PROSPECTUS SUPPLEMENT
(To Prospectus dated as of October 17, 2012)
CREDIT SUISSE HIGH YIELD BOND FUND
Up to 18,000,000 Common Shares of Beneficial Interest
Credit Suisse High Yield Bond Fund (the "Fund") has entered into a sales agreement (the "sales agreement") with JonesTrading Institutional Services LLC ("JonesTrading") relating to its common shares of beneficial interest ("Common Shares") offered by this Prospectus Supplement and the accompanying Prospectus. In accordance with the terms of the sales agreement, the Fund may offer and sell up to 18,000,000 of its Common Shares, par value $0.001 per share, from time to time through JonesTrading as its agent for the offer and sale of the Common Shares, subject to an aggregate cap under the Fund's shelf registration statement (the "Shelf") of $82,758,654.50, which amount reflects the issuance of $11,019,746.50 of Common Shares under the Shelf to date. As of February 21, 2013, the Fund had offered and sold 19,276,060 Common Shares pursuant to prior sales agreements with JonesTrading. Under the Investment Company Act of 1940, as amended (the "1940 Act"), the Fund may not sell any Common Shares at a price below the current net asset value of such Common Shares, exclusive of any distributing commission or discount. The Fund is a non-diversified, closed-end management investment company with a leveraged capital structure. The Fund's primary investment objective is to seek high current income. The Fund also will seek capital appreciation as a secondary objective to the extent consistent with its objective of seeking high current income. There can be no assurance that the Fund will achieve its investment objectives.
The Fund's currently outstanding Common Shares are, and the Common Shares offered by this Prospectus Supplement and the accompanying Prospectus will be, subject to notice of issuance, listed on the NYSE MKT under the symbol "DHY." The last reported sale price for the Fund's Common Shares on the NYSE MKT on February 21, 2013 was $3.28 per share. The net asset value of the Fund's Common Shares at the close of business on February 21, 2013 was $3.10 per share.
Sales of the Common Shares, if any, under this Prospectus Supplement and the accompanying Prospectus may be made in negotiated transactions or transactions that are deemed to be "at the market" as defined in Rule 415 under the Securities Act of 1933, as amended (the "1933 Act"), including sales made directly on the NYSE MKT or sales made to or through a market maker other than on an exchange.
JonesTrading will be entitled to compensation of between 150 and 300 basis points of the gross sales price per share for any Common Shares sold under the sales agreement, with the exact amount of such compensation to be mutually agreed upon by the Fund and JonesTrading from time to time. In connection with the sale of the Common Shares on the Fund's behalf, JonesTrading may be deemed to be an "underwriter" within the meaning of the 1933 Act and the compensation of JonesTrading may be deemed to be underwriting commissions or discounts.
You should review the information set forth under "Risks and Special Considerations" on page 23 of the accompanying Prospectus before investing in the Fund's Common Shares.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved these securities or determined if this Prospectus Supplement or the accompanying Prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
The date of this Prospectus Supplement is March 1, 2013
You should rely only on the information contained in or incorporated by reference into this Prospectus Supplement and the accompanying Prospectus. This Prospectus Supplement and the accompanying Prospectus set forth certain information about the Fund that a prospective investor should carefully consider before deciding whether to invest in the Fund's Common Shares. This Prospectus Supplement, which describes the specific terms of this offering including the method of distribution, also adds to and updates information contained in the accompanying Prospectus and the documents incorporated by reference into the accompanying Prospectus. The accompanying Prospectus gives more general information, some of which may not apply to this offering. If the description of this offering varies between this Prospectus Supplement and the accompanying Prospectus, you should rely on the information contained in this Prospectus Supplement; provided that if any statement in one of these documents is inconsistent with a statement in another document having a later date and incorporated by reference into the accompanying Prospectus or Prospectus Supplement, the statement in the incorporated document having a later date modifies or supersedes the earlier statement. Neither the Fund nor JonesTrading has authorized anyone to provide you with different information. If anyone provides you with different or inconsistent information, you should not rely on it. The Fund is not making an offer to sell these securities in any jurisdiction where the offer or sale is not permitted. The information contained in or incorporated by reference into this Prospectus Supplement and the accompanying Prospectus is accurate only as of the respective dates on their front covers, regardless of the time of delivery of this Prospectus Supplement, the accompanying Prospectus, or the sale of the Common Shares. The Fund's business, financial condition, results of operations and prospects may have changed since those dates.
TABLE OF CONTENTS
Prospectus Supplement
Page |
|||||||
Prospectus Supplement Summary |
S-1 |
||||||
Distributions |
S-3 |
||||||
Summary of Fund Expenses |
S-3 |
||||||
Use of Proceeds |
S-4 |
||||||
Capitalization |
S-5 |
||||||
Plan of Distribution |
S-6 |
||||||
Legal Matters |
S-7 |
||||||
Additional Information |
S-7 |
||||||
Index to Financial Statements |
F-1 |
Prospectus
Prospectus Summary |
1 |
||||||
Summary of Fund Expenses |
12 |
||||||
Financial Highlights |
13 |
||||||
Use of Proceeds |
15 |
||||||
The Fund |
15 |
||||||
Investment Objectives |
16 |
||||||
Investment Policies |
16 |
||||||
Investment Restrictions |
21 |
||||||
Use of Leverage |
22 |
||||||
Risks and Special Considerations |
23 |
||||||
Management of the Fund |
31 |
||||||
Expenses |
32 |
||||||
Net Asset Value |
33 |
||||||
Dividends and Distributions; Automatic Dividend Reinvestment Plan |
33 |
||||||
Federal Income Taxation |
35 |
||||||
Repurchase of Shares |
40 |
||||||
Description of Shares |
41 |
||||||
Plan of Distribution |
42 |
||||||
Closed-End Fund Structure |
43 |
||||||
Custodian, Transfer Agent and Dividend-Paying Agent |
44 |
||||||
Legal Proceedings |
44 |
||||||
Reports to Shareholders |
44 |
||||||
Additional Information |
44 |
||||||
Table of Contents of Statement of Additional Information |
45 |
ii
You should read this Prospectus Supplement and the accompanying Prospectus before deciding whether to invest and retain them for future reference. A Statement of Additional Information, dated October 17, 2012 ("SAI"), as supplemented from time to time, containing additional information about the Fund, has been filed with the Securities and Exchange Commission ("SEC") and is incorporated by reference in its entirety into this Prospectus Supplement. You may request a free copy of the SAI or request other information about the Fund (including the Fund's annual and semi-annual reports to shareholders) or make shareholder inquiries by calling 1-800-293-1232 or by writing to the Fund at c/o Credit Suisse Asset Management, LLC, One Madison Avenue, New York, New York 10010. The Fund's SAI, as well as the annual and semi-annual reports to shareholders, are also available at the Fund's website at www.credit-suisse.com/us. You may also obtain copies of these documents (and other information regarding the Fund) from the SEC's website (http://www.sec.gov).
CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS
This Prospectus Supplement, the accompanying Prospectus and the SAI contain "forward-looking statements." Forward-looking statements can be identified by the words "may," "will," "intend," "expect," "estimate," "continue," "plan," "anticipate," and similar terms and the negative of such terms. By their nature, all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by the forward-looking statements. Several factors that could materially affect the Fund's actual results are the performance of the portfolio of securities the Fund holds, the price at which the Fund's shares will trade in the public markets and other factors discussed in the Fund's periodic filings with the SEC.
Although the Fund believes that the expectations expressed in the forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in such forward-looking statements. The Fund's future financial condition and results of operations, as well as any forward-looking statements, are subject to change and are subject to inherent risks and uncertainties, such as those disclosed in the "Risks and Special Considerations" section of the accompanying Prospectus. All forward-looking statements contained in or incorporated by reference into this Prospectus Supplement or the accompanying Prospectus are made as of the date of this Prospectus Supplement or the accompanying Prospectus, as the case may be. Except for the Fund's ongoing obligations under the federal securities laws, it does not intend, and it undertakes no obligation, to update any forward-looking statements. The forward-looking statements contained in this Prospectus Supplement, the accompanying Prospectus and the SAI are excluded from the safe harbor protection provided by Section 27A of the 1933 Act.
iii
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PROSPECTUS SUPPLEMENT SUMMARY
The following information is only a summary. You should consider the more detailed information contained in this Prospectus Supplement, the accompanying Prospectus, dated October 17, 2012, and the SAI, dated October 17, 2012, especially the information under "Risks and Special Considerations" on page 23 of the accompanying Prospectus.
The Fund The Fund is a non-diversified, closed-end management investment company organized as a trust under the laws of the State of Delaware.
The Fund's Common Shares are listed for trading on the NYSE MKT under the symbol "DHY." As of February 21, 2013, the net assets of the Fund were $293,769,070 and the Fund had outstanding 94,785,278 Common Shares. As of February 21, 2013, the per share net asset value of the Fund's Common Shares was $3.10 and the per share market price of the Fund's Common Shares was $3.28, representing an 5.81% premium over such net asset value. See "Description of Shares" in the accompanying Prospectus.
The Fund's principal investment objective is to seek high current income. The Fund also will seek capital appreciation as a secondary objective, to the extent consistent with its objective of seeking high current income.
Under normal market conditions, the Fund will invest at least 80% of its total assets in fixed income securities of U.S. issuers rated below investment grade quality (lower than Baa by Moody's Investors Services, Inc. ("Moody's") or lower than BBB by Standard & Poor's, a subsidiary of The McGraw-Hill Companies, Inc. ("S&P") or comparably rated by another nationally recognized rating agency), or in unrated income securities that Credit Suisse Asset Management, LLC, the Fund's investment adviser ("Credit Suisse" or the "Investment Adviser"), determines to be of comparable quality. Securities rated lower than Baa by Moody's and lower than BBB by S&P are commonly known as "junk bonds." The Fund will generally not invest in securities rated at the time of investment in the lowest rating categories (Ca or below for Moody's and CC or below for S&P) but may continue to hold securities which are subsequently downgraded. However, it has authority to invest in securities rated as low as C and D by Moody's and S&P, respectively. See "Investment Policies" in the accompanying Prospectus.
Information Regarding the Investment Adviser Credit Suisse, the Fund's investment adviser, is part of the asset management business of Credit Suisse Group AG, one of the world's leading banks. Credit Suisse serves as the Fund's investment adviser with respect to all investments and is responsible for making all investment decisions. Credit Suisse receives from the Fund, as compensation for its advisory services, an annual fee, payable monthly, in an amount equal to 1% of the first $250 million of the average weekly value of the Fund's total assets minus the sum of liabilities (other than the aggregate indebtedness constituting leverage) (the "Managed Assets") and 0.75% of the average weekly value of the Managed Assets greater than $250 million. Credit Suisse may waive voluntarily a portion of its fees from time to time and temporarily limit the expenses to be borne by the Fund. Effective January 1, 2011, Credit Suisse agreed to waive 0.15% of the fees payable under the Investment Advisory Agreement up to $200 million and 0.25% of the fees payable under the Investment Advisory
S-1
Agreement on the next $50 million. During periods in which the Fund is utilizing leverage, the 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. The Fund is currently utilizing leverage. The Investment Adviser is located at One Madison Avenue, New York, New York 10010. See "Management of the Fund Investment Adviser."
