & Paper - 0.5% | ||||||
| Appleton Papers Inc.: |
||||||
| 375,000 | Senior Notes, 8.125% due 6/15/11 |
365,625 | ||||
| 375,000 | Senior Subordinated Notes, Series B, 9.750% due 6/15/14 |
361,875 | ||||
| 800,000 | Bowater Inc., Debentures, 9.500% due 10/15/12 |
884,000 | ||||
| 1,500,000 | Buckeye Technologies Inc., Senior Subordinated Notes, 8.000% due 10/15/10 |
1,470,000 | ||||
| 525,000 | Domtar Inc., Notes, 7.125% due 8/15/15 |
526,042 | ||||
| Total Forest Products & Paper | 3,607,542 | |||||
| Health Care-Product - 0.1% | ||||||
| 415,000 | Accellent Corp., Senior Subordinated Notes, Series B, 10.000% due 7/15/12 |
452,350 | ||||
| Health Care-Services - 1.7% | ||||||
| 1,100,000 | AmeriPath Inc., Senior Subordinated Notes, 10.500% due 4/1/13 |
1,182,500 | ||||
| 775,000 | Community Health Systems Inc., Senior Subordinated Notes, 6.500% due 12/15/12 |
787,594 | ||||
| 550,000 | DaVita Inc., Senior Subordinated Notes, 7.250% due 3/15/15 (b) |
561,688 | ||||
| 750,000 | Extendicare Health Services Inc., Senior Notes, 9.500% due 7/1/10 |
808,125 | ||||
| 1,075,000 | Genesis HealthCare Corp., Senior Subordinated Notes, 8.000% due 10/15/13 |
1,173,094 | ||||
| HCA Inc.: |
||||||
| 2,025,000 | Debentures, 7.050% due 12/1/27 |
2,010,432 | ||||
| 400,000 | Senior Notes, 6.375% due 1/15/15 |
412,671 | ||||
| 1,675,000 | IASIS Healthcare LLC/IASIS Capital Corp., Senior Subordinated Notes, 8.750% due 6/15/14 |
1,813,187 | ||||
| 425,000 | InSight Health Services Corp., Senior Subordinated Notes, Series B, 9.875% due 11/1/11 |
378,781 | ||||
| 775,000 | National Mentor Inc., Senior Subordinated Notes, 9.625% due 12/1/12 (b) |
817,625 | ||||
| 667,000 | Psychiatric Solutions Inc., Senior Subordinated Notes, 10.625% due 6/15/13 |
758,713 | ||||
| Tenet Healthcare Corp., Senior Notes: |
||||||
| 1,250,000 | 6.500% due 6/1/12 |
1,187,500 | ||||
| 125,000 | 7.375% due 2/1/13 |
122,500 | ||||
See Notes to Schedule of Investments.
4
SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.
| Schedule of Investments (unaudited) (continued) | August 31, 2005 |
| FACE AMOUNT |
SECURITY (a) |
VALUE | ||||
| Health Care-Services - 1.7% (continued) | ||||||
| $ | 525,000 | 9.875% due 7/1/14 |
$ | 561,750 | ||
| Total Health Care-Services | 12,576,160 | |||||
| Holding Companies-Diversified - 0.1% | ||||||
| 475,000 | Nell AF SARL, Senior Notes, 8.375% due 8/15/15 (b) |
482,719 | ||||
| Home Furnishings - 0.3% | ||||||
| 337,000 | Applica Inc., Senior Subordinated Notes, 10.000% due 7/31/08 |
318,465 | ||||
| 1,400,000 | Norcraft Cos. LP/Norcraft Finance Corp., Senior Subordinated Notes, 9.000% due 11/1/11 |
1,477,000 | ||||
| 525,000 | Sealy Mattress Co., Senior Subordinated Notes, 8.250% due 6/15/14 |
563,062 | ||||
| Total Home Furnishings | 2,358,527 | |||||
| Household Durables - 0.1% | ||||||
| 850,000 | Home Interiors & Gifts Inc., Senior Subordinated Notes, 10.125% due 6/1/08 |
735,250 | ||||
| Household Products/Wares - 0.1% | ||||||
| 1,050,000 | Playtex Products Inc., Senior Subordinated Notes, 9.375% due 6/1/11 |
1,118,250 | ||||
| Iron/Steel - 0.1% | ||||||
| 525,000 | IPSCO Inc., Senior Notes, 8.750% due 6/1/13 |
588,000 | ||||
| Leisure Time - 0.3% | ||||||
| 1,100,000 | AMF Bowling Worldwide Inc., Senior Subordinated Notes, 10.000% due 3/1/10 |
1,111,000 | ||||
| 525,000 | Equinox Holdings Inc., Senior Notes, 9.000% due 12/15/09 |
546,000 | ||||
| 875,000 | Icon Health & Fitness Inc., Senior Subordinated Notes, 11.250% due 4/1/12 |
730,625 | ||||
| Total Leisure Time | 2,387,625 | |||||
| Lodging - 0.3% | ||||||
| 1,175,000 | Gaylord Entertainment Co., Senior Notes, 6.750% due 11/15/15 |
1,154,438 | ||||
| 1,000,000 | John Q. Hammons Hotels LP, First Mortgage Senior Notes, Series B, 8.875% due 5/15/12 |
1,105,000 | ||||
| Total Lodging | 2,259,438 | |||||
| Machinery - 0.1% | ||||||
| 1,100,000 | Dresser-Rand Group Inc., Senior Subordinated Notes, 7.375% due 11/1/14 (b) |
1,144,000 | ||||
| Machinery-Diversified - 0.1% | ||||||
| 550,000 | Case New Holland Inc., Senior Notes, 9.250% due 8/1/11 |
588,500 | ||||
| Media - 3.3% | ||||||
| 1,250,000 | Cablevision Systems Corp., Senior Notes, Series B, 7.890% due 4/1/09 (c) |
1,296,875 | ||||
| 3,487,678 | CanWest Media Inc., Senior Subordinated Notes, 8.000% due 9/15/12 |
3,679,500 | ||||
| 1,500,000 | Charter Communications Holdings LLC, Senior Notes, 10.000% due 5/15/11 |
1,128,750 | ||||
| 2,500,000 | Charter Communications Holdings LLC/Charter Communications Holdings Capital Corp., Senior Discount Notes, step bond to yield 18.894% due 5/15/11 |
1,706,250 | ||||
| 1,650,000 | Charter Communications Operating LLC, Second Lien Senior Notes, 8.375% due 4/30/14 (b) |
1,670,625 | ||||
| CSC Holdings Inc.: |
||||||
| 425,000 | Debentures, Series B, 8.125% due 8/15/09 |
437,750 | ||||
| 550,000 | Senior Notes, Series B, 8.125% due 7/15/09 |
566,500 | ||||
| 1,050,000 | Dex Media Inc., Discount Notes, step bond to yield 7.856% due 11/15/13 |
858,375 | ||||
| 1,367,000 | Dex Media West LLC/Dex Media Finance Co., Senior Subordinated Notes, Series B, 9.875% due 8/15/13 |
1,553,254 | ||||
See Notes to Schedule of Investments.
