-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RV/Qg2It63ZE7vDQL4lJCsYJAHGWBA4+hLBtZSt5Hve+uw+WJp1nCd9EQEgQUxhM 1Sqc+JCgEOBrSadahgZj4w== 0000072760-09-000023.txt : 20090831 0000072760-09-000023.hdr.sgml : 20090831 20090831112820 ACCESSION NUMBER: 0000072760-09-000023 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20090630 FILED AS OF DATE: 20090831 DATE AS OF CHANGE: 20090831 EFFECTIVENESS DATE: 20090831 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NORTHEAST INVESTORS TRUST CENTRAL INDEX KEY: 0000072760 IRS NUMBER: 046012886 STATE OF INCORPORATION: MA FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-00576 FILM NUMBER: 091044927 BUSINESS ADDRESS: STREET 1: 150 FEDERAL STREET STREET 2: SUITE 1000 CITY: BOSTON STATE: MA ZIP: 02110 BUSINESS PHONE: 6175233588 MAIL ADDRESS: STREET 1: 150 FEDERAL STREET CITY: BOSTON STATE: MA ZIP: 02110 0000072760 S000011440 NORTHEAST INVESTORS TRUST C000031645 NORTHEAST INVESTORS TRUST NTHEX N-Q 1 nq063009.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS FOR REGISTERED MANAGEMENT INVESTMENT COMPANY Investment Company Act file number 811-576 Northeast Investors Trust (Exact name of registrant as specified in charter) 150 Federal Street Boston, MA 02110 (Address of principal executive offices) (Zip code) David Randall 150 Federal Street Boston, MA 02110 (Name and address of agent for service) Registrant's telephone number, including area code: 612-523-3588 Date of fiscal year end: September 30 Date of reporting period: June 30, 2009 Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 ($$ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. $ 3507. Item 1. Schedule of Investments. Schedule of Investments June 30, 2009 (unaudited) Corporate Bonds, Notes & Preferred Securities- 92.23% Value Name of Issuer Principal (Note B) - ---------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------- Advertising - 0.44% - ---------------------------------------------------------------------------------------------------------------------------- Interpublic Group Co., Senior Unsecured Notes, Series 144A, 10%, 7/15/17 (a) $ 3,000,000 $ 3,022,500 Automobile & Truck - 1.41% - ---------------------------------------------------------------------------------------------------------------------------- Delphi Corp. Senior Unsecured Notes, 6.55%, 6/15/06 (b) (c) 36,950,000 46,188 United Rentals NA, Inc. Senior Notes, 6.5%, 2/15/12 10,000,000 9,700,000 ---------------- 9,746,188 Broadcast Cable TV - 4.98% - ---------------------------------------------------------------------------------------------------------------------------- Charter Comm. Opt. LLC Senior Secured Notes, Series 144A, 8%, 4/30/12 (a) 32,500,000 31,281,250 Paxson Comm. Corp. Senior Secured Notes, Series 144A, FRN 4.38125%, 1/15/12 (a) (b) 15,000,000 3,168,750 ---------------- 34,450,000 Building & Construction - 1.87% - ---------------------------------------------------------------------------------------------------------------------------- Associated Materials, Inc. Notes, 9.75%, 4/15/12 14,750,000 12,906,250 Building Products - 0.37% - ---------------------------------------------------------------------------------------------------------------------------- Builders Firstsource, Inc. Senior Secured Notes, FRN 5.13313%, 2/15/12 6,000,000 2,580,000 Chemicals - 5.22% - ---------------------------------------------------------------------------------------------------------------------------- Polyone Corp. Senior Unsecured Notes, 8.875%, 5/01/12 25,000,000 21,000,000 Reichhold Industries, Inc. Senior Notes, Series 144A, 9%, 8/15/14 (a) 7,315,000 2,560,250 Sterling Chemical, Inc. Senior Secured Notes, 10.25%, 4/01/15 13,740,000 12,503,400 ----------------- 36,063,650 Drug Stores - 1.98% - ---------------------------------------------------------------------------------------------------------------------------- Rite Aid Corp. Senior Secured Notes, Series 144A, 9.75%, 6/12/16 (a) 3,000,000 3,000,000 Rite Aid Corp. Senior Secured Notes, 10.375%, 7/15/16 2,000,000 1,800,000 Rite Aid Corp. Senior Secured Notes, 7.5%, 3/01/17 11,398,000 8,918,935 ----------------- 13,718,935 Electrical Equipment - 0.82% - ---------------------------------------------------------------------------------------------------------------------------- Coleman Cable, Inc. Notes, 9.875%, 10/01/12 7,000,000 5,643,750 Electrical Utility - 1.53% - ---------------------------------------------------------------------------------------------------------------------------- Mirant Americas Genr, Inc. Senior Unsecured Notes, 8.3%, 5/01/11 10,625,000 10,598,438 Energy/Natural Resources - 17.41% - ---------------------------------------------------------------------------------------------------------------------------- Clayton Williams Energy Notes, 7.75%, 8/01/13 19,847,000 14,389,075 Comstock Resources, Inc. Senior Notes, 6.875%, 3/01/12 10,300,000 9,888,000 Forest Oil Corp. Unsecured Notes, 8%, 12/15/11 9,890,000 9,840,550 Forest Oil Corp. Senior Unsecured Notes, 7.75%, 5/01/14 11,604,000 11,139,840 Gulfmark Offshore, Inc. Notes, 7.75%, 7/15/14 14,246,000 13,035,090 Key Energy Services, Inc. Notes, 8.375%, 12/01/14 4,340,000 3,830,050 Parker Drilling Co. Notes, 9.625%, 10/01/13 1,623,000 1,501,275 Stone Energy Corp. Senior Sub. Notes, 8.25%, 12/15/11 18,296,000 15,002,720 Stone Energy Corp. Senior Sub. Notes, 6.75%, 12/15/14 18,087,000 11,394,810 Swift Energy Co. Senior Unsecured Notes, 7.625%, 7/15/11 1,000,000 935,000 Swift Energy Co. Notes, 7.125%, 6/01/17 19,800,000 13,959,000 W & T Offshore, Inc. Notes, Series 144A, 8.25%, 6/15/14 (a) 20,000,000 15,400,000 ---------------- 120,315,410 Entertainment - 6.04% - ---------------------------------------------------------------------------------------------------------------------------- AMC Entertainment, Inc. Senior Sub. Notes, 8%, 3/01/14 26,780,000 22,829,950 AMC Entertainment, Inc. Notes, 11%, 2/01/16 10,000,000 9,675,000 Cinemark USA, Inc. Notes, Series 144A, 8.625%, 6/15/19 (a) 2,000,000 1,975,000 Wallace Theater Holdings Senior Secured Units Series 144A, FRN 12.5%, 6/15/13 7,500 7,237,500 ---------------- 41,717,450 Financial Services - 12.86% - ---------------------------------------------------------------------------------------------------------------------------- Bank of America Corp. Junior Sub. PFD, 8%, 12/29/49 (d) 30,000,000 25,054,800 Bank of America Corp. Junior Sub. PFD, 8.125%, 12/29/49 (d) 3,000,000 2,505,570 Citigroup, Inc. Junior Sub. PFD, 8.4%, 04/30/49 (b) (d) 45,000,000 33,753,150 Finova Group, Inc. Notes, 7.5%, 11/15/09 (b) 4,360,745 337,958 Wells Fargo & Co. Junior Sub. PFD, 7.98%, 3/29/49 (d) 32,818,000 27,238,940 ---------------- 88,890,418 Food Processing - 4.74% - ---------------------------------------------------------------------------------------------------------------------------- B&G Foods, Inc. Notes, 8%, 10/01/11 1,000,000 992,500 Chiquita Brands Intl. Senior Notes, 7.5%, 11/01/14 14,150,000 11,886,000 Chiquita Brands Intl. Senior Unsub. Notes, 8.875%, 12/01/15 22,500,000 19,406,250 Mrs. Fields Brands Senior Secured PIK Notes, 10%, 10/24/14 (e) 982,253 460,038 ----------------- 32,744,788 Gaming - 5.40% - ---------------------------------------------------------------------------------------------------------------------------- Las Vegas Sands Corp. Senior Secured Notes, 6.375%, 2/15/15 5,000,000 3,700,000 MGM Mirage, Inc. Senior Unsecured Notes, 8.5%, 9/15/10 17,030,000 15,454,725 Mandalay Resort Group Senior Sub. Notes, 9.375%, 2/15/10 10,000,000 9,500,000 Trump Entertainment Resorts, Inc. Senior Secured Notes, 8.5%, 6/01/15 (b) 69,914,327 8,651,898 Wimar Opco LLC / Fin. Corp. Senior Sub. Notes, 9.625%, 12/15/14 (b) 3,535,000 30,931 ---------------- 37,337,554 Home Furnishings - 0.64% - ---------------------------------------------------------------------------------------------------------------------------- Norcraft Cos LP Notes, 9%, 11/01/11 4,500,000 4,455,000 Machine / Tools - 1.30% - ---------------------------------------------------------------------------------------------------------------------------- Thermadyne Holdings Corp. Notes, 9.25%, 2/01/14 13,513,000 9,003,036 Marketing / Sales - 