The Offering The Fund and the Investment Adviser entered into a sales agreement with JonesTrading relating to the Common Shares offered by this Prospectus Supplement and the accompanying Prospectus. In accordance with the terms of the sales agreement, the Fund may offer and sell up to 18,000,000 of its Common Shares, par value $0.001 per share, from time to time through JonesTrading as its agent for the offer and sale of the Common Shares, subject to an aggregate cap of under the Shelf as of the date hereof of $82,758,654.50. As of February 21, 2013, the Fund had offered and sold 19,276,060 Common Shares pursuant to prior sales agreements with JonesTrading, resulting in proceeds (net of all fees and commissions) of $60,089,071.
The Fund's Common Shares are listed for trading on the NYSE MKT under the symbol "DHY." The last reported sale price of the Fund's Common Shares, as reported on the NYSE MKT on February 21, 2013, was $3.28 per share.
Sales of the Fund's Common Shares, if any, under this Prospectus Supplement and the accompanying Prospectus may be made in negotiated transactions or transactions that are deemed to be "at the market" as defined in Rule 415 under the 1933 Act, including sales made directly on the NYSE MKT or sales made to or through a market maker other than on an exchange. See "Plan of Distribution" in this Prospectus Supplement. The Fund's Common Shares may not be sold through agents, underwriters or dealers without delivery or deemed delivery of a prospectus and a prospectus supplement describing the method and terms of the offering of the Fund's securities. Under the 1940 Act, the Fund may not sell any Common Shares at a price below the current net asset value of such Common Shares, exclusive of any distributing commission or discount.
Use of Proceeds The Fund intends to invest the net proceeds of this offering in accordance with its investment objectives and policies as stated in the accompanying Prospectus. Proceeds will be invested within approximately 30 days of receipt by the Fund. Pending such investment, the Fund anticipates investing the proceeds in short-term securities issued by the U.S. government or its agencies or instrumentalities or in high quality, short-term or long-term debt obligations or money market instruments.
Leverage The Fund, as of February 21, 2013, is leveraged through borrowings from a credit facility in the amount of $113,000,000 or 27.78% of the Fund's total assets (including proceeds of such leverage). The Fund's asset coverage ratio as of February 21, 2013 was 360%.
Risks and Special Considerations See "Risks and Special Considerations" beginning on page 23 of the accompanying Prospectus for a discussion of factors you should consider carefully before deciding to invest in the Fund's Common Shares.
S-2
DISTRIBUTIONS
The Fund declares and pays dividends on a monthly basis. Distributions of net realized capital gains, if any, are declared and paid at least annually. 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.
The amounts of the last four monthly dividends paid by the Fund are as set out below:
Payment Date |
Dividend per Common Share |
||||||
November 23, 2012 |
$ |
0.0265 |
|||||
December 24, 2012 |
$ |
0.0265 |
|||||
January 24, 2013 |
$ |
0.0265 |
|||||
February 25, 2013 |
$ |
0.0265 |
See "Dividends and Distributions; Automatic Dividend Reinvestment Plan" in the accompanying Prospectus.
SUMMARY OF FUND EXPENSES
The following table and example are intended to assist you in understanding the various costs and expenses directly or indirectly associated with investing in Common Shares of the Fund. Some of the percentages indicated in the table below are estimates and may vary.
Shareholder Transaction Expenses |
|||||||
Sales Load (as a percentage of offering price) |
1.50 |
%(1) |
|||||
Offering Expenses (as a percentage of offering price) |
0.22 |
%(2) |
|||||
Dividend Reinvestment Plan Fees |
None(3) |
||||||
Annual Operating Expenses (as a percentage of average net assets attributable to the Fund's Common Shares) |
|||||||
Management Fee(4) |
1.14 |
% |
|||||
Interest and Commitment Fees on Borrowed Funds(5) |
0.58 |
% |
|||||
Other Expenses(6) |
0.22 |
% |
|||||
Total Annual Operating Expenses |
1.94 |
% |
(1) Represents the estimated commission with respect to the Fund's Common Shares being sold in this offering, which the Fund will pay to JonesTrading in connection with the sales of Common Shares effected by JonesTrading in this offering. While JonesTrading is entitled to a commission of between 1.50% and 3.00% of the gross sales price for Common Shares sold, with the exact amount to be agreed upon by the parties, the Fund has assumed, for purposes of this offering, that JonesTrading will receive a commission of 1.50% of such gross sales price. This is the only sales load to be paid in connection with this offering. There is no guarantee that there will be any sales of the Fund's Common Shares pursuant to this Prospectus Supplement and the accompanying Prospectus. Actual sales of the Fund's Common Shares under this Prospectus Supplement and the accompanying Prospectus, if any, may be less than as set forth under "Capitalization" below. In addition, the price per share of any such sale may be greater or less than the price set forth under "Capitalization" below, depending on market price of the Fund's Common Shares at the time of any such sale.
(2) Includes the Fund's payment of the reasonable fees and expenses of counsel for JonesTrading in connection with the transactions contemplated by the sales agreement, as described under "Plan of Distribution" below.
(3) Participants in the Fund's automatic dividend reinvestment plan pay only transaction-based charges. Actual costs will vary for each participant depending on the nature and number of transactions made. See "Dividends and Distributions; Automatic Dividend Reinvestment Plan" in the accompanying Prospectus.
(4) See "Management of the Fund Investment Adviser" in the accompanying Prospectus.
(5) The Fund may use leverage through borrowings. The Fund currently borrows under a credit facility.
(6) "Other Expenses" have been estimated for the current fiscal year. Includes the Fund's estimated payment of the reasonable fees and expenses of counsel for JonesTrading in connection with the transactions contemplated by the sales agreement, as described under "Plan of Distribution" below.
S-3
Example
An investor would pay the following expenses on a $1,000 investment in the Fund, assuming (1) Total Annual Operating Expenses of 1.94%, (2) a Sales Load (commission) of $15 and estimated offering expenses of $2.20 and (3) a 5% annual return:
One Year |
Three Years |
Five Years |
Ten Years |
||||||||||||
$ |
37 |
$ |
77 |
$ |
120 |
$ |
240 |
The "Example" assumes that all dividends and other distributions are reinvested at net asset value and that the percentage amounts listed in the table above under Total Annual Operating Expenses remain the same in the years shown. The above table and example and the assumption in the example of a 5% annual return are required by regulations of the SEC that are applicable to all investment companies; the assumed 5% annual return is not a prediction of, and does not represent, the projected or actual performance of the Fund's Common Shares.
The example should not be considered a representation of past or future expenses, and the Fund's actual expenses may be greater than or less than those shown. Moreover, the Fund's actual rate of return may be greater or less than the hypothetical 5% return shown in the example.
USE OF PROCEEDS
Sales of the Fund's Common Shares, if any, under this Prospectus Supplement and the accompanying Prospectus may be made in negotiated transactions or transactions that are deemed to be "at the market" as defined in Rule 415 under the 1933 Act, including sales made directly on the NYSE MKT or sales made to or through a market maker other than on an exchange. There is no guarantee that there will be any sales of the Fund's Common Shares pursuant to this Prospectus Supplement and the accompanying Prospectus. Actual sales, if any, of the Fund's Common Shares under this Prospectus Supplement and the accompanying Prospectus may be less than as set forth in this paragraph. In addition, the price per share of any such sale may be greater or less than the price set forth in this paragraph, depending on the market price of the Fund's Common Shares at the time of any such sale. As a result, the actual net proceeds the Fund receives may be more or less than the amount of net proceeds estimated in this Prospectus Supplement. Assuming the sale of all of the Fund's Common Shares offered under this Prospectus Supplement and the accompanying Prospectus, at the last reported sale price of $3.28 per share for the Fund's Common Shares on the NYSE MKT as of February 21, 2013, the Fund estimates that the net proceeds of this offering will be approximately $58,025,400 after deducting the estimated sales load and the estimated offering expenses payable by the Fund.
The Fund intends to invest the net proceeds of this offering in accordance with its investment objectives and policies as stated in the accompanying Prospectus within approximately 30 days of receipt of such proceeds. Pending such investment, the Fund anticipates investing the proceeds in short-term securities issued by the U.S. government or its agencies or instrumentalities or in high quality, short-term or long-term debt obligations or money market instruments. Following the completion of this offering, the Fund may increase the amount of leverage outstanding.
S-4
CAPITALIZATION
Pursuant to the sales agreement with JonesTrading dated March 1, 2013, the Fund may offer and sell up to 18,000,000 of its Common Shares, par value $0.001 per share, from time to time through JonesTrading as its agent for the offer and sale of the Common Shares under this Prospectus Supplement and the accompanying Prospectus. There is no guarantee that there will be any sales of the Fund's Common Shares pursuant to this Prospectus Supplement and the accompanying Prospectus. The table below assumes that the Fund will sell 18,000,000 Common Shares, at a price of $3.28 per share (the last reported sale price per share of the Fund's Common Shares on the NYSE MKT on February 21, 2013). Actual sales, if any, of the Fund's Common Shares under this Prospectus Supplement and the accompanying Prospectus may be less than as set forth in the table below. In addition, the price per share of any such sale may be greater or less than $3.28, depending on the market price of the Fund's Common Shares at the time of any such sale. To the extent that the market price per share of the Fund's Common Shares on any given day is less than the net asset value per share on such day, the Fund will instruct JonesTrading not to make any sales on such day.
The following table sets forth the capitalization of the Fund (i) on an actual basis as of October 31, 2012 (audited), (ii) on an actual basis as of February 21, 2013 (unaudited) to reflect the sale of Common Shares from November 1, 2012 through February 21, 2013, and the application of the net proceeds from such sale of Common Shares, and (iv) on a pro forma basis as adjusted to reflect the assumed sale of 18,000,000 Common Shares at $3.28 per share (the last reported sale price per share of the Fund's Common Shares on the NYSE MKT on February 21, 2013), in an offering under this Prospectus Supplement and the accompanying Prospectus.
As of October 31, 2012 (audited) |
As of February 21, 2013 |
Pro Forma (unaudited) |
|||||||||||||
Actual |
Actual |
As Adjusted |
|||||||||||||
Composition of Net Assets: |
|||||||||||||||
Common stock, par value $0.001 per share, unlimited shares authorized (91,579,927 shares issued and outstanding as of October 31, 2012, 94,785,278 shares issued and outstanding as of February 21, 2013 and 112,785,278 shares estimated issued and outstanding as adjusted(1)(2)(3) |
$ |
91,580 |
$ |
94,785 |
$ |
112,785 |
|||||||||
Paid-in capital in excess of par(2)(3) |
$ |
356,463,784 |
$ |
366,697,601 |
$ |
424,705,001 |
|||||||||
Accumulated net investment loss |
$ |
(721,477 |
) |
$ |
(1,655,990 |
) |
$ |
(1,655,990 |
) |
||||||
Accumulated net realized loss on investments and foreign currency transactions |
$ |
(81,938,257 |
) |
$ |
(79,703,550 |
) |
$ |
(79,703,550 |
) |
||||||
Net unrealized appreciation from investments and foreign currency translations |
$ |
2,824,760 |
$ |
8,336,224 |
$ |
8,336,224 |
|||||||||
Net Assets |
$ |
276,720,390 |
$ |
293,769,070 |
$ |
351,794,470 |
(1) This table does not include any Common Shares issued and sold by the Fund pursuant to a prior sales agreement from February 22, 2013 through February 28, 2013.