5
SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.
| Schedule of Investments (unaudited) (continued) | August 31, 2005 |
| FACE AMOUNT |
SECURITY (a) |
VALUE | ||||
| Media - 3.3% (continued) | ||||||
| $ | 1,365,000 | DirecTV Holdings LLC/DirecTV Financing Co., Senior Notes, 8.375% due 3/15/13 |
$ | 1,504,913 | ||
| 1,650,000 | EchoStar DBS Corp., Senior Notes, 6.625% due 10/1/14 |
1,643,812 | ||||
| 1,300,000 | Houghton Mifflin Co., Senior Discount Notes, step bond to yield 9.930% due 10/15/13 |
1,018,875 | ||||
| 1,000,000 | LodgeNet Entertainment Corp., Senior Subordinated Debentures, 9.500% due 6/15/13 |
1,102,500 | ||||
| 525,000 | Mediacom Broadband LLC, Senior Notes, 11.000% due 7/15/13 |
575,531 | ||||
| 275,000 | Mediacom LLC/Mediacom Capital Corp., Senior Notes, 9.500% due 1/15/13 |
281,188 | ||||
| 850,000 | NextMedia Operating Inc., Senior Subordinated Notes, 10.750% due 7/1/11 |
924,375 | ||||
| 1,850,000 | Radio One Inc., Senior Subordinated Notes, 6.375% due 2/15/13 (b) |
1,838,437 | ||||
| 1,100,000 | Rogers Cable Inc., Senior Secured Notes, 7.875% due 5/1/12 |
1,199,000 | ||||
| 1,075,000 | Sinclair Broadcast Group Inc., Senior Subordinated Notes, 8.000% due 3/15/12 |
1,113,969 | ||||
| 1,200,000 | Young Broadcasting Inc., Senior Subordinated Notes, 8.750% due 1/15/14 |
1,092,000 | ||||
| Total Media | 25,192,479 | |||||
| Metal Fabricate-Hardware - 0.3% | ||||||
| 275,000 | Mueller Group Inc., Senior Subordinated Notes, 10.000% due 5/1/12 |
295,969 | ||||
| 925,000 | Mueller Holdings Inc., Discount Notes, step bond to yield 11.745% due 4/15/14 |
679,875 | ||||
| 1,150,000 | Wolverine Tube Inc., Senior Notes, 10.500% due 4/1/09 |
1,086,750 | ||||
| Total Metal Fabricate-Hardware | 2,062,594 | |||||
| Mining - 0.2% | ||||||
| 1,150,000 | Novelis Inc., Senior Notes, 7.250% due 2/15/15 (b) |
1,158,625 | ||||
| Miscellaneous Manufacturing - 0.2% | ||||||
| 1,500,000 | Koppers Inc., Senior Secured Notes, 9.875% due 10/15/13 |
1,672,500 | ||||
| Office Furnishings - 0.3% | ||||||
| 1,100,000 | Interface Inc., Senior Subordinated Notes, 9.500% due 2/1/14 |
1,127,500 | ||||
| 1,061,000 | Tempur-Pedic Inc./Tempur Production USA Inc., Senior Subordinated Notes, 10.250% due 8/15/10 |
1,185,668 | ||||
| Total Office Furnishings | 2,313,168 | |||||
| Office/Business Equipment - 0.0% | ||||||
| 200,000 | General Binding Corp., Senior Subordinated Notes, 9.375% due 6/1/08 |
204,500 | ||||
| Oil & Gas - 1.9% | ||||||
| Chesapeake Energy Corp., Senior Notes: |
||||||
| 1,350,000 | 6.375% due 6/15/15 |
1,383,750 | ||||
| 125,000 | 6.625% due 1/15/16 |
128,750 | ||||
| 812,000 | Magnum Hunter Resources Inc., Senior Notes, 9.600% due 3/15/12 |
897,260 | ||||
| Pemex Project Funding Master Trust: |
||||||
| 5,000,000 | 8.625% due 12/1/23 (b) |
6,150,000 | ||||
| 800,000 | 9.500% due 9/15/27 (b) |
1,056,000 | ||||
| 3,625,000 | Petronas Capital Ltd., 7.875% due 5/22/22 |
4,576,621 | ||||
| 275,000 | Swift Energy Co., Senior Subordinated Notes, 9.375% due 5/1/12 |
302,156 | ||||
| Total Oil & Gas | 14,494,537 | |||||
| Packaging & Containers - 1.4% | ||||||
| 700,000 | Anchor Glass Container Corp., Senior Secured Notes, 11.000% due 2/15/13 (e) |
472,500 | ||||
| 1,250,000 | Berry Plastics Corp., Senior Subordinated Notes, 10.750% due 7/15/12 |
1,381,250 | ||||
| Graphic Packaging International Corp.: |
||||||
| 500,000 | Senior Notes, 8.500% due 8/15/11 |
525,000 | ||||
| 625,000 | Senior Subordinated Notes, 9.500% due 8/15/13 |
643,750 | ||||
| 275,000 | Jefferson Smurfit Corp., Senior Notes, 8.250% due 10/1/12 |
272,938 | ||||
See Notes to Schedule of Investments.
