-----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, JqWFc/ZDnzzf344PL+nuYXiWORDQoUAZC1qx5otgde91sEf05N+F9k8St576SHsQ dnnqqUJ0KunuvNcWGkQ2cA== 0000891804-06-000053.txt : 20060109 0000891804-06-000053.hdr.sgml : 20060109 20060109110013 ACCESSION NUMBER: 0000891804-06-000053 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20051031 FILED AS OF DATE: 20060109 DATE AS OF CHANGE: 20060109 EFFECTIVENESS DATE: 20060109 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CREDIT SUISSE HIGH YIELD BOND FUND CENTRAL INDEX KEY: 0001061353 IRS NUMBER: 134009166 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-08777 FILM NUMBER: 06518192 BUSINESS ADDRESS: STREET 1: 277 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10172 BUSINESS PHONE: 2128926692 MAIL ADDRESS: STREET 1: 277 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10172 FORMER COMPANY: FORMER CONFORMED NAME: DLJ HIGH YIELD BOND FUND DATE OF NAME CHANGE: 19980508 N-CSR 1 file001.txt CREDIT SUISSE HIGH YIELD BOND FUND UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File No. 811-08777 --------------------------------------------------------------------- CREDIT SUISSE HIGH YIELD BOND FUND ------------------------------------------------------------------------ (Exact Name of Registrant as Specified in Charter) 466 Lexington Avenue, New York, New York 10017-3140 ------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) J. Kevin Gao, Esq. Credit Suisse High Yield Bond Fund 466 Lexington Avenue New York, New York 10017-3140 Registrant's telephone number, including area code: (212) 875-3500 Date of fiscal year end: October 31st Date of reporting period: November 1, 2004 to October 31, 2005 ITEM 1. REPORTS TO STOCKHOLDERS. CREDIT SUISSE HIGH YIELD BOND FUND 466 LEXINGTON AVENUE NEW YORK, NY 10017 ================================================================================ TRUSTEES Enrique R. Arzac - Chairman of the Board Lawrence J. Fox James S. Pasman, Jr. Steven Rappaport ================================================================================ OFFICERS Steven B. Plump Chief Executive Officer and President Martha B. Metcalf Chief Investment Officer Michael E. Gray Investment Officer J. Kevin Gao Senior Vice President Ajay Mehra Chief Legal Officer Emidio Morizio Chief Compliance Officer Michael A. Pignataro Chief Financial Officer, Vice President and Secretary Robert Rizza Treasurer ================================================================================ INVESTMENT ADVISER Credit Suisse Asset Management, LLC 466 Lexington Avenue New York, NY 10017 - -------------------------------------------------------------------------------- ADMINISTRATOR State Street Bank and Trust Co. 225 Franklin Street Boston, MA 02110 - -------------------------------------------------------------------------------- CUSTODIAN Custodial Trust Company 101 Carnegie Center Princeton, NJ 08540 - -------------------------------------------------------------------------------- SHAREHOLDER SERVICING AGENT EquiServe Trust Company, N.A. c/o Computershare P.O. Box 43010 Providence, RI 02940-3010 - -------------------------------------------------------------------------------- LEGAL COUNSEL Willkie Farr & Gallagher LLP 787 7th Avenue New York, NY 10019 - -------------------------------------------------------------------------------- INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM PricewaterhouseCoopers LLP Two Commerce Square Philadelphia, Pennsylvania 19103 ================================================================================ ================================================================================ CREDIT SUISSE HIGH YIELD BOND FUND ================================================================================ ANNUAL REPORT October 31, 2005 CREDIT SUISSE HIGH YIELD BOND FUND ANNUAL INVESTMENT ADVISER'S REPORT October 31, 2005 (unaudited) - -------------------------------------------------------------------------------- November 28, 2005 Dear Shareholder: PERFORMANCE SUMMARY 11/01/04 - 10/31/05 FUND & BENCHMARKS PERFORMANCE Total Return (based on NAV)1 2.62% Total Return (based on market value)1 2.71% Citigroup High-Yield Market Index2 (CHYMI) 3.55% MARKET OVERVIEW: CREDIT CYCLE TRANSITION In the Fund's fiscal year, high yield outperformed the broad fixed income market (as measured by the Lehman Brothers Aggregate Bond Index, which returned 1.13%), although the magnitude of outperformance narrowed significantly from that of the last several years and might be considered small given the strong fundamental backdrop. In our view, this was due to the natural progress of the credit and business cycles. High Yield defaults (as measured by Moody's Investor Services) remained below 2% through the entire fiscal year period, well below historical averages. However, after intense focus on balance sheet repair prompted by strong earnings growth and low interest rates in the last few years, there is simply less "room for improvement" in credit fundamentals. In addition, corporations are increasingly turning to other means to address their lackluster share prices (through share repurchases, dividend increases and other measures) in an effort to boost shareholder value. From a technical perspective, the environment was mixed. High yield mutual funds reported an $8.3 billion outflow through October 2005 compared to a $3.2 billion outflow during the same period in 2004, although this indicator does not account for the increasing role of hedge funds and other market participants. And while the fiscal year saw a 35% decline in the number of high yield deals and a 32% drop in new issue volume, this decrease in new supply was easily outweighed by the entrance of Ford, GM and Delphi debt into the high yield arena. In our view, this influx of fallen angel debt caused the greatest turbulence, and provided the greatest drag, on the high yield market in the period. High yield spreads remained below their historical averages for most of the period, but widened dramatically with the downgrade of General Motors and Ford to junk status. These fallen angels brought approximately $82 billion of debt (market value prior to downgrade) and raised concerns about the high yield market's ability to absorb that level of supply. Together they now account for about 12% of the index. In sum, all of these factors, along with the impact of the Gulf Coast hurricanes, persistently high energy costs, and uncertainty with respect to Federal Reserve policy weighed on the market, resulting in greater caution among investors. STRATEGIC REVIEW: SECTOR AND SECURITY SELECTION DRIVE PERFORMANCE The Fund's performance was helped in the period under review by our significant overweight to the Wireless sector, which was among the best performing industries in high yield this year. Another sector decision that contributed positively to performance was our underweight to Airlines; an industry that has seen its margins squeezed by high energy costs and has suffered a number of high profile bankruptcies in the past year. Our Technology holdings, while similar in weighting to those of the Index, also boosted performance thanks to positive issue selection. On the negative side, while we had positive issue selection within the Diversified Telecommunications industry, it was also our largest underweight relative to the Index, and one of this year's better performing sectors. In addition, despite an underweight to Automobile Manufacturing, the credits we did hold underperformed those in the Index, detracting from performance further. CREDIT SUISSE HIGH YIELD BOND FUND ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED) October 31, 2005 (unaudited) - -------------------------------------------------------------------------------- OUTLOOK: PEAKING FUNDAMENTALS AND RANGE BOUND SPREADS Looking ahead, we expect the pace of growth to be more moderate in 2006. Credit fundamentals are strong but default rates are expected to rise moderately from current levels. Moody's now expects defaults to rise toward 3.2% by September 2006, still below its historical average. In addition, shareholder friendly headlines and increased LBO activity are likely to contribute to higher issuer specific risk. However, valuations have improved in high yield. Spreads have widened from historical tights (the Merrill Lynch Master II High Yield Index was yielding +368 basis points more than the ten year treasury as of October 31, 2005) and are supported by below average default rates. Furthermore, an end to the Federal Reserve's monetary tightening may increase investors' appetite for risk. While we expect spreads to be range bound in the intermediate term, we expect issuer specific event risk to rise. We will actively use these opportunities to generate excess return and continue to place special importance on security selection, as it will be a critical driver of performance going forward. We appreciate your interest in the Fund and would be pleased to respond to your questions or comments. Any questions regarding net asset value, performance, dividends, portfolio management or allocations should be directed to Credit Suisse Asset Management, LLC at (800) 293-1232. All other inquiries regarding account information, requests for the latest financial information or other reports should be directed to the Fund's Shareholder Servicing Agent at (800) 730-6001. /s/ Martha Metcalf /s/ Steven B. Plump Martha Metcalf Steven B. Plump Chief Investment Officer* Chief Executive Officer and President** High yield bonds are lower-quality bonds that are also known as "junk bonds." Such bonds entail greater risks than those found in higher-rated securities. In addition to historical information, this report contains forward-looking statements, which may concern, among other things, domestic and foreign markets, industry and economic trends and developments and government regulation and their potential impact on the Fund's investment portfolio. These statements are subject to risks and uncertainties and actual trends, developments and regulations in the future and their impact on the Fund could be materially different from those projected, anticipated or implied. The Fund has no obligation to update or revise forward-looking statements. We wish to remind shareholders whose shares are registered in their own name that they automatically participate in the Fund's dividend reinvestment program known as the InvestlinkSM Program (the "Program"). The Program can be of value to shareholders in maintaining their proportional ownership interest in the Fund in an easy and convenient way. A shareholder whose shares are held in the name of a broker/dealer or nominee should contact the Fund's Transfer Agent for details about participating in the Program. * Martha B. Metcalf is a Managing Director of Credit Suisse Asset Management ("CSAM") and head of the U.S. High Yield Management Team. She has served in these capacities since 2005. As of November 2005, she is primarily responsible for the management of the Fund's assets. From 2000 until 2005, she was a Managing Director and Portfolio Manager of Global High Yield Bonds, and head of a global high yield business with responsibility for total return, as well as structured portfolios at Invesco. Prior to her tenure at Invesco, Ms. Metcalf served for over ten years at JP Morgan Investment Management, where she was Vice President and Portfolio Manager for High Yield Corporate Bonds. ** Steven B. Plump is a Managing Director of CSAM and CEO/President of the Fund. He joined Warburg Pincus Asset Management ("WPAM") in 1995 and came to CSAM in 1999 when it acquired WPAM. - ------------------------------- 1 Assuming reinvestment of dividends of $0.5323 per share. 2 The Citigroup High-Yield Market Index is a broad-based, unmanaged index of high yield securities that is compiled by Citigroup Global Markets Inc. It does not reflect the impact of taxes. Investors cannot invest directly in an index. CREDIT SUISSE HIGH YIELD BOND FUND ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED) October 31, 2005 (unaudited) - -------------------------------------------------------------------------------- TOP TEN HOLDINGS (% of net assets as of 10/31/05) - -------------------------------------------------------------------------------- Security Description 1. General Motors Acceptance Corp. 1.62% 6.750% 12/01/14 2. Allied Waste North America, Inc. 1.59% 7.375% 04/15/14 3. El Paso Production Holding Co. 1.28% 7.750% 06/01/13 4. CCO Holding LLC 1.21% 8.750% 11/15/13 5. BGF Industries, Inc. 1.15% 10.250% 01/15/09 6. Calpine Generating Company LLC 1.12% 9.610% 11/01/05 7. Chukchansi Economic Development Authority 1.11% 14.500% 06/15/09 8. Mediacom LLC Capital Corp. 1.09% 9.500% 01/15/13 9. Hard Rock Hotel, Inc. 1.00% 8.875% 06/01/13 10. Ubiquitel Operating Co. 0.97% 9.875% 03/01/11 CREDIT QUALITY BREAKDOWN (% of total investments as of 10/31/05) - -------------------------------------------------------------------------------- S&P RATINGS A- 0.2% BBB 0.5 BB 18.3 B 53.2 CCC 25.1 CC 0.6 C 0.1 NR 1.5 ------ Subtotal 99.5 Equities and other 0.5 ------ Total 100.0% ====== 1 CREDIT SUISSE HIGH YIELD BOND FUND SCHEDULE OF INVESTMENTS October 31, 2005 - ------------------------------------------------------------------------------------------------------------------------------------
PAR RATINGS+ (000) (S&P/MOODY'S) MATURITY RATE% VALUE ----- ------------- -------- ----- ----- U.S. CORPORATE BONDS (129.6%) AEROSPACE (1.7%) $ 1,000 BE Aerospace, Inc., Series B, Senior Subordinated Notes (B- , Caa2) 03/01/08 8.000 $1,002,500 2,000 L-3 Communications Corp., Global Senior Subordinated Notes (Callable 01/15/10 @ $102.94) ss. (BB+ , Ba3) 01/15/15 5.875 1,910,000 850 Sequa Corp., Series B, Senior Notes (BB- , B1) 04/01/08 8.875 875,500 ------------- 3,788,000 ------------- AIRLINES (0.5%) 1,200 American Airlines, Inc., Series 01-2, Pass Thru Certificates ss. (B , B1) 04/01/08 7.800 1,144,583 ------------- AUTOMOBILE MANUFACTURING/VEHICLE PARTS (7.0%) 1,100 Accuride Corp., Global Company Guaranteed Notes (Callable 02/01/10 @ $104.25) (B- , B3) 02/01/15 8.500 1,045,000 425 ArvinMeritor, Inc., Notes (BB , Ba2) 03/01/12 8.750 400,563 400 Cooper-Standard Automotive, Inc., Global Company Guaranteed Notes (Callable 12/15/09 @ $104.19) ss. (B , B3) 12/15/14 8.375 302,000 125 Delphi Corp., Global Notes ss. (D , Ca) 06/15/06 6.550 87,188 405 Dura Operating Corp., Series D, Company Guaranteed Notes (Callable 05/01/06 @ $101.50) ss. (CCC+ , Caa2) 05/01/09 9.000 255,150 1,750 Ford Motor Credit Co., Global Notes (BB+ , Baa3) 10/01/13 7.000 1,604,067 1,700 General Motors Acceptance Corp., Global Bonds (BB , Ba1) 11/01/31 8.000 1,759,855 3,810 General Motors Acceptance Corp., Global Notes ss. (BB , Ba1) 12/01/14 6.750 3,649,302 1,250 Goodyear Tire & Rubber Co., Rule 144A, Senior Notes (Callable 07/01/10 @ $104.50) ++ (B- , B3) 07/01/15 9.000 1,212,500 1,200 Heafner Tire Group, Inc., Rule 144A, Senior Notes (Callable 04/01/09 @ $105.38) ++ (CCC+ , Caa2) 04/01/13 10.750 1,092,000 500 Keystone Automotive Operations, Inc., Global Senior Subordinated Notes (Callable 11/01/08 @ $104.88) (B- , B3) 11/01/13 9.750 488,750 925 Metaldyne Corp., Global Company Guaranteed Notes (Callable 06/15/07 @ $105.50) ss. (CCC+ , Caa2) 06/15/12 11.000 675,250 900 Stanadyne Corp., Global Senior Subordinated Notes (Callable 08/15/09 @ $105.00) (B- , Caa1) 08/15/14 10.000 882,000 600 Stoneridge, Inc., Global Company Guaranteed Notes (Callable 05/01/07 @ $105.75) (B+ , B1) 05/01/12 11.500 621,000 800 Tenneco Automotive, Inc., Global Company Guaranteed Notes (Callable 11/15/09 @ $104.31) ss. (B- , B3) 11/15/14 8.625 768,000 1,000 Visteon Corp., Global Senior Notes ss. (B- , B3) 08/01/10 8.250 928,750 ------------- 15,771,375 ------------- BROADBAND (0.6%) 750 Level 3 Communications, Inc., Senior Notes (Callable 05/01/06 @ $100.00) ss. (CC , Ca) 05/01/08 9.125 633,750 750 Level 3 Financing, Inc., Global Company Guaranteed Notes (Callable 10/15/07 @ $105.38) ss. (CC , Caa1) 10/15/11 10.750 641,250 ------------- 1,275,000 ------------- BROADCAST/OUTDOOR (3.1%) 600 Allbritton Communications Co., Global Senior Subordinated Notes (Callable 12/15/07 @ $103.88) ss. (B- , B3) 12/15/12 7.750 595,500 750 Emmis Communications Corp., Global Senior Notes (Callable 12/15/05 @ $100.00) # (B- , B3) 06/15/12 9.745 755,625 500 Emmis Operating Co., Global Senior Subordinated Notes (Callable 05/15/08 @ $103.44) (B- , B2) 05/15/12 6.875 496,250 225 LIN Television Corp., Rule 144A, Senior Subordinated Notes (Callable 05/15/08 @ $103.25) ++ (B- , B1) 05/15/13 6.500 214,313 2,000 Paxson Communications Corp., Global Company Guaranteed Notes (Callable 01/15/06 @ $106.12) + (CCC- , Caa1) 01/15/09 0.000 1,965,000 350 Sinclair Broadcast Group, Inc., Global Company Guaranteed Notes (Callable 12/15/06 @ $104.38) (B , B2) 12/15/11 8.750 369,250 1,000 Sirius Satellite Radio, Inc., Rule 144A, Senior Notes (Callable 09/01/09 @ $104.81) ++ (CCC , Caa1) 08/01/13 9.625 951,250 975 WMG Holdings Corp., Global Senior Discount Notes (Callable 12/15/09 @ $104.75) + (B- , Caa2) 12/15/14 0.000 675,187 990 Young Broadcasting, Inc., Global Company Guaranteed Notes (Callable 03/01/06 @ $105.00) ss. (CCC , Caa1) 03/01/11 10.000 925,650 ------------- 6,948,025 ------------- BUILDING PRODUCTS (4.3%) 250 Ahern Rentals, Inc., Rule 144A, Secured Notes (Callable 08/15/09 @ 104.63) ++ (B- , B3) 08/15/13 9.250 255,000 1,300 Building Materials Corp., Global Secured Notes (Callable 08/01/09 @ $103.88) ss. (B+ , B2) 08/01/14 7.750 1,248,000 750 Compression Polymers Holding Corp., Rule 144A, Senior Notes (Callable 07/01/09 @ $105.25) ++ (B- , B2) 07/01/13 10.500 686,250 600 Dayton Superior Corp., Company Guaranteed Notes (Callable 06/15/07 @ $102.17) ss. (CCC , Caa3) 06/15/09 13.000 418,500 500 Dayton Superior Corp., Global Secured Notes (Callable 06/15/06 @ $105.62) (B- , Caa1) 09/15/08 10.750 487,500 1,500 Goodman Global Holdings Co., Inc., Rule 144A, Senior Subordinated Notes (Callable 12/15/08 @ $103.94) ++ss. (B- , Caa1) 12/15/12 7.875 1,417,500 1,100 Interface, Inc., Global Senior Subordinated Notes (Callable 02/01/09 @ $104.75) (CCC , Caa3) 02/01/14 9.500 1,100,000 750 Norcraft Holdings LP, Global Senior Discount Notes (Callable 09/01/08 @ $104.88) + (B- , Caa1) 09/01/12 0.000 528,750 1,000 NTK Holdings, Inc., Global Senior Discount Notes (Callable 09/01/09 @ $105.38) +ss. (CCC+ , Caa2) 03/01/14 0.000 605,000 See Accompanying Notes to Financial Statements. 