(2) The Fund does not hold any of these outstanding shares for its account.
(3) As adjusted, additional paid-in capital reflects the issuance of Common Shares offered hereby ($59,040,000), less $0.001 par value per Common Share ($18,000), less the estimated sales load ($885,600) and the offering expenses ($129,000) related to the issuance of shares.
S-5
PLAN OF DISTRIBUTION
Under the sales agreement among the Fund, the Investment Adviser and JonesTrading, upon written instructions from the Fund, JonesTrading will use its commercially reasonable efforts consistent with its normal trading and sales practices to sell, as the Fund's agent, the Common Shares under the terms and subject to the conditions set forth in the sales agreement. JonesTrading's sales efforts will continue until the Fund instructs JonesTrading to suspend sales. The Fund will instruct JonesTrading as to the amount of Common Shares to be sold by JonesTrading. The Fund may instruct JonesTrading not to sell Common Shares if the sales cannot be effected at or above the price designated by the Fund in any instruction. The Fund or JonesTrading may suspend the offering of Common Shares upon proper notice and subject to other conditions.
JonesTrading will provide written confirmation to the Fund no later than the opening of the trading day on the NYSE MKT immediately following the trading day on which Common Shares are sold under the sales agreement. Each confirmation will include the number of shares sold on the preceding day, the net proceeds to the Fund and the compensation payable by the Fund to JonesTrading in connection with the sales.
The Fund will pay JonesTrading commissions for its services in acting as agent in the sale of Common Shares. JonesTrading will be entitled to compensation of between 150 and 300 basis points of the gross sales price per share of any Common Shares sold under the sales agreement, with the exact amount of such compensation to be mutually agreed upon by the Fund and JonesTrading from time to time. The Fund has also agreed to pay the reasonable fees and expenses of counsel for JonesTrading in connection with the transactions contemplated under the sales agreement (provided such fees and expenses (a) shall not exceed $50,000 in connection with (i) the preparation and execution of the sales agreement, (ii) the preparation and filing of this Prospectus Supplement, (iii) the preparation and printing of a "Blue Sky Survey" and (iv) the review by the Financial Industry Regulatory Authority (FINRA) of the terms of the sale of the Common Shares and (b) shall not exceed $25,000 on an annual basis in each annual period following the date of the sales agreement). There is no guarantee that there will be any sales of the Fund's Common Shares pursuant to this Prospectus Supplement and the accompanying Prospectus. Actual sales, if any, of the Fund's Common Shares under this Prospectus Supplement and the accompanying Prospectus may be less than as set forth in this paragraph. In addition, the price per share of any such sale may be greater or less than the price set forth in this paragraph, depending on the market price of the Fund's Common Shares at the time of any such sale. Assuming 18,000,000 of the Fund's Common Shares offered hereby are sold at a market price of $3.28 per share (the last reported sale price for the Fund's Common Shares on the NYSE MKT on February 21, 2013), the Fund estimates that the total expenses for the offering, including reimbursable expenses payable to JonesTrading as described above and excluding compensation payable to JonesTrading under the terms of the sales agreement, would be approximately $129,000.
Settlement for sales of Common Shares will occur on the third business day (or such earlier day as is industry practice for regular-way trading) following the date on which such sales are made, or on some other date that is agreed upon by the Fund and JonesTrading in connection with a particular transaction, in return for payment of the net proceeds to the Fund. There is no arrangement for funds to be received in an escrow, trust or similar arrangement.
In connection with the sale of the Common Shares on the Fund's behalf, JonesTrading may, and will with respect to sales effected in an "at the market offering," be deemed to be an "underwriter" within the meaning of the 1933 Act, and the compensation of JonesTrading may be deemed to be underwriting commissions or discounts. The Fund has agreed to provide indemnification and contribution to JonesTrading against certain civil liabilities, including liabilities under the 1933 Act.
The offering of the Fund's Common Shares pursuant to the sales agreement will terminate upon the earlier of (1) the sale of all Common Shares subject to the sales agreement or (2) termination of the sales agreement. The sales agreement may be terminated by the Fund in its sole discretion at any time by giving notice to JonesTrading. In addition, JonesTrading may terminate the sales agreement under the circumstances specified in the sales
S-6
agreement and in its sole discretion at any time following a period of 12 months from the date of the sales agreement by giving notice to the Fund.
The principal business address of JonesTrading is 780 Third Avenue, 3rd Floor, New York, New York 10017.
LEGAL MATTERS
Certain legal matters will be passed on by Willkie Farr & Gallagher LLP, 787 Seventh Avenue, New York, New York 10019, counsel to the Fund, in connection with the offering of the Common Shares. Willkie Farr & Gallagher LLP will rely as to matters of Delaware law on the opinion of Richards Layton & Finger, P.A., One Rodney Square, 920 North King Street, Wilmington, Delaware 19801.
ADDITIONAL INFORMATION
This Prospectus Supplement and the accompanying Prospectus constitute part of a Registration Statement filed by the Fund with the SEC under the 1933 Act and the 1940 Act. This Prospectus Supplement and the accompanying Prospectus omit certain of the information contained in the Registration Statement, and reference is hereby made to the Registration Statement and related exhibits for further information with respect to the Fund and the Common Shares offered hereby. Any statements contained herein concerning the provisions of any document are not necessarily complete, and, in each instance, reference is made to the copy of such document filed as an exhibit to the Registration Statement or otherwise filed with the SEC. Each such statement is qualified in its entirety by such reference. The complete Registration Statement may be obtained from the SEC upon payment of the fee prescribed by its rules and regulations or free of charge through the SEC's web site (http://www.sec.gov).
S-7
INDEX TO FINANCIAL STATEMENTS
Schedule of Investments |
F-2 |
||||||
Statements of Assets and Liabilities (audited) - October 31, 2012 |
F-15 |
||||||
Statement of Operations (audited)-For the Year Ended October 31, 2012 |
F-16 |
||||||
Statement of Changes in Net Assets (audited) - For the Years Ended October 31, 2012 and 2011 |
F-17 |
||||||
Statement of Cash Flows (audited) - For the Year Ended October 31, 2012 |
F-18 |
||||||
Financial Highlights For the Years Ended October 31, 2012, 2011, 2011, 2009 & 2008 |
F-19 |
||||||
Notes to Financial Statements |
F-21 |
F-1
Credit Suisse High Yield Bond Fund
Schedule of Investments
October 31, 2012
Par (000) |
|
Ratings† (S&P/Moody's) |
Maturity |
Rate% |
Value |
||||||||||||||||||
CORPORATE BONDS (118.5%) | |||||||||||||||||||||||
Aerospace & Defense (0.5%) | |||||||||||||||||||||||
$ |
1,402 |
Ducommun, Inc., Global Company Guaranteed Notes (Callable 07/15/15 @ 104.88) |
(B-, B3) |
07/15/18 |
9.750 |
$ |
1,489,625 |
||||||||||||||||
Auto Parts & Equipment (7.0%) | |||||||||||||||||||||||
2,990 |
Affinia Group, Inc., Global Company Guaranteed Notes (Callable 11/30/12 @ 100.00) |
(CCC+, B3) |
11/30/14 |