6
SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.
| Schedule of Investments (unaudited) (continued) | August 31, 2005 |
| FACE AMOUNT |
SECURITY (a) |
VALUE | ||||
| Packaging & Containers - 1.4% (continued) | ||||||
| $ | 1,575,000 | Owens-Illinois Inc., Senior Notes, 7.350% due 5/15/08 |
$ | 1,634,062 | ||
| 1,450,000 | Plastipak Holdings Inc., Senior Notes, 10.750% due 9/1/11 |
1,602,250 | ||||
| Pliant Corp.: |
||||||
| 340,393 | Senior Secured Notes, 11.625% due 6/15/09 (b)(f) |
373,581 | ||||
| 100,000 | Senior Secured Second Lien Notes, 11.125% due 9/1/09 |
93,750 | ||||
| 225,000 | Senior Subordinated Notes, 13.000% due 6/1/10 |
163,125 | ||||
| 1,400,000 | Radnor Holdings Corp., Senior Notes, 11.000% due 3/15/10 |
924,000 | ||||
| Smurfit-Stone Container Enterprises Inc., Senior Notes: |
||||||
| 950,000 | 9.750% due 2/1/11 |
996,312 | ||||
| 1,000,000 | 8.375% due 7/1/12 |
1,000,000 | ||||
| 25,000 | Stone Container Finance Co. of Canada II, Senior Notes, 7.375% due 7/15/14 |
23,688 | ||||
| 700,000 | Tekni-Plex Inc., Senior Subordinated Notes, Series B, 12.750% due 6/15/10 |
500,500 | ||||
| Total Packaging & Containers | 10,606,706 | |||||
| Pipelines - 1.3% | ||||||
| Dynegy Holdings Inc.: |
||||||
| 3,000,000 | Second Priority Senior Secured Notes, 10.099% due 7/15/08 (b)(c) |
3,202,500 | ||||
| 350,000 | Senior Secured Notes, 10.125% due 7/15/13 (b) |
392,875 | ||||
| El Paso Corp.: |
||||||
| Medium-Term Notes: |
||||||
| 2,050,000 | 7.375% due 12/15/12 |
2,080,750 | ||||
| 1,400,000 | 7.750% due 1/15/32 |
1,421,000 | ||||
| 125,000 | Notes, 7.875% due 6/15/12 |
130,625 | ||||
| 600,000 | Holly Energy Partners LP, Senior Notes, 6.250% due 3/1/15 (b) |
597,000 | ||||
| Williams Cos. Inc.: |
||||||
| 950,000 | Notes, 8.750% due 3/15/32 |
1,159,000 | ||||
| 1,000,000 | Senior Notes, 7.625% due 7/15/19 |
1,115,000 | ||||
| Total Pipelines | 10,098,750 | |||||
| REITs - 0.6% | ||||||
| 675,000 | Felcor Lodging LP, Senior Notes, 9.000% due 6/1/11 |
747,562 | ||||
| 2,275,000 | Host Marriott LP, Senior Notes, 7.125% due 11/1/13 |
2,388,750 | ||||
| 1,000,000 | MeriStar Hospitality Operating Partnership LP/MeriStar Hospitality Finance Corp., Senior Notes, 10.500% due 6/15/09 |
1,067,500 | ||||
| Total REITs | 4,203,812 | |||||
| Resorts/Casinos - 1.2% | ||||||
| 650,000 | Caesars Entertainment Inc., Senior Subordinated Notes, 8.875% due 9/15/08 |
716,625 | ||||
| 1,375,000 | Inn of the Mountain Gods Resort & Casino, Senior Notes, 12.000% due 11/15/10 |
1,584,687 | ||||
| 975,000 | Las Vegas Sands Corp., Senior Notes, 6.375% due 2/15/15 |
945,750 | ||||
| 87,000 | Mandalay Resort Group, Senior Subordinated Notes, 9.375% due 2/15/10 |
97,331 | ||||
| MGM Mirage Inc., Senior Notes: |
||||||
| 1,600,000 | 6.750% due 9/1/12 |
1,648,000 | ||||
| 675,000 | 5.875% due 2/27/14 |
654,750 | ||||
| 1,125,000 | Station Casinos Inc., Senior Subordinated Notes, 6.875% due 3/1/16 |
1,161,563 | ||||
| 2,000,000 | Turning Stone Casino Resort Enterprise, Senior Notes, 9.125% due 12/15/10 (b) |
2,115,000 | ||||
| Total Resorts/Casinos | 8,923,706 | |||||
| Retail - 0.9% | ||||||
| 2,000,000 | Buffets Inc., Senior Subordinated Notes, 11.250% due 7/15/10 |
2,040,000 | ||||
| 875,000 | Denny’s Holdings Inc., Senior Notes, 10.000% due 10/1/12 |
920,937 | ||||
| 425,000 | Eye Care Centers of America Inc., Senior Subordinated Notes, 10.750% due 2/15/15 (b) |
416,500 | ||||
| 400,000 | Finlay Fine Jewelry Corp., Senior Notes, 8.375% due 6/1/12 |
374,000 | ||||
| 1,400,000 | Hines Nurseries Inc., Senior Subordinated Notes, 10.250% due 10/1/11 |
1,445,500 | ||||
| 990,000 | Jafra Cosmetics International Inc./Distribuidora Comercial Jafra SA de CV, Senior Subordinated Notes, 10.750% due 5/15/11 |
1,108,800 | ||||
| 375,000 | Jean Coutu Group Inc., Senior Subordinated Notes, 8.500% due 8/1/14 |
386,250 | ||||
See Notes to Schedule of Investments.