0.74% - ---------------------------------------------------------------------------------------------------------------------------- Harry and David Operations Notes, 9%, 3/01/13 13,000,000 5,135,000 Metals & Mining - 0.31% - ---------------------------------------------------------------------------------------------------------------------------- Kaiser Aluminum & Chemical Corp. Notes, 12.75%, 2/01/03 (b) (c) (e) 46,230,000 2,135,826 Packaging & Container - 11.92% - ---------------------------------------------------------------------------------------------------------------------------- Constar International Notes, FRN 4.25813%, 2/15/12 20,750,000 16,107,188 Jefferson Smurfit Corp. Notes, 8.25%, 10/01/12 (b) 15,250,000 5,718,750 Jefferson Smurfit Corp. Senior Unsecured Notes, 7.5%, 6/01/13 (b) 15,405,000 5,738,362 Owens-Brockway Glass Notes, 6.75%, 12/01/14 5,750,000 5,491,250 Pliant Corp. Senior Secured PIK Notes, 11.625%, 6/15/09 (b) (c) 34,981,909 23,350,424 Pliant Corp. Senior Secured Notes, 11.125%, 9/01/09 (b) 25,000,000 50,000 Smurfit-Stone Container Senior Unsecured Notes, 8%, 3/15/17 (b) 8,780,000 3,248,600 Stone Container Senior Notes, 8.375%, 7/01/12 (b) 8,000,000 3,060,000 Stone Container Notes, 7.375%, 7/15/14 (b) 5,000,000 2,287,500 Tekni-Plex, Inc. Senior Secured Notes, 10.875%, 8/15/12 2,000,000 1,322,500 Tekni-Plex, Inc. Senior Secured Notes, 8.75%, 11/15/13 27,500,000 15,984,375 ---------------- 82,358,949 Paper/Forest Products - 1.46% - ---------------------------------------------------------------------------------------------------------------------------- American Tissue, Inc. Senior Secured Notes, Series B, 12.5%, 7/15/06 (b) (c) (e) 14,061,292 98,429 Georgia-Pacific LLC Senior Unsecured Notes, 8.125%, 5/15/11 10,000,000 10,000,000 ----------------- 10,098,429 Publishing - 1.73% - ---------------------------------------------------------------------------------------------------------------------------- Houghton Mifflin Co. Unsecured Notes, 7.2%, 3/15/11 13,000,000 11,976,250 Recreation / Leisure - 2.11% - ---------------------------------------------------------------------------------------------------------------------------- Six Flags Operations, Inc. Notes, Series 144A, 12.25%, 7/15/16 (a) (b) 21,000,000 14,595,000 Retail Food Chains - 0.21% - ---------------------------------------------------------------------------------------------------------------------------- Denny's Corp. Holding, Inc. Notes, 10%, 10/01/12 455,000 441,350 Planet Hollywood Secured PIK Notes, 9%, 3/30/10 (e) 1,571,629 1,021,559 ----------------- 1,462,909 Telecom Equipment - 5.02% - ---------------------------------------------------------------------------------------------------------------------------- Qwest Corp. Senior Unsecured Notes, 7.875%, 9/01/11 12,000,000 12,000,000 Qwest Corp. Senior Unsecured Notes, 8.875%, 3/15/12 22,500,000 22,668,750 ----------------- 34,668,750 Tires & Rubber - 1.72% - ---------------------------------------------------------------------------------------------------------------------------- Goodyear Tire & Rubber Co., FRN 5.01%, 12/01/09 12,000,000 11,880,000 Total Corporate Bonds, Notes, & Preferred Securities - (cost - $976,201,578) $637,504,480 ----------------- Convertible Bonds Value Name of issuer Principal (Note B) - ---------------------------------------------------------------------------------------------------------------------------- Convertible Bonds - 0.00% - ---------------------------------------------------------------------------------------------------------------------------- Eurotunnel Group Tier 2, 3%, 7/28/09 GBP 74 9,934 Eurotunnel Group Tier 3, 3%, 7/28/10 GBP 74 7,369 ---------------- Total Convertible Bonds - (cost - $57,224) $17,303 ---------------- Foreign Bonds Value Name of issuer Principal (Note B) - ---------------------------------------------------------------------------------------------------------------------------- Foreign Bonds - 0.18% - ---------------------------------------------------------------------------------------------------------------------------- Republic of Argentina GDP Linked Security, FRN, 12/15/35 