9.000 |
3,012,455 |
||||||||||||||||||
1,000 |
Affinia Group, Inc., Rule 144A, Senior Secured Notes (Callable 12/03/12 @ 108.06) ‡ |
(B+, B1) |
08/15/16 |
10.750 |
1,085,000 |
||||||||||||||||||
900 |
IDQ Holdings, Inc., Rule 144A, Senior Secured Notes (Callable 10/01/14 @ 108.63) ‡ |
(B, B3) |
04/01/17 |
11.500 |
963,000 |
||||||||||||||||||
675 |
Lear Corp., Company Guaranteed Notes (Callable 03/15/15 @ 104.06) |
(BB, Ba2) |
03/15/20 |
8.125 |
753,469 |
||||||||||||||||||
1,935 |
Mark IV USA SCA, Rule 144A, Senior Secured Notes (Callable 12/15/13 @ 106.66) ‡€ |
(BB-, Ba3) |
12/15/17 |
8.875 |
2,670,352 |
||||||||||||||||||
850 |
Meritor, Inc., Company Guaranteed Notes (Callable 03/15/14 @ 105.31) § |
(B-, B3) |
03/15/18 |
10.625 |
861,688 |
||||||||||||||||||
1,000 |
Schaeffler Finance BV, Rule 144A, Senior Secured Notes ‡ |
(B+, Ba3) |
02/15/17 |
7.750 |
1,108,750 |
||||||||||||||||||
2,000 |
Schaeffler Finance BV, Rule 144A, Senior Secured Notes (Callable 02/15/15 @ 106.38) ‡§ |
(B+, Ba3) |
02/15/19 |
8.500 |
2,242,500 |
||||||||||||||||||
2,700 |
Stoneridge, Inc., Rule 144A, Senior Secured Notes (Callable 10/15/14 @ 104.75) ‡ |
(BB-, B2) |
10/15/17 |
9.500 |
2,926,125 |
||||||||||||||||||
3,750 |
UCI International, Inc., Global Company Guaranteed Notes (Callable 02/15/15 @ 104.31) |
(CCC+, B3) |
02/15/19 |
8.625 |
3,735,937 |
||||||||||||||||||
19,359,276 |
|||||||||||||||||||||||
Building & Construction (1.5%) | |||||||||||||||||||||||
741 |
Ashton Woods Finance Co., Rule 144A, Company Guaranteed Notes (Callable 02/24/14 @ 105.50) ‡+ |
(NR, NR) |
06/30/15 |
11.000 |
726,180 |
||||||||||||||||||
2,500 |
K Hovnanian Enterprises, Inc., Global Senior Secured Notes (Callable 11/01/12 @ 107.97) § |
(CCC-, B3) |
10/15/16 |
10.625 |
2,699,225 |
||||||||||||||||||
600 |
K Hovnanian Enterprises, Inc., Rule 144A, Senior Secured Notes ‡ |
(CC, B3) |
11/01/21 |
2.000 |
426,000 |
||||||||||||||||||
253 |
William Lyon Homes, Inc., Global Notes |
(NR, NR) |
02/25/17 |
12.000 |
251,889 |
||||||||||||||||||
4,103,294 |
|||||||||||||||||||||||
Building Materials (3.5%) | |||||||||||||||||||||||
2,550 |
Euramax International, Inc., Global Senior Secured Notes (Callable 04/01/13 @ 107.13) |
(B-, Caa1) |
04/01/16 |
9.500 |
2,358,750 |
||||||||||||||||||
1,000 |
HD Supply, Inc., Rule 144A, Senior Secured Notes (Callable 04/15/15 @ 106.09) ‡ |
(B+, B2) |
04/15/19 |
8.125 |
1,102,500 |
||||||||||||||||||
2,250 |
Headwaters, Inc., Global Secured Notes (Callable 04/01/15 @ 103.81) |
(B+, B2) |
04/01/19 |
7.625 |
2,311,875 |
||||||||||||||||||
1,850 |
International Wire Group Holdings, Inc., Rule 144A, Senior Secured Notes (Callable 10/15/15 @ 104.25) ‡ |
(B, B3) |
10/15/17 |
8.500 |
1,877,750 |
||||||||||||||||||
525 |
Summit Materials Finance Corp., Rule 144A, Senior Unsecured Notes (Callable 01/31/16 @ 105.25) ‡ |
(B, B3) |
01/31/20 |
10.500 |
565,688 |
||||||||||||||||||
1,000 |
Xefin Lux SCA, Rule 144A, Senior Secured Notes (Callable 06/01/14 @ 106.00) ‡€ |
(B+, Ba3) |
06/01/18 |
8.000 |
1,334,674 |
||||||||||||||||||
9,551,237 |
|||||||||||||||||||||||
Chemicals (5.8%) | |||||||||||||||||||||||
1,900 |
Ferro Corp., Senior Unsecured Notes (Callable 08/15/14 @ 103.94) |
(B-, B1) |
08/15/18 |
7.875 |
1,762,250 |
||||||||||||||||||
500 |
Hexion Nova Scotia Finance ULC, Secured Notes (Callable 11/15/15 @ 104.50) |
(CCC+, NR) |
11/15/20 |
9.000 |
451,250 |
||||||||||||||||||
250 |
Ineos Finance PLC, Rule 144A, Senior Secured Notes (Callable 02/15/15 @ 102.00) ‡€# |
(B+, B1) |
02/15/19 |
7.250 |
331,239 |
||||||||||||||||||
700 |
Ineos Finance PLC, Rule 144A, Senior Secured Notes (Callable 02/15/15 @ 106.28) ‡ |
(B+, B1) |
02/15/19 |
8.375 |
737,625 |
||||||||||||||||||
400 |
Ineos Finance PLC, Rule 144A, Senior Secured Notes (Callable 05/15/13 @ 104.50) ‡ |
(B+, B1) |
05/15/15 |
9.000 |
426,000 |
See Accompanying Notes to Financial Statements
F-2
Credit Suisse High Yield Bond Fund
Schedule of Investments (continued)
October 31, 2012
Par (000) |
|
Ratings† (S&P/Moody's) |
Maturity |
Rate% |
Value |
||||||||||||||||||
CORPORATE BONDS |
|||||||||||||||||||||||
Chemicals |
|||||||||||||||||||||||
$ |
1,675 |
Ineos Group Holdings PLC, Rule 144A, Company Guaranteed Notes (Callable 02/15/13 @ 101.42) ‡§ |
(CCC+, Caa1) |
02/15/16 |
8.500 |
$ |
1,624,750 |
||||||||||||||||
1,000 |
JM Huber Corp., Rule 144A, Senior Unsecured Notes (Callable 11/01/15 @ 104.94) ‡ |
(BB-, B2) |
11/01/19 |
9.875 |
1,115,000 |
||||||||||||||||||
2,000 |
Momentive Performance Materials, Inc., Global Secured Notes (Callable 01/15/16 @ 104.50) § |
(CC, Caa1) |
01/15/21 |
9.000 |
1,390,000 |
||||||||||||||||||
2,067 |
OXEA Finance & Cy SCA, Rule 144A, Senior Secured Notes (Callable 07/15/13 @ 107.13) ‡ |
(B+, B2) |
07/15/17 |
9.500 |
2,258,197 |
||||||||||||||||||
1,253 |
Reichhold Industries, Inc., Rule 144A, Company Guaranteed Notes (Callable 12/03/12 @ 100.00) ‡ |
(CCC+, NR) |
05/08/17 |
9.000 |
983,978 |
||||||||||||||||||
750 |
Styrolution GmbH, Rule 144A, Senior Secured Notes (Callable 05/15/13 @ 105.72) ‡€ |
(B+, B2) |
05/15/16 |
7.625 |
931,761 |
||||||||||||||||||
2,500 |
Taminco Global Chemical Corp., Rule 144A, Secured Notes (Callable 03/31/15 @ 107.31) ‡ |
(B-, Caa1) |
03/31/20 |
9.750 |
2,725,000 |
||||||||||||||||||
1,100 |
TPC Group LLC, Global Senior Secured Notes (Callable 10/01/13 @ 106.19) |
(B+, B1) |
10/01/17 |
8.250 |
1,215,500 |
||||||||||||||||||
15,952,550 |
|||||||||||||||||||||||
Computer Hardware (1.4%) | |||||||||||||||||||||||
3,750 |
Spansion LLC, Global Company Guaranteed Notes (Callable 11/15/13 @ 103.94) |
(BB-, B3) |
11/15/17 |
7.875 |
3,768,750 |
||||||||||||||||||
Consumer Products (1.7%) | |||||||||||||||||||||||
2,400 |
Alphabet Holding Co., Inc., Rule 144A, Senior Unsecured Notes (Callable 11/01/13 @ 103.00) ‡ |
(B-, Caa1) |
11/01/17 |
7.750 |
2,427,000 |
||||||||||||||||||
2,000 |
NBTY, Inc., Global Company Guaranteed Notes (Callable 10/01/14 @ 104.50) |
(B, B3) |
10/01/18 |
9.000 |
2,250,000 |
||||||||||||||||||
4,677,000 |
|||||||||||||||||||||||
Consumer/Commercial/Lease Financing (2.7%) | |||||||||||||||||||||||
1,500 |
Cabot Financial Luxembourg SA, Rule 144A, Senior Secured Notes (Callable 10/01/15 @ 107.78) ‡£ |
(BB, B1) |
10/01/19 |
10.375 |
2,549,487 |
||||||||||||||||||
900 |
CNG Holdings, Inc., Rule 144A, Senior Secured Notes (Callable 05/15/16 @ 104.69) ‡ |
(B, B3) |
05/15/20 |
9.375 |
931,500 |
||||||||||||||||||
650 |
NESCO Holding Corp., Rule 144A, Secured Notes (Callable 04/15/14 @ 110.00) ‡ |
(B-, Caa1) |
04/15/17 |
11.750 |
689,000 |
||||||||||||||||||
650 |
PFG Finance Corp., Rule 144A, Senior Notes (Callable 02/15/15 @ 105.06) ‡ |
(B, B2) |
02/15/19 |
10.125 |
679,250 |
||||||||||||||||||
2,300 |
PFG Finance Corp., Rule 144A, Senior Secured Notes (Callable 04/15/14 @ 105.13) ‡ |
(BB, Ba3) |
04/15/17 |
10.250 |
2,527,125 |
||||||||||||||||||
7,376,362 |
|||||||||||||||||||||||
Discount Stores (0.9%) | |||||||||||||||||||||||
2,200 |
99 Cents Only Stores, Rule 144A, Senior Notes (Callable 12/15/14 @ 108.25) ‡ |
(NR, Caa1) |
12/15/19 |
11.000 |
2,508,000 |
||||||||||||||||||
Diversified Capital Goods (1.8%) | |||||||||||||||||||||||
1,000 |
AM Castle & Co., Global Secured Notes (Callable 12/15/14 @ 106.38) |
(B+, B3) |
12/15/16 |
12.750 |
1,150,000 |
||||||||||||||||||
1,925 |
Coleman Cable, Inc., Global Company Guaranteed Notes (Callable 02/15/14 @ 104.50) |
(B, B3) |
02/15/18 |
9.000 |
2,059,750 |
||||||||||||||||||
1,157 |
FCC Holdings, Inc., Rule 144A, Notes (Callable 12/15/12 @ 106.00) ‡ |
(CCC+, Caa3) |
12/15/15 |
13.000 |
931,488 |
||||||||||||||||||
823 |
Mueller Water Products, Inc., Global Company Guaranteed Notes (Callable 09/01/15 @ 104.38) |
(NR, B2) |
09/01/20 |
8.750 |
948,508 |
||||||||||||||||||
5,089,746 |
See Accompanying Notes to Financial Statements
F-3
Credit Suisse High Yield Bond Fund
Schedule of Investments (continued)