2 CREDIT SUISSE HIGH YIELD BOND FUND SCHEDULE OF INVESTMENTS (CONTINUED) October 31, 2005 - ------------------------------------------------------------------------------------------------------------------------------------ PAR RATINGS+ (000) (S&P/MOODY'S) MATURITY RATE% VALUE ----- ------------- -------- ----- ----- U.S. CORPORATE BONDS BUILDING PRODUCTS $ 1,000 Ply Gem Industries, Inc., Global Senior Subordinated Notes (Callable 02/15/08 @ $104.50) (B- , B3) 02/15/12 9.000 $ 815,000 1,250 RMCC Acquisition Co., Rule 144A, Senior Subordinated Notes (Callable 11/01/08 @ $104.75) ++ (CCC+ , Caa1) 11/01/12 9.500 1,275,000 250 Texas Industries, Inc., Rule 144A, Senior Notes (Callable 07/15/09 @ $103.63) ++ (BB- , Ba3) 07/15/13 7.250 261,250 1,350 Werner Holding Co., Inc., Series A, Company Guaranteed Notes (Callable 11/15/05 @ $100) ss. (CCC- , Caa3) 11/15/07 10.000 648,000 ------------- 9,745,750 ------------- CABLE (7.1%) 1,450 Atlantic Broadband Finance LLC, Global Company Guaranteed Notes (Callable 01/15/09 @ $104.69) ss. (CCC+ , Caa1) 01/15/14 9.375 1,319,500 600 Cablevision Systems Corp., Series B, Global Senior Notes (B+ , B3) 04/15/12 8.000 576,000 1,446 CCH I LLC, Series AI, Secured Notes (Callable 10/1/10 @ $105.50) (CCC- , Caa3) 10/01/15 11.000 1,315,860 2,820 CCO Holdings LLC, Global Senior Notes (Callable 11/15/08 @ $104.38) ss. (CCC- , B3) 11/15/13 8.750 2,728,350 355 CCO Holdings LLC, Rule 144A, Senior Notes (Callable 11/15/08 @ 104.38) ++ (CCC- , B3) 11/15/13 8.750 343,462 1,798 Charter Communications Holdings LLC, Senior Discount Notes (Callable 04/01/06 @ $101.44) #+ss. (CCC- , Ca) 04/01/11 9.920 1,132,740 400 Charter Communications Holdings LLC, Senior Notes (Callable 04/01/06 @ $101.44) ss. (CCC- , Ca) 04/01/09 8.625 330,000 2,100 CSC Holdings, Inc., Rule 144A, Senior Notes ++# (BB- , B1) 04/15/12 7.000 2,037,000 750 CSC Holdings, Inc., Series B, Senior Notes ss. (BB- , B1) 04/01/11 7.625 755,625 1,750 DIVA Systems Corp., Series B, Senior Discount Notes (Callable 03/01/06 @ $100.00) ^0 (NR , NR) 03/01/08 12.625 43,750 2,000 Insight Communications Company, Inc., Senior Discount Notes (Callable 02/15/06 @ $106.12) + (CCC+ , Caa1) 02/15/11 0.000 2,065,000 200 Insight Midwest/Insight Capital Corp., Senior Notes (Callable 10/01/06 @ $101.63) (B , B2) 10/01/09 9.750 206,500 500 Insight Midwest/Insight Capital Corp., Global Senior Notes (Callable 11/01/05 @ $105.25) (B , B2) 11/01/10 10.500 527,500 200 Mediacom Broadband LLC, Rule 144A, Senior Notes (Callable 10/15/10 @ $104.25) ++ (B , B2) 10/15/15 8.500 185,000 2,500 Mediacom LLC Capital Corp., Senior Notes (Callable 01/15/06 @ $104.75) ss. (B , B3) 01/15/13 9.500 2,456,250 ------------- 16,022,537 ------------- CAPITAL GOODS (1.8%) 1,000 Blount, Inc., Senior Subordinated Notes (Callable 08/01/08 @ $104.44) (B , B3) 08/01/12 8.875 1,057,500 850 Case New Holland, Inc., Global Company Guaranteed Notes (Callable 08/01/07 @ $104.62) ss. (BB- , Ba3) 08/01/11 9.250 898,875 1,753 JII Holdings LLC, Global Secured Notes (Callable 01/01/06 @ $103.25) (CCC- , Caa2) 04/01/07 13.000 1,550,962 650 Terex Corp., Global Company Guaranteed Notes (Callable 01/15/09 @ $103.69) (B , Caa1) 01/15/14 7.375 650,000 ------------- 4,157,337 ------------- CHEMICALS (6.5%) 650 BCP Crystal Holdings Corp., Global Senior Subordinated Notes (Callable 06/15/09 @ $104.81) (B- , B3) 06/15/14 9.625 718,250 750 Crompton Corp., Global Senior Notes (Callable 08/01/08 @ $104.94) (BB+ , Ba1) 08/01/12 9.875 843,750 876 Crystal US Holdings, Series B, Global Senior Discount Notes (Callable 10/01/09 @ $105.25) + (B- , Caa2) 10/01/14 0.000 611,010 1,000 Equistar Chemicals LP/ Equistar Funding Corp., Global Company Guaranteed Notes (BB- , B2) 09/01/08 10.125 1,082,500 227 Huntsman Company LLC, Global Company Guaranteed Notes (Callable 10/15/07 @ $105.81) (BB- , Ba3) 10/15/10 11.625 258,213 773 Huntsman LLC, Global Company Guaranteed Notes (Callable 07/15/08 @ $105.75) # (B , B2) 07/15/12 11.500 878,321 1,100 IMC Global, Inc., Global Senior Notes (Callable 08/01/08 @ $105.44) (BB , Ba3) 08/01/13 10.875 1,281,500 1,450 IMC Global, Inc., Series B, Global Company Guaranteed Notes (Callable 06/01/06 @ $105.63) (BB , Ba3) 06/01/11 11.250 1,580,500 1,200 KI Holdings, Inc., Global Senior Discount Notes (Callable 11/15/09 @ $104.94) + (B- , Caa2) 11/15/14 0.000 811,500 1,000 Lyondell Chemical Co., Global Company Guaranteed Notes (Callable 06/01/08 @ $105.25) (BB- , B1) 06/01/13 10.500 1,138,750 1,850 Millennium America, Inc., Global Company Guaranteed Notes (BB- , B1) 06/15/08 9.250 1,993,375 750 Nalco Co., Global Senior Notes (Callable 11/15/07 @ $103.88) (B- , B2) 11/15/11 7.750 769,687 750 PolyOne Corp., Global Company Guaranteed Notes (Callable 05/15/07 @ $105.31) (B+ , B3) 05/15/10 10.625 738,750 1,000 Resolution Performance Products LLC, Global Senior Subordinated Notes (Callable 11/15/05 @ $106.75) (B- , Caa2) 11/15/10 13.500 1,058,750 832 Terra Capital, Inc., Global Secured Notes (Callable 06/01/07 @ $105.75) (B- , B2) 06/01/10 11.500 956,800 ------------- 14,721,656 ------------- COMPETITIVE LOCAL EXCHANGE CARRIER (1.0%) 250 GCI, Inc., Global Senior Notes (Callable 02/15/09 @ $103.62) (B+ , B2) 02/15/14 7.250 243,750 1,848 Madison River Capital LLC, Senior Notes (Callable 03/01/06 @ $104.42) ss. (B- , B3) 03/01/10 13.250 1,977,360 ------------- 2,221,110 ------------- See Accompanying Notes to Financial Statements. 3 CREDIT SUISSE HIGH YIELD BOND FUND SCHEDULE OF INVESTMENTS (CONTINUED) October 31, 2005 - ------------------------------------------------------------------------------------------------------------------------------------ PAR RATINGS+ (000) (S&P/MOODY'S) MATURITY RATE% VALUE ----- ------------- -------- ----- ----- U.S. CORPORATE BONDS CONSUMER PRODUCTS/TOBACCO (4.6%) $ 850 AAC Group Holding Corp., Global Senior Discount Notes (Callable 10/01/08 @ $105.13) + (B- , Caa1) 10/01/12 0.000 $ 624,750 500 Ames True Temper, Global Company Guaranteed Notes (Callable 01/15/07 @ $103.00) # (CCC+ , Caa1) 01/15/12 8.150 472,500 1,400 Ames True Temper, Global Senior Subordinated Notes (Callable 07/15/08 @ $105.00) ss. (CCC- , Caa2) 07/15/12 10.000 1,057,000 1,050 Amscan Holdings, Inc., Global Senior Subordinated Notes (Callable 05/01/09 @ $104.38) (B- , B3) 05/01/14 8.750 845,250 1,000 Associated Materials, Inc., Global Senior Discount Notes (Callable 03/01/09 @ $105.62) + (CCC+ , Caa2) 03/01/14 0.000 475,000 1,000 Del Laboratories, Inc., Global Company Guaranteed Notes (Callable 02/01/08 @ $104.00) ss. (CCC+ , Caa2) 02/01/12 8.000 755,000 3,097 Diamond Brands Operating Corp., Company Guaranteed Notes (Callable 04/15/06 @ $100.00) ^0 (NR , NR) 04/15/08 10.125 0 1,500 Johnsondiversey Holdings, Inc., Global Discount Notes (Callable 05/15/07 @ $105.34) + (B- , Caa1) 05/15/13 0.000 1,087,500 1,000 PCA LLC/PCA Finance Corp., Global Senior Notes ss. (C , Ca) 08/01/09 11.875 260,000 1,300 Playtex Products, Inc., Global Company Guaranteed Notes (Callable 06/01/06 @ $104.69) ss. (CCC+ , Caa2) 06/01/11 9.375 1,352,000 600 Prestige Brands, Inc., Global Senior Subordinated Notes (Callable 04/15/08 @ $104.63) (B- , B3) 04/15/12 9.250 609,000 500 Rayovac Corp., Global Senior Subordinated Notes (Callable 10/01/08 @ $104.25) (B- , B3) 10/01/13 8.500 455,000 750 Remington Arms Company, Inc., Global Company Guaranteed Notes (Callable 02/01/07 @ $105.25) ss. (CCC+ , B3) 02/01/11 10.500 652,500 500 Revlon Consumer Products Corp., Global Senior Notes (Callable 04/01/08 @ $104.75) (CCC , Caa2) 04/01/11 9.500 471,250 1,250 Sealy Mattress Co., Global Senior Subordinated Notes (Callable 06/15/09 @ $104.13) ss. (B- , B3) 06/15/14 8.250 1,275,000 ------------- 10,391,750 ------------- CONTAINERS (3.3%) 1,100 Berry Plastics Corp., Global Company Guaranteed Notes (Callable 07/15/07 @ $105.38) (B- , B3) 07/15/12 10.750 1,138,500 1,200 Constar International, Inc., Senior Subordinated Notes (Callable 12/01/07 @ $105.50) ss. (CCC , Caa3) 12/01/12 11.000 690,000 650 Graham Packaging Company, Inc., Global Subordinated Notes (Callable 10/15/09 @ $104.94) ss. (CCC+ , Caa2) 10/15/14 9.875 611,000 750 Graphic Packaging International Corp., Global Senior Subordinated Notes (Callable 08/15/08 @ 104.75) (B- , B3) 08/15/13 9.500 676,875 1,000 Intertape Polymer US, Inc., Global Senior Subordinated Notes (Callable 08/01/09 @ $104.25) (B- , B3) 08/01/14 8.500 965,114 1,000 Owens-Brockway Glass Containers, Global Company Guaranteed Notes (Callable 02/15/06 @ $104.44) (BB- , B1) 02/15/09 8.875 1,050,000 750 Owens-Brockway Glass Containers, Global Company Guaranteed Notes (Callable 05/15/08 @ $104.12) (B , B2) 05/15/13 8.250 768,750 500 Pliant Corp., Company Guaranteed Notes (Callable 06/01/06 @ $104.33) (CCC- , Ca) 06/01/10 13.000 75,000 425 Pliant Corp., Global Secured Notes (Callable 06/15/07 @ $111.62) (CCC , Caa1) 06/15/09 11.625 461,658 1,000 U.S. Can Corp., Global Company Guaranteed Notes (Callable 07/15/07 @ $105.44) ss. (CCC+ , Caa2) 07/15/10 10.875 1,035,000 ------------- 7,471,897 ------------- DIVERSIFIED TELECOMMUNICATIONS (2.6%) 565 Hawaiian Telcom Communications, Inc., Rule 144A, Notes (Callable 05/01/09 @ $104.88) ++ss. (B- , B3) 05/01/13 9.750 565,000 900 Qwest Corp., Global Senior Notes (BB , Ba3) 09/01/11 7.875 947,250 900 Qwest Corp., Notes (BB , Ba3) 11/15/08 5.625 895,500 1,339 Qwest Corp., Rule 144A, Senior Notes ++ (BB , Ba3) 06/15/15 7.625 1,379,170 550 Qwest Services Corp., Global Secured Notes (Callable 12/15/06 @ $106.75) # (B , B3) 12/15/10 13.500 631,125 250 Syniverse Technologies, Inc., Rule 144A, Senior Subordinated Notes (Callable 08/15/09 @ $103.88) ++ (B , B2) 08/15/13 7.750 253,125 1,250 Time Warner Telecom Holdings, Inc., Global Company Guaranteed Notes ss. (CCC+ , B3) 02/15/14 9.250 1,256,250 ------------- 5,927,420 ------------- ENERGY - OTHER (4.7%) 1,800 Dynegy Holdings, Inc., Rule 144A, Secured Notes (Callable 07/15/08 @ $105.06) ++ (B- , B3) 07/15/13 10.125 1,989,000 250 Dynegy Holdings, Inc., Senior Notes ss. (CCC+ , Caa2) 04/01/11 6.875 240,625 750 El Paso Corp., Senior Notes (B- , Caa1) 05/15/11 7.000 742,500 1,000 El Paso Natural Gas, Series A, Global Senior Notes (Callable 08/01/07 @ $103.81) (B , B1) 08/01/10 7.625 1,054,426 2,800 El Paso Production Holding Co., Global Company Guaranteed Notes (Callable 06/01/08 @ $103.88) (B , B3) 06/01/13 7.750 2,898,000 450 Giant Industries, Inc., Company Guaranteed Notes (Callable 05/15/09 @ $104.00) (B- , B3) 05/15/14 8.000 468,000 743 Giant Industries, Inc., Global Company Guaranteed Notes (Callable 05/15/07 @ $105.50) (B- , B3) 05/15/12 11.000 830,302 500 Reliant Energy, Inc., Secured Notes (Callable 12/15/09 @ $103.38) (B+ , B1) 12/15/14 6.750 467,500 1,050 Reliant Resources, Inc., Global Secured Notes (Callable 07/15/08 @ $104.75) ss. (B+ , B1) 07/15/13 9.500 1,123,500 825 Williams Companies, Inc., Global Senior Unsecured Notes ss. (B+ , B1) 03/15/12 8.125 895,125 ------------- 10,708,978 ------------- ENVIRONMENTAL SERVICES (2.0%) 3,800 Allied Waste North America, Inc., Series B, Global Senior Notes (Callable 04/15/09 @ $103.69) ss. (B+ , Caa1) 04/15/14 7.375 3,581,500 1,000 Waste Services, Inc., Global Senior Subordinated Notes (Callable 04/15/09 @ $104.75) ss. (CCC , Caa2) 04/15/14 9.500 995,000 ------------- 4,576,500 ------------- See Accompanying Notes to Financial Statements. 4 CREDIT SUISSE HIGH YIELD BOND FUND SCHEDULE OF INVESTMENTS (CONTINUED) October 31, 2005 - ------------------------------------------------------------------------------------------------------------------------------------ PAR RATINGS+ (000) (S&P/MOODY'S) MATURITY RATE% VALUE ----- ------------- -------- ----- ----- U.S. CORPORATE BONDS FINANCE - OTHER (2.0%) $ 500 Corrections Corporation of America, Senior Notes, (Callable 05/01/07 @ $103.75) (BB- , Ba3) 05/01/11 7.500 $ 519,375 1,150 E*TRADE Financial Corp., Global Senior Notes (Callable 06/15/08 @ $104.00) (B+ , B1) 06/15/11 8.000 1,173,000 800 Insurance Auto Auctions, Inc., Global Company Guaranteed Notes (Callable 04/01/09 @ $105.50) (CCC+ , Caa1) 04/01/13 11.000 838,378 800 Senior Housing Properties Trust, Senior Notes (BB+ , Ba2) 01/15/12 8.625 884,000 1,000 Trustreet Properties, Inc., Global Senior Notes (Callable 04/01/10 @ $103.75) (B+ , B1) 04/01/15 7.500 1,017,500 ------------- 4,432,253 ------------- FOOD PROCESSORS/BEVERAGE/BOTTLING (1.6%) 900 Bear Creek Corp., Rule 144A, Senior Notes (Callable 03/01/09 @ $104.50) ++ (B- , B3) 03/01/13 9.000 927,000 177 Birds Eye Foods, Inc., Company Guaranteed Notes (Callable 11/01/05 @ $101.98) (B- , B3) 11/01/08 11.875 181,867 500 Land O' Lakes, Inc., Global Senior Notes (Callable 11/15/06 @ $104.38) ss. (B , B3) 11/15/11 8.750 526,250 600 Le-Natures, Inc., Rule 144A, Senior Subordinated Notes (Callable 06/15/08 @ $104.50) ++# (CCC+ , Caa1) 06/15/13 10.000 645,000 500 Pinnacle Foods Holding Corp., Global Senior Subordinated Notes (Callable 12/01/08 @ $104.13) ss. (B- , B3) 12/01/13 8.250 465,000 850 Swift & Co., Global Senior Subordinated Notes (Callable 10/01/06 @ $106.25) (B , B3) 01/01/10 12.500 907,375 ------------- 3,652,492 ------------- GAMING (9.7%) 1,000 155 East Tropicana LLC, Global Secured Notes (Callable 04/01/09 @ $104.38) ss. (B- , B3) 04/01/12 8.750 962,500 1,350 Ameristar Casinos, Inc., Global Company Guaranteed Notes (Callable 02/15/06 @ $105.38) (B+ , B2) 02/15/09 10.750 1,444,500 1,350 Aztar Corp., Global Senior Subordinated Notes (Callable 08/15/06 @ $104.50) (B+ , Ba3) 08/15/11 9.000 1,434,375 2,050 Chukchansi Economic Development Authority, Rule 144A, Senior Notes (Callable 10/01/06 @ $113.00) ++ (NR , NR) 06/15/09 14.500 2,511,250 1,350 Circus Circus & Eldorado, Global First Mortgage (Callable 03/01/07 @ $105.06) (B , B1) 03/01/12 10.125 1,417,500 2,100 Hard Rock Hotel, Inc., Global Notes (Callable 06/01/08 @ $104.44) (B , B3) 06/01/13 8.875 2,247,000 1,000 Herbst Gaming, Inc., Global Senior Subordinated Notes (Callable 06/01/08 @ $104.06) ss. (B- , B3) 06/01/12 8.125 1,037,500 1,250 Inn of The Mountain Gods, Global Senior Notes (Callable 11/15/07 @ $106.00) (B , B3) 11/15/10 12.000 1,343,750 900 Isle of Capri Casinos, Inc., Global Senior Subordinated Notes (Callable 03/01/09 @ $103.50) (B , B2) 03/01/14 7.000 855,000 1,500 Majestic Star Casino LLC, Company Guaranteed Notes (Callable 10/15/07 @ $104.75) (B , B2) 10/15/10 9.500 1,475,625 300 MGM Mirage, Company Guaranteed Notes (BB , Ba2) 10/01/09 6.000 296,250 450 MGM Mirage, Company Guaranteed Notes (BB , Ba2) 09/15/10 8.500 484,875 450 MGM Mirage, Company Guaranteed Notes ss. (B+ , Ba3) 02/01/11 8.375 478,125 1,000 MGM Mirage, Global Senior Notes ss. (BB , Ba2) 09/01/12 6.750 1,000,000 250 MTR Gaming Group, Inc., Series B, Global Company Guaranteed Notes (Callable 04/01/07 @ $104.88) (B+ , B2) 04/01/10 9.750 264,375 1,000 OED Corp., Global Company Guaranteed Notes (Callable 4/15/08 @ $104.38) (B , B2) 04/15/12 8.750 975,000 400 Resorts International Hotel & Casino, Inc., Global Company Guaranteed Notes (Callable 03/15/07 @ $106.00) (B , B2) 03/15/09 11.500 447,500 750 Riviera Holdings Corp., Global Company Guaranteed Notes (Callable 06/15/06 @ $105.50) (B , B2) 06/15/10 11.000 819,375 225 San Pasqual Casino, Rule 144A, Notes (Callable 09/15/09 @ $104.00) ++ss. (B+ , B2) 09/15/13 8.000 225,000 450 Station Casinos, Inc., Global Senior Subordinated Notes (Callable 03/01/09 @ $102.58) ss. (B+ , Ba3) 03/01/16 6.875 455,625 335 Waterford Gaming LLC, Rule 144A, Senior Notes (Callable 09/15/08 @ $103.55) ++ (B+ , B1) 09/15/12 8.625 361,800 250 Wheeling Island Gaming, Inc., Global Company Guaranteed Notes (Callable 12/15/05 @ $105.06) (B+ , B3) 12/15/09 10.125 263,125 452 Windsor Woodmont Black Hawk, Series B, First Mortgage Notes ^0 (NR , NR) 03/15/05 13.000 61,400 1,000 Wynn Las Vegas LLC, Global First Mortgage Notes (Callable 12/01/09 @ $103.31) ss. (B+ , B2) 12/01/14 6.625 957,500 ------------- 21,818,950 ------------- HEALTHCARE FACILITIES/SUPPLIES (6.4%) 500 AMR/EmCare Holding Co., Rule 144A, Senior Subordinated Notes (Callable 02/15/10 @ $105.00) ++ (B- , Caa1) 02/15/15 10.000 547,500 1,800 CDRV Investors, Inc., Global Senior Discount Notes (Callable 01/01/10 @ $104.81) + (B- , Caa2) 01/01/15 0.000 1,008,000 1,000 Concentra Operating Corp., Global Company Guaranteed Notes (Callable 08/15/07 @ $104.75) (B- , B3) 08/15/10 9.500 1,035,000 250 DaVita, Inc., Global Company Guaranteed Notes (Callable 03/15/10 @ $103.63) ss. (B , B3) 03/15/15 7.250 253,750 1,000 Extendicare Health Services, Inc., Senior Subordinated Notes (Callable 05/01/09 @ $103.44) (B- , B2) 05/01/14 6.875 980,000 500 Fisher Scientific International, Inc., Rule 144A, Senior Subordinated Notes (Callable 07/01/10 @ $103.06) ++ss. (BB+ , Ba2) 07/01/15 6.125 498,750 500 Hanger Orthopedic Group, Inc., Company Guaranteed Global Notes (Callable 02/15/06 @ $105.19) ss. (CCC+ , B3) 02/15/09 10.375 496,250 1,150 HCA, Inc., Notes (BB+ , Ba2) 10/01/12 6.300 1,137,450 717 Magellan Health Services, Inc., Series A, Senior Notes (Callable 11/15/05 @ $104.69) (B+ , B3) 11/15/08 9.375 755,830 1,000 Medquest, Inc., Series B, Global Company Guaranteed Notes (Callable 08/15/07 @ $105.94) (CCC+ , Caa1) 08/15/12 11.875 992,500 See Accompanying Notes to Financial Statements. 5 CREDIT SUISSE HIGH YIELD BOND FUND SCHEDULE OF INVESTMENTS (CONTINUED) October 31, 2005 - ------------------------------------------------------------------------------------------------------------------------------------ PAR RATINGS+ (000) (S&P/MOODY'S) MATURITY RATE% VALUE ----- ------------- -------- ----- ----- U.S. CORPORATE BONDS HEALTHCARE FACILITIES/SUPPLIES $ 1,500 MQ Associates, Inc., Global Senior Discount Notes (Callable 08/15/08 @ $109.00) + (CCC+ , Caa2) 08/15/12 0.000 $ 892,500 750 Tenet Healthcare Corp., Global Senior Notes (B , B3) 07/01/14 9.875 729,375 500 Tenet Healthcare Corp., Rule 144A, Senior Notes ++ss. (B , B3) 02/01/15 9.250 476,250 1,740 Triad Hospitals, Inc., Senior Notes (Callable 05/15/08 @ $103.50) (BB- , B2) 05/15/12 7.000 1,774,800 1,000 Triad Hospitals, Inc., Senior Subordinated Notes (Callable 11/15/08 @ $103.50) (B+ , B3) 11/15/13 7.000 1,005,000 750 Universal Hospital Services, Inc., Global Senior Notes (Callable 11/01/07 @ $105.06) (B- , B3) 11/01/11 10.125 755,625 1,000 Vanguard Health Holding Company LLC, Global Senior Subordinated Notes (Callable 10/01/09 @ $104.50) (CCC+ , Caa1) 10/01/14 9.000 1,047,500 ------------- 14,386,080 ------------- HOME BUILDERS (3.4%) 650 D. R. Horton, Inc., Company Guaranteed Notes (BB+ , Ba1) 01/15/16 5.625 608,541 450 K Hovnanian Enterprises, Inc., Global Company Guaranteed Notes (BB , Ba1) 01/15/16 6.250 403,764 900 KB Home, Senior Notes (BB+ , Ba1) 06/15/15 6.250 851,212 1,775 KB Home, Senior Subordinated Notes (BB- , Ba2) 12/15/08 8.625 1,879,407 500 Standard Pacific Corp., Global Senior Notes (BB , Ba2) 08/15/15 7.000 452,500 500 Stanley Martin Communities, Rule 144A, Company Guaranteed Notes (Callable 08/15/10 @ $104.88) ++ (B- , B3) 08/15/15 9.750 462,500 350 Technical Olympic USA, Inc., Global Senior Subordinated Notes (B- , B2) 01/15/15 7.500 292,250 700 Toll Corp., Senior Subordinated Notes (Callable 12/01/06 @ $104.12) (BB+ , Ba2) 12/01/11 8.250 743,750 1,000 WCI Communities, Inc., Global Company Guaranteed Notes (Callable 05/01/07 @ $104.56) (B+ , Ba3) 05/01/12 9.125 1,010,000 1,000 William Lyon Homes, Inc., Company Guaranteed Notes (Callable 04/01/08 @ $105.38) (B , B2) 04/01/13 10.750 1,052,500 ------------- 7,756,424 ------------- INDUSTRIAL (1.6%) 1,000 Altra Industrial Motion, Inc., Rule 144A, Secured Notes (Callable 12/01/08 @ $104.50) ++# (CCC+ , B3) 12/01/11 9.500 975,000 1,000 Amsted Industries, Inc., Rule 144A, Senior Notes (Callable 10/15/07 @ $105.12) ++ (B , B3) 10/15/11 10.250 1,075,000 450 Amtrol, Inc., Senior Subordinated Notes ss. (CCC- , Caa3) 12/31/06 10.625 414,000 200 Coleman Cable, Inc., Global Company Guaranteed Notes (Callable 10/01/08 @ $104.94) (B- , B3) 10/01/12 9.875 181,000 1,000 Polypore, Inc., Global Senior Subordinated Notes (Callable 05/15/08 @ $104.38) (CCC+ , Caa1) 05/15/12 8.750 885,000 ------------- 3,530,000 ------------- LEISURE (3.3%) 1,355 Affinity Group, Inc., Global Senior Subordinated Notes (Callable 02/15/08 @ $105.44) (B- , Caa1) 02/15/12 10.875 1,253,718 2,000 AMC Entertainment, Inc., Global Senior Subordinated Notes (Callable 03/01/09 @ $104.00) ss. (CCC+ , B3) 03/01/14 8.000 1,740,000 250 Bally Total Fitness Holding Corp., Global Senior Notes (Callable 07/15/07 @ $105.25) (CCC- , Caa1) 07/15/11 10.500 255,313 500 Bluegreen Corp., Series B, Company Guaranteed Notes (Callable 04/01/06 @ $100.00) (B- , B3) 04/01/08 10.500 507,500 1,150 Cinemark, Inc., Global Senior Discount Notes (Callable 03/15/09 @ $104.88) + (B- , Caa1) 03/15/14 0.000 819,375 1,000 Icon Health & Fitness, Inc., Global Company Guaranteed Notes (Callable 04/01/07 @ $105.62) ss. (CCC- , Caa3) 04/01/12 11.250 805,000 950 Six Flags, Inc., Global Senior Notes (Callable 02/01/06 @ $104.44) ss. (CCC , Caa1) 02/01/10 8.875 947,625 1,050 Six Flags, Inc., Global Senior Notes (Callable 06/01/09 @ $104.81) (CCC , Caa1) 06/01/14 9.625 1,044,750 ------------- 7,373,281 ------------- LODGING (0.4%) 500 Host Marriott LP, Global Senior Notes (Callable 11/01/08 @ 103.56) ss. (BB- , Ba2) 11/01/13 7.125 509,375 525 Host Marriott LP, Series O, Global Company Guaranteed Notes (Callable 03/15/10 @ $103.19) (B+ , Ba2) 03/15/15 6.375 511,875 ------------- 1,021,250 ------------- METALS & MINING (3.8%) 1,000 AK Steel Corp., Global Company Guaranteed Notes (Callable 06/15/07 @ $103.88) ss. (B+ , B1) 06/15/12 7.750 905,000 1,000 Aleris International, Inc., Global Company Guaranteed Notes (Callable 11/15/09 @ $104.50) (B- , NR) 11/15/14 9.000 1,025,000 1,600 Alpha Natural Resources LLC, Global Company Guaranteed Notes (Callable 06/01/08 @ $105.00) # (B- , B3) 06/01/12 10.000 1,768,000 1,000 Edgen Acquisition Corp., Global Secured Notes (B- , B3) 02/01/11 9.875 1,005,000 1,100 International Steel Group, Inc., Global Senior Notes ss. (BB , Ba2) 04/15/14 6.500 1,086,250 725 Southern Peru Copper Corp., Rule 144A, Notes ++ (BBB- , Ba1) 07/27/35 7.500 695,951 1,000 UCAR Finance, Inc., Global Company Guaranteed Notes (Callable 02/15/07 @ $105.12) (B- , B2) 02/15/12 10.250 1,060,000 See Accompanying Notes to Financial Statements. 