7
SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.
| Schedule of Investments (unaudited) (continued) | August 31, 2005 |
| FACE AMOUNT |
SECURITY (a) |
VALUE | ||||
| Retail - 0.9% (continued) | ||||||
| $ | 350,000 | Toys “R” Us Inc., Senior Notes, 7.375% due 10/15/18 |
$ | 284,375 | ||
| Total Retail | 6,976,362 | |||||
| Semiconductors - 0.2% | ||||||
| Amkor Technology Inc.: |
||||||
| 1,475,000 | Senior Notes, 9.250% due 2/15/08 |
1,393,875 | ||||
| 400,000 | Senior Subordinated Notes, 10.500% due 5/1/09 |
368,000 | ||||
| Total Semiconductors | 1,761,875 | |||||
| Telecommunications - 2.3% | ||||||
| 131,000 | American Tower Corp., Senior Notes, 9.375% due 2/1/09 |
138,041 | ||||
| 900,000 | AT&T Corp., Senior Notes, 9.750% due 11/15/31 |
1,183,500 | ||||
| 375,000 | Centennial Communications Corp./Cellular Operating Co. LLC, Senior Notes, 10.125% due 6/15/13 |
420,000 | ||||
| 1,000,000 | Insight Midwest LP/Insight Capital Inc., Senior Notes, 10.500% due 11/1/10 |
1,062,500 | ||||
| 300,000 | Intelsat Bermuda Ltd., Senior Notes, 8.695% due 1/15/12 (b)(c) |
306,750 | ||||
| 900,000 | Intelsat Ltd., Senior Discount Notes, step bond to yield 9.082% due 2/1/15 (b) |
612,000 | ||||
| 2,625,000 | Lucent Technologies Inc., Debentures, 6.450% due 3/15/29 |
2,316,562 | ||||
| 1,475,000 | MCI Inc., Senior Notes, 8.735% due 5/1/14 |
1,655,687 | ||||
| 175,000 | Nextel Communications Inc., Senior Serial Redeemable Notes, Series D, 7.375% due 8/1/15 |
189,162 | ||||
| 175,000 | NTL Cable PLC, Senior Notes, 8.750% due 4/15/14 |
185,500 | ||||
| 315,000 | PanAmSat Corp., Senior Notes, 9.000% due 8/15/14 |
333,113 | ||||
| Qwest Services Corp., Senior Secured Notes: |
||||||
| 1,000,000 | 13.500% due 12/15/10 |
1,157,500 | ||||
| 2,875,000 | 14.000% due 12/15/14 |
3,536,250 | ||||
| 1,125,000 | Rogers Wireless Communications Inc., Senior Secured Notes, step bond to yield 7.500% due 3/15/15 |
1,236,094 | ||||
| SBA Communications Corp.: |
||||||
| 215,000 | Senior Discount Notes, step bond to yield 7.244% due 12/15/11 |
198,338 | ||||
| 900,000 | Senior Notes, 8.500% due 12/1/12 |
986,625 | ||||
| 700,000 | UbiquiTel Operating Co., Senior Notes, 9.875% due 3/1/11 |
784,000 | ||||
| 700,000 | US Unwired Inc., Second Priority Secured Notes, Series B, 10.000% due 6/15/12 |
815,500 | ||||
| Total Telecommunications | 17,117,122 | |||||
| Textiles - 0.2% | ||||||
| 125,000 | Collins & Aikman Floor Covering Inc., Senior Subordinated Notes, Series B, 9.750% due 2/15/10 |
128,750 | ||||
| Simmons Bedding Co.: |
||||||
| 1,375,000 | Senior Discount Notes, step bond to yield 12.121% due 12/15/14 (b) |
797,500 | ||||
| 350,000 | Senior Subordinated Notes, 7.875% due 1/15/14 |
337,750 | ||||
| Total Textiles | 1,264,000 | |||||
| TOTAL CORPORATE BONDS & NOTES (Cost - $225,399,093) |
228,202,624 | |||||
| ASSET-BACKED SECURITIES - 1.3% | ||||||
| Credit Card - 0.1% | ||||||
| 342,272 | First Consumers Master Trust, Series 2001-A, Class A, 3.881% due 9/15/08 (c) |
340,330 | ||||
| Home Equity - 1.2% | ||||||
| 397,291 | AQ Finance NIM Trust, Series 2004-RN5, Class A, 5.193% due 6/25/34 (b) |
395,663 | ||||
| Bear Stearns Asset-Backed Securities Inc. NIM Trust: |
||||||
| Series 2004-HE5N: |
||||||
| 406,003 | Class A1, 5.000% due 7/25/34 (b) |
404,797 | ||||
| 158,000 | Class A2, 5.000% due 7/25/34 (b) |
157,101 | ||||
| 308,068 | Series 2004-HE6N, Class A1, 5.250% due 8/25/34 (b) |
306,712 | ||||
See Notes to Schedule of Investments.