October 31, 2012
Par (000) |
|
Ratings† (S&P/Moody's) |
Maturity |
Rate% |
Value |
||||||||||||||||||
CORPORATE BONDS |
|||||||||||||||||||||||
Electric - Generation (0.3%) | |||||||||||||||||||||||
$ |
2,925 |
TCEH Finance, Inc., LLC, Series A, Global Company Guaranteed Notes (Callable 11/01/12 @ 102.56) § |
(D, Ca) |
11/01/15 |
10.250 |
$ |
533,812 |
||||||||||||||||
1,175 |
TCEH Finance, Inc., LLC, Series B, Global Company Guaranteed Notes (Callable 11/01/12 @ 102.56) |
(D, Ca) |
11/01/15 |
10.250 |
202,688 |
||||||||||||||||||
736,500 |
|||||||||||||||||||||||
Electric - Integrated (1.6%) | |||||||||||||||||||||||
2,375 |
Prestige Brands, Inc., Global Senior Secured Notes (Callable 04/01/14 @ 104.13) |
(BB-, Ba3) |
04/01/18 |
8.250 |
2,621,406 |
||||||||||||||||||
675 |
The AES Corp., Global Senior Unsecured Notes |
(BB-, Ba3) |
10/15/17 |
8.000 |
775,406 |
||||||||||||||||||
900 |
The AES Corp., Global Senior Unsecured Notes (Callable 06/01/21 @ 100.00) |
(BB-, Ba3) |
07/01/21 |
7.375 |
1,010,250 |
||||||||||||||||||
4,407,062 |
|||||||||||||||||||||||
Electronics (1.7%) | |||||||||||||||||||||||
1,500 |
CPI International, Inc., Global Company Guaranteed Notes (Callable 02/15/15 @ 104.00) |
(CCC+, B3) |
02/15/18 |
8.000 |
1,440,000 |
||||||||||||||||||
928 |
Freescale Semiconductor, Inc., Rule 144A, Senior Secured Notes (Callable 03/15/14 @ 105.06) ‡ |
(B, B1) |
03/15/18 |
10.125 |
1,006,880 |
||||||||||||||||||
1,000 |
MEMC Electronic Materials, Inc., Global Company Guaranteed Notes (Callable 04/01/14 @ 105.81) |
(B+, Caa1) |
04/01/19 |
7.750 |
751,250 |
||||||||||||||||||
1,000 |
Techem Energy Metering Service GmbH & Co. KG, Rule 144A, Senior Subordinated Notes (Callable 10/01/16 @ 103.94) ‡€ |
(B-, B1) |
10/01/20 |
7.875 |
1,375,168 |
||||||||||||||||||
4,573,298 |
|||||||||||||||||||||||
Energy - Exploration & Production (12.1%) | |||||||||||||||||||||||
500 |
Comstock Resources, Inc., Company Guaranteed Notes (Callable 04/01/15 @ 103.88) |
(B-, B3) |
04/01/19 |
7.750 |
510,000 |
||||||||||||||||||
2,350 |
Comstock Resources, Inc., Company Guaranteed Notes (Callable 10/15/13 @ 104.19) |
(B-, B3) |
10/15/17 |
8.375 |
2,473,375 |
||||||||||||||||||
50 |
Denbury Resources, Inc., Company Guaranteed Notes (Callable 03/01/13 @ 104.88) |
(BB, B1) |
03/01/16 |
9.750 |
53,500 |
||||||||||||||||||
2,500 |
Energy Partners Ltd., Global Company Guaranteed Notes (Callable 02/15/15 @ 104.13) |
(B-, Caa1) |
02/15/18 |
8.250 |
2,493,750 |
||||||||||||||||||
950 |
Energy XXI Gulf Coast, Inc., Company Guaranteed Notes (Callable 12/15/14 @ 104.63) |
(B+, B3) |
12/15/17 |
9.250 |
1,075,875 |
||||||||||||||||||
650 |
Everest Acquisition Finance, Inc., Rule 144A, Senior Secured Notes (Callable 05/01/15 @ 103.44) ‡ |
(B+, Ba3) |
05/01/19 |
6.875 |
705,250 |
||||||||||||||||||
2,600 |
Everest Acquisition Finance, Inc., Rule 144A, Senior Unsecured Notes (Callable 05/01/16 @ 104.69) ‡§ |
(B, B2) |
05/01/20 |
9.375 |
2,886,000 |
||||||||||||||||||
1,575 |
EXCO Resources, Inc., Company Guaranteed Notes (Callable 09/15/14 @ 103.75) |
(CCC+, B3) |
09/15/18 |
7.500 |
1,488,375 |
||||||||||||||||||
1,000 |
Halcon Resources Corp., Rule 144A, Company Guaranteed Notes (Callable 07/15/16 @ 104.88) ‡ |
(CCC+, B3) |
07/15/20 |
9.750 |
1,060,000 |
||||||||||||||||||
1,000 |
Halcon Resources Corp., Rule 144A, Senior Unsecured Notes (Callable 11/15/16 @ 104.44) ‡ |
(CCC+, B3) |
05/15/21 |
8.875 |
1,016,250 |
||||||||||||||||||
900 |
Linn Energy Finance Corp., Global Company Guaranteed Notes (Callable 09/15/15 @ 103.88) |
(B, B2) |
02/01/21 |
7.750 |
965,250 |
||||||||||||||||||
1,800 |
Linn Energy Finance Corp., Rule 144A, Company Guaranteed Notes (Callable 11/01/15 @ 103.13) ‡ |
(B, B2) |
11/01/19 |
6.250 |
1,809,000 |
||||||||||||||||||
3,750 |
McMoRan Exploration Co., Company Guaranteed Notes (Callable 11/15/12 @ 104.94) |
(B-, Caa1) |
11/15/14 |
11.875 |
3,946,875 |
||||||||||||||||||
1,250 |
Oasis Petroleum, Inc., Global Company Guaranteed Notes (Callable 02/01/15 @ 103.63) |
(B, B3) |
02/01/19 |
7.250 |
1,343,750 |
||||||||||||||||||
1,350 |
PDC Energy, Inc., Rule 144A, Company Guaranteed Notes (Callable 10/15/17 @ 103.88) ‡ |
(B-, B3) |
10/15/22 |
7.750 |
1,380,375 |
||||||||||||||||||
2,250 |
Shelf Drilling Holdings Ltd., Rule 144A, Senior Secured Notes (Callable 05/01/15 @ 104.31) ‡ |
(NR, B1) |
11/01/18 |
8.625 |
2,272,500 |
See Accompanying Notes to Financial Statements
F-4
Credit Suisse High Yield Bond Fund
Schedule of Investments (continued)
October 31, 2012
Par (000) |
|
Ratings† (S&P/Moody's) |
Maturity |
Rate% |
Value |
||||||||||||||||||
CORPORATE BONDS |
|||||||||||||||||||||||
Energy - Exploration & Production |
|||||||||||||||||||||||
$ |
2,000 |
Sidewinder Drilling, Inc., Rule 144A, Senior Unsecured Notes (Callable 11/15/16 @ 104.88) ‡ |
(B-, B3) |
11/15/19 |
9.750 |
$ |
2,020,000 |
||||||||||||||||
800 |
Stone Energy Corp., Company Guaranteed Notes (Callable 02/01/14 @ 104.31) |
(B-, B3) |
02/01/17 |
8.625 |
854,000 |
||||||||||||||||||
1,000 |
Stone Energy Corp., Global Company Guaranteed Notes (Callable 11/15/17 @ 103.75) |
(B-, B3) |
11/15/22 |
7.500 |
992,500 |
||||||||||||||||||
475 |
Swift Energy Co., Company Guaranteed Notes (Callable 12/03/12 @ 103.56) |
(B+, B3) |
06/01/17 |
7.125 |
490,437 |
||||||||||||||||||
500 |
Swift Energy Co., Global Company Guaranteed Notes (Callable 03/01/17 @ 103.94) |
(B+, B3) |
03/01/22 |
7.875 |
522,500 |
||||||||||||||||||
1,000 |
Swift Energy Co., Rule 144A, Company Guaranteed Notes (Callable 03/01/17 @ 103.94) ‡ |
(B+, B3) |
03/01/22 |
7.875 |
1,045,000 |
||||||||||||||||||
1,000 |
W&T Offshore, Inc., Global Company Guaranteed Notes (Callable 06/15/15 @ 104.25) |
(B, B3) |
06/15/19 |
8.500 |
1,057,500 |
||||||||||||||||||
1,000 |
W&T Offshore, Inc., Rule 144A, Company Guaranteed Notes (Callable 06/15/15 @ 104.25) ‡ |
(NR, B3) |
06/15/19 |
8.500 |
1,057,500 |
||||||||||||||||||
33,519,562 |
|||||||||||||||||||||||
Environmental (1.8%) | |||||||||||||||||||||||
900 |
Darling International, Inc., Global Company Guaranteed Notes (Callable 12/15/14 @ 104.25) |
(BB+, Ba2) |
12/15/18 |
8.500 |
1,027,125 |
||||||||||||||||||
1,800 |
EnergySolutions LLC, Global Company Guaranteed Notes (Callable 08/15/14 @ 105.38) |
(B, Caa3) |
08/15/18 |
10.750 |
1,678,500 |
||||||||||||||||||
1,750 |
Heckmann Corp., Global Company Guaranteed Notes (Callable 04/15/15 @ 104.94) |
(B-, Caa1) |
04/15/18 |
9.875 |
1,763,125 |
||||||||||||||||||
500 |
Rough Rider Escrow, Inc., Rule 144A, Senior Notes (Callable 04/15/15 @ 104.94) ‡ |
(B, B3) |
04/15/18 |
9.875 |
501,250 |
||||||||||||||||||
4,970,000 |
|||||||||||||||||||||||
Food - Wholesale (0.9%) | |||||||||||||||||||||||
1,075 |
Del Monte Corp., Global Company Guaranteed Notes (Callable 02/15/14 @ 103.81) |
(CCC+, B3) |
02/15/19 |
7.625 |
1,109,937 |
||||||||||||||||||
1,400 |
Southern States Cooperative, Inc., Rule 144A, Senior Notes (Callable 05/15/13 @ 105.63) ‡ |
(B, B3) |
05/15/15 |
11.250 |
1,468,250 |
||||||||||||||||||
2,578,187 |
|||||||||||||||||||||||
Forestry & Paper (0.3%) | |||||||||||||||||||||||
300 |
Lecta SA, Rule 144A, Senior Secured Notes (Callable 05/15/15 @ 106.66)‡ € |
(B+, B1) |
05/15/19 |
8.875 |
398,458 |
||||||||||||||||||
950 |
Stone & Webster, Inc.* |
(NR, NR) |
07/02/13 |
0.000 |
21,969 |
||||||||||||||||||
1,400 |
Verso Paper, Inc., Global Secured Notes (Callable 02/01/15 @ 104.38)§ |
(CCC+, B3) |
02/01/19 |
8.750 |
532,000 |
||||||||||||||||||
952,427 |
|||||||||||||||||||||||
Gaming (6.4%) | |||||||||||||||||||||||
1,700 |
Affinity Gaming Finance Corp., Rule 144A, Company Guaranteed Notes (Callable 05/15/15 @ 104.50) ‡ |
(B, Caa1) |
05/15/18 |
9.000 |
1,772,250 |
||||||||||||||||||
775 |
Buffalo Thunder Development Authority, Rule 144A, Senior Secured Notes (Callable 12/15/12 @ 100.00) ‡Ø |
(NR, NR) |
12/15/14 |
9.375 |
279,000 |
||||||||||||||||||
2,217 |