6 CREDIT SUISSE HIGH YIELD BOND FUND SCHEDULE OF INVESTMENTS (CONTINUED) October 31, 2005 - ------------------------------------------------------------------------------------------------------------------------------------ PAR RATINGS+ (000) (S&P/MOODY'S) MATURITY RATE% VALUE ----- ------------- -------- ----- ----- U.S. CORPORATE BONDS METALS & MINING $ 750 WCI Steel, Inc., Series B, Senior Secured Notes 0 (NR , NR) 12/01/49 10.000 $ 408,750 1,000 Wise Metals Group LLC, Global Secured Notes (Callable 05/15/08 @ $105.13) ss. (CCC+ , Caa1) 05/15/12 10.250 730,000 ------------- 8,683,951 ------------- PAPER & FOREST PRODUCTS (3.7%) 1,000 Appleton Papers, Inc., Series B, Senior Subordinated Notes (Callable 06/15/09 @ $104.88) (B+ , B3) 06/15/14 9.750 945,000 1,000 Caraustar Industries, Inc., Global Company Guaranteed Notes (Callable 04/01/06 @ $105.25) ss. (B- , Caa1) 04/01/11 9.875 985,000 1,000 Cellu Tissue Holdings, Secured Notes (Callable 03/15/07 @ $107.31) (B , B2) 03/15/10 9.750 975,000 1,200 Georgia-Pacific Corp., Global Company Guaranteed Notes (BB+ , Ba1) 02/01/10 8.875 1,320,000 1,300 Georgia-Pacific Corp., Global Company Guaranteed Notes (Callable 02/01/08 @ $104.69) (BB+ , Ba1) 02/01/13 9.375 1,439,750 750 Georgia-Pacific Corp., Global Senior Notes (BB+ , Ba2) 01/15/24 8.000 802,500 2,300 Newark Group, Inc., Global Senior Subordinated Notes (Callable 03/15/09 @ $104.88) (B- , Caa1) 03/15/14 9.750 1,989,500 ------------- 8,456,750 ------------- PHARMACEUTICALS (0.3%) 700 Athena Neurosciences Finance LLC, Company Guaranteed Notes ss. (B , B3) 02/21/08 7.250 679,000 ------------- PUBLISHING (4.4%) 1,250 CBD Media Holdings, Global Senior Notes (Callable 07/15/08 @ $104.63) ss. (CCC+ , Caa2) 07/15/12 9.250 1,243,750 800 Dex Media West LLC, Global Senior Notes (Callable 11/15/08 @ $102.94) (B , B1) 11/15/11 5.875 806,000 500 Dex Media, Inc., Global Discount Notes (Callable 11/15/08 @ $104.50) + (B , B3) 11/15/13 0.000 390,000 1,500 Dex Media, Inc., Global Discount Notes (Callable 11/15/08 @ $104.50) + (B , B3) 11/15/13 0.000 1,170,000 400 Dex Media, Inc., Global Notes (Callable 11/15/08 @ $104.00) (B , B3) 11/15/13 8.000 409,000 1,200 Haights Cross Operating Co., Global Company Guaranteed Notes (Callable 08/15/08 @ $105.88) (CCC , Caa1) 08/15/11 11.750 1,308,000 1,000 Houghton Mifflin Co., Global Senior Discount Notes (Callable 10/15/08 @ $105.75) +ss. (B- , Caa2) 10/15/13 0.000 730,000 350 Houghton Mifflin Co., Global Senior Notes (Callable 02/01/07 @ $104.12) (B- , B3) 02/01/11 8.250 359,625 500 Morris Publishing Group LLC, Global Company Guaranteed Notes (Callable 08/01/08 @ $103.50) (B+ , B1) 08/01/13 7.000 493,750 500 Primedia, Inc., Global Senior Notes (Callable 05/15/08 @ $104.00) (B , B2) 05/15/13 8.000 458,750 1,000 Sheridan Acquisition Corp., Global Secured Notes (Callable 08/15/07 @ $105.12) (B , B1) 08/15/11 10.250 1,045,000 1,650 WDAC Subsidiary Corp., Rule 144A, Senior Notes (Callable 12/01/09 @ $104.19) ++ss. (CCC+ , Caa1) 12/01/14 8.375 1,563,375 ------------- 9,977,250 ------------- RESTAURANTS (2.6%) 600 Buffets, Inc., Global Senior Subordinated Notes (Callable 07/15/06 @ $105.62) ss. (CCC , B3) 07/15/10 11.250 603,000 1,350 Denny's Corp., Global Company Guaranteed Notes (Callable 10/01/08 @ $105.00) ss. (CCC+ , Caa1) 10/01/12 10.000 1,326,375 750 El Pollo Loco, Inc., Global Secured Notes (Callable 12/15/06 @ $104.63) (B- , B2) 12/15/09 9.250 821,625 250 Friendly Ice Cream Corp., Global Senior Notes (Callable 06/15/08 @ $104.19) (B- , B2) 06/15/12 8.375 231,250 1,000 O'Charleys, Inc., Global Senior Subordinated Notes (Callable 11/01/08 @ $104.50) (B , Ba3) 11/01/13 9.000 1,042,500 1,083 Romacorp. Inc., Senior Notes (NR , NR) 12/31/08 10.500 324,972 550 Sbarro, Inc., Company Guaranteed Notes (Callable 09/15/06 @ $101.83) (CCC+ , Caa2) 09/15/09 11.000 539,000 1,000 Uno Restaurant Corp., Rule 144A, Senior Notes (Callable 02/15/08 @ $110.00) ++ (B- , B3) 02/15/11 10.000 895,000 ------------- 5,783,722 ------------- RETAIL-FOOD & DRUG (2.8%) 625 Delhaize America, Inc., Global Company Guaranteed Notes (BB+ , Ba1) 04/15/11 8.125 670,601 1,750 Duane Reade, Inc., Global Senior Subordinated Notes (Callable 08/01/08 @ $104.88) ss. (CCC+ , Caa3) 08/01/11 9.750 1,295,000 600 General Nutrition Center, Global Company Guaranteed Notes (Callable 01/15/08 @ $104.31) (B- , B3) 01/15/11 8.625 571,500 1,000 Gregg Appliances, Inc., Rule 144A, Senior Notes (Callable 02/01/09 @ $104.50) ++ (B , B2) 02/01/13 9.000 905,000 1,000 Pathmark Stores, Inc., Global Company Guaranteed Notes (Callable 02/01/07 @ $104.38) (CCC+ , Caa1) 02/01/12 8.750 945,000 1,000 Rite Aid Corp., Global Company Guaranteed Notes (Callable 01/15/10 @ $103.75) (B+ , B2) 01/15/15 7.500 930,000 500 Roundy's, Inc., Series B, Global Company Guaranteed Notes (Callable 06/15/07 @ $104.44) ss. (NR , NR) 06/15/12 8.875 551,190 450 Stater Brothers Holdings, Inc., Global Senior Notes (Callable 06/15/08 @ $104.06) ss. (BB- , B1) 06/15/12 8.125 442,125 ------------- 6,310,416 ------------- See Accompanying Notes to Financial Statements. 7 CREDIT SUISSE HIGH YIELD BOND FUND SCHEDULE OF INVESTMENTS (CONTINUED) October 31, 2005 - ------------------------------------------------------------------------------------------------------------------------------------ PAR RATINGS+ (000) (S&P/MOODY'S) MATURITY RATE% VALUE ----- ------------- -------- ----- ----- U.S. CORPORATE BONDS RETAIL STORES (3.9%) $ 700 Asbury Automotive Group, Inc., Global Company Guaranteed Notes (Callable 06/15/07 @ $104.50) (B , B3) 06/15/12 9.000 $ 694,750 500 Brookstone Company, Inc., Rule 144A, Secured Notes (Callable 10/15/09 @ $106.00) ++ (B , B3) 10/15/12 12.000 482,500 1,000 CSK Auto, Inc., Global Company Guaranteed Notes (Callable 01/15/09 @ $103.50) (B- , B2) 01/15/14 7.000 940,000 500 Finlay Fine Jewelry Corp., Global Senior Notes (Callable 06/01/08 @ $104.19) ss. (B , B2) 06/01/12 8.375 427,500 675 GSC Holdings Corp., Rule 144A, Global Company Guaranteed Notes (Callable 10/01/09 @ $104.00) ++ss. (B+ , Ba3) 10/01/12 8.000 659,813 500 Intcomex, Inc., Rule 144A, Secured Notes (Callable 01/15/07 @ $106.00) ++ (B- , Caa1) 01/15/11 11.750 500,000 950 JC Penney Company, Inc., Series MTNA, Notes (BB+ , Ba1) 10/15/15 6.875 994,707 1,045 Movie Gallery, Inc., Global Senior Unsecured Notes (Callable 05/01/08 @ $105.50) (CCC+ , B3) 05/01/12 11.000 841,225 500 Nebraska Book Company, Inc., Global Senior Subordinated Notes (Callable 03/15/08 @ $104.31) (CCC+ , Caa1) 03/15/12 8.625 470,000 565 Neiman Marcus Group, Inc., Rule 144A, Senior Subordinated Notes (Callable 10/15/10 @ $105.19) ++ (B- , B3) 10/15/15 10.375 548,050 1,400 Southern States Cooperative, Inc., Rule 144A, Senior Notes (Callable 11/01/07 @ $108.00) ++ (B , B3) 11/01/10 10.500 1,480,500 750 United Auto Group, Inc., Global Company Guaranteed Notes (Callable 03/15/07 @ $104.81) ss. (B , B3) 03/15/12 9.625 782,812 ------------- 8,821,857 ------------- SATELLITE (0.9%) 1,000 EchoStar DBS Corp., Global Company Guaranteed Notes (BB- , Ba3) 10/01/14 6.625 975,000 1,000 PanAmSat Corp., Global Company Guaranteed Notes (Callable 08/15/09 @ $104.50) ss. (B+ , B1) 08/15/14 9.000 1,057,500 ------------- 2,032,500 ------------- SECONDARY OIL & GAS PRODUCERS (1.4%) 700 Chesapeake Energy Corp., Global Company Guaranteed Notes (Callable 07/15/10 @ $103.13) ss. (BB , Ba2) 01/15/18 6.250 682,500 1,093 Chesapeake Energy Corp., Senior Notes (Callable 01/15/09 @ $103.44) (BB , Ba2) 01/15/16 6.875 1,112,128 423 Magnum Hunter Resources, Inc., Global Company Guaranteed Notes (Callable 03/15/07 @ $104.80) (B+ , Ba3) 03/15/12 9.600 458,955 200 Range Resources Corp., Global Company Guaranteed Notes (Callable 03/15/10 @ $103.19) (B , B3) 03/15/15 6.375 199,000 600 Whiting Petroleum Corp., Global Senior Subordinated Notes (Callable 05/01/08 @ $103.63) (B- , B2) 05/01/12 7.250 607,500 ------------- 3,060,083 ------------- SERVICES-OTHER (6.0%) 400 Advanstar Communications, Inc., Global Secured Notes (Callable 02/15/08 @ $105.38) (B , B3) 08/15/10 10.750 445,000 1,250 Allied Security Escrow Corp., Global Senior Subordinated Notes (Callable 07/15/08 @ $105.69) (B- , Caa1) 07/15/11 11.375 1,199,160 1,150 American Color Graphics, Global Notes (Callable 06/15/07 @ $105.00) ss. (CCC , Caa3) 06/15/10 10.000 767,625 250 Cardtronics, Inc., Rule 144A, Senior Subordinated Notes (Callable 08/15/09 @ 104.63) ++ (B- , Caa1) 08/15/13 9.250 253,750 1,000 DynCorp International, Rule 144A, Senior Subordinated Notes (Callable 02/15/09 @ $104.75) ++ (B- , Caa1) 02/15/13 9.500 1,042,500 1,000 HydroChem Industrial Services, Inc., Rule 144A, Senior Subordinated Notes (Callable 02/15/09 @ $104.63) ++ (CCC+ , Caa1) 02/15/13 9.250 920,000 1,000 Integrated Alarm Services Group, Inc., Rule 144A, Secured Notes (Callable 11/15/08 @ $106.00) ++# (B- , B3) 11/15/11 12.750 1,005,000 750 Iron Mountain, Inc., Company Guaranteed Notes (Callable 04/01/06 @ $104.31) (B , Caa1) 04/01/13 8.625 785,625 250 Iron Mountain, Inc., Company Guaranteed Notes (Callable 07/01/08 @ $103.31) (B , Caa1) 01/01/16 6.625 231,250 980 La Petite Academy, Inc., Series B, Company Guaranteed Notes (Callable 05/15/06 @ $100.00) ss. (CC , Ca) 05/15/08 10.000 764,400 750 Language Line, Inc., Global Senior Notes (Callable 06/15/08 @ 105.56) (CCC+ , Caa1) 06/15/12 11.125 641,250 250 Mac-Gray Corp., Rule 144A, Senior Notes (Callable 08/15/10 @ $103.81) ++ (BB- , B1) 08/15/15 7.625 253,750 1,000 Mortons Restaurant Group, Inc., Global Secured Notes (Callable 07/01/07 @ $105.30) ss. (B- , B2) 07/01/10 7.500 987,500 1,000 Muzak LLC/Muzak Finance Corp., Global Senior Notes (Callable 02/15/06 @ $105.00) (CCC- , Caa2) 02/15/09 10.000 860,000 1,000 National Beef Packing Company LLC, Global Senior Notes (Callable 08/01/07 @ $105.25) (B- , B3) 08/01/11 10.500 1,037,500 500 Rent-A-Center, Inc., Series B, Global Company Guaranteed Notes (Callable 05/01/06 @ $103.75) ss. (BB- , B1) 05/01/10 7.500 478,750 440 United Rentals North America, Inc., Global Company Guaranteed Notes (Callable 02/15/08 @ $103.25) (BB- , B3) 02/15/12 6.500 424,050 500 United Rentals North America, Inc., Global Senior Subordinated Notes (Callable 02/15/09 @ $103.50) ss. (B+ , Caa1) 02/15/14 7.000 462,500 900 Williams Scotsman, Inc., Rule 144A, Senior Notes (Callable 10/01/10 @ $104.25) ++ (B , B3) 10/01/15 8.500 918,000 ------------- 13,477,610 ------------- TECHNOLOGY (3.5%) 1,000 Advanced Micro Devices, Inc., Global Senior Notes (Callable 11/01/08 @ $103.88) (B- , B3) 11/01/12 7.750 1,005,000 1,400 Amkor Technology, Inc., Global Senior Notes (Callable 05/15/08 @ $103.88) ss. (B- , Caa1) 05/15/13 7.750 1,200,500 170 Ampex Corp., Secured Notes ^ (NR , NR) 08/15/08 12.000 170,129 1,000 Itron, Inc., Global Senior Subordinated Notes (Callable 05/15/08 @ $103.88) (B , B2) 05/15/12 7.750 1,025,000 See Accompanying Notes to Financial Statements. 8 CREDIT SUISSE HIGH YIELD BOND FUND SCHEDULE OF INVESTMENTS (CONTINUED) October 31, 2005 - ------------------------------------------------------------------------------------------------------------------------------------ PAR RATINGS+ (000) (S&P/MOODY'S) MATURITY RATE% VALUE ----- ------------- -------- ----- ----- U.S. CORPORATE BONDS TECHNOLOGY $ 1,000 Sanmina-SCI Corp., Global Company Guaranteed Notes (Callable 01/15/07 @ $105.19) (BB- , Ba2) 01/15/10 10.375 $1,100,000 1,000 SunGard Data Systems, Inc., Rule 144A, Senior Subordinated Notes (Callable 08/15/10 @ $105.13) ++ss. (B- , Caa1) 08/15/15 10.250 996,250 1,000 Viasystems, Inc., Global Senior Subordinated Notes (Callable 01/15/08 @ $105.25) (CCC+ , Caa2) 01/15/11 10.500 960,000 1,350 Xerox Corp., Senior Notes (Callable 06/15/08 @ $103.81) (BB- , Ba2) 06/15/13 7.625 1,424,250 ------------- 7,881,129 ------------- TEXTILE/APPAREL/SHOE MANUFACTURING (2.7%) 2,797 BGF Industries, Inc., Series B, Senior Subordinated Notes (Callable 01/15/06 @ $101.75) (CCC- , Ca) 01/15/09 10.250 2,587,225 1,000 Levi Strauss & Co., Global Senior Notes (Callable 01/15/10 @ $104.88) (B- , Caa2) 01/15/15 9.750 1,015,000 1,200 Levi Strauss & Co., Global Senior Notes (Callable 12/15/07 @ $106.12) (B- , Caa2) 12/15/12 12.250 1,323,000 400 Phillips-Van Heusen Corp., Global Senior Notes (Callable 02/15/08 @ $103.62) (BB , B1) 02/15/11 7.250 406,000 950 Propex Fabrics, Inc., Global Company Guaranteed Notes (Callable 12/01/08 @ $105.00) (B- , Caa1) 12/01/12 10.000 830,062 ------------- 6,161,287 ------------- TOWER (0.9%) 1,000 American Tower Corp., Class A, Global Senior Notes (Callable 10/15/08 @ $103.56) ss. (BB- , B1) 10/15/12 7.125 1,036,250 1,018 SBA Telecommunications, Inc., Global Senior Discount Notes (Callable 12/15/07 @ $104.88) + (B- , B3) 12/15/11 0.000 923,835 ------------- 1,960,085 ------------- TRANSPORTATION/OTHER (0.4%) 1,000 H-Lines Finance Holding Corp., Global Senior Discount Notes (Callable 04/01/08 @ $105.50) + (CCC+ , Caa2) 04/01/13 0.000 827,500 ------------- UTILITIES (6.5%) 1,000 AES Corp., Rule 144A, Secured Notes (Callable 05/15/08 @ $104.50) ++ (B+ , Ba3) 05/15/15 9.000 1,090,000 1,000 Allegheny Energy Supply Company LLC, Global Notes (B , Ba3) 03/15/11 7.800 1,080,000 1,100 Aquila, Inc., Senior Notes (B- , B2) 11/15/09 7.625 1,133,000 2,250 Calpine Corp., Rule 144A, Secured Notes (Callable 07/15/08 @ $104.38) ++ss. (B- , NR) 07/15/13 8.750 1,569,375 1,000 Calpine Corp., Senior Notes ss. (CCC , Caa3) 02/15/11 8.500 475,000 2,500 Calpine Generating Company LLC, Global Secured Notes (Callable 04/01/08 @ $103.50) # (B- , B3) 04/01/10 9.610 2,537,500 1,000 CMS Energy Corp., Global Senior Notes (B+ , B1) 07/15/08 8.900 1,075,000 800 CMS Energy Corp., Global Senior Notes (B+ , B1) 08/01/10 7.750 848,000 350 Edison Mission Energy, Global Senior Notes (B+ , B1) 08/15/08 10.000 385,875 1,300 Edison Mission Energy, Senior Notes (B+ , B1) 06/15/09 7.730 1,355,250 1,000 Midwest Generation LLC, Global Secured Notes (Callable 05/01/09 @ $104.38) (B , B1) 05/01/34 8.750 1,100,000 1,100 Mirant Corp., Rule 144A, Senior Notes ++0 (NR , NR) 07/15/04 7.400 1,281,500 186 NRG Energy, Inc., Global Company Guaranteed Notes (Callable 12/15/08 @ $104.00) (B , B1) 12/15/13 8.000 203,670 500 Sierra Pacific Resources, Global Senior Notes (Callable 03/15/09 @ $104.31) (B- , B1) 03/15/14 8.625 547,500 ------------- 14,681,670 ------------- WIRELESS (6.6%) 450 AirGate PCS, Inc., Rule 144A, Secured Notes (Callable 01/01/06 @ $104.69) ++ss. (CCC , Caa1) 09/01/09 9.375 472,395 600 AirGate PCS, Inc., Secured Note (Callable 01/01/06 @ $104.69) ss. (CCC , Caa1) 09/01/09 9.375 630,000 525 American Cellular Corp., Series B, Global Senior Notes (Callable 08/01/07 @ $105.00) (B- , B3) 08/01/11 10.000 569,625 650 Centennial Communications Corp., Global Company Guaranteed Notes (Callable 06/15/08 @ $105.06) (CCC , B3) 06/15/13 10.125 729,625 1,950 Centennial Communications Corp., Global Senior Notes (Callable 02/01/09 @ $104.06) # (CCC , B3) 02/01/14 8.125 2,028,000 495 Dobson Cellular Systems, Global Secured Notes (Callable 11/01/08 @ $104.94) (CCC , B2) 11/01/12 9.875 537,075 1,150 Dobson Communications Corp., Global Senior Notes (Callable 10/01/08 @ $104.44) (CCC , Caa2) 10/01/13 8.875 1,129,875 750 Horizon PCS, Inc., Global Company Guaranteed Notes (Callable 07/15/08 @ $105.69) (CCC , B3) 07/15/12 11.375 847,500 850 iPCS, Inc., Global Senior Notes (Callable 05/01/08 @ $105.75) (CCC , B3) 05/01/12 11.500 956,250 500 Nextel Communications, Inc., Series D, Senior Notes (Callable 08/01/08 @ $103.69) ss. (A- , Baa2) 08/01/15 7.375 529,660 1,100 Nextel Partners, Inc., Global Senior Notes (Callable 07/01/07 @ $104.06) ss. (BB- , Ba3) 07/01/11 8.125 1,179,750 1,250 Rural Cellular Corp., Global Senior Subordinated Notes (Callable 01/15/06 @ $104.88) ss. (CCC , Caa2) 01/15/10 9.750 1,250,000 2,000 Triton PCS, Inc., Global Company Guaranteed Notes (Callable 06/01/08 @ $104.25) ss. (CCC- , Caa1) 06/01/13 8.500 1,880,000 2,000 Ubiquitel Operating Co., Global Senior Notes (Callable 03/01/07 @ $107.41) (CCC , Caa1) 03/01/11 9.875 2,195,000 ------------- 14,934,755 ------------- TOTAL U.S. CORPORATE BONDS (Cost $298,301,115) 292,572,213 ------------- See Accompanying Notes to Financial Statements. 9 CREDIT SUISSE HIGH YIELD BOND FUND SCHEDULE OF INVESTMENTS (CONTINUED) October 31, 2005 - ------------------------------------------------------------------------------------------------------------------------------------ PAR RATINGS+ (000) (S&P/MOODY'S) MATURITY RATE% VALUE ----- ------------- -------- ----- ----- FOREIGN CORPORATE BONDS (10.0%) AUTOMOBILE MANUFACTURING/VEHICLE PARTS (0.4%) $ 800 Bombardier Recreational Products, Global Senior Subordinated Notes (Callable 12/15/08 @ $104.19) (Canada) (B- , B3) 12/15/13 8.375 $ 820,000 ------------- BROADBAND (0.3%) 650 Global Crossing UK Finance, Company Guaranteed Notes (Callable 12/15/09 @ $105.38) (United Kingdom) (B- , Caa1) 12/15/14 10.750 578,500 ------------- BUILDING PRODUCTS (0.2%) 1,250 Maax Holdings, Inc., Global Senior Discount Notes (Callable 12/15/08 @ $105.62) (Canada) + (CCC+ , Caa1) 12/01/12 0.000 500,000 ------------- CABLE (1.0%) 1,050 Kabel Deutschland GmbH, Rule 144A, Senior Notes (Callable 07/01/09 @ $105.31) (Germany) ++ (B- , B2) 07/01/14 10.625 1,135,313 1,350 Telenet Group Holding NV, Rule 144A, Discount Notes (Callable 12/15/08 @ $105.75) (Belgium) +++ (CCC+ , Caa2) 06/15/14 0.000 1,080,000 ------------- 2,215,313 ------------- CHEMICALS (0.6%) 1,350 Rhodia SA, Global Senior Notes (France) (CCC+ , B3) 06/01/10 10.250 1,444,500 ------------- CONTAINERS (0.6%) 1,250 Crown European Holdings SA, Global Secured Notes (Callable 03/01/07 @ $104.75) (France) (B+ , B1) 03/01/11 9.500 1,375,000 ------------- GAMING (0.1%) 175 Kerzner International, Ltd., Rule 144A, Global Senior Subordinated Notes (Callable 10/01/10 @ $103.38) (Bahamas) ++ (B , B2) 10/01/15 6.750 167,125 ------------- INDUSTRIAL (0.0%) 1,021 International Utility Structures, Inc., Yankee Senior Subordinated Notes (Callable 02/01/06 @ $100.00) (Canada) ^0 (NR , NR) 02/01/08 10.750 0 ------------- LEISURE (0.5%) 1,000 NCL Corporation, Ltd., Rule 144A, Senior Notes (Callable 07/15/09 @ $105.31) (Bermuda) ++# (B+ , B2) 07/15/14 11.625 1,032,500 ------------- METALS & MINING (0.8%) 1,000 Gerdau Ameristeel Corp., Global Senior Notes (Callable 07/15/07 @ $105.38) (Canada) (BB- , Ba3) 07/15/11 10.375 1,097,500 650 Ispat Inland ULC, Global Secured Notes (Callable 04/01/09 @ $104.88) (Canada) (BBB+ , Ba1) 04/01/14 9.750 737,750 ------------- 1,835,250 ------------- PAPER & FOREST PRODUCTS (1.8%) 500 Abitibi-Consolidated, Inc., Global Notes (Canada) ss. (BB- , Ba3) 06/15/11 7.750 466,250 650 Abitibi-Consolidated, Inc., Yankee Senior Notes (Canada) ss. (BB- , Ba3) 04/01/15 8.375 601,250 750 Fraser Papers, Inc., Rule 144A, Senior Notes (Callable 03/15/10 @ $104.38) (Canada) ++ (B , B3) 03/15/15 8.750 656,250 750 JSG Funding PLC, Global Senior Notes (Callable 10/01/07 @ $104.81) (Ireland) (B- , B3) 10/01/12 9.625 723,750 1,000 JSG Funding PLC, Global Senior Subordinated Notes (Callable 01/31/10 @ $103.88) (Ireland) ss. (B- , Caa1) 04/01/15 7.750 805,000 1,200 Tembec Industries, Inc., Yankee Company Guaranteed Notes (Callable 06/30/06 @ $101.44) (Canada) ss. (CCC+ , B3) 06/30/09 8.625 816,000 ------------- 4,068,500 ------------- PHARMACEUTICALS (0.2%) 500 Biovail Corp., Yankee Senior Subordinated Notes (Callable 04/01/06 @ 103.94) (Canada) (BB- , B2) 04/01/10 7.875 518,125 ------------- RETAIL-FOOD & DRUG (0.4%) 1,000 Jean Coutu Group (PJC), Inc., Global Senior Subordinated Notes (Callable 08/01/09 @ $104.25) (Canada) (B- , Caa1) 08/01/14 8.500 932,500 ------------- SATELLITE (1.0%) 1,000 Intelsat Bermuda, Ltd., Rule 144A, Senior Notes (Callable 07/15/06 @ $101.00) (Bermuda) ++# (B+ , B2) 01/15/12 8.695 1,017,500 1,700 New Asat, Ltd., Global Company Guaranteed Notes (Callable 02/01/08 @ $104.63) (Cayman Islands) (B- , B3) 02/01/11 9.250 1,139,000 ------------- 2,156,500 ------------- See Accompanying Notes to Financial Statements. 