8
SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.
| Schedule of Investments (unaudited) (continued) | August 31, 2005 |
| FACE AMOUNT |
SECURITY (a) |
VALUE | |||||
| Home Equity - 1.2% (continued) | |||||||
| $ | 626,922 | Countrywide Asset-Backed Certificates, Series 2004-05N, Class N1, 5.500% due 10/25/35 (b) |
$ | 624,858 | |||
| 455,115 | Finance America NIM Trust, Series 2004-01, Class A, 5.250% due 6/27/34 (b) |
456,416 | |||||
| 399,335 | Long Beach Asset Holdings Corp., Series 2004-06, Class N2, 7.500% due 11/25/34 (b) |
367,139 | |||||
| 344,023 | Novastar NIM Trust, Series 2004-N2, 4.458% due 6/26/34 (b) |
342,665 | |||||
| Sail Net Interest Margin Notes: |
|||||||
| 26,189 | Series 2003-6A, Class A, 7.000% due 7/27/33 (b) |
26,214 | |||||
| 84,612 | Series 2003-7A, Class A, 7.000% due 7/27/33 (b) |
84,106 | |||||
| 662,196 | Series 2004-8A, Class A, 5.000% due 9/27/34 (b) |
659,052 | |||||
| 1,198,287 | Series 2004-AA, Class A, 4.500% due 10/27/34 (b) |
1,194,827 | |||||
| 1,236,715 | Series 2004-AA, Class B, 7.500% due 10/27/34 (b) |
1,162,512 | |||||
| 403,303 | Series 2004-BN2A, Class B, 7.000% due 12/27/34 (b) |
353,697 | |||||
| Series 2005-1A: |
|||||||
| 213,088 | Class A, 4.250% due 2/27/35 (b) |
212,350 | |||||
| 577,905 | Class B, 7.500% due 2/27/35 (b) |
550,165 | |||||
| 386,858 | Sharp SP I LLC, NIM Trust, Series 2004-HS1N, 5.920% due 2/25/34 (b) |
381,622 | |||||
| 1,500,000 | Structured Asset Investment Loan Trust, Series 2003-BC10, Class M2, 5.491% due 10/25/33 (c) |
1,521,334 | |||||
| Total Home Equity | 9,201,230 | ||||||
| TOTAL ASSET-BACKED SECURITIES (Cost - $9,665,611) |
9,541,560 | ||||||
| COLLATERALIZED MORTGAGE OBLIGATIONS - 0.6% | |||||||
| Federal National Mortgage Association (FNMA) STRIP: |
|||||||
| 11,693,629 | Series 329, Class 2, IO, 5.500% due 1/1/33 |
2,201,989 | |||||
| 14,283,474 | Series 338, Class 2, IO, 5.500% due 6/1/33 |
2,732,973 | |||||
| TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost - $6,759,573) |
4,934,962 | ||||||
| MORTGAGE-BACKED SECURITIES (g)(h) - 27.3% | |||||||
| FHLMC - 11.9% | |||||||
| Federal Home Loan Mortgage Corp. (FHLMC), Gold: |
|||||||
| 70,000,000 | 5.000% due 9/1/35 |
69,518,750 | |||||
| 10,000,000 | 5.500% due 9/1/35 |
10,109,380 | |||||
| 10,000,000 | 6.000% due 9/1/35 |
10,234,380 | |||||
| TOTAL FHLMC | 89,862,510 | ||||||
| FNMA - 15.4% | |||||||
| Federal National Mortgage Association (FNMA): |
|||||||
| 40,000,000 | 5.000% due 9/1/35 |
39,737,520 | |||||
| 20,000,000 | 5.500% due 9/1/35 |
20,206,240 | |||||
| 55,000,000 | 6.000% due 9/1/35 |
56,289,090 | |||||
| TOTAL FNMA | 116,232,850 | ||||||
| TOTAL MORTGAGE-BACKED SECURITIES (Cost - $205,985,939) |
206,095,360 | ||||||
| SOVEREIGN BONDS† - 29.6% | |||||||
| Argentina - 1.1% | |||||||
| Republic of Argentina: |
|||||||
| 522,000 | EUR | 10.000% due 2/22/07 |
197,963 | ||||
| 1,729,117 | EUR | 8.000% due 2/26/08 (c) |
655,750 | ||||
| 4,287,500 | 4.005% due 8/3/12 (c) |
3,788,757 | |||||
| 8,267,120 | ARS | 5.830% due 12/31/33 |
3,203,936 | ||||
| 525,000 | Step bond to yield 3.374% due 12/31/38 |
189,787 | |||||
See Notes to Schedule of Investments.