Chester Downs & Marina LLC, Rule 144A, Senior Secured Notes (Callable 02/01/16 @ 104.63) ‡ |
(B+, B3) |
02/01/20 |
9.250 |
2,217,000 |
||||||||||||||||||
1,043 |
Choctaw Resort Development Enterprise, Rule 144A, Senior Notes (Callable 11/15/12 @ 102.42) ‡ |
(B, Caa1) |
11/15/19 |
7.250 |
923,055 |
||||||||||||||||||
1,502 |
Chukchansi Economic Development Authority, Rule 144A, Secured Notes (Callable 05/30/16 @ 104.88) ‡ |
(NR, Caa2) |
05/30/20 |
9.750 |
923,735 |
||||||||||||||||||
1,500 |
Cirsa Funding Luxembourg SA, Rule 144A, Company Guaranteed Notes (Callable 05/15/14 @ 104.38) ‡€ |
(B+, B3) |
05/15/18 |
8.750 |
1,875,671 |
||||||||||||||||||
625 |
Fontainebleau Las Vegas Holdings LLC, Rule 144A, Second Mortgage Notes (Callable 12/03/12 @ 102.56) ‡Ø |
(NR, NR) |
06/15/15 |
10.250 |
1,172 |
See Accompanying Notes to Financial Statements
F-5
Credit Suisse High Yield Bond Fund
Schedule of Investments (continued)
October 31, 2012
Par (000) |
|
Ratings† (S&P/Moody's) |
Maturity |
Rate% |
Value |
||||||||||||||||||
CORPORATE BONDS |
|||||||||||||||||||||||
Gaming |
|||||||||||||||||||||||
$ |
1,000 |
Greektown Superholdings, Inc., Series A, Global Secured Notes (Callable 01/01/13 @ 106.50) |
(NR, NR) |
07/01/15 |
13.000 |
$ |
1,078,750 |
||||||||||||||||
1,700 |
Greektown Superholdings, Inc., Series B, Global Secured Notes (Callable 01/01/13 @ 106.50) |
(NR, NR) |
07/01/15 |
13.000 |
1,833,875 |
||||||||||||||||||
319 |
Majestic Star Casino LLC, Rule 144A, Senior Notes‡ |
(NR, NR) |
12/01/16 |
12.500 |
301,045 |
||||||||||||||||||
950 |
Peninsula Gaming LLC, Global Company Guaranteed Notes (Callable 08/15/13 @ 105.38) |
(B, Caa1) |
08/15/17 |
10.750 |
1,074,687 |
||||||||||||||||||
2,285 |
Peninsula Gaming LLC, Global Secured Notes (Callable 12/03/12 @ 104.19) |
(BB, Ba3) |
08/15/15 |
8.375 |
2,396,394 |
||||||||||||||||||
1,000 |
Rivers Pittsburgh Finance Corp., Rule 144A, Senior Secured Notes (Callable 06/15/15 @ 104.75) ‡ |
(B, B3) |
06/15/19 |
9.500 |
1,085,000 |
||||||||||||||||||
670 |
Tropicana Finance Corp., Global Senior Subordinated Notes (Callable 12/15/12 @ 100.00) ^Ø |
(NR, NR) |
12/15/14 |
9.625 |
67 |
||||||||||||||||||
2,085 |
Tunica-Biloxi Gaming Authority, Rule 144A, Senior Unsecured Notes (Callable 11/15/12 @ 101.60) ‡ |
(B+, B3) |
11/15/15 |
9.000 |
1,907,775 |
||||||||||||||||||
17,669,476 |
|||||||||||||||||||||||
Gas Distribution (1.6%) | |||||||||||||||||||||||
1,100 |
Genesis Energy LP, Global Company Guaranteed Notes (Callable 12/15/14 @ 103.94) |
(B, B2) |
12/15/18 |
7.875 |
1,171,500 |
||||||||||||||||||
1,100 |
Genesis Energy LP, Rule 144A, Senior Unsecured Notes (Callable 12/15/14 @ 103.94) ‡ |
(NR, B2) |
12/15/18 |
7.875 |
1,171,500 |
||||||||||||||||||
1,500 |
Holly Energy Finance Corp., Rule 144A, Company Guaranteed Notes (Callable 03/01/16 @ 103.25) ‡ |
(BB-, B1) |
03/01/20 |
6.500 |
1,582,500 |
||||||||||||||||||
600 |
Targa Resources Partners Finance Corp., Global Company Guaranteed Notes (Callable 11/09/12 @ 104.13) |
(BB, Ba3) |
07/01/16 |
8.250 |
624,750 |
||||||||||||||||||
4,550,250 |
|||||||||||||||||||||||
Health Facilities (2.0%) | |||||||||||||||||||||||
545 |
Bausch & Lomb, Inc., Global Senior Unsecured Notes (Callable 11/01/12 @ 102.47) |
(B, Caa1) |
11/01/15 |
9.875 |
561,350 |
||||||||||||||||||
700 |
MPT Finance Corp., Global Company Guaranteed Notes (Callable 05/01/16 @ 103.44) |
(BB, Ba1) |
05/01/21 |
6.875 |
759,500 |
||||||||||||||||||
625 |
Radiation Therapy Services, Inc., Global Company Guaranteed Notes (Callable 04/15/14 @ 104.94) |
(CCC+, Caa2) |
04/15/17 |
9.875 |
443,750 |
||||||||||||||||||
1,950 |
Symbion, Inc., Global Senior Secured Notes (Callable 06/15/14 @ 104.00) |
(B, B2) |
06/15/16 |
8.000 |
2,018,250 |
||||||||||||||||||
900 |
Tenet Healthcare Corp., Global Senior Secured Notes (Callable 07/01/14 @ 104.44) |
(B+, B1) |
07/01/19 |
8.875 |
1,010,250 |
||||||||||||||||||
700 |
United Surgical Partners International, Inc., Global Company Guaranteed Notes (Callable 04/01/15 @ 106.75) |
(CCC+, Caa1) |
04/01/20 |
9.000 |
770,000 |
||||||||||||||||||
5,563,100 |
|||||||||||||||||||||||
Health Services (2.4%) | |||||||||||||||||||||||
650 |
Capsugel FinanceCo SCA, Rule 144A, Company Guaranteed Notes (Callable 08/01/14 @ 107.41) ‡€ |
(B, Caa1) |
08/01/19 |
9.875 |
962,294 |
||||||||||||||||||
1,500 |
Catalent Pharma Solutions, Inc., Rule 144A, Company Guaranteed Notes (Callable 12/03/12 @ 101.50) ‡ |
(B, Caa1) |
10/15/18 |
7.875 |
1,522,500 |
||||||||||||||||||
675 |
inVentiv Health, Inc., Rule 144A, Company Guaranteed Notes (Callable 08/15/14 @ 105.00) ‡ |
(CCC, Caa2) |
08/15/18 |
10.000 |
614,250 |
||||||||||||||||||
425 |
Service Corp. International, Senior Unsecured Notes |
(BB-, Ba3) |
11/15/21 |
8.000 |
523,812 |
||||||||||||||||||
2,440 |
STHI Holding Corp., Rule 144A, Secured Notes (Callable 03/15/14 @ 106.00) ‡ |
(B, B2) |
03/15/18 |
8.000 |
2,623,000 |
||||||||||||||||||
500 |
Universal Hospital Services, Inc., Rule 144A, Senior Secured Notes (Callable 08/15/15 @ 105.72) ‡ |
(B+, B3) |
08/15/20 |
7.625 |
520,000 |
||||||||||||||||||
6,765,856 |
See Accompanying Notes to Financial Statements
F-6
Credit Suisse High Yield Bond Fund
Schedule of Investments (continued)
October 31, 2012
Par (000) |
|
Ratings† (S&P/Moody's) |
Maturity |
Rate% |
Value |
||||||||||||||||||
CORPORATE BONDS |
|||||||||||||||||||||||
Insurance Brokerage (1.9%) | |||||||||||||||||||||||
$ |
2,150 |
Alliant Holdings I, Inc., Rule 144A, Senior Unsecured Notes (Callable 11/01/13 @ 100.00) ‡ |
(CCC, Caa2) |
05/01/15 |
11.000 |
$ |
2,227,400 |
||||||||||||||||
1,150 |
Hub International Ltd., Rule 144A, Company Guaranteed Notes (Callable 10/15/14 @ 104.06) ‡ |
(CCC+, Caa2) |
10/15/18 |
8.125 |
1,187,375 |
||||||||||||||||||
2,000 |
USI Holdings Corp., Rule 144A, Company Guaranteed Notes ‡# |
(CCC, Caa1) |
11/15/14 |
4.310 |
1,950,000 |
||||||||||||||||||
5,364,775 |
|||||||||||||||||||||||
Investments & Misc. Financial Services (0.5%) | |||||||||||||||||||||||
1,000 |
Numericable Finance & Co., Rule 144A, Secured Notes (Callable 02/15/16 @ 106.19) ‡€ |
(B, B2) |
02/15/19 |
12.375 |
1,499,889 |
||||||||||||||||||
Leisure (2.0%) | |||||||||||||||||||||||
1,650 |
Magnum Management Corp., Global Company Guaranteed Notes (Callable 08/01/14 @ 104.56) |
(B, B2) |
08/01/18 |
9.125 |
1,874,812 |
||||||||||||||||||
2,000 |
Palace Entertainment Holdings Corp., Rule 144A, Senior Secured Notes (Callable 04/15/14 @ 104.44) ‡ |
(B-, B2) |
04/15/17 |
8.875 |
2,120,000 |
||||||||||||||||||
1,500 |
Viking Cruises Ltd., Rule 144A, Senior Notes (Callable 10/15/17 @ 104.25) ‡ |
(B+, B3) |
10/15/22 |
8.500 |
1,556,250 |
||||||||||||||||||
5,551,062 |
|||||||||||||||||||||||
Machinery (0.9%) | |||||||||||||||||||||||
1,620 |
Dematic SA, Rule 144A, Senior Secured Notes (Callable 05/01/13 @ 104.38) ‡ |
(B, B1) |
05/01/16 |
8.750 |
1,727,325 |
||||||||||||||||||
500 |
Mirror PIK SA, Rule 144A, Senior Notes (Callable 11/01/13 @ 104.50) ‡ |
(CCC+, Caa1) |
11/01/16 |
9.000 |
503,750 |
||||||||||||||||||
250 |
Terex Corp., Senior Subordinated Notes (Callable 11/15/12 @ 104.00) § |
(B, Caa1) |
11/15/17 |
8.000 |
261,563 |
||||||||||||||||||
2,492,638 |
|||||||||||||||||||||||
Media - Broadcast (2.0%) | |||||||||||||||||||||||
3,500 |
Mission Broadcasting, Inc., Global Secured Notes (Callable 04/15/14 @ 104.44) |
(B, B3) |
04/15/17 |
8.875 |
3,832,500 |
||||||||||||||||||
341 |
Nexstar Broadcasting, Inc., Series 1, Global Company Guaranteed Notes (Callable 12/03/12 @ 100.00) |
(B-, NR) |
01/15/14 |
7.000 |
342,641 |
||||||||||||||||||
500 |
Starz Finance Corp., Rule 144A, Senior Notes (Callable 09/15/15 @ 102.50) ‡ |
(BB, Ba2) |
09/15/19 |
5.000 |
513,750 |
||||||||||||||||||
650 |
Townsquare Radio, Inc., Rule 144A, Company Guaranteed Notes (Callable 04/01/15 @ 106.75) ‡ |
(B, B3) |
04/01/19 |
9.000 |
705,250 |
||||||||||||||||||
5,394,141 |
|||||||||||||||||||||||