10 CREDIT SUISSE HIGH YIELD BOND FUND SCHEDULE OF INVESTMENTS (CONTINUED) October 31, 2005 - ------------------------------------------------------------------------------------------------------------------------------------ PAR RATINGS+ (000) (S&P/MOODY'S) MATURITY RATE% VALUE ----- ------------- -------- ----- ----- FOREIGN CORPORATE BONDS TECHNOLOGY (0.4%) $ 550 Celestica, Inc., Senior Subordinated Notes (Callable 07/01/08 @ $103.94) (Canada) (B , B2) 07/01/11 7.875 $ 547,250 450 Flextronics International, Ltd., Global Senior Subordinated Notes (Callable 11/15/09 @ $103.13) (Singapore) ss. (BB- , Ba2) 11/15/14 6.250 438,750 ------------- 986,000 ------------- TRANSPORTATION/OTHER (1.1%) 445 Sea Containers, Ltd., Series B, Yankee Senior Notes (Bermuda) ss. (B , B3) 02/15/08 7.875 427,200 1,750 Ship Finance International, Ltd., Global Senior Notes (Callable 12/15/08 @ $104.25) (Bermuda) (B , B1) 12/15/13 8.500 1,677,812 500 Titan Petrochemicals Group, Ltd., Rule 144A, Company Guaranteed Notes (Bermuda) ++ (B+ , B1) 03/18/12 8.500 475,000 ------------- 2,580,012 ------------- WIRELESS (0.6%) 750 Millicom International Cellular SA, Global Senior Notes (Callable 12/01/08 @ $105.00) (Luxembourg) # (B- , B3) 12/01/13 10.000 776,250 500 Rogers Wireless Communications, Inc., Global Secured Notes (Canada) (BB , Ba3) 03/15/15 7.500 538,750 ------------- 1,315,000 ------------- TOTAL FOREIGN CORPORATE BONDS (Cost $24,215,034) 22,524,825 ------------- NUMBER OF SHARES ------------ COMMON STOCKS (0.8%) AUTOMOBILE MANUFACTURING/VEHICLE PARTS (0.0%) 774,557 Cambridge Industries Liquidating Trust ^* 0 ------------- CHEMICALS (0.1%) 4,893 Huntsman Corp. * 97,273 ------------- FOOD PROCESSORS/BEVERAGE/BOTTLING (0.4%) 845 Crunch Equity Holdings, Class A * 908,341 ------------- HEALTHCARE FACILITIES/SUPPLIES (0.0%) 464 Magellan Health Services, Inc. * 13,795 ------------- WIRELESS (0.3%) 99,764 Dobson Communications Corp., Class A * 727,279 ------------- TOTAL COMMON STOCKS (Cost $2,097,651) 1,746,688 ------------- WARRANTS (0.0%) BROADBAND (0.0%) 6,750 GT Group Telecom, Inc., Rule 144A, strike price $0.00 expires 02/01/10 ++^* 0 5,980 Ono Finance PLC, expires 05/31/09 * 60 ------------- 60 ------------- DIVERSIFIED TELECOMMUNICATIONS (0.0%) 3,000 Versatel Telecom International NV, strike price $2.81, expires 05/15/08 * 2,426 ------------- GAMING (0.0%) 106 Windsor Woodmont Black Hawk, strike price $0.01, expires 03/15/10 ^* 0 ------------- RESTAURANTS (0.0%) 336 New World Restaurant Group, Inc., strike price $13.00, expires 06/20/06 * 0 ------------- See Accompanying Notes to Financial Statements. 11 CREDIT SUISSE HIGH YIELD BOND FUND SCHEDULE OF INVESTMENTS (CONTINUED) October 31, 2005 - ------------------------------------------------------------------------------------------------------------------------------------ NUMBER OF SHARES VALUE ----------- ----- WARRANTS TECHNOLOGY (0.0%) 5,000 Asat Finance LLC, Rule 144A, strike price $18.60, expires 11/01/06 ++* $ 625 204,293 Viasystems, Inc., strike price $25.31, expires 01/31/10 ^* 2,043 ------------- 2,668 ------------- TOTAL WARRANTS (Cost $3,938,143) 5,154 ------------- SHORT-TERM INVESTMENTS (13.3%) 15,000,000 American Beacon Money Market Fund ss.ss. 15,000,000 15,000,000 Reserve Funds Primary Fund Class 8 ss.ss. 15,000,000 ------------- TOTAL SHORT-TERM INVESTMENTS (Cost $30,000,000) 30,000,000 ------------- PAR (000) ------- REPURCHASE AGREEMENTS (24.4%) $ 400 Bear Stearns & Co., 3.05%, Dated 10/31/05, due 11/01/05, proceeds at maturity $400,282, (fully collateralized by U.S. Treasury Strips, due 02/15/16, Market Value of collateral is $412,466)ss.ss. 400,248 10,416 Bear Stearns & Co., 3.94%, Dated 10/31/05, due 11/01/05, proceeds at maturity $10,416,983, (fully collateralized by U.S. Treasury Strips, due 02/15/16, Market Value of collateral is $10,717,920)ss.ss. 10,415,843 693 Bear Stearns & Co., 4.06%, Dated 10/31/05, due 11/01/05, proceeds at maturity $692,928, (fully collateralized by U.S. Treasury Strips, due 02/15/16, Market Value of collateral is $713,288)ss.ss. 692,850 43,697 Bear Stearns & Co., 4.06%, Dated 10/31/05, due 11/01/05, proceeds at maturity $43,702,049, (fully collateralized by U.S. Treasury Strips, due 02/15/16, U.S. Treasury Strips, due 02/15/20, U.S. Treasury Bonds, due 02/15/20, Market Value of collateral is $44,966,040)ss.ss. 43,697,118 ------------- TOTAL REPURCHASE AGREEMENTS (Cost $55,206,059) 55,206,059 ------------- TOTAL INVESTMENTS AT VALUE (178.1%) (Cost $413,758,002) 402,054,939 LIABILITIES IN EXCESS OF OTHER ASSETS (-78.1%) (176,295,010) ------------- NET ASSETS (100.0%) $225,759,929 =============
INVESTMENT ABBREVIATIONS MTNA = Medium Term Note, Series A NR = Not Rated - -------------------------------------------------------------------------------- + Credit ratings given by the Standard & Poor's Division of The McGraw-Hill Companies, Inc. ("S&P") and Moody's Investors Service, Inc. ("Moody's") are unaudited. ++ 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 October 31, 2005, these securities amounted to $45,918,891 or 20.34% of net assets. + Step Bond -- The interest stated is as of October 31, 2005 and will reset at a future date. 0 Bond in default. * Non-income producing security. ^ Not readily marketable; security is valued at fair value as determined in good faith by, or under the direction of, the Board of Trustees. ss. Security or portion thereof is out on loan. ss.ss. Represents security purchased with cash collateral received for securities on loan. # Variable rate obligations - The interest rate shown is the rate as of October 31, 2005. See Accompanying Notes to Financial Statements. 12 CREDIT SUISSE HIGH YIELD BOND FUND STATEMENT OF ASSETS AND LIABILITIES October 31, 2005 - --------------------------------------------------------------------------------
ASSETS Investments in securities at value, including collateral for securities on loan of $85,206,059 (Cost $413,758,002) (Note 2) .............................. $ 402,054,9391 Cash ........................................................................................... 9,802,142 Interest receivable ............................................................................ 7,790,472 Receivable for investments sold ................................................................ 2,098,558 Prepaid expenses and other assets .............................................................. 61,678 -------------- Total Assets ................................................................................ 421,807,789 -------------- LIABILITIES Investment advisory fees (Note 3) .............................................................. 268,468 Administrative fees (Note 3) ................................................................... 12,450 Loan payable (Note 4) .......................................................................... 110,000,000 Payable upon return of securities loaned (Note 2) .............................................. 85,206,059 Interest payable ............................................................................... 404,208 Trustees' fees (Note 3) ........................................................................ 17,407 Other accrued expenses payable ................................................................. 139,268 -------------- Total Liabilities ........................................................................... 196,047,860 ============== NET ASSETS Applicable to 54,839,475 shares outstanding .................................................... $ 225,759,929 ============== NET ASSETS CONSIST OF Capital stock, $0.001 par value (Note 6) ....................................................... $ 54,839 Paid-in capital (Note 6) ....................................................................... 486,589,342 Distributions in excess of net investment income ............................................... (4,620,587) Accumulated net realized loss on investments and foreign currency transactions ................. (244,560,602) Net unrealized depreciation from investments ................................................... (11,703,063) -------------- Net Assets .................................................................................. $ 225,759,929 ============== NET ASSET VALUE PER SHARE ($225,759,929 / 54,839,475) ............................................. $4.12 ===== MARKET PRICE PER SHARE ............................................................................ $4.77 =====
1 Including $70,045,447 of securities on loan. See Accompanying Notes to Financial Statements. 13
CREDIT SUISSE HIGH YIELD BOND FUND STATEMENT OF OPERATIONS For the Year Ended October 31, 2005 - -------------------------------------------------------------------------------- INVESTMENT INCOME (Note 2) Interest ....................................................................................... $ 32,902,945 Securities lending ............................................................................. 642,620 -------------- Total investment income ..................................................................... 33,545,565 -------------- EXPENSES Investment advisory fees (Note 3) .............................................................. 3,348,548 Administrative fees (Note 3) ................................................................... 217,328 Interest expense (Note 4) ...................................................................... 3,816,994 Printing fees (Note 3) ......................................................................... 175,128 Trustees' fees (Note 3) ........................................................................ 60,769 Registration fees .............................................................................. 54,909 Legal fees ..................................................................................... 45,309 Audit and tax fees ............................................................................. 42,260 Custodian fees ................................................................................. 34,813 Transfer agent fees ............................................................................ 24,482 Insurance expense .............................................................................. 8,329 Miscellaneous expense .......................................................................... 4,704 -------------- Total expenses .............................................................................. 7,833,573 -------------- Net investment income ..................................................................... 25,711,992 -------------- NET REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS AND FOREIGN CURRENCY RELATED ITEMS Net realized loss from investments ............................................................. (1,005,669) Net realized loss on foreign currency transactions ............................................. (1,678) Net change in unrealized appreciation (depreciation) from investments .......................... (18,312,612) -------------- Net realized and unrealized loss from investments and foreign currency related items ........... (19,319,959) -------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS .............................................. $ 6,392,033 ==============
See Accompanying Notes to Financial Statements. 14 CREDIT SUISSE HIGH YIELD BOND FUND STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
FOR THE YEAR FOR THE YEAR ENDED ENDED OCTOBER 31, 2005 OCTOBER 31, 2004 ---------------- ---------------- FROM OPERATIONS Net investment income .................................................... $ 25,711,992 $ 28,246,566 Net realized loss on investments and foreign currency transactions ....... (1,007,347) (4,053,958) Net change in unrealized appreciation (depreciation) on investments ...... (18,312,612) 17,042,720 --------------- -------------- Net increase in net assets resulting from operations ..................... 6,392,033 41,235,328 --------------- -------------- FROM DIVIDENDS Dividends from net investment income ..................................... (28,945,089) (30,957,053) --------------- -------------- Net decrease in net assets resulting from dividends ...................... (28,945,089) (30,957,053) --------------- -------------- FROM CAPITAL SHARE TRANSACTIONS (Note 6) Reinvestment of dividends ................................................ 3,789,959 4,990,024 --------------- -------------- Net increase in net assets from capital share transactions ............... 3,789,959 4,990,024 --------------- -------------- Net increase (decrease) in net assets .................................... (18,763,097) 15,268,299 NET ASSETS Beginning of year ........................................................ 244,523,026 229,254,727 --------------- -------------- End of year .............................................................. $ 225,759,929 $ 244,523,026 =============== ============== Distributions in excess of net investment income ......................... $ (4,620,587) $ (3,067,445) =============== ==============
See Accompanying Notes to Financial Statements. 15 CREDIT SUISSE HIGH YIELD BOND FUND STATEMENT OF CASH FLOWS For the Year Ended October 31, 2005 - --------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES Interest and securities lending income received .......................... $ 31,237,754 Operating expenses paid .................................................. (7,699,696) Purchases of long-term securities ........................................ (117,620,519) Proceeds from sales of long-term securities .............................. 124,523,593 --------------- Net cash provided by operating activities ................................... $ 30,441,132 CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from borrowings ................................................. 110,000,000 Repayment of borrowings .................................................. (109,183,006) Cash dividends paid ...................................................... (25,155,130) --------------- Net cash used in financing activities ....................................... (24,338,136) -------------- Net increase in cash ........................................................ 6,102,996 Cash -- beginning of year ................................................... 3,699,146 -------------- Cash -- end of year ......................................................... $ 9,802,142 ============== RECONCILIATION OF NET DECREASE IN NET ASSETS FROM OPERATION TO NET CASH USED IN OPERATING ACTIVITIES Net increase in net assets resulting from operations ..................... $ 6,392,033 ADJUSTMENTS TO RECONCILE NET DECREASE IN NET ASSETS FROM OPERATIONS TO NET CASH PROVIDED BY OPERATING ACTIVITIES Decrease in interest receivable .......................................... $ 651,102 Increase in accrued expenses ............................................. 10,658 Increase in interest payable ............................................. 189,027 Decrease in prepaid expenses and other assets ............................ (35,997) Decrease in advisory fees payable ........................................ (29,811) Net amortization of discount on investments .............................. (2,957,235) Purchases of long-term securities ........................................ (117,620,519) Proceeds from sales of long-term securities .............................. 124,523,593 Net change in unrealized appreciation on investments ..................... 18,312,612 Net realized loss on investments ......................................... 1,005,669 --------------- Total adjustments ................................................... 24,049,099 -------------- Net cash provided by operating activities .............................. $ 30,441,132 ============== NON-CASH ACTIVITY: Dividend reinvestments ................................................... $ 3,789,959 ==============
See Accompanying Notes to Financial Statements. 16 CREDIT SUISSE HIGH YIELD BOND FUND FINANCIAL HIGHLIGHTS - ------------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED PERIOD PER SHARE --------------------------------------------------------------------------------------- ENDED OPERATING PERFORMANCE 10/31/05 10/31/04 10/31/03 10/31/02 10/31/01 10/31/00 10/31/99 10/31/981 -------- -------- -------- -------- -------- -------- -------- -------- Net asset value, beginning of period ...... $ 4.53 $ 4.34 $ 3.53 $ 4.49 $ 6.16 $ 7.98 $ 8.36 $ 10.00 -------- -------- -------- -------- -------- -------- -------- -------- INVESTMENT ACTIVITIES Net investment income ..... 0.47 0.53 0.55 0.652 0.84 0.962 0.98 0.24 Net realized and unrealized gain (loss) on investments ........... (0.35) 0.24 0.87 (0.80) (1.63) (1.80) (0.38) (1.62) -------- -------- -------- -------- -------- -------- -------- -------- Total from investment activities .......... 0.12 0.77 1.42 (0.15) (0.79) (0.84) 0.60 (1.38) -------- -------- -------- -------- -------- -------- -------- -------- DISTRIBUTIONS Net investment income .... (0.51) (0.58) (0.61) (0.71) (0.86) (0.98) (0.98) (0.24) Return of capital ........ (0.02) -- -- (0.10) (0.02) -- -- -- -------- -------- -------- -------- -------- -------- -------- -------- Total distributions ... (0.53) (0.58) (0.61) (0.81) (0.88) (0.98) (0.98) (0.24) -------- -------- -------- -------- -------- -------- -------- -------- Offering costs charged to paid-in-capital .......... -- -- -- -- -- -- 0.003 (0.02) -------- -------- -------- -------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD ............ $ 4.12 $ 4.53 $ 4.34 $ 3.53 $ 4.49 $ 6.16 $ 7.98 $ 8.36 ======== ======== ======== ======== ======== ======== ======== ======== PER SHARE MARKET VALUE, END OF PERIOD ............ $ 4.77 $ 5.24 $ 4.76 $ 4.10 $ 5.07 $ 6.19 $ 8.06 $ 9.56 ======== ======== ======== ======== ======== ======== ======== ======== Total return (market value)4 .......... 2.71% 25.49% 35.07% (2.15)% (3.21)% (12.15)% (5.71)% (1.74)% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) ........ $225,760 $244,523 $229,255 $180,889 $219,440 $286,838 $358,679 $359,956 Average debt per share ... $ 2.05 $ 2.05 $ 1.81 $ 1.99 $ 2.49 $ 3.47 $ 3.18 $ 1.02 Ratio of expenses to average net assets .. 3.27% 2.51% 2.57% 2.91% 4.29% 4.81% 3.62% 1.81%5 Ratio of expenses to average net assets, excluding interest expenses ............ 1.68% 1.70% 1.73% 1.78% 1.73% 1.61% 1.53% 1.16%5 Ratio of net investment income to average net assets .......... 10.72% 11.99% 13.85% 15.17% 15.22% 12.90% 11.24% 10.48%5 Portfolio turnover rate .. 31.05% 12.10% 15.96% 33.22% 46.11% 31.29% 60.23% 15.26%