9
SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.
| Schedule of Investments (unaudited) (continued) | August 31, 2005 |
| FACE AMOUNT† |
SECURITY (a) |
VALUE | ||||
| Argentina - 1.1% (continued) | ||||||
| 374,000 | EUR | 9.000% due 6/20/49 |
$ | 141,835 | ||
| Total Argentina | 8,178,028 | |||||
| Brazil - 7.3% | ||||||
| Federative Republic of Brazil: |
||||||
| 3,405,000 | 11.000% due 8/17/40 |
4,058,760 | ||||
| 17,916,000 | Collective Action Securities, 8.000% due 1/15/18 |
18,525,144 | ||||
| DCB, Series L: |
||||||
| 26,806,227 | 4.313% due 4/15/12 (c) |
25,834,501 | ||||
| 205,884 | Registered, 4.313% due 4/15/12 (c) |
198,678 | ||||
| 6,923,077 | FLIRB, Series L, Bearer, 4.250% due 4/15/09 (c) |
6,819,231 | ||||
| Total Brazil | 55,436,314 | |||||
| Bulgaria - 0.3% | ||||||
| 1,550,000 | Republic of Bulgaria, 8.250% due 1/15/15 (b) |
1,930,719 | ||||
| Chile - 0.5% | ||||||
| 3,325,000 | Republic of Chile, 5.500% due 1/15/13 |
3,532,746 | ||||
| Colombia - 1.7% | ||||||
| Republic of Colombia: |
||||||
| 950,000 | 11.750% due 2/25/20 |
1,270,625 | ||||
| 1,150,000 | 8.125% due 5/21/24 |
1,193,125 | ||||
| 8,170,000 | 10.375% due 1/28/33 |
10,149,182 | ||||
| Total Colombia | 12,612,932 | |||||
| Ecuador - 0.4% | ||||||
| 3,330,000 | Republic of Ecuador, step bond to yield 11.246% due 8/15/30 (b) |
2,955,375 | ||||
| El Salvador - 0.3% | ||||||
| 1,700,000 | Republic of El Salvador, 7.750% due 1/24/23 |
1,908,250 | ||||
| Mexico - 5.8% | ||||||
| United Mexican States: |
||||||
| 3,950,000 | 11.375% due 9/15/16 |
5,905,250 | ||||
| Medium-Term Notes, Series A: |
||||||
| 13,750,000 | 6.375% due 1/16/13 |
14,839,688 | ||||
| 6,275,000 | 8.000% due 9/24/22 |
7,749,625 | ||||
| 9,160,000 | 7.500% due 4/8/33 |
10,776,740 | ||||
| 50,300,000 | MXN | Series MI10, 9.500% due 12/18/14 |
4,807,594 | |||
| Total Mexico | 44,078,897 | |||||
| Panama - 1.0% | ||||||
| Republic of Panama: |
||||||
| 900,000 | 7.250% due 3/15/15 |
979,200 | ||||
| 1,850,000 | 9.375% due 4/1/29 |
2,342,562 | ||||
| 4,656,480 | IRB, 4.688% due 7/17/14 (c) |
4,621,557 | ||||
| Total Panama | 7,943,319 | |||||
| Peru - 1.3% | ||||||
| Republic of Peru: |
||||||
| 695,000 | 9.125% due 2/21/12 |
830,525 | ||||
| 375,000 | 9.875% due 2/6/15 |
475,313 | ||||
| 9,182,250 | FLIRB, 5.000% due 3/7/17 (c) |
8,860,871 | ||||
| Total Peru | 10,166,709 | |||||
| Philippines - 1.4% | ||||||
| Republic of the Philippines: |
||||||
| 1,475,000 | 9.000% due 2/15/13 |
1,570,875 | ||||
See Notes to Schedule of Investments.
10
SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.
| Schedule of Investments (unaudited) (continued) | August 31, 2005 |
| FACE AMOUNT† |
SECURITY (a) |
VALUE | |||
| Philippines - 1.4% (continued) | |||||
| 650,000 | 8.250% due 1/15/14 |
$ | 666,640 | ||
| 3,500,000 | 9.375% due 1/18/17 |
3,793,125 | |||
| 3,250,000 | 10.625% due 3/16/25 |
3,688,587 | |||
| 1,100,000 | 9.500% due 2/2/30 |
1,139,875 | |||
| Total Philippines | 10,859,102 | ||||
| Russia - 4.3% | |||||
| Russian Federation: |
|||||
| 1,300,000 | 8.250% due 3/31/10 (b) |
1,412,125 | |||
| 9,075,000 | 12.750% due 6/24/28 (b) |
16,970,250 | |||
| 12,640,000 | Step bond to yield 5.335% due 3/31/30 (b) |
14,449,100 | |||
| Total Russia | 32,831,475 | ||||
| South Africa - 0.5% | |||||
| Republic of South Africa: |
|||||
| 1,350,000 | 9.125% due 5/19/09 |
1,552,500 | |||
| 2,325,000 | 6.500% due 6/2/14 |
2,574,938 | |||
| Total South Africa | 4,127,438 | ||||
| Turkey - 1.6% | |||||
| Republic of Turkey: |
|||||
| 475,000 | 11.750% due 6/15/10 |
584,844 | |||
| 4,725,000 | 11.500% due 1/23/12 |
6,000,750 | |||
| 1,100,000 | 11.000% due 1/14/13 |
1,386,000 | |||
| 1,670,000 | 11.875% due 1/15/30 |
2,383,925 | |||
| 1,225,000 | Collective Action Securities, 9.500% due 1/15/14 |
1,450,093 | |||
| Total Turkey | 11,805,612 | ||||
| Ukraine - 0.5% | |||||
| Republic of Ukraine: |
|||||
| 1,297,391 | 11.000% due 3/15/07 (b) |
1,360,639 | |||
| 1,945,000 | 7.650% due 6/11/13 (b) |
2,149,225 | |||
| Total Ukraine | 3,509,864 | ||||
| Uruguay - 0.3% | |||||
| 2,075,000 | Republic of Uruguay, Benchmark Bonds, 7.500% due 3/15/15 |
2,076,038 | |||
| Venezuela - 1.3% | |||||
| Bolivarian Republic of Venezuela: |
|||||
| 3,245,000 | 5.375% due 8/7/10 |
3,082,750 | |||
| 2,925,000 | 8.500% due 10/8/14 |
3,100,500 | |||
| 3,250,000 | Collective Action Securities, 10.750% due 9/19/13 |
3,885,375 | |||
| Total Venezuela | 10,068,625 | ||||
| TOTAL SOVEREIGN BONDS (Cost - $206,393,004) |
224,021,443 | ||||
| LOAN PARTICIPATION(c)(i) - 0.1% | |||||
| Morocco - 0.1% | |||||
| 554,874 | Kingdom of Morocco, Tranche A, 4.813% due 1/2/09 (JPMorgan Chase & Co.) |
552,794 | |||
See Notes to Schedule of Investments.