Media - Cable (3.6%) | |||||||||||||||||||||||
75 |
Cablevision Systems Corp., Senior Unsecured Notes |
(B+, B1) |
04/15/18 |
7.750 |
83,719 |
||||||||||||||||||
1,150 |
Cablevision Systems Corp., Senior Unsecured Notes |
(B+, B1) |
04/15/20 |
8.000 |
1,296,625 |
||||||||||||||||||
169 |
CCH II Capital Corp., Global Senior Notes (Callable 11/30/12 @ 106.75) |
(B, B2) |
11/30/16 |
13.500 |
182,331 |
||||||||||||||||||
1,925 |
CCO Holdings Capital Corp., Global Company Guaranteed Notes (Callable 04/30/15 @ 104.06) |
(BB-, B1) |
04/30/20 |
8.125 |
2,175,250 |
||||||||||||||||||
1,950 |
Cequel Capital Corp., Rule 144A, Senior Unsecured Notes (Callable 11/15/12 @ 106.47) ‡ |
(B-, B3) |
11/15/17 |
8.625 |
2,096,250 |
||||||||||||||||||
525 |
CSC Holdings LLC, Global Senior Unsecured Notes |
(BB+, Ba3) |
02/15/19 |
8.625 |
624,750 |
||||||||||||||||||
1,500 |
DISH DBS Corp., Global Company Guaranteed Notes |
(BB-, Ba2) |
09/01/19 |
7.875 |
1,766,250 |
||||||||||||||||||
1,000 |
Harron Finance Corp., Rule 144A, Senior Notes (Callable 04/01/16 @ 104.56) ‡ |
(B-, Caa1) |
04/01/20 |
9.125 |
1,085,000 |
||||||||||||||||||
600 |
Unitymedia NRW GmbH, Rule 144A, Senior Secured Notes (Callable 03/15/15 @ 103.75) ‡ |
(BB-, Ba3) |
03/15/19 |
7.500 |
663,000 |
||||||||||||||||||
9,973,175 |
See Accompanying Notes to Financial Statements
F-7
Credit Suisse High Yield Bond Fund
Schedule of Investments (continued)
October 31, 2012
Par (000) |
|
Ratings† (S&P/Moody's) |
Maturity |
Rate% |
Value |
||||||||||||||||||
CORPORATE BONDS |
|||||||||||||||||||||||
Media - Diversified (1.5%) | |||||||||||||||||||||||
$ |
2,800 |
Block Communications, Inc., Rule 144A, Senior Unsecured Notes (Callable 02/01/16 @ 103.63) ‡ |
(B+, Ba3) |
02/01/20 |
7.250 |
$ |
2,989,000 |
||||||||||||||||
600 |
National CineMedia LLC, Senior Unsecured Notes (Callable 07/15/16 @ 103.94) |
(B, B2) |
07/15/21 |
7.875 |
658,500 |
||||||||||||||||||
600 |
Quebecor Media, Inc., Global Senior Unsecured Notes (Callable 03/15/13 @ 101.29) |
(B+, B2) |
03/15/16 |
7.750 |
616,998 |
||||||||||||||||||
4,264,498 |
|||||||||||||||||||||||
Media - Services (1.1%) | |||||||||||||||||||||||
1,000 |
Clear Channel Worldwide Holdings, Inc., Global Company Guaranteed Notes (Callable 03/15/15 @ 105.72) |
(B, B3) |
03/15/20 |
7.625 |
957,500 |
||||||||||||||||||
150 |
Clear Channel Worldwide Holdings, Inc., Global Company Guaranteed Notes (Callable 12/15/12 @ 106.94) |
(B, B1) |
12/15/17 |
9.250 |
161,250 |
||||||||||||||||||
1,500 |
Clear Channel Worldwide Holdings, Inc., Series B, Global Company Guaranteed Notes (Callable 12/15/12 @ 106.94) |
(B, B1) |
12/15/17 |
9.250 |
1,612,500 |
||||||||||||||||||
400 |
WMG Acquisition Corp., Global Senior Secured Notes (Callable 06/15/13 @ 104.75) |
(BB-, Ba2) |
06/15/16 |
9.500 |
442,500 |
||||||||||||||||||
3,173,750 |
|||||||||||||||||||||||
Medical Products (0.7%) | |||||||||||||||||||||||
1,800 |
Polymer Group, Inc., Global Senior Secured Notes (Callable 02/01/15 @ 103.88) |
(B, B1) |
02/01/19 |
7.750 |
1,935,000 |
||||||||||||||||||
Metals & Mining - Excluding Steel (7.2%) | |||||||||||||||||||||||
750 |
Boart Longyear Management Pty, Ltd., Rule 144A, Company Guaranteed Notes (Callable 04/01/16 @ 103.50) ‡ |
(BB-, Ba2) |
04/01/21 |
7.000 |
763,125 |
||||||||||||||||||
2,700 |
Calcipar SA, Rule 144A, Senior Secured Notes (Callable 05/01/15 @ 103.44) ‡ |
(BB, B1) |
05/01/18 |
6.875 |
2,720,250 |
||||||||||||||||||
600 |
FMG Resources August 2006 Pty Ltd., Rule 144A, Senior Notes (Callable 11/01/15 @ 104.13) ‡§ |
(B+, B1) |
11/01/19 |
8.250 |
603,000 |
||||||||||||||||||
1,500 |
Global Brass & Copper, Inc., Rule 144A, Senior Secured Notes (Callable 06/01/16 @ 104.75) ‡ |
(B, B3) |
06/01/19 |
9.500 |
1,635,000 |
||||||||||||||||||
2,100 |
Kaiser Aluminum Corp., Global Company Guaranteed Notes (Callable 06/01/16 @ 104.13) |
(BB-, Ba3) |
06/01/20 |
8.250 |
2,283,750 |
||||||||||||||||||
1,750 |
Molycorp, Inc., Rule 144A, Company Guaranteed Notes (Callable 06/01/16 @ 105.00) ‡§ |
(CCC+, B3) |
06/01/20 |
10.000 |
1,693,125 |
||||||||||||||||||
2,375 |
Noranda Aluminium Acquisition Corp., Global Company Guaranteed Notes # |
(CCC+, B3) |
05/15/15 |
4.730 |
2,255,779 |
||||||||||||||||||
225 |
Old AII, Inc., Global Company Guaranteed Notes (Callable 12/15/12 @ 100.00) ^Ø |
(NR, NR) |
12/15/14 |
9.000 |
22 |
||||||||||||||||||
1,100 |
Old AII, Inc., Global Company Guaranteed Notes (Callable 12/15/12 @ 103.33) ^Ø |
(NR, NR) |
12/15/16 |
10.000 |
110 |
||||||||||||||||||
1,050 |
Penn Virginia Resource Finance Corp II, Rule 144A, Company Guaranteed Notes (Callable 06/01/16 @ 104.19) ‡ |
(B, B2) |
06/01/20 |
8.375 |
1,107,750 |
||||||||||||||||||
3,000 |
Quadra FNX Mining Ltd., Rule 144A, Company Guaranteed Notes (Callable 06/15/15 @ 103.88) ‡ |
(BB-, B1) |
06/15/19 |
7.750 |
3,112,500 |
||||||||||||||||||
2,700 |
Taseko Mines Ltd., Company Guaranteed Notes (Callable 04/15/15 @ 103.88) |
(B, B3) |
04/15/19 |
7.750 |
2,646,000 |
||||||||||||||||||
1,900 |
Xinergy Corp., Rule 144A, Senior Secured Notes (Callable 05/15/15 @ 104.63) ‡§ |
(CCC, Caa3) |
05/15/19 |
9.250 |
1,092,500 |
||||||||||||||||||
19,912,911 |
|||||||||||||||||||||||
Oil Field Equipment & Services (4.8%) | |||||||||||||||||||||||
1,900 |
Edgen Murray Corp., Rule 144A, Senior Secured Notes (Callable 11/01/15 @ 106.56) ‡ |
(B+, Caa1) |
11/01/20 |
8.750 |
1,895,250 |
||||||||||||||||||
2,325 |
FTS International Bonds, Inc., Rule 144A, Company Guaranteed Notes (Callable 11/15/14 @ 103.56) ‡ |
(BB-, Ba3) |
11/15/18 |
8.125 |
2,441,250 |
See Accompanying Notes to Financial Statements
F-8
Credit Suisse High Yield Bond Fund
Schedule of Investments (continued)
October 31, 2012
Par (000) |
|
Ratings† (S&P/Moody's) |
Maturity |
Rate% |
Value |
||||||||||||||||||
CORPORATE BONDS |
|||||||||||||||||||||||
Oil Field Equipment & Services |
|||||||||||||||||||||||
$ |
1,271 |
Helix Energy Solutions Group, Inc., Rule 144A, Company Guaranteed Notes (Callable 01/15/13 @ 102.36) ‡ |
(B, B3) |
01/15/16 |
9.500 |
$ |
1,317,074 |
||||||||||||||||
300 |
Hornbeck Offshore Services, Inc., Global Company Guaranteed Notes (Callable 09/01/13 @ 104.00) |
(BB-, Ba3) |
09/01/17 |
8.000 |
322,500 |
||||||||||||||||||
625 |
Parker Drilling Co., Global Company Guaranteed Notes (Callable 04/01/14 @ 104.56) |
(B+, B1) |
04/01/18 |
9.125 |
671,875 |
||||||||||||||||||
3,130 |
Pioneer Energy Services Corp., Global Company Guaranteed Notes (Callable 03/15/14 @ 104.94) |
(B+, B2) |
03/15/18 |
9.875 |
3,403,875 |
||||||||||||||||||
429 |
Thermon Industries, Inc., Global Secured Notes (Callable 05/01/14 @ 104.75) |
(BB-, B1) |
05/01/17 |
9.500 |
478,335 |
||||||||||||||||||
2,500 |
Trinidad Drilling, Ltd., Rule 144A, Senior Unsecured Notes (Callable 01/15/15 @ 103.94) ‡ |
(BB-, B1) |
01/15/19 |
7.875 |
2,693,750 |
||||||||||||||||||
13,223,909 |
|||||||||||||||||||||||
Oil Refining & Marketing (2.5%) | |||||||||||||||||||||||
2,600 |
Coffeyville Finance, Inc., Rule 144A, Secured Notes (Callable 04/01/13 @ 108.16) ‡ |
(B+, Ba3) |
04/01/17 |
10.875 |
2,886,000 |
||||||||||||||||||
1,575 |
Northern Tier Finance Corp., Global Senior Secured Notes (Callable 12/01/13 @ 107.88) |
(BB-, B1) |
12/01/17 |
10.500 |
1,811,250 |
||||||||||||||||||
2,100 |
PBF Finance Corp., Rule 144A, Senior Secured Notes (Callable 02/15/16 @ 104.13) ‡ |
(BB+, Ba3) |
02/15/20 |
8.250 |
2,215,500 |
||||||||||||||||||
6,912,750 |
|||||||||||||||||||||||
CORPORATE BONDS |
|||||||||||||||||||||||
Packaging (3.7%) | |||||||||||||||||||||||
850 |
Ardagh Glass Finance PLC, Rule 144A, Company Guaranteed Notes (Callable 06/15/13 @ 102.38) ‡€ |
(CCC+, B3) |
06/15/17 |
7.125 |
1,115,198 |
||||||||||||||||||
700 |
Ardagh Packaging Finance PLC, Rule 144A, Company Guaranteed Notes (Callable 10/15/15 @ 104.63) ‡€ |
(CCC+, B3) |
10/15/20 |
9.250 |
956,948 |
||||||||||||||||||
450 |