1 The fund commenced operations on July 28, 1998. 2 Based on average shares outstanding. 3 Amount rounds to less than $0.01. 4 Total return is based on the change in market price of a share during the period and assumes reinvestment of dividends and distributions at actual prices pursuant to the Fund's Dividend Reinvestment Plan. Total return based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total returns for periods less than one year are not annualized. 5 Annualized. See Accompanying Notes to Financial Statements. 17 CREDIT SUISSE HIGH YIELD BOND FUND NOTES TO FINANCIAL STATEMENTS October 31, 2005 - -------------------------------------------------------------------------------- NOTE 1. ORGANIZATION Credit Suisse High Yield Bond Fund (the "Fund") is a business trust organized under the laws of the State of Delaware on April 30, 1998. The Fund is registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended ("Investment Company Act"), as a non-diversified, closed-end management investment company. The Fund's shares trade on the New York Stock Exchange under the ticker symbol DHY. The Fund's primary objective is to seek high current income. The following is a summary of significant accounting policies consistently followed by the Fund in its operations and in connection with the preparation of its financial statements. NOTE 2. SIGNIFICANT ACCOUNTING POLICIES A) PORTFOLIO VALUATION -- Fixed-income securities (other than short-term obligations, but including listed issues) are valued at market value based on prices obtained by one or more independent pricing services approved by the Board of Trustees. Pricing services use a matrix, formula or other objective method that takes into consideration market indices, yield curves and other specific adjustments. Securities (other than fixed-income securities) for which the principal market is one or more securities exchanges are valued at market value, which is generally determined using the closing price on the exchange or market on which the security is primarily traded. If a securities exchange is not the principal market for a security, such security will, if market quotations are readily available, be valued at the closing bid price in the over-the-counter market (or the last sale price in the case of securities reported on the NASDAQ national market system for which any sales occurred during the day). Securities and other assets for which market quotations are not readily available are valued at fair value as determined in good faith by, or under the direction of, the Board of Trustees under procedures established by the Board of Trustees. Debt obligations that will mature in 60 days or less are valued on the basis of amortized cost, which approximates market value, unless it is determined that using this method would not reflect an investment's fair value. B) FOREIGN CURRENCY TRANSACTIONS -- The books and records of the Fund are maintained in U.S. dollars. Transactions denominated in foreign currencies are recorded at the current prevailing exchange rates. All assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the current exchange rate at the end of the period. Translation gains or losses resulting from changes in the exchange rate during the reporting period and realized gains and losses on the settlement of foreign currency transactions are reported in the results of operations for the current period. The Fund does not isolate that portion of realized gains and losses on investments in equity securities which is due to changes in the foreign exchange rate from that which is due to changes in market prices of equity securities. The Fund isolates that portion of realized gains and losses on investments in debt securities which is due to changes in the foreign exchange rate from that which is due to changes in market prices of debt securities. C) SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are accounted for on a trade date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. The cost of investments sold is determined by use of the specific identification method for both financial reporting and income tax purposes. Accretion of discount and amortization of premium is recognized using the effective interest method. 18 CREDIT SUISSE HIGH YIELD BOND FUND NOTES TO FINANCIAL STATEMENTS (CONTINUED) October 31, 2005 - -------------------------------------------------------------------------------- D) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- The Fund declares and pays dividends on a monthly basis. Capital gains, if any, net of capital losses, are distributed annually. Income dividends and capital gain distributions are determined in accordance with income tax regulations, which may differ from accounting principles generally accepted in the United States of America ("GAAP"). These differences are primarily due to differing treatments of income and gains on various investment securities held by the Fund, timing differences and differing characterization of distributions made by the Fund. The Fund's dividend policy is to distribute substantially all of its net investment income to its shareholders on a monthly basis. However, in order to provide shareholders with a more consistent yield to the current trading price of shares of beneficial interest of the Fund, the Fund may at times pay out less than the entire amount of net investment income earned in any particular month and may at times in any month pay out such accumulated but undistributed income in addition to net investment income earned in that month. As a result, the dividends paid by the Fund for any particular month may be more or less than the amount of net investment income earned by the Fund during such month. E) FEDERAL INCOME TAXES -- No provision is made for federal taxes as it is the Fund's intention to continue to qualify for and elect the tax treatment applicable to regulated investment companies under the Internal Revenue Code of 1986, as amended, and to make the requisite distributions to its shareholders which will be sufficient to relieve it from federal income and excise taxes. F) CASH FLOW INFORMATION -- Cash, as used in the Statement of Cash Flows, is the amount reported in the Statement of Assets and Liabilities. The Fund invests in securities and distributes dividends from net investment income and net realized gains, if any (which are either paid in cash or reinvested at the discretion of shareholders). These activities are reported in the Statement of Changes in Net Assets. Information on cash payments is presented in the Statement of Cash Flows. Accounting practices that do not affect reporting activities on a cash basis include unrealized gain or loss on investment securities and accretion or amortization income recognized on investment securities. G) USE OF ESTIMATES -- The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. H) SECURITIES LENDING -- Loans of securities are required at all times to be secured by collateral at least equal to 100% of the market value of domestic securities on loan (including any accrued interest thereon). Cash collateral received by the Fund in connection with securities lending activity is reinvested into either fully collateralized repurchase agreements with Bear, Stearns & Co., Inc. (an affiliate of the custodian, Custodial Trust Company, and the borrower, Bear, Stearns Securities Corp. (the "Borrower")), registered money market mutual funds (subject to regulatory limitations) or some combination thereof. In the event of default or bankruptcy by the Borrower or its affiliates to the agreement, realization and/or retention of the Fund's collateral may be subject to legal proceedings. The Fund's securities lending arrangement provides that the Fund and the Borrower will share the net income earned from the securities lending activities. During the year ended October 31, 2005, total earnings from the Fund's investment in cash collateral received in connection with the securities lending arrangement was $2,477,605 of which $1,834,985 was rebated to the Borrower. The Fund retained $642,620 in income from the cash collateral investment. The Fund is entitled to a certain minimum amount of income from its securities lending activities. Securities lending income is accrued as earned. 19 CREDIT SUISSE HIGH YIELD BOND FUND NOTES TO FINANCIAL STATEMENTS (CONTINUED) October 31, 2005 - -------------------------------------------------------------------------------- NOTE 3. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES The Fund has entered into an Investment Advisory Agreement (the "Advisory Agreement") with Credit Suisse Asset Management, LLC ("CSAM"). The Advisory Agreement provides for a fee at the annual rate of 1.00% of the first $250 million of the average weekly value of the Fund's total assets minus the sum of liabilities (other than aggregate indebtedness constituting leverage) and 0.75% of the average weekly value of the Fund's total assets minus the sum of liabilities (other than aggregate indebtedness constituting leverage) greater than $250 million. Under the Advisory Agreement with the Fund, CSAM provides investment advisory services and order placement facilities for the Fund and pays all compensation of Trustees of the Fund who are affiliated persons of CSAM. For the year ended October 31, 2005, investment advisory fees earned were $3,348,548. State Street Bank and Trust Company ("SSB") serves as Accounting and Administrative Agent for the Fund. For its administrative services, SSB receives a fee, exclusive of out-of-pocket expenses, calculated in total for all the Credit Suisse funds/portfolios co-administered by SSB and allocated based upon relative average net assets of each fund/portfolio, subject to an annual minimum fee. For the year ended October 31, 2005, administrative services fees earned by SSB (including out-of-pocket expenses) were $217,328. The Fund pays each Trustee not affiliated with CSAM $1,000 per regular quarterly board meeting attended and an annual retainer fee of $12,500. In addition, the Fund reimburses each Trustee for travel and out-of-pocket expenses relating to his attendance at such meetings. Merrill Corporation ("Merrill"), an affiliate of CSAM, has been engaged by the Fund to provide certain financial printing and fulfillment services. For the year ended October 31, 2005, Merrill was paid $22,678 for its services to the Fund. NOTE 4. LINE OF CREDIT The Fund has a $150 million line of credit provided by Citibank North America, Inc., under a Revolving Credit and Security Agreement (the "Agreement") dated April 12, 2002, as amended from time to time, primarily to leverage its investment portfolio. Under this Agreement, the Fund may borrow the lesser of $150 million or 331/3% of its gross assets. Interest is payable at the Bank's Base Rate plus a commission of 0.05%. The Fund pays a program fee of 0.20% of the average daily amount leveraged, an administration fee of 0.02% of the average daily amount leveraged and a liquidity fee of 0.15% of the maximum borrowing limit (currently $150 million). The Agreement requires, among other provisions, that the percentage obtained by dividing total indebtedness for money borrowed by total assets of the Fund shall not exceed 331/3%. At October 31, 2005 the Fund had loans outstanding under the Agreement of $110,000,000. During the year ended October 31, 2005, the Fund had borrowings under the Agreement as follows: AVERAGE DAILY WEIGHTED AVERAGE MAXIMUM DAILY LOAN BALANCE INTEREST RATE LOAN OUTSTANDING ------------ ------------- ---------------- $112,353,425 2.931% $117,000,000 NOTE 5. PURCHASES AND SALES OF SECURITIES For the year ended October 31, 2005, purchases and sales of investment securities (excluding short-term investments) were $115,739,019 and $105,136,276, respectively. 20 CREDIT SUISSE HIGH YIELD BOND FUND NOTES TO FINANCIAL STATEMENTS (CONTINUED) October 31, 2005 - -------------------------------------------------------------------------------- NOTE 6. FUND SHARES The Fund has one class of shares of beneficial interest, par value $0.001 per share; an unlimited number of shares are authorized. Transactions in shares of beneficial interest were as follows: FOR THE YEAR ENDED FOR THE YEAR ENDED OCTOBER 31, 2005 OCTOBER 31, 2004 Shares issued through reinvestment of dividends ...... 861,846 1,132,804 ======= ========= NOTE 7. CONCENTRATION OF RISK The Fund invests in securities offering high current income, which generally will be in the lower rating categories of recognized ratings agencies (commonly known as "junk bonds"). These securities generally involve more credit risk than securities in the higher rating categories. In addition, the trading market for high yield securities may be relatively less liquid than the market for higher-rated securities. The Fund's use of leverage also increases exposure to capital risk. NOTE 8. FEDERAL INCOME TAXES Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP. The tax characteristics of dividends and distributions paid during the years ended October 31, 2005 and 2004 by the Fund were as follows:
ORDINARY INCOME LONG-TERM CAPITAL DISTRIBUTIONS RETURN OF CAPITAL --------------- ------------------------------- ---------------------- 2005 2004 2005 2004 2005 2004 ---- ---- ---- ---- ---- ---- $27,812,807 $30,957,053 $-- $-- $1,132,282 $--
The tax basis of components of distributable earnings differ from the amounts reflected in the Statement of Assets and Liabilities by temporary book/tax differences. These differences are primarily due to losses deferred on wash sales and income from defaulted bonds. At October 31, 2005, the components of distributable earnings on a tax basis for the Fund were as follows: Undistributed loss - other $ (1) Accumulated net realized loss (244,552,219) Unrealized depreciation (16,332,032) -------------- $ (260,884,252) -------------- At October 31, 2005, the Fund had capital loss carryforwards of $244,552,219 available to offset possible future capital gains as follows:
EXPIRES OCTOBER 31, ---------------------------------------------------------------------------------------------- 2006 2007 2008 2009 2010 2011 2012 2013 ---- ---- ---- ---- ---- ---- ---- ---- $13,855,150 $30,606,551 $37,573,747 $68,628,620 $77,916,490 $8,291,239 $6,096,544 $1,583,878
It is unlikely that the Fund will realize the full benefit of these losses prior to expiration. 21 CREDIT SUISSE HIGH YIELD BOND FUND NOTES TO FINANCIAL STATEMENTS (CONTINUED) October 31, 2005 - -------------------------------------------------------------------------------- At October 31, 2005, the identified cost for federal income tax purposes, as well as the gross unrealized appreciation from investments for those securities having an excess of value over cost, gross unrealized depreciation from investments for those securities having an excess of cost over value and the net unrealized depreciation from investments were $418,386,971, $9,947,780, $(26,279,812) and $(16,332,032), respectively. At October 31, 2005, the Fund reclassified $1,132,282 from paid in capital and $547,673 from accumulated net realized loss from investments to net investment loss, to adjust for current period permanent book/tax differences which arose principally from differing book/tax treatments on sales of defaulted bonds, foreign currency gain/(loss), and Return of Capital Distributions. Net assets were not affected by these reclassifications. NOTE 9. CONTINGENCIES In the normal course of business, the Fund may provide general indemnifications pursuant to certain contracts and organizational documents. The Fund's maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated; however, based on experience, the risk of loss from such claims is considered remote. 22 CREDIT SUISSE HIGH YIELD BOND FUND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM - -------------------------------------------------------------------------------- To the Board of Trustees and Shareholders of Credit Suisse High Yield Bond Fund: In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations, of changes in net assets and of cash flows and the financial highlights present fairly, in all material respects, the financial position of Credit Suisse High Yield Bond Fund (the "Fund") at October 31, 2005, the results of its operations and its cash flows for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2005 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. The financial highlights of the fund for each of the periods presented in the period ended October 31, 2000 were audited by other independent auditors, whose report dated December 20, 2000 expressed an unqualified opinion on these financial statements containing those financial highlights. PricewaterhouseCoopers LLP Philadelphia, Pennsylvania December 22, 2005 23 CREDIT SUISSE HIGH YIELD BOND FUND ADDITIONAL INFORMATION (UNAUDITED) - -------------------------------------------------------------------------------- DIVIDEND REINVESTMENT PLAN Referenced below are policies related to the Fund's Automatic Dividend Reinvestment Plan (the "Plan"). These policies apply to shareholders whose shares are registered directly with the Fund in their own name. Shareholders whose shares are purchased through a broker-dealer or nominee should contact such broker-dealer or nominee regarding questions related to the reinvestment of the Fund's dividends. Pursuant to the Fund's Plan, unless a shareholder otherwise elects, all dividends and capital gain distributions will be automatically reinvested by Computershare Shareholder Services, Inc. ("Computershare") as agent for Shareholders in administering the Plan (the "Plan Agent"), in additional shares of the Fund. Shareholders who elect not to participate in the Plan will receive all dividends and other distributions in cash paid by check mailed directly to the shareholder of record (or, if the shares are held in street or other nominee name, then to such nominee) by Computershare as the Dividend Disbursing Agent. Such participants may elect not to participate in the Plan and to receive all dividends and capital gain distributions in cash by sending written instructions to Computershare as the Dividend Disbursing Agent, at the address set forth below. Participation in the Plan is completely voluntary and may be terminated or resumed at any time without penalty by written notice if received by the Plan Agent not less than ten days prior to any dividend record date; otherwise such termination will be effective with respect to any subsequently declared dividend or other distribution. Whenever the Fund declares an income dividend or a capital gain distribution (collectively referred to as "dividends") payable either in shares or in cash, non-participants in the Plan will receive cash and participants in the Plan will receive the equivalent in shares. The shares will be acquired by the Plan Agent for the participants' accounts, depending upon the circumstances described below, either (i) through receipt of additional unissued but authorized shares from the Fund ("newly issued shares") or (ii) by purchase of outstanding shares on the open market ("open-market purchases") on the NYSE or elsewhere. If on the record date for the dividend, the net asset value per share is equal to or less than the market price per share plus estimated brokerage commissions (such condition being referred to herein as "market premium"), the Plan Agent will invest the dividend amount in newly issued shares on behalf of the participants. The number of newly issued shares to be credited to each participant's account will be determined by dividing the dollar amount of the dividend by the net asset value per share on the date the shares are issued. If on the dividend record date the net asset value per share is greater than the market value (such condition being referred to herein as "market-discount"), the Plan Agent will invest the dividend amount in shares acquired on behalf of the participants in open-market purchases. In the event of a market discount on the dividend record date, the Plan Agent will have until the last business day before the next date on which the shares trade on an "ex-dividend" basis or in no event more than 30 days after the dividend record date (the "last purchase date") to invest the dividend amount in shares acquired in open-market purchases. It is contemplated that the Fund will pay monthly income dividends. Therefore, the period during which open-market purchases can be made will exist only from the record date of the dividend through the date before the next "ex-dividend" date. If, before the Plan Agent has completed its open-market purchases, the market price of a share exceeds the net asset value per share, the average per share purchase price paid by the Plan Agent may exceed the net asset value of the shares, resulting in the acquisition of fewer shares than if the dividend had been paid in newly issued shares on the dividend record date. Because of the foregoing difficulty with respect to open market purchases, the Plan provides that if the Plan Agent in unable to invest the full dividend amount in open market purchases during the purchase period or if the market discount shifts to a market premium during the purchase period, the Plan Agent may cease making open-market purchases and may invest the uninvested portion of the dividend amount in newly issued shares at the net 24 CREDIT SUISSE HIGH YIELD BOND FUND ADDITIONAL INFORMATION (UNAUDITED) (CONTINUED) - -------------------------------------------------------------------------------- asset value per share at the close of business on the last purchase date. The Plan Agent maintains all shareholders' accounts in the Plan and furnishes written confirmation of all transactions in the accounts, including information needed by shareholders for tax records. Shares in the account of each Plan participant will be held by the Plan Agent on behalf of the Plan participant, and each shareholder proxy will include those shares purchased or received pursuant to the Plan. The Plan Agent will forward all proxy solicitation materials to participants and vote proxies for shares held pursuant to the Plan in accordance with the instructions of the participants. In the case of shareholders such as banks, brokers or nominees that hold shares for others who are the beneficial owners, the Plan Agent will administer the Plan on the basis of the number of shares certified from time to time by the record shareholder and held for the account of beneficial owners who participate in the Plan. There will be no brokerage charges with respect to shares issued directly by the Fund as a result of dividends or capital gains distributions payable either in shares or in cash. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Plan Agent's open-market purchases in connection with the reinvestment of dividends. The automatic reinvestment of dividends will not relieve participants of any Federal, state or local income tax that may be payable (or required to be withheld) on such dividends. Shareholders participating in the Plan may receive benefits not available to shareholders not participating in the Plan. If the market price (plus commissions) of the shares is above their net asset value, participants in the Plan will receive shares of the Fund at less than they could otherwise purchase them and will have shares with a cash value greater than the value of any cash distribution they would have received on their shares. If the market price plus commissions is below the net asset value, participants will receive distributions in shares with a net asset value greater than the value of any cash distribution they would have received on their shares. However, there may be insufficient shares available in the market to make distributions in shares at prices below the net asset value. Also, since the Fund does not redeem shares, the price on resale may be more or less than the net asset value. Experience under the Plan may indicate that changes are desirable. Accordingly, the Fund reserves the right to amend or terminate the Plan. There is no direct service charge to participants in the Plan; however, the Fund reserves the right to amend the Plan to include a service charge payable by the participants. All correspondence concerning the Plan should be directed to the Plan Agent at P.O. Box 43010, Providence, RI 02940-3010, or call the plan agent at 1-800-730-6001. LEVERAGE--BENEFITS AND RISKS The use of leverage by the Fund creates an opportunity for increased net income and capital appreciation for the Fund, but, at the same time, creates special risks, and there can be no assurance that a leveraging strategy will be successful during any period in which it is employed. The Fund intends to utilize leverage to provide the Shareholders with a potentially higher return. Leverage creates risks for Shareholders, including the likelihood of greater volatility of net asset value and market price of the Fund's shares and the risk that fluctuations in interest rates on borrowings and short-term debt may affect the return to Shareholders. To the extent the income or capital appreciation derived from securities purchased with funds received from leverage exceeds the cost of leverage, the Fund's return will be greater than if leverage had not been used. Conversely, if the income or capital appreciation from the securities purchased with such funds is not sufficient to cover the cost of leverage, the return to the Fund will be less than if leverage had not been used, and therefore the amount available for distribution to Shareholders as dividends and other distributions will be reduced. In the latter case, CSAM in its best judgment nevertheless may determine to maintain the Fund's leveraged position if it deems such action to be appropriate under the 25 CREDIT SUISSE HIGH YIELD BOND FUND ADDITIONAL INFORMATION (UNAUDITED) (CONTINUED) - -------------------------------------------------------------------------------- circumstances. During periods in which the Fund is utilizing leverage, the Fund's investment advisory fee will be higher than if the Fund did not utilize a leveraged capital structure, because the fee is calculated as a percentage of the Managed Assets including those purchased with leverage. Certain types of borrowings by the Fund may result in the Fund's being subject to covenants in credit agreements, including those relating to asset coverage and portfolio composition requirements. The Fund's lenders may establish guidelines for borrowing which may impose asset coverage or portfolio composition requirements that are more stringent than those imposed by the Investment Company Act. It is not anticipated that these covenants or guidelines will impede CSAM in managing the Fund's portfolio in accordance with the Fund's investment objectives and policies. 26 CREDIT SUISSE HIGH YIELD BOND FUND INFORMATION CONCERNING TRUSTEES AND OFFICERS (unaudited) - --------------------------------------------------------------------------------
TERM NUMBER OF OF OFFICE PORTFOLIOS IN AND FUND LENGTH PRINCIPAL COMPLEX OTHER NAME, ADDRESS POSITION(S) OF TIME OCCUPATION(S) DURING OVERSEEN BY DIRECTORSHIPS AND DATE OF BIRTH HELD WITH FUND SERVED PAST FIVE YEARS TRUSTEE HELD BY TRUSTEE - ----------------- ------------- -------- -------------- ------- --------------------- INDEPENDENT TRUSTEES Enrique R. Arzac Chairman Chairman Professor of Finance and Economics, 47 Director of The Adams c/o Credit Suisse Asset of the Board, since Graduate School of Business, Express Company Management, LLC. Trustee, 2005 and Columbia University since 1971 (a closed-end Attn: General Counsel Nominating Trustee since investment company); 466 Lexington Avenue Committee 2001; current Director of Petroleum New York, New York Chairman and term ends at and Resources 10017-3140 Audit Committee the 2008 Corporation (a Member annual closed-end investment Date of Birth: 02/10/41 meeting. company) Lawrence J. Fox Trustee, Since Partner of Drinker Biddle & Reath 3 Director, Winthrop One Logan Square Audit Committee 2001; current (law firm) since 1972 Trust Company 18th & Cherry Streets Chairman and term ends at Philadelphia, Pennsylvania Nominating the 2007 19103 Committee annual meeting. Member Date of Birth: 07/17/43 James S. Pasman, Jr Trustee, Audit Since Currently retired 42 Director of c/o Credit Suisse Asset and Nominating 2001; current Education Management Management, LLC Committee term ends at Corp. Attn:General Counsel Member the 2006 466 Lexington Avenue annual meeting. New York, New York 10017-3140 Date of Birth: 12/20/30 Steven N. Rappaport Trustee, Audit Since Partner of Lehigh Court, LLC and RZ 46 Director of Presstek, Lehigh Court, LLC and Nominating 2005; current Capital (private investment firms) from Inc. (digital imaging 40 East 52nd Street Committee term ends July 2002 to present; Transition Adviser technologies New York, New York Member at the to SunGard Securities Finance, Inc. from company); Director of 10022 2006 annual February 2002 to July 2002; President of Wood Resources, LLC. meeting. SunGard Securities Finance, Inc. from (plywood Date of Birth: 07/10/48 2001 to February 2002; President of manufacturing Loanet, Inc. (on-line accounting service) company) from 1997 to 2001
27 CREDIT SUISSE HIGH YIELD BOND FUND INFORMATION CONCERNING TRUSTEES AND OFFICERS (unaudited) (continued) - --------------------------------------------------------------------------------
TERM OF OFFICE AND LENGTH NAME, ADDRESS POSITION(S) OF TIME AND DATE OF BIRTH HELD WITH FUND SERVED PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS - --------------- ------------- -------- ------------------------------------------- OFFICERS* Martha B. Metcalf Chief Since 2005 Managing Director; Associated with CSAM since 2005; Credit Suisse Asset Investment Managing Director and Portfolio Manager of Invesco Management, LLC Officer from 2000 to 2005; Officer of other Credit 466 Lexington Avenue Suisse Funds New York, New York 10017-3140 Date of Birth: 04/09/65 Steven B. Plump Chief Executive Since 2005 Managing Director; Associated with CSAM or its Credit Suisse Asset Officer and President predecessor since 1995; Officer of other Credit Management, LLC Suisse Funds 466 Lexington Avenue New York, New York 10017-3140 Date of Birth: 02/08/59 Michael E. Gray Investment Officer Since 2005 Managing Director; Associated with CSAM since 2004; Credit Suisse Asset Managing Director of Deutsche Asset Management Management, LLC from 2002 until 2004; Executive Director of UBS 466 Lexington Avenue (London) from 1999 until 2002; Officer of other New York, New York Credit Suisse Funds 10017-3140 Date of Birth: 07/08/68 Michael A. Pignataro Chief Financial Officer, Since 2000 Director and Director of Fund Administration of Credit Suisse Asset Vice President CSAM; Associated with CSAM or its predecessor since Management, LLC and Secretary 1984; Officer of other Credit Suisse Funds 466 Lexington Avenue New York, New York 10017-3140 Date of Birth: 11/15/59 Emidio Morizio Chief Compliance Officer Since 2004 Director and Global Head of Compliance of CSAM; Credit Suisse Asset Associated with CSAM since July 2000; Vice President Management, LLC and Director of Compliance of Forstmann-Leff 466 Lexington Avenue Associates from 1998 to June 2000; Officer of other New York, New York Credit Suisse Funds 10017-3140 Date of Birth: 09/21/66
28 CREDIT SUISSE HIGH YIELD BOND FUND INFORMATION CONCERNING TRUSTEES AND OFFICERS (unaudited) (continued) - --------------------------------------------------------------------------------
TERM OF OFFICE AND LENGTH NAME, ADDRESS POSITION(S) OF TIME AND DATE OF BIRTH HELD WITH FUND SERVED PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS - --------------- ------------- -------- ------------------------------------------- OFFICERS* Ajay Mehra Chief Legal Officer Since 2004 Director and General Counsel (Americas) of CSAM Credit Suisse Asset since September 2004; Senior Associate of Shearman & Management, LLC Sterling LLP from September 2000 to September 2004; 466 Lexington Avenue Senior Counsel of the SEC Division of Investment New York, New York Management from June 1997 to September 2000; Officer 10017-3140 of other Credit Suisse Funds Date of Birth: 08/14/70 J. Kevin Gao Senior Vice Since 2004 Vice President and Associate General Counsel of Credit Suisse Asset President CSAM; Associated with CSAM since July 2003; Management, LLC Associated with the law firm of Willkie Farr & 466 Lexington Avenue Gallagher LLP from 1998 to 2003; Officer of other New York, New York Credit Suisse Funds 10017-3140 Date of Birth: 10/13/67 Robert Rizza Treasurer Since 2001 Assistant Vice President of CSAM; Associated with Credit Suisse Asset CSAM since 1998; Officer of other Credit Suisse Management, LLC Funds. 466 Lexington Avenue New York, New York 10017-3140 Date of Birth: 12/09/65
* The officers of the Fund shown are officers that make policy decisions. ANNUAL CERTIFICATIONS (UNAUDITED) - -------------------------------------------------------------------------------- The Fund's Chief Executive Officer has filed an annual certification with the NYSE that, as of the date of the certification, he was unaware of any violation by the Fund of the NYSE's corporate governance listing standards. The Fund's Chief Executive Officer and Chief Financial Officer have also filed certifications with the SEC as part of the Fund's Form N-CSR filings that cover certain public disclosure documents of the Fund, including its annual and semi-annual reports to stockholders. 29 CREDIT SUISSE HIGH YIELD BOND FUND TAX INFORMATION LETTER October 31, 2005 (UNAUDITED) - -------------------------------------------------------------------------------- IMPORTANT TAX INFORMATION FOR CORPORATE SHAREHOLDERS For the fiscal year ended October 31, 2005 certain dividends paid by the Fund may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. Complete information will be reported in conjunction with your 2005 Form 1099-DIV. 30 CREDIT SUISSE HIGH YIELD BOND FUND PROXY VOTING AND PORTFOLIO HOLDINGS INFORMATION (UNAUDITED) - -------------------------------------------------------------------------------- Information regarding how the Fund voted proxies related to its portfolio securities during the 12-month period ended June 30 of each year, as well as the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities are available: o By calling 1-800-293-1232 o On the Fund's website, www.csam.com/us o On the website of the Securities and Exchange Commission, http://www.sec.gov. The Fund files a complete schedule of its portfolio holdings for the first and third quarters of its fiscal year with the SEC on Form N-Q. The Fund's Forms N-Q are available on the SEC's website at http://www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. 31 CREDIT SUISSE HIGH YIELD BOND FUND OTHER FUNDS MANAGED BY CREDIT SUISSE ASSET MANAGEMENT, LLC - --------------------------------------------------------------------------------
Credit Suisse Capital Appreciation Fund Credit Suisse Japan Equity Fund Credit Suisse Cash Reserve Fund Credit Suisse Large Cap Blend Fund Credit Suisse Commodity Return Strategy Fund Credit Suisse Large Cap Value Fund Credit Suisse Emerging Markets Fund Credit Suisse Mid-Cap Growth Fund Credit Suisse Fixed Income Fund Credit Suisse New York Municipal Fund Credit Suisse Global Fixed Income Fund Credit Suisse Short Duration Bond Fund Credit Suisse Global Small Cap Fund Credit Suisse Small Cap Growth Fund Credit Suisse High Income Fund Credit Suisse Small Cap Value Fund Credit Suisse International Focus Fund Credit Suisse Strategic Allocation Fund
Fund shares are not deposits or other obligations of Credit Suisse Asset Management, LLC or any affiliate, are not FDIC-insured and are not guaranteed by Credit Suisse Asset Management, LLC or any affiliate. Fund investments are subject to investment risks, including loss of your investment. There are special risk considerations associated with international, global, emerging-market, small-company, private equity, high-yield debt, single-industry, single-country and other special, aggressive or concentrated investment strategies. Past performance cannot guarantee future results. More complete information about a fund, including charges and expenses, is provided in the Prospectus, which should be read carefully before investing. You may obtain copies by calling Credit Suisse Funds at 800-927-2874. For up-to-date performance, please look in the mutual fund section of your newspaper under Credit Suisse. Credit Suisse Asset Management Securities, Inc., Distributor. 32 CREDIT SUISSE HIGH YIELD BOND FUND SUMMARY OF GENERAL INFORMATION (UNAUDITED) - -------------------------------------------------------------------------------- Credit Suisse High Yield Bond Fund is a closed-end, non-diversified management investment company whose shares trade on the New York Stock Exchange, Inc. Its investment objective is to seek high current income. Credit Suisse Asset Management, LLC, the Fund's investment adviser, is part of Credit Suisse Asset Management ("CSAM"), the institutional and mutual-fund asset-management arm of Credit Suisse First Boston. As of September 30, 2005, CSAM managed over $23 billion in the U.S. and, together with its global affiliated, managed assets of over $337 billion in 17 countries. SHAREHOLDER INFORMATION The market price is published in: The New York Times (daily) under the designation "CrSuiHiY" and The Wall Street Journal (daily), and Barron's (each Monday) under the designation "CrSuisHighYld". The Fund's New York Stock Exchange, Inc. trading symbol is DHY. Weekly comparative net asset value (NAV) and market price information about Credit Suisse High Yield Bond Fund's shares are published each Sunday in The New York Times and each Monday in The Wall Street Journal and Barron's, as well as other newspapers, in a table called "Closed-End Funds" THE CSAM GROUP OF FUNDS LITERATURE REQUEST - Call today for free descriptive information on the closed-end funds listed below at 1-800-293-1232 or visit our website on the Internet: http://www.csam.com/us. CLOSED-END FUNDS SINGLE COUNTRY The Chile Fund, Inc. (CH) The First Israel Fund, Inc. (ISL) The Indonesia Fund, Inc. (IF) MULTIPLE COUNTRY The Emerging Markets Telecommunications Fund, Inc. (ETF) The Latin America Equity Fund, Inc. (LAQ) FIXED INCOME Credit Suisse Asset Management Income Fund, Inc. (CIK) 33 This page intentionally left blank 34 CREDIT | ASSET 800-293-1232 o www.csam.com/us SUISSE | MANAGEMENT DHY-AR-1005 ITEM 2. CODE OF ETHICS. The registrant has adopted a code of ethics applicable to its Chief Executive Officer, President, Chief Financial Officer and Chief Accounting Officer, or persons performing similar functions. A copy of the code is filed as Exhibit 12(a)(1) to this Form. There were no amendments to the code during the fiscal year ended October 31, 2005. There were no waivers or implicit waivers from the code granted by the registrant during the fiscal year ended October 31, 2005. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. The registrant's governing board has determined that it has three audit committee financial experts serving on its audit committee: Enrique R. Arzac, James S. Pasman, Jr. and Steven N. Rappaport. Each audit committee financial expert is "independent" for purposes of this item. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. (a) through (d). The information in the table below is provided for services rendered to the registrant by its independent registered public accounting firm, PricewaterhouseCoopers LLP ("PwC"), for its fiscal years ended October 31, 2004 and October 31, 2005.