11
SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.
| Schedule of Investments (unaudited) (continued) | August 31, 2005 |
| SHARES |
SECURITY |
VALUE | ||||
| COMMON STOCK - 0.1% | ||||||
| MATERIALS - 0.1% | ||||||
| Chemicals - 0.1% | ||||||
| 30,303 | Applied Extrusion Technologies Inc., Class A Shares (Cost - $945,357) |
$ | 409,091 | |||
| CONVERTIBLE PREFERRED STOCK - 0.2% | ||||||
| TELECOMMUNICATION SERVICES - 0.2% | ||||||
| Wireless Telecommunication Services - 0.2% | ||||||
| 1,394 | Alamosa Holdings Inc., Cumulative Convertible, Series B, 7.500% due 7/31/13 (Cost - $431,471) |
1,798,608 | ||||
| WARRANTS |
||||||
| WARRANTS - 0.0% | ||||||
| 450 | Mueller Holdings Inc., expires 4/15/14* (Cost - $19,992) |
162,113 | ||||
| TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS (Cost - $656,146,772) |
675,718,555 | |||||
| FACE AMOUNT |
||||||
| SHORT-TERM INVESTMENTS - 10.6% | ||||||
| Repurchase Agreements - 10.6% | ||||||
| $ | 8,167,000 | Interest in $846,531,000 joint tri-party repurchase agreement dated 8/31/05 with Banc of America Securities LLC, 3.580% due 9/1/05, Proceeds at maturity - $8,167,812; (Fully collateralized by various U.S. government agency obligations, 0.000% to 6.625% due 11/14/05 to 5/25/35; Market value - $8,330,374) |
8,167,000 | |||
| 18,000,000 | Interest in $638,841,000 joint tri-party repurchase agreement dated 8/31/05 with Deutsche Bank Securities Inc., 3.580% due 9/1/05, Proceeds at maturity - $18,001,790; (Fully collateralized by various U.S. government agency obligations, 0.000% to 4.910% due 9/6/05 to 4/25/12; Market value - $18,360,014) |
18,000,000 | ||||
| 18,000,000 | Interest in $590,660,000 joint tri-party repurchase agreement dated 8/31/05 with Goldman, Sachs & Co., 3.580% due 9/1/05, Proceeds at maturity - $18,001,790; (Fully collateralized by various U.S. Treasury obligations, 0.875% to 4.250% due 1/15/08 to 4/15/28; Market value - $18,380,218) |
18,000,000 | ||||
| 18,000,000 | Interest in $666,711,000 joint tri-party repurchase agreement dated 8/31/05 with Merrill Lynch, Pierce, Fenner & Smith Inc., 3.580% due 9/1/05, Proceeds at maturity - $18,001,790; (Fully collateralized by various U.S. government agency obligations, 0.000% to 6.000% due 9/21/05 to 11/15/24; Market value - $18,360,086) |
18,000,000 | ||||
| 18,000,000 | Interest in $499,205,000 joint tri-party repurchase agreement dated 8/31/05 with Morgan Stanley, 3.580% due 9/1/05, Proceeds at maturity - $18,001,790; (Fully collateralized by various U.S. government agency obligations, 3.550% to 4.500% due 2/16/07 to 6/1/10; Market value - $18,433,434) |
18,000,000 | ||||
| TOTAL SHORT-TERM INVESTMENTS (Cost - $80,167,000) |
80,167,000 | |||||
| TOTAL INVESTMENTS - 100.0% (Cost - $736,313,772#) |
$ | 755,885,555 | ||||
| * | Non-income producing security. |
| † | Face amount denominated in U.S. dollars, unless otherwise indicated. |
| (a) | All securities are segregated as collateral pursuant to a revolving credit facility, futures contracts and/or mortgage dollar rolls. |
See Notes to Schedule of Investments.
12
SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.
| Schedule of Investments (unaudited) (continued) | August 31, 2005 |
| (b) | Security is exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid pursuant to guidelines approved by the Board of Directors unless otherwise noted. |
| (c) | Variable rate securities. Coupon rates disclosed are those which are in effect at August 31, 2005. |
| (d) | Illiquid security. |
| (e) | Security is currently in default. |
| (f) | Payment-in-kind security for which part of the income earned may be paid as additional principal. |
| (g) | This security is traded on a “to-be-announced” basis. |
| (h) | All or a portion of this security is acquired under mortgage dollar roll agreement. |
| (i) | Participation interest was acquired through the financial institution indicated parenthetically. |
| # | Aggregate cost for federal income tax purposes is substantially the same. |
| Abbreviations used in this schedule: | ||
| ARS | — Argentine Peso | |
| DCB | — Debt Conversion Bond | |
| EUR | — Euro | |
| FLIRB | — Front-Loaded Interest Reduction Bonds | |
| IO | — Interest Only | |
| IRB | — Interest Reduction Bonds | |
| MXN | — Mexican Peso | |
| NIM | — Net Interest Margin | |
See Notes to Schedule of Investments.