34,386,574 1,255,110 ---------------- Total Foreign Bonds - (cost - $1,423,421) $1,255,110 ---------------- Number of Value Stocks Shares (Note B) Name of issuer - ---------------------------------------------------------------------------------------------------------------------------- Common Stock - 4.55% - ---------------------------------------------------------------------------------------------------------------------------- Amtrol, Inc. (e) (f) 640,565 2,722,401 Core-Mark Holding Co., Inc. (f) 241,361 6,289,867 Dura Automotive Systems, Inc. (e) (f) 638,586 708,830 Groupe Eurotunnel SA (f) 1,925 10,915 Holdco (e) (f) (g) 62,107 31,054 International Airline Support Group (f) 219,540 351 Kronos Worldwide, Inc. 270,700 1,800,155 MAXXAM, Inc. (f) 200,000 2,090,000 NL Industries 510,200 3,765,276 Ormet Corp. (f) 372,638 163,961 The Penn Traffic Co. (f) 164,352 369,792 Polymer Group, Inc., Class A (f) 843,103 6,660,514 Prandium (f) 869,935 11,309 Romacorp, Inc. (e) (f) (g) 82,220 3,412,130 Safelite Realty Corp. (e) (g) 7,403 14,806 Sterling Chemical, Inc. (f) 250,827 2,069,323 Tokheim (f) (g) 180,224 360 Viskase Cos., Inc. (f) (g) 2,096,128 1,048,064 Zemex Minerals Group, Inc. (e) (g) 2,102 265,104 ---------------- Total Common Stocks - (cost - $190,731,158) $31,434,212 ---------------- Warrants Number of Value Name of Issuer Shares or Units (Note B) - ---------------------------------------------------------------------------------------------------------------------------- Warrants - 0.05% - ---------------------------------------------------------------------------------------------------------------------------- Core-Mark Holding Co., Inc. Warrants (e) (f) 48,142 313,886 Eurotunnel Group Warrants (f) 55,120 8,819 ---------------- Total Warrants - (cost - $584,399) $322,705 ---------------- - ---------------------------------------------------------------------------------------------------------------------------- Repurchase Agreement - 1.29% - ---------------------------------------------------------------------------------------------------------------------------- State Street Bank & Trust Co. 8,931,807 Repurchase Agreement, 0.01% due 7/01/09 (h) ---------------- Total Repurchase Agreement - (cost - $8,931,807) $8,931,807 ---------------- Total Investments - 98.30% (cost - $1,177,929,587) 679,465,617 ----------------- Net Other Assets and Liabilities- 1.70% 11,729,399 ----------------- Net Assets - 100% $ 691,195,016 ================= (a) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the period end, the value of these securities amounted to $75,002,750 or 10.85% of net assets. (b) Non-income producing security due to default or bankruptcy filing. (c) Security is in principal default. As of date of this report, the bond holders are in discussion with the issuer to negotiate repayment terms of principal. (d) Perpetual floating rate security. Rate shown reflects rate in effect at period end. (e) Security is valued at fair value as determined in good faith under consistently applied procedures approved by the Board of Trustees. (f) Non-income producing security. (g) All or a portion of security is restricted. The aggregate market value of restricted securities as of June 30, 2009 is $4,771,518 , which represents 0.69% of total net assets. All of these securities are deemed to be liquid. Additional information on each holding is as follows: Security Acquisition Date Acquisition Cost Holdco 04/14/05 $11,778,313 Romacorp, Inc. 11/15/06 $ 4,118,756 Safelite Realty Corp. 09/29/00 $ 965,195 Tokheim 10/20/00 $ - Viskase Cos., Inc. 04/03/03 - 03/21/07 $ 1,051,606 Zemex Minerals Group, Inc. 04/10/08 $ 386,221 (h) Acquired on June 30, 2009. Collateralized by $9,498,100 of US Government mortgage- backed securities due through 8/20/2009 . The maturity value is $8,931,809. PIK Payment in Kind GBP Principal denoted in British Pounds Sterling FRN Floating Rate Note PFD Preferred Security In September 2006, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 157 ("FAS 157"), "Fair Value Measurements". FAS 157 establishes a framework for measuring fair value and expands disclosures about fair value measurements in financial statements, effective for the Trust's current fiscal period. The various inputs that may be used to determine the value of the Trust's investments are summarized in three broad levels. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. Level 1 - Quoted prices in active markets for identical securities. Level 2 - Other significant observable inputs based on data obtained from various pricing sources (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) Level 3 - Significant unobservable inputs (including the Trust's own assumptions used to determine the fair value of investments). The following table summarized the Trust's investment as of June 30, 2009, based on the inputs used to value them. Valuation Inputs Investments in Securities Level 1 - Quoted prices $ 24,306,010 Level 2 - Other significant observable inputs $ 643,975,544 Level 3 - Significant unobservable inputs $ 11,184,063 ---------------- Total $ 679,465,617 The following is a reconciliation of the Trust's Level 3 investments for which significant unobservable inputs were used in determining value at June 30, 2009. Investments in Securities Balance as of September 30, 2008 16,901,187 ----------------- Total realized gain (loss) (14,040,224) Change in unrealized appreciation (depreciation) 7,881,727 Amortization of premium / discount - Net purchases (sales) (18,669) Net transfers in (out) of Level 3 460,042 ---------------- Balance as of June 30, 2009 11,184,063 ===============
Item 2. Controls and Procedures. (a) The registrant's principal executive and principal financial officers, or persons performing similar functions, 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") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). (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 (17 CFR 270.30a-3(d)) that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 3. Exhibits. Certifications pursuant to Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) and Section 302 of the Sarbanes-Oxley Act of 2002 are filed herewith. 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. (Registrant) Northeast Investors Trust By (Signature and Title) /s/ Bruce H. Monrad Bruce H. Monrad President (principal executive officer) Date: August 31, 2009 By (Signature and Title) /s/ Gordon C. Barrett Gordon C. Barrett Treasurer (principal financial officer) Date: August 31, 2009 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. (Registrant) Northeast Investors Trust By (Signature and Title) /s/ Bruce H. Monrad Bruce H. Monrad President (principal executive officer) Date: August 31, 2009 By (Signature and Title) /s/ Gordon C. Barrett Gordon C. Barrett Treasurer (principal financial officer) Date: August 31, 2009 Certification Pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act I, Bruce H. Monrad, certify that: 1. I have reviewed this report on Form N-Q of Northeast Investors Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: August 31, 2009 /s/ Bruce H. Monrad Bruce H. Monrad President (principal financial officer) Certification Pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act I, Gordon C. Barrett, certify that: 1. I have reviewed this report on Form N-Q of Northeast Investors Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: August 31, 2009 /s/ Gordon C. Barrett Gordon C. Barrett Treasurer (principal financial officer) EX-99.CERT 2 certsnq063009.txt Certification Pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act I, Bruce H. Monrad, certify that: 1. I have reviewed this report on Form N-Q of Northeast Investors Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: August 31, 2009 /s/ Bruce H. Monrad Bruce H. Monrad President (principal financial officer) Certification Pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act I, Gordon C. Barrett, certify that: 1. I have reviewed this report on Form N-Q of Northeast Investors Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: August 31, 2009 /s/ Gordon C. Barrett Gordon C. Barrett Treasurer (principal financial officer) -----END PRIVACY-ENHANCED MESSAGE-----