- ---------------------------------------- -------------------------------------- -------------------------------------- 2004 2005 - ---------------------------------------- -------------------------------------- -------------------------------------- Audit Fees $29,580 $31,060 - ---------------------------------------- -------------------------------------- -------------------------------------- Audit-Related Fees1 $4,500 $12,050 - ---------------------------------------- -------------------------------------- -------------------------------------- Tax Fees2 $2,284 $2,400 - ---------------------------------------- -------------------------------------- -------------------------------------- All Other Fees -- -- - ---------------------------------------- -------------------------------------- -------------------------------------- Total $36,364 $45,510 - ---------------------------------------- -------------------------------------- --------------------------------------
1 Services include agreed-upon procedures in connection with the registrant's semi-annual financial statements ($3,000 in 2004 and $3,150 in 2005), the registrant's third quarter 2004 Form N-Q filing ($1,500) in 2004 and agreed upon procedures relating to the Fund's loan facility ($8,900 in 2005). 2 Tax services in connection with the registrant's excise tax calculations and review of the registrant's applicable tax returns. The information in the table below is provided with respect to non-audit services that directly relate to the registrant's operations and financial reporting and that were rendered by PwC to the registrant's investment adviser, Credit Suisse Asset Management, LLC ("CSAM"), and any service provider to the registrant controlling, controlled by or under common control with CSAM that provided ongoing services to the registrant ("Covered Services Provider"), for the registrant's fiscal years ended October 31, 2004 and October 31, 2005.
- ---------------------------------------- -------------------------------------- -------------------------------------- 2004 2005 - ---------------------------------------- -------------------------------------- -------------------------------------- Audit-Related Fees N/A N/A - ---------------------------------------- -------------------------------------- -------------------------------------- 2 - ---------------------------------------- -------------------------------------- -------------------------------------- Tax Fees N/A N/A - ---------------------------------------- -------------------------------------- -------------------------------------- All Other Fees N/A $394,000 - ---------------------------------------- -------------------------------------- -------------------------------------- Total N/A $394,000 - ---------------------------------------- -------------------------------------- --------------------------------------
(e)(1) Pre-Approval Policies and Procedures. The Audit Committee ("Committee") of the registrant is responsible for pre-approving (i) all audit and permissible non-audit services to be provided by the independent registered public accounting firm to the registrant and (ii) all permissible non-audit services to be provided by the independent registered public accounting firm to CSAM and any Covered Services Provider if the engagement relates directly to the operations and financial reporting of the registrant. The Committee may delegate its responsibility to pre-approve any such audit and permissible non-audit services to the Chairperson of the Committee, and the Chairperson shall report to the Committee, at its next regularly scheduled meeting after the Chairperson's pre-approval of such services, his or her decision(s). The Committee may also establish detailed pre-approval policies and procedures for pre-approval of such services in accordance with applicable laws, including the delegation of some or all of the Committee's pre-approval responsibilities to other persons (other than CSAM or the registrant's officers). Pre-approval by the Committee of any permissible non-audit services shall not be required so long as: (i) the aggregate amount of all such permissible non-audit services provided to the registrant, CSAM and any Covered Services Provider constitutes not more than 5% of the total amount of revenues paid by the registrant to its independent registered public accounting firm during the fiscal year in which the permissible non-audit services are provided; (ii) the permissible non-audit services were not recognized by the registrant at the time of the engagement to be non-audit services; and (iii) such services are promptly brought to the attention of the Committee and approved by the Committee (or its delegate(s)) prior to the completion of the audit. (e)(2) The information in the table below sets forth the percentages of fees for services (other than audit, review or attest services) rendered by PwC to the registrant for which the pre-approval requirement was waived pursuant to Rule 2-01(c)(7)(i)(C) of Regulation S-X:
- ---------------------------------------- -------------------------------------- -------------------------------------- 2004 2005 - ---------------------------------------- -------------------------------------- -------------------------------------- Audit-Related Fees N/A N/A - ---------------------------------------- -------------------------------------- -------------------------------------- Tax Fees N/A N/A - ---------------------------------------- -------------------------------------- -------------------------------------- All Other Fees N/A N/A - ---------------------------------------- -------------------------------------- -------------------------------------- Total N/A N/A - ---------------------------------------- -------------------------------------- --------------------------------------
3 The information in the table below sets forth the percentages of fees for services (other than audit, review or attest services) rendered by PwC to CSAM and any Covered Services Provider required to be approved pursuant to Rule 2-01(c)(7)(ii)of Regulation S-X, for the registrant's fiscal years ended October 31, 2004 and October 31, 2005:
- ---------------------------------------- -------------------------------------- -------------------------------------- 2004 2005 - ---------------------------------------- -------------------------------------- -------------------------------------- Audit-Related Fees N/A N/A - ---------------------------------------- -------------------------------------- -------------------------------------- Tax Fees N/A N/A - ---------------------------------------- -------------------------------------- -------------------------------------- All Other Fees N/A N/A - ---------------------------------------- -------------------------------------- -------------------------------------- Total N/A N/A - ---------------------------------------- -------------------------------------- --------------------------------------
(f) Not Applicable. (g) The aggregate fees billed by PwC for non-audit services rendered to the registrant, CSAM and Covered Service Providers for the fiscal years ended October 31, 2004 and October 31, 2005 were $6,784 and $14,450, respectively. (h) Not Applicable. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. The registrant has a separately designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended. The members of the committee are Enrique R. Arzac, Lawrence Fox, James S. Pasman, Jr. and Steven N. Rappaport. ITEM 6. SCHEDULE OF INVESTMENTS. Included as part of the report to shareholders filed under Item 1 of this Form. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. 4 CREDIT SUISSE ASSET MANAGEMENT, LLC CREDIT SUISSE FUNDS CREDIT SUISSE INSTITUTIONAL FUNDS CSAM CLOSED-END FUNDS PROXY VOTING POLICY AND PROCEDURES Introduction Credit Suisse Asset Management, LLC ("CSAM") is a fiduciary that owes each of its clients duties of care and loyalty with respect to proxy voting. The duty of care requires CSAM to monitor corporate events and to vote proxies. To satisfy its duty of loyalty, CSAM must cast proxy votes in the best interests of each of its clients. The Credit Suisse Funds, Credit Suisse Institutional Funds, and CSAM Closed-End Funds (the "Funds"), which have engaged Credit Suisse Asset Management, LLC as their investment adviser, are of the belief that the proxy voting process is a means of addressing corporate governance issues and encouraging corporate actions both of which can enhance shareholder value. Policy The Proxy Voting Policy (the "Policy") set forth below is designed to ensure that proxies are voted in the best interests of CSAM's clients. The Policy addresses particular issues and gives a general indication of how CSAM will vote proxies. The Policy is not exhaustive and does not include all potential issues. Proxy Voting Committee The Proxy Voting Committee will consist of a member of the Portfolio Management Department, a member of the Legal and Compliance Department, and a member of the Operations Department (or their designees). The purpose of the Proxy Voting Committee is to administer the voting of all clients' proxies in accordance with the Policy. The Proxy Voting Committee will review the Policy annually to ensure that it is designed to promote the best interests of CSAM's clients. For the reasons disclosed below under "Conflicts," the Proxy Voting Committee has engaged the services of an independent third party (initially, Institutional Shareholder Services ("ISS")) to assist in issue analysis and vote recommendation for proxy proposals. Proxy proposals addressed by the Policy will be voted in accordance with the Policy. Proxy proposals addressed by the Policy that require a case-by-case analysis will be voted in accordance with the vote recommendation of ISS. Proxy proposals not addressed by the Policy will also be voted in accordance with the vote 5 recommendation of ISS. To the extent that the Proxy Voting Committee proposes to deviate from the Policy or the ISS vote recommendation, the Committee shall obtain client consent as described below. CSAM investment professionals may submit a written recommendation to the Proxy Voting Committee to vote in a manner inconsistent with the Policy and/or the recommendation of ISS. Such recommendation will set forth its basis and rationale. In addition, the investment professional must confirm in writing that he/she is not aware of any conflicts of interest concerning the proxy matter or provide a full and complete description of the conflict. Conflicts CSAM is the institutional and mutual fund asset management arm of Credit Suisse First Boston, which is part of Credit Suisse Group, one of the world's largest financial organizations. As part of a global, full service investment-bank, broker-dealer, and asset-management organization, CSAM and its affiliates and personnel may have multiple advisory, transactional, financial, and other interests in securities, instruments, and companies that may be purchased or sold by CSAM for its clients' accounts. The interests of CSAM and/or its affiliates and personnel may conflict with the interests of CSAM's clients in connection with any proxy issue. In addition, CSAM may not be able to identify all of the conflicts of interest relating to any proxy matter. Consent In each and every instance in which the Proxy Voting Committee favors voting in a manner that is inconsistent with the Policy or the vote recommendation of ISS (including proxy proposals addressed and not addressed by the Policy), it shall disclose to the client conflicts of interest information and obtain client consent to vote. Where the client is a Fund, disclosure shall be made to any one director who is not an "interested person," as that term is defined under the Investment Company Act of 1940, as amended, of the Fund. Recordkeeping CSAM is required to maintain in an easily accessible place for five years all records relating to proxy voting. These records include the following: o a copy of the Policy; o a copy of each proxy statement received on behalf of CSAM clients; 6 o a record of each vote cast on behalf of CSAM clients; o a copy of all documents created by CSAM personnel that were material to making a decision on a vote or that memorializes the basis for the decision; and o a copy of each written request by a client for information on how CSAM voted proxies, as well as a copy of any written response. CSAM reserves the right to maintain certain required proxy records with ISS in accordance with all applicable regulations. Disclosure CSAM will describe the Policy to each client. Upon request, CSAM will provide any client with a copy of the Policy. CSAM will also disclose to its clients how they can obtain information on their proxy votes. ISS will capture data necessary for Funds to file Form N-PX on an annual basis concerning their proxy voting record in accordance with applicable law. Procedures The Proxy Voting Committee will administer the voting of all client proxies. CSAM has engaged ISS as an independent third party proxy voting service to assist in the voting of client proxies. ISS will coordinate with each client's custodian to ensure that proxy materials reviewed by the custodians are processed in a timely fashion. ISS will provide CSAM with an analysis of proxy issues and a vote recommendation for proxy proposals. ISS will refer proxies to the Proxy Voting Committee for instructions when the application of the Policy is not clear. The Proxy Voting Committee will notify ISS of any changes to the Policy or deviating thereof. PROXY VOTING POLICY Operational Items Adjourn Meeting Proposals to provide management with the authority to adjourn an annual or special meeting will be determined on a case-by-case basis. Amend Quorum Requirements Proposals to reduce quorum requirements for shareholder meetings below a majority of the shares outstanding will be determined on a case-by-case basis. 7 Amend Minor Bylaws Generally vote for bylaw or charter changes that are of a housekeeping nature. Change Date, Time, or Location of Annual Meeting Generally vote for management proposals to change the date/time/location of the annual meeting unless the proposed change is unreasonable. Generally vote against shareholder proposals to change the date/time/location of the annual meeting unless the current scheduling or location is unreasonable. Ratify Auditors Generally vote for proposals to ratify auditors unless: (1) an auditor has a financial interest in or association with the company, and is therefore not independent; (2) fees for non-audit services are excessive, or (3) there is reason to believe that the independent auditor has rendered an opinion, which is neither accurate nor indicative of the company's financial position. Generally vote on a case-by-case basis on shareholder proposals asking companies to prohibit their auditors from engaging in non-audit services (or capping the level of non-audit services). Generally vote on a case-by-case basis on auditor rotation proposals taking into consideration: (1) tenure of audit firm; (2) establishment and disclosure of a renewal process whereby the auditor is regularly evaluated for both audit quality and competitive price; (3) length of the rotation period advocated in the proposal, and (4) significant audit related issues. Board of Directors Voting on Director Nominees in Uncontested Elections Generally votes on director nominees on a case-by-case basis. Votes may be withheld: (1) from directors who attended less than 75% of the board and committee meetings without a valid reason for the absences; (2) implemented or renewed a dead-hand poison pill; (3) ignored a shareholder proposal that was approved by a majority of the votes cast for two consecutive years; (4) ignored a shareholder proposal approved by a majority of the shares outstanding; (5) have failed to act on takeover offers where the majority of the shareholders have tendered their shares; (6) are inside directors or affiliated outside directors and sit on the audit, compensation, or nominating committee; (7) are inside directors or affiliated outside directors and the full board serves as the audit, compensation, or nominating committee or the company does not have one of these committees; or (8) are audit committee members and the non-audit fees paid to the auditor are excessive Cumulative Voting 8 Proposals to eliminate cumulative voting will be determined on a case-by-case basis. Proposals to restore or provide for cumulative voting in the absence of sufficient good governance provisions and/or poor relative shareholder returns will be determined on a case-by-case basis. Director and Officer Indemnification and Liability Protection Proposals on director and officer indemnification and liability protection generally evaluated on a case-by-case basis. Generally vote against proposals that would: (1) eliminate entirely directors' and officers' liability for monetary damages for violating the duty of care; or (2) expand coverage beyond just legal expenses to acts, such as negligence, that are more serious violations of fiduciary obligation than mere carelessness. Generally vote for only those proposals providing such expanded coverage in cases when a director's or officer's legal defense was unsuccessful if: (1) the director was found to have acted in good faith and in a manner that he reasonably believed was in the best interests of the company, and (2) only if the director's legal expenses would be covered. Filling Vacancies/Removal of Directors Generally vote against proposals that provide that directors may be removed only for cause. Generally vote for proposals to restore shareholder ability to remove directors with or without cause. Proposals that provide that only continuing directors may elect replacements to fill board vacancies will be determined on a case-by-case basis. Generally vote for proposals that permit shareholders to elect directors to fill board vacancies. Independent Chairman (Separate Chairman/CEO) Generally vote for shareholder proposals requiring the position of chairman be filled by an independent director unless there are compelling reasons to recommend against the proposal, including: (1) designated lead director, elected by and from the independent board members with clearly delineated duties; (2) 2/3 independent board; (3) all independent key committees; or (4) established governance guidelines. Majority of Independent Directors Generally vote for shareholder proposals requiring that the board consist of a majority or substantial majority (two-thirds) of independent directors unless the board composition already meets the adequate threshold. Generally vote for shareholder proposals requiring the board audit, compensation, and/or nominating committees be composed exclusively of independent directors if they currently do not meet that standard. Generally withhold votes from insiders and affiliated outsiders sitting on the audit, compensation, or nominating committees. Generally withhold votes from insiders and affiliated outsiders on boards that are 9 lacking any of these three panels. Generally withhold votes from insiders and affiliated outsiders on boards that are not at least majority independent. Term Limits Generally vote against shareholder proposals to limit the tenure of outside directors. Proxy Contests Voting on Director Nominees in Contested Elections Votes in a contested election of directors should be decided on a case-by-case basis, with shareholders determining which directors are best suited to add value for shareholders. The major decision factors are: (1) company performance relative to its peers; (2) strategy of the incumbents versus the dissidents; (3) independence of directors/nominees; (4) experience and skills of board candidates; (5) governance profile of the company; (6) evidence of management entrenchment; (7) responsiveness to shareholders; or (8) whether takeover offer has been rebuffed. Amend Bylaws without Shareholder Consent Proposals giving the board exclusive authority to amend the bylaws will be determined on a case-by-case basis. Proposals giving the board the ability to amend the bylaws in addition to shareholders will be determined on a case-by-case basis. Confidential Voting Generally vote for shareholder proposals requesting that corporations adopt confidential voting, use independent vote tabulators and use independent inspectors of election, as long as the proposal includes a provision for proxy contests as follows: In the case of a contested election, management should be permitted to request that the dissident group honor its confidential voting policy. If the dissidents agree, the policy may remain in place. If the dissidents will not agree, the confidential voting policy may be waived. Generally vote for management proposals to adopt confidential voting. Cumulative Voting Proposals to eliminate cumulative voting will be determined on a case-by-case basis. Proposals to restore or provide for cumulative voting in the absence of sufficient good governance provisions and/or poor relative shareholder returns will be determined on a case-by-case basis. 10 Antitakeover Defenses and Voting Related Issues Advance Notice Requirements for Shareholder Proposals/Nominations Votes on advance notice proposals are determined on a case-by-case basis. Amend Bylaws without Shareholder Consent Proposals giving the board exclusive authority to amend the bylaws will be determined on a case-by-case basis. Generally vote for proposals giving the board the ability to amend the bylaws in addition to shareholders. Poison Pills (Shareholder Rights Plans) Generally vote for shareholder proposals requesting that the company submit its poison pill to a shareholder vote or redeem it. Votes regarding management proposals to ratify a poison pill should be determined on a case-by-case basis. Plans should embody the following attributes: (1) 20% or higher flip-in or flip-over; (2) two to three year sunset provision; (3) no dead-hand or no-hand features; or (4) shareholder redemption feature Shareholders' Ability to Act by Written Consent Generally vote against proposals to restrict or prohibit shareholders' ability to take action by written consent. Generally vote for proposals to allow or make easier shareholder action by written consent. Shareholders' Ability to Call Special Meetings Proposals to restrict or prohibit shareholders' ability to call special meetings or that remove restrictions on the right of shareholders to act independently of management will be determined on a case-by-case basis. Supermajority Vote Requirements Proposals to require a supermajority shareholder vote will be determined on a case-by-case basis Proposals to lower supermajority vote requirements will be determined on a case-by-case basis. Merger and Corporate Restructuring Appraisal Rights Generally vote for proposals to restore, or provide shareholders with, rights of appraisal. 