13
Notes to Schedule of Investments (unaudited)
1. Organization and Significant Accounting Policies
The Salomon Brothers Global High Income Fund Inc. (the “Fund”) was incorporated in Maryland and is registered as a non-diversified, closed-end management investment company under the Investment Company Act of 1940 (“1940 Act”), as amended.
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. Debt securities are valued at the mean between the bid and asked prices provided by an independent pricing service that are based on transactions in debt obligations, quotations from bond dealers, market transactions in comparable securities and various relationships between securities. Equity securities for which market quotations are available are valued at the last sale price or official closing price on the primary market or exchange on which they trade. Publicly traded foreign government debt securities are typically traded internationally in the over-the-counter market, and are valued at the mean between the bid and asked prices as of the close of business of that market. When prices are not readily available, or are determined not to reflect 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 obligations with maturities 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 its custodian or a third party custodian take possession of the underlying collateral securities, the market 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 market 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 financial futures contracts typically to hedge a portion of the portfolio. Upon entering into a financial 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 financial futures contracts. Subsequent payments, known as variation margin, are made or received by the Fund each day, depending on the daily fluctuation in the value of the underlying financial instruments. The Fund recognizes an unrealized gain or loss equal to the daily variation margin. When the financial futures contracts are closed, a realized gain or loss is recognized equal to the difference between the proceeds from (or cost of) the closing transactions and the Fund’s basis in the contracts.
The risks associated with entering into financial 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 instruments. In addition, investing in financial futures contracts involves the risk that the Fund could lose more than the original margin deposit and subsequent payments required for a futures transaction. Risks may also arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts.
(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 and for which specific information is not known, such as the face amount and maturity date and the underlying pool of investments 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, often in the form of a drop in the repurchase price of the securities. 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.
14
The risk of entering into a mortgage dollar roll is that the market value of the securities the Fund is obligated to repurchase under the agreement may decline below the repurchase price. In the event the buyer of securities under a mortgage dollar roll files for bankruptcy or becomes insolvent, the Fund’s use of proceeds of the dollar roll may be restricted pending a determination by the other party, or its trustee or receiver, whether to enforce the Fund’s obligation to repurchase the securities.
(f) Loan Participations. The Fund may invest in loans arranged through private negotiation between one or more financial institutions. The Fund’s investment in any such loan may be in the form of a participation in or an assignment of the loan. In connection with purchasing participations, the Fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement 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.
The Fund will assume the credit risk of both the borrower and the lender that is selling the participation and any other persons interpositioned between the Fund and the borrower. In the event of the insolvency of the lender selling the participation, the Fund may be treated as a general creditor of the lender and may not benefit from any set-off between the lender and the borrower.
(g) Foreign Currency Translation. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the respective dates of such transactions.
Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar denominated transactions as a result of, among other factors, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.
(h) Credit and Market Risk. The Fund invests in high yield and emerging market instruments that are subject to certain credit and market risks. The yields of high yield and emerging market debt obligations reflect, among other things, perceived credit and market risk. The Fund’s investment in securities rated below investment grade typically involve risks not associated with higher rated securities including, among others, greater risk related to timely and ultimate payment of interest and principal, greater market price volatility and less liquid secondary market trading. The consequences of political, social, economic or diplomatic changes may have disruptive effects on the market prices of investments held by the Fund. The Fund’s investment in non-dollar denominated securities may also result in foreign currency losses caused by devaluations and exchange rate fluctuations.
(i) Security Transactions. Security transactions are accounted for on a trade date basis.
2. Investments
At August 31, 2005, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:
| Gross unrealized appreciation | $27,594,456 | ||
| Gross unrealized depreciation |
(8,022,673 | ) | |
| Net unrealized appreciation | $19,571,783 | ||
At August 31, 2005, the Fund had the following open futures contracts:
| Number of Contracts |
Expiration Date |
Basis Value |
Market Value |
Unrealized Loss |
||||||||||
| Contracts to Sell: | ||||||||||||||
| U.S. Treasury 2 Year Note |
42 | 9/05 | $ | 25,770 | $ | 41,520 | $ | (15,750 | ) | |||||
| U.S. Treasury 5 Year Note |
596 | 9/05 | 205,779 | 466,529 | (260,750 | ) | ||||||||
| U.S. Treasury 10 Year Note |
1,398 | 9/05 | 408,336 | 1,063,649 | (655,313 | ) | ||||||||
| Net Unrealized Loss on Open Futures Contracts | $ | (931,813 | ) | |||||||||||
15
The average monthly balance of dollar rolls outstanding for the Fund during the period ended August 31, 2005 was approximately $190,675,376. At August 31, 2005, the Fund had outstanding mortgage dollar rolls with a total cost of $205,985,939. Counterparties with mortgage dollar rolls outstanding in excess of 10% of total net assets at August 31, 2005 included Merrill Lynch, Pierce, Fenner & Smith Inc. ($78,256,944) and Barclays Capital Inc. ($76,108,889).
At August 31, 2005, the Fund held one loan participation with a cost of $546,732 and a market value of $552,794.
3. Loan
At August 31, 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. In addition, CNA acts as administrative agent. The loan generally bears interest at a variable rate based on the weighted average interest rates of the 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: | October 31, 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 | |
| Chief Executive Officer | ||
| Date: | October 31, 2005 | |
| By: | /S/ FRANCES M. GUGGINO | |
| Chief Financial Officer | ||
| Date: | October 31, 2005 | |