11 Asset Purchases Generally vote case-by-case on asset purchase proposals, taking into account: (1) purchase price, including earnout and contingent payments; (2) fairness opinion; (3) financial and strategic benefits; (4) how the deal was negotiated; (5) conflicts of interest; (6) other alternatives for the business; or (7) noncompletion risk (company's going concern prospects, possible bankruptcy). Asset Sales Votes on asset sales should be determined on a case-by-case basis after considering: (1) impact on the balance sheet/working capital; (2) potential elimination of diseconomies; (3) anticipated financial and operating benefits; (4) anticipated use of funds; (5) value received for the asset; fairness opinion (if any); (6) how the deal was negotiated; or (6) Conflicts of interest Conversion of Securities Votes on proposals regarding conversion of securities are determined on a case-by-case basis. When evaluating these proposals, should review (1) dilution to existing shareholders' position; (2) conversion price relative to market value; (3) financial issues: company's financial situation and degree of need for capital; effect of the transaction on the company's cost of capital; (4) control issues: change in management; change in control; standstill provisions and voting agreements; guaranteed contractual board and committee seats for investor; veto power over certain corporate actions; (5) termination penalties; (6) conflict of interest: arm's length transactions, managerial incentives. Generally vote for the conversion if it is expected that the company will be subject to onerous penalties or will be forced to file for bankruptcy if the transaction is not approved. Corporate Reorganization Votes on proposals to increase common and/or preferred shares and to issue shares as part of a debt restructuring plan are determined on a case-by-case basis, after evaluating: (1) dilution to existing shareholders' position; (2) terms of the offer; (3) financial issues; (4) management's efforts to pursue other alternatives; (5) control issues; (6) conflict of interest. Generally vote for the debt restructuring if it is expected that the company will file for bankruptcy if the transaction is not approved. Reverse Leveraged Buyouts Votes on proposals to increase common and/or preferred shares and to issue shares as part of a debt restructuring plan are determined on a case-by-case basis, after evaluating: (1) dilution to existing shareholders' position; (2) terms of the offer; (3) financial issues; (4) management's efforts to pursue other alternatives; (5) control issues; (6) conflict of interest. Generally vote 12 for the debt restructuring if it is expected that the company will file for bankruptcy if the transaction is not approved. Formation of Holding Company Votes on proposals regarding the formation of a holding company should be determined on a case-by-case basis taking into consideration: (1) the reasons for the change; (2) any financial or tax benefits; (3) regulatory benefits; (4) increases in capital structure; (5) changes to the articles of incorporation or bylaws of the company. Absent compelling financial reasons to recommend the transaction, generally vote against the formation of a holding company if the transaction would include either of the following: (1) increases in common or preferred stock in excess of the allowable maximum as calculated a model capital structure; (2) adverse changes in shareholder rights; (3) going private transactions; (4) votes going private transactions on a case-by-case basis, taking into account: (a) offer price/premium; (b) fairness opinion; (c) how the deal was negotiated; (d) conflicts of interest; (e) other alternatives/offers considered; (f) noncompletion risk. Joint Ventures Vote on a case-by-case basis on proposals to form joint ventures, taking into account: (1) percentage of assets/business contributed; (2) percentage ownership; (3) financial and strategic benefits; (4) governance structure; (5) conflicts of interest; (6) other alternatives; (7) noncompletion risk; (8) liquidations. Votes on liquidations should be determined on a case-by-case basis after reviewing: (1) management's efforts to pursue other alternatives such as mergers; (2) appraisal value of the assets (including any fairness opinions); (3) compensation plan for executives managing the liquidation. Generally vote for the liquidation if the company will file for bankruptcy if the proposal is not approved. Mergers and Acquisitions Votes on mergers and acquisitions should be considered on a case-by-case basis, determining whether the transaction enhances shareholder value by giving consideration to: (1) prospects of the combined companies; (2) anticipated financial and operating benefits; (3) offer price; (4) fairness opinion; (5) how the deal was negotiated; (6) changes in corporate governance and their impact on shareholder rights; (7) change in the capital structure; (8) conflicts of interest. Private Placements Votes on proposals regarding private placements should be determined on a case-by-case basis. When evaluating these proposals, should review: (1) dilution to existing shareholders' position; (2) terms of the offer; (3) financial issues; (4) management's efforts to pursue alternatives such as mergers; (5) control issues; (6) conflict of interest. Generally vote for the 13 private placement if it is expected that the company will file for bankruptcy if the transaction is not approved. Prepackaged Bankruptcy Plans Votes on proposals to increase common and/or preferred shares and to issue shares as part of a debt restructuring plan are determined on a case-by-case basis, after evaluating: (1) dilution to existing shareholders' position; (2) terms of the offer; (3) financial issues; (4) management's efforts to pursue other alternatives; (5) control issues; (6) conflict of interest. Generally vote for the debt restructuring if it is expected that the company will file for bankruptcy if the transaction is not approved. Recapitalization Votes case-by-case on recapitalizations (reclassifications of securities), taking into account: (1) more simplified capital structure; (2) enhanced liquidity; (3) fairness of conversion terms, including fairness opinion; (4) impact on voting power and dividends; (5) reasons for the reclassification; (6) conflicts of interest; (7) other alternatives considered. Reverse Stock Splits Generally vote for management proposals to implement a reverse stock split when the number of authorized shares will be proportionately reduced. Generally vote for management proposals to implement a reverse stock split to avoid delisting. Votes on proposals to implement a reverse stock split that do not proportionately reduce the number of shares authorized for issue should be determined on a case-by-case basis. Spinoffs Votes on spinoffs should be considered on a case-by-case basis depending on: (1) tax and regulatory advantages; (2) planned use of the sale proceeds; (3) valuation of spinoff; fairness opinion; (3) benefits that the spinoff may have on the parent company including improved market focus; (4) conflicts of interest; managerial incentives; (5) any changes in corporate governance and their impact on shareholder rights; (6) change in the capital structure Value Maximization Proposals Vote case-by-case on shareholder proposals seeking to maximize shareholder value. Capital Structure Adjustments to Par Value of Common Stock 14 Generally vote for management proposals to reduce the par value of common stock unless the action is being taken to facilitate an antitakeover device or some other negative corporate governance action. Generally vote for management proposals to eliminate par value. Common Stock Authorization Votes on proposals to increase the number of shares of common stock authorized for issuance are determined on a case-by-case basis. Generally vote against proposals at companies with dual-class capital structures to increase the number of authorized shares of the class of stock that has superior voting rights. Generally vote for proposals to approve increases beyond the allowable increase when a company's shares are in danger of being delisted or if a company's ability to continue to operate as a going concern is uncertain. Dual-class Stock Generally vote against proposals to create a new class of common stock with superior voting rights. Generally vote for proposals to create a new class of nonvoting or subvoting common stock if: (1) it is intended for financing purposes with minimal or no dilution to current shareholders; (2) it is not designed to preserve the voting power of an insider or significant shareholder. Issue Stock for Use with Rights Plan Generally vote against proposals that increase authorized common stock for the explicit purpose of implementing a shareholder rights plan. Preemptive Rights Votes regarding shareholder proposals seeking preemptive rights should be determined on a case-by-case basis after evaluating: (1) the size of the company; (2) the shareholder base; (3) the liquidity of the stock Preferred Stock Generally vote against proposals authorizing the creation of new classes of preferred stock with unspecified voting, conversion, dividend distribution, and other rights ("blank check" preferred stock). Generally vote for proposals to create "declawed" blank check preferred stock (stock that cannot be used as a takeover defense). Generally vote for proposals to authorize preferred stock in cases where the company specifies the voting, dividend, conversion, and other rights of such stock and the terms of the preferred stock appear reasonable. Generally vote against proposals to increase the number of blank check preferred stock authorized for issuance when no shares have been issued or reserved for a specific purpose. Generally vote case-by-case on proposals to increase the number of blank check 15 preferred shares after analyzing the number of preferred shares available for issue given a company's industry and performance in terms of shareholder returns. Recapitalization Vote case-by-case on recapitalizations (reclassifications of securities), taking into account: (1) more simplified capital structure; (2) enhanced liquidity; (3) fairness of conversion terms, including fairness opinion; (4) impact on voting power and dividends; (5) reasons for the reclassification; (6) conflicts of interest; (7) other alternatives considered. Reverse Stock Splits Generally vote for management proposals to implement a reverse stock split when the number of authorized shares will be proportionately reduced. Generally vote for management proposals to implement a reverse stock split to avoid delisting. Votes on proposals to implement a reverse stock split that do not proportionately reduce the number of shares authorized for issue should be determined on a case-by-case basis. Share Repurchase Programs Generally vote for management proposals to institute open-market share repurchase plans in which all shareholders may participate on equal terms. Stock Distributions: Splits and Dividends Generally vote for management proposals to increase the common share authorization for a stock split or share dividend, provided that the increase in authorized shares would not result in an excessive number of shares available for issuance. Tracking Stock Votes on the creation of tracking stock are determined on a case-by-case basis, weighing the strategic value of the transaction against such factors as: (1) adverse governance changes; (2) excessive increases in authorized capital stock; (3) unfair method of distribution; (4) diminution of voting rights; (5) adverse conversion features; (6) negative impact on stock option plans; (7) other alternatives such as a spinoff. Executive and Director Compensation Executive and Director Compensation Votes on compensation plans for directors are determined on a case-by-case basis. 16 Stock Plans in Lieu of Cash Votes for plans which provide participants with the option of taking all or a portion of their cash compensation in the form of stock are determined on a case-by-case basis. Generally vote for plans which provide a dollar-for-dollar cash for stock exchange. Votes for plans which do not provide a dollar-for-dollar cash for stock exchange should be determined on a case-by-case basis. Director Retirement Plans Generally vote against retirement plans for nonemployee directors. Generally vote for shareholder proposals to eliminate retirement plans for nonemployee directors. Management Proposals Seeking Approval to Reprice Options Votes on management proposals seeking approval to reprice options are evaluated on a case-by-case basis giving consideration to the following: (1) historic trading patterns; (2) rationale for the repricing; (3) value-for-value exchange; (4) option vesting; (5) term of the option; (6) exercise price; (7) participants; (8) employee stock purchase plans. Votes on employee stock purchase plans should be determined on a case-by-case basis. Generally vote for employee stock purchase plans where: (1) purchase price is at least 85 percent of fair market value; (2) offering period is 27 months or less, and (3) potential voting power dilution (VPD) is ten percent or less. Generally vote against employee stock purchase plans where either: (1) purchase price is less than 85 percent of fair market value; (2) Offering period is greater than 27 months, or (3) VPD is greater than ten percent Incentive Bonus Plans and Tax Deductibility Proposals Generally vote for proposals that simply amend shareholder-approved compensation plans to include administrative features or place a cap on the annual grants any one participant may receive. Generally vote for proposals to add performance goals to existing compensation plans. Votes to amend existing plans to increase shares reserved and to qualify for favorable tax treatment considered on a case-by-case basis. Generally vote for cash or cash and stock bonus plans that are submitted to shareholders for the purpose of exempting compensation from taxes if no increase in shares is requested. Employee Stock Ownership Plans (ESOPs) Generally vote for proposals to implement an ESOP or increase authorized shares for existing ESOPs, unless the number of shares allocated to the ESOP is excessive (more than five percent of outstanding shares.) 401(k) Employee Benefit Plans 17 Generally vote for proposals to implement a 401(k) savings plan for employees. Shareholder Proposals Regarding Executive and Director Pay Generally vote for shareholder proposals seeking additional disclosure of executive and director pay information, provided the information requested is relevant to shareholders' needs, would not put the company at a competitive disadvantage relative to its industry, and is not unduly burdensome to the company. Generally vote against shareholder proposals seeking to set absolute levels on compensation or otherwise dictate the amount or form of compensation. Generally vote against shareholder proposals requiring director fees be paid in stock only. Generally vote for shareholder proposals to put option repricings to a shareholder vote. Vote for shareholders proposals to exclude pension fund income in the calculation of earnings used in determining executive bonuses/compensation. Vote on a case-by-case basis for all other shareholder proposals regarding executive and director pay, taking into account company performance, pay level versus peers, pay level versus industry, and long term corporate outlook. Performance-Based Option Proposals Generally vote for shareholder proposals advocating the use of performance-based equity awards (indexed, premium-priced, and performance-vested options), unless: (1) the proposal is overly restrictive; or (2) the company demonstrates that it is using a substantial portion of performance-based awards for its top executives. Stock Option Expensing Generally vote for shareholder proposals asking the company to expense stock options unless the company has already publicly committed to start expensing by a specific date. Golden and Tin Parachutes Generally vote for shareholder proposals to require golden and tin parachutes to be submitted for shareholder ratification, unless the proposal requires shareholder approval prior to entering into employment contracts. Vote on a case-by-case basis on proposals to ratify or cancel golden or tin parachutes. May 17, 2005 ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Form N-CSR disclosure requirement is not yet effective with respect to the registrant. 18 ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. None. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's board of directors since the registrant last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(g) of Schedule 14A in its definitive proxy statement dated January 11, 2005. ITEM 11. CONTROLS AND PROCEDURES. (a) As of a date within 90 days from the filing date of this report, the principal executive officer and principal financial officer concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the "Act")) were effective based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934. (b) There were no changes in registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. (a)(1) Registrant's Code of Ethics is an exhibit to this report. (a)(2) The certifications of the registrant as required by Rule 30a-2(a) under the Act are exhibits to this report. (a)(3) Not applicable. (b) The certifications of the registrant as required by Rule 30a-2(b) under the Act are an exhibit to this report. 19 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. CREDIT SUISSE HIGH YIELD BOND FUND. /s/ Steven B. Plump ------------------- Name: Steven B. Plump Title: Chief Executive Officer Date: January 9, 2006 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. /s/ Steven B. Plump ------------------- Name: Steven B. Plump Title: Chief Executive Officer Date: January 9, 2006 /s/ Michael A. Pignataro ------------------------ Name: Michael A. Pignataro Title: Chief Financial Officer Date: January 9, 2006 EX-99.CODE ETH 2 file002.txt CODE OF ETHICS EX-99.CODE ETHICS EXHIBIT 12(a)(1) CODE OF ETHICS CREDIT SUISSE FUNDS CREDIT SUISSE INSTITUTIONAL FUNDS CREDIT SUISSE CLOSED-END FUNDS CODE OF ETHICS FOR SENIOR OFFICERS Preamble Section 406 of the Sarbanes-Oxley Act of 2002 directs that rules be adopted disclosing whether a company has a code of ethics for senior financial officers. The Securities and Exchange Commission (the "SEC") has adopted rules requiring annual disclosure of an investment company's code of ethics applicable to the company's principal executive as well as principal financial officers, if such a code has been adopted. In response, the above Funds (each a "Fund", and together the "Funds") have adopted this Code of Ethics. Statement of Policy It is the obligation of the senior officers of the Funds to provide full, fair, timely and comprehensible disclosure--financial and otherwise--to Fund shareholders, regulatory authorities and the general public. In fulfilling that obligation, senior officers must act ethically, honestly and diligently. This Code is intended to enunciate guidelines to be followed by persons who serve the Funds in senior officerships. No Code can address every situation that a senior officer might face; however, as a guiding principle, senior officers should strive to implement the spirit as well as the 21 letter of applicable laws, rules and regulations, and to provide the type of clear and complete disclosure and information Fund shareholders have a right to expect. The purpose of this Code of Ethics is to promote high standards of ethical conduct by Covered Persons (as defined below) in their capacities as officers of the Funds, to instruct them as to what is considered to be inappropriate and unacceptable conduct or activities for officers and to prohibit such conduct or activities. This Code supplements other policies that the Funds and their adviser have adopted or may adopt in the future with which Fund officers are also required to comply (e.g., code of ethics relating to personal trading and conduct). Covered Persons This Code of Ethics applies to those persons appointed by the Fund's Board of Directors as Chief Executive Officer, President, Chief Financial Officer and Chief Accounting Officer, or persons performing similar functions. It is recognized that each of such persons currently is a full-time employee of Credit Suisse Asset Management LLC ("CSAM"), each Fund's investment adviser. Promotion of Honest and Ethical Conduct In serving as an officer of the Funds, each Covered Person must maintain high standards of honesty and ethical conduct and must encourage his colleagues who provide services to the Funds, whether directly or indirectly, to do the same. Each Covered Person understands that as an officer of a Fund, he has a duty to act in the best interests of the Fund and its shareholders. The interests of other CSAM clients or CSAM itself or the Covered Person's personal interests should not be allowed to compromise the Covered 22 Person's fulfilling his duties as an officer of the Fund. The governing Boards of the Funds recognize that the Covered Persons are also officers or employees of CSAM. Furthermore, the governing Boards of the Funds recognize that, subject to the Covered Person's fiduciary duties to the Funds, the Covered Persons will in the normal course of their duties (whether formally for the Funds or for CSAM, or for both) be involved in establishing policies and implementing decisions that will have different effects on CSAM and the Funds. The governing Boards of the Funds recognize that the participation of the Covered Persons in such activities is inherent in the contractual relationship between the Funds and CSAM and/or its affiliates, and is consistent with the expectation of the governing Boards of the performance by the Covered Persons of their duties as officers of the Funds. If a Covered Person believes that his responsibilities as an officer or employee of CSAM are likely to materially compromise his objectivity or his ability to perform the duties of his role as an officer of the Funds, he should consult with CSAM's general counsel, the Funds' chief legal officer or outside counsel, or counsel to the independent Directors/Trustees of the relevant Fund or Funds. Under appropriate circumstances, a Covered Person should also consider whether to present the matter to the Directors/Trustees of the relevant Fund or Funds or a committee thereof. No Covered Person shall suggest that any person providing, or soliciting to be retained to provide, services to a Fund give a gift or an economic benefit of any kind to him in connection with the person's retention or the provision of services. Promotion of Full, Fair, Accurate, Timely and Understandable Disclosure No Covered Person shall create or further the creation of false or misleading information in any SEC filing or report to Fund shareholders. No Covered Person shall conceal or fail 23 to disclose information within the Covered Person's possession legally required to be disclosed or necessary to make the disclosure made not misleading. If a Covered Person shall become aware that information filed with the SEC or made available to the public contains any false or misleading information or omits to disclose necessary information, he shall promptly report it to CSAM's general counsel or Fund counsel, who shall advise such Covered Person whether corrective action is necessary or appropriate. Each Covered Person, consistent with his responsibilities, shall exercise appropriate supervision over, and shall assist, relevant Fund service providers in developing financial information and other disclosure that complies with relevant law and presents information in a clear, comprehensible and complete manner. Each Covered Person shall use his best efforts within his area of expertise to assure that Fund reports reveal, rather than conceal, the relevant Fund's financial condition. Each Covered Person shall seek to obtain additional resources if he believes that available resources are inadequate to enable the Funds to provide full, fair and accurate financial information and other disclosure to regulators and Fund shareholders. Each Covered Person shall inquire of other Fund officers and service providers, as appropriate, to assure that information provided is accurate and complete and presented in an understandable format using comprehensible language. Each Covered Person shall diligently perform his services to the Funds, so that information can be gathered and assessed early enough to facilitate timely filings and issuance of reports and required certifications. 24 Promotion of Compliance with Applicable Government Laws, Rules and Regulations Each Covered Person shall become and remain knowledgeable concerning the laws and regulations relating to the Funds and their operations and shall act with competence and due care in serving as an officer of the Funds. Each Covered Person with specific responsibility for financial statement disclosure will become and remain knowledgeable concerning relevant auditing standards, generally accepted accounting principles, FASB pronouncements and other accounting and tax literature and developments. Each Covered Person shall devote sufficient time to fulfilling his responsibilities to the Funds, recognizing that he will devote substantial time to providing services to other CSAM clients and will perform other activities as an employee of CSAM. Each Covered Person shall cooperate with a Fund's independent auditors, regulatory agencies and internal auditors in their review or inspection of the Fund and its operations. No Covered Person shall knowingly violate any law or regulation relating to the Funds or their operations or seek to illegally circumvent any such law or regulation. No Covered Person shall engage in any conduct involving dishonesty, fraud, deceit or misrepresentation involving the Funds or their operations. Promoting Prompt Internal Reporting of Violations Each Covered Person shall promptly report his own violations of this Code and violations by other Covered Persons of which he is aware to the Chairman of the relevant Fund's Audit Committee. 25 Any requests for a waiver from or an amendment to this Code shall be made to the Chairman of the relevant Fund's Audit Committee. All waivers and amendments shall be disclosed as required by law. Sanctions Failure to comply with this Code will subject the violator to appropriate sanctions, which will vary based on the nature and severity of the violation. Such sanctions may include censure, suspension or termination of position as an officer of the Fund. Sanctions shall be imposed by the relevant Fund's Audit Committee, subject to review by the entire Board of Directors/Trustees of the Fund. Each Covered Person shall be required to certify annually whether he has complied with this Code. No Rights Created This Code of Ethics is a statement of certain fundamental principles, policies and procedures that govern the Funds' senior officers in the conduct of the Funds' business. It is not intended to and does not create any rights in any employee, investor, supplier, competitor, shareholder or any other person or entity. Recordkeeping The Funds will maintain and preserve for a period of not less than six (6) years from the date such action is taken, the first two (2) years in an easily accessible place, a copy of the information or materials supplied to the Board (1) that provided the basis for any amendment or 26 waiver to this Code and (2) relating to any violation of the Code and sanctions imposed for such violation, together with a written record of the approval or action taken by the relevant Board. Amendments The Directors/Trustees will make and approve such changes to this Code of Ethics as they deem necessary or appropriate to effectuate the purposes of this Code. Dated: May 17, 2005 27 CODE OF ETHICS FOR SENIOR OFFICERS: I HEREBY CERTIFY THAT: (1) I have read and I understand the Code of Ethics for Senior Officers adopted by the Credit Suisse Funds, the Credit Suisse Institutional Funds and the Credit Suisse Closed-End Funds (the "Code of Ethics"); (2) I recognize that I am subject to the Code of Ethics; (3) I have complied with the requirements of the Code of Ethics during the calendar year ending December 31, _______; and (4) I have reported all violations of the Code of Ethics required to be reported pursuant to the requirements of the Code during the calendar year ending December 31, _______. Set forth below exceptions to items (3) and (4), if any: ---------------------------------------- ---------------------------------------- ---------------------------------------- Name: ------------------------------ Date: 28 EX-99.CERT 3 file003.txt CERTIFICATIONS EXHIBIT 12(a)(2) CERTIFICATIONS I, Michael A. Pignataro, certify that: 1. I have reviewed this report on Form N-CSR of Credit Suisse High Yield Bond Fund; 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 financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 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 second fiscal quarter of the period covered by this report 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: January 9, 2006 /s/ Michael A. Pignataro - ------------------------ Michael A. Pignataro Chief Financial Officer I, Steven B. Plump, certify that: 1. I have reviewed this report on Form N-CSR of Credit Suisse High Yield Bond Fund; 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 financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 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 second fiscal quarter of the period covered by this report 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: January 9, 2006 /s/ Steven B. Plump - ------------------- Steven B. Plump Chief Executive Officer EX-99.906CERT 4 file004.txt CERTIFICATIONS EXHIBIT 12(b) SECTION 906 CERTIFICATIONS SECTION 906 CERTIFICATION Steven B. Plump, Chief Executive Officer, and Michael A. Pignataro, Chief Financial Officer, of Credit Suisse High Yield Bond Fund (the "Fund"), each certify to his knowledge that: (1) The Fund's periodic report on Form N-CSR for the period ended October 31, 2005 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund. /s/ Steven B. Plump /s/ Michael A. Pignataro ------------------- ------------------------ Steven B. Plump Michael A. Pignataro Chief Executive Officer Chief Financial Officer January 9, 2006 January 9, 2006 A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Fund and will be retained by the Fund and furnished to the Securities and Exchange Commission or its staff upon request. -----END PRIVACY-ENHANCED MESSAGE-----