Ardagh Packaging Finance PLC, Rule 144A, Senior Secured Notes (Callable 10/15/14 @ 103.69) ‡€ |
(B+, Ba3) |
10/15/17 |
7.375 |
621,012 |
||||||||||||||||||
525 |
Berry Plastics Corp., Global Senior Secured Notes (Callable 11/15/12 @ 104.13) |
(B, B1) |
11/15/15 |
8.250 |
549,938 |
||||||||||||||||||
500 |
BOE Merger Corp., Rule 144A, Senior Unsecured Notes (Callable 06/15/14 @ 104.75) ‡ |
(NR, Caa1) |
11/01/17 |
9.500 |
501,250 |
||||||||||||||||||
1,500 |
BWAY Holding Co., Global Company Guaranteed Notes (Callable 06/15/14 @ 105.00) |
(CCC+, B3) |
06/15/18 |
10.000 |
1,672,500 |
||||||||||||||||||
1,435 |
Clondalkin Acquisition BV, Rule 144A, Secured Notes ‡# |
(B, B2) |
12/15/13 |
2.389 |
1,370,425 |
||||||||||||||||||
2,475 |
Reynolds Group Issuer LLC, Global Company Guaranteed Notes (Callable 10/15/14 @ 104.50) |
(CCC+, Caa2) |
04/15/19 |
9.000 |
2,518,312 |
||||||||||||||||||
300 |
Reynolds Group Issuer LLC, Global Senior Secured Notes (Callable 10/15/14 @ 103.56) |
(B+, B1) |
04/15/19 |
7.125 |
321,000 |
||||||||||||||||||
500 |
Sealed Air Corp., Rule 144A, Senior Unsecured Notes (Callable 09/15/16 @ 104.19) ‡ |
(BB-, B1) |
09/15/21 |
8.375 |
552,500 |
||||||||||||||||||
10,179,083 |
|||||||||||||||||||||||
Pharmaceuticals (1.4%) | |||||||||||||||||||||||
1,000 |
ConvaTec Healthcare E SA, Rule 144A, Senior Unsecured Notes (Callable 12/15/14 @ 105.25) ‡ |
(B, Caa1) |
12/15/18 |
10.500 |
1,090,000 |
||||||||||||||||||
1,000 |
Valeant Pharmaceuticals International, Rule 144A, Company Guaranteed Notes (Callable 02/15/16 @ 103.38) ‡ |
(BB-, B1) |
08/15/21 |
6.750 |
1,067,500 |
||||||||||||||||||
1,500 |
Warner Chilcott Finance LLC, Global Company Guaranteed Notes (Callable 09/15/14 @ 103.88) |
(BB-, B3) |
09/15/18 |
7.750 |
1,590,000 |
||||||||||||||||||
3,747,500 |
|||||||||||||||||||||||
Printing & Publishing (0.2%) | |||||||||||||||||||||||
771 |
The Reader's Digest Association, Inc., Global Senior Secured Notes (Callable 02/15/13 @ 104.00) # |
(CC, Caa1) |
02/15/17 |
9.500 |
445,253 |
See Accompanying Notes to Financial Statements
F-9
Credit Suisse High Yield Bond Fund
Schedule of Investments (continued)
October 31, 2012
Par (000) |
|
Ratings† (S&P/Moody's) |
Maturity |
Rate% |
Value |
||||||||||||||||||
CORPORATE BONDS |
|||||||||||||||||||||||
Real Estate Development & Management (0.5%) | |||||||||||||||||||||||
$ |
1,300 |
Icahn Enterprises LP, Rule 144A, Company Guaranteed Notes ‡# |
(NR, NR) |
08/15/13 |
4.000 |
$ |
1,310,400 |
||||||||||||||||
Real Estate Investment Trusts (1.1%) | |||||||||||||||||||||||
3,050 |
CNL Lifestyle Properties, Inc., Global Company Guaranteed Notes (Callable 04/15/15 @ 103.63) |
(B+, Ba3) |
04/15/19 |
7.250 |
2,905,125 |
||||||||||||||||||
Restaurants (1.4%) | |||||||||||||||||||||||
1,713 |
CKE Restaurants, Inc., Global Senior Secured Notes (Callable 07/15/14 @ 105.69) § |
(B-, B2) |
07/15/18 |
11.375 |
1,980,656 |
||||||||||||||||||
2,050 |
HOA Finance Corp., Rule 144A, Senior Secured Notes (Callable 04/01/14 @ 105.63) ‡ |
(B-, B3) |
04/01/17 |
11.250 |
1,914,188 |
||||||||||||||||||
3,894,844 |
|||||||||||||||||||||||
Software/Services (6.8%) | |||||||||||||||||||||||
3,000 |
Epicor Software Corp., Global Company Guaranteed Notes (Callable 05/01/15 @ 104.31) |
(CCC+, Caa1) |
05/01/19 |
8.625 |
3,165,000 |
||||||||||||||||||
2,150 |
First Data Corp., Rule 144A, Senior Secured Notes (Callable 06/15/15 @ 103.69) ‡ |
(B+, B1) |
06/15/19 |
7.375 |
2,236,000 |
||||||||||||||||||
1,500 |
First Data Corp., Rule 144A, Senior Secured Notes (Callable 11/01/15 @ 105.06) ‡ |
(B+, B1) |
11/01/20 |
6.750 |
1,507,500 |
||||||||||||||||||
1,000 |
Infor US, Inc., Global Company Guaranteed Notes (Callable 04/01/15 @ 107.50) € |
(B-, Caa1) |
04/01/19 |
10.000 |
1,415,662 |
||||||||||||||||||
2,400 |
MedAssets, Inc., Global Company Guaranteed Notes (Callable 11/15/14 @ 104.00) |
(B-, NR) |
11/15/18 |
8.000 |
2,616,000 |
||||||||||||||||||
2,296 |
Serena Software, Inc., Global Company Guaranteed Notes (Callable 03/15/13 @ 101.73) |
(CCC+, Caa1) |
03/15/16 |
10.375 |
2,376,360 |
||||||||||||||||||
600 |
SSI Co-Issuer LLC, Global Company Guaranteed Notes (Callable 06/01/14 @ 105.56) |
(CCC+, Caa1) |
06/01/18 |
11.125 |
675,750 |
||||||||||||||||||
1,600 |
SunGard Data Systems, Inc., Global Company Guaranteed Notes (Callable 11/15/13 @ 105.53) |
(B, Caa1) |
11/15/18 |
7.375 |
1,730,000 |
||||||||||||||||||
3,000 |
Syniverse Holdings, Inc., Global Company Guaranteed Notes (Callable 01/15/15 @ 104.56) |
(B-, Caa1) |
01/15/19 |
9.125 |
3,210,000 |
||||||||||||||||||
18,932,272 |
|||||||||||||||||||||||
Specialty Retail (2.7%) | |||||||||||||||||||||||
500 |
Academy Finance Corp., Rule 144A, Company Guaranteed Notes (Callable 08/01/14 @ 106.94) ‡ |
(CCC+, Caa1) |
08/01/19 |
9.250 |
550,000 |
||||||||||||||||||
1,800 |
Brown Shoe Co., Inc., Global Company Guaranteed Notes (Callable 05/15/14 @ 105.34) |
(B, B3) |
05/15/19 |
7.125 |
1,851,750 |
||||||||||||||||||
2,050 |
Claire's Stores, Inc., Rule 144A, Senior Secured Notes (Callable 03/15/15 @ 106.75) ‡ |
(B, B2) |
03/15/19 |
9.000 |
2,149,937 |
||||||||||||||||||
1,250 |
Ontex IV SA, Rule 144A, Senior Secured Notes (Callable 04/15/14 @ 103.25) ‡€ |
(B+, B1) |
04/15/18 |
7.500 |
1,700,738 |
||||||||||||||||||
1,085 |
Toys R Us Property Co. I LLC, Global Company Guaranteed Notes (Callable 07/15/13 @ 105.38) |
(B+, B3) |
07/15/17 |
10.750 |
1,178,581 |
||||||||||||||||||
7,431,006 |
|||||||||||||||||||||||
Steel Producers/Products (0.4%) | |||||||||||||||||||||||
1,150 |
JMC Steel Group, Rule 144A, Senior Notes (Callable 03/15/14 @ 106.19) ‡ |
(B, B3) |
03/15/18 |
8.250 |
1,173,000 |
||||||||||||||||||
Support - Services (4.7%) | |||||||||||||||||||||||
1,850 |
CoreLogic, Inc., Global Company Guaranteed Notes (Callable 06/01/16 @ 103.63) |
(B+, Ba3) |
06/01/21 |
7.250 |
2,048,875 |
||||||||||||||||||
500 |
Emdeon, Inc., Global Company Guaranteed Notes (Callable 12/31/15 @ 105.50) |
(CCC+, Caa1) |
12/31/19 |
11.000 |
570,000 |
||||||||||||||||||
1,000 |
Europcar Groupe SA, Rule 144A, Secured Notes ‡€ |
(B-, Caa1) |
05/15/17 |
11.500 |
1,276,363 |
See Accompanying Notes to Financial Statements
F-10
Credit Suisse High Yield Bond Fund
Schedule of Investments (continued)
October 31, 2012
Par (000) |
|
Ratings† (S&P/Moody's) |
Maturity |
Rate% |
Value |
||||||||||||||||||
CORPORATE BONDS |
|||||||||||||||||||||||
Support - Services |
|||||||||||||||||||||||
$ |
1,475 |
Garda World Security Corp., Rule 144A, Senior Unsecured Notes (Callable 03/15/14 @ 104.88) ‡ |
(B, B2) |
03/15/17 |
9.750 |
$ |
1,572,719 |
||||||||||||||||
1,100 |
H&E Equipment Services, Inc., Rule 144A, Company Guaranteed Notes (Callable 09/01/17 @ 103.50) ‡ |
(B+, B3) |
09/01/22 |
7.000 |
1,149,500 |
||||||||||||||||||
625 |
RSC Holdings III LLC, Global Company Guaranteed Notes (Callable 02/01/16 @ 104.13) |
(B+, B3) |
02/01/21 |
8.250 |
693,750 |
||||||||||||||||||
1,800 |
Sabre, Inc., Rule 144A, Senior Secured Notes (Callable 05/15/15 @ 106.38) ‡ |
(B, B1) |
05/15/19 |
8.500 |
1,874,250 |
||||||||||||||||||
625 |
The Geo Group, Inc., Global Company Guaranteed Notes (Callable 02/15/16 @ 103.31) |
(B+, B1) |
02/15/21 |
6.625 |
676,562 |
||||||||||||||||||
550 |
The Geo Group, Inc., Global Company Guaranteed Notes (Callable 10/15/13 @ 103.88) |
(B+, B1) |
10/15/17 |
7.750 |
600,188 |
||||||||||||||||||
300 |
United Rentals North America, Inc., Global Company Guaranteed Notes (Callable 06/15/13 @ 105.44) |
(B+, B3) |
06/15/16 |
10.875 |
334,500 |
||||||||||||||||||
2,100 |
UR Financing Escrow Corp., Rule 144A, Senior Unsecured Notes (Callable 05/15/16 @ 103.69) ‡ |
(B+, B3) |
05/15/20 |
7.375 |
2,281,125 |
||||||||||||||||||
13,077,832 |
|||||||||||||||||||||||
Telecom - Integrated/Services (2.3%) | |||||||||||||||||||||||
550 |
Hellas Telecommunications II SCA, Rule 144A, Subordinated Notes ‡^#Ø |
(NR, NR) |
01/15/15 |
5.750 |
|
||||||||||||||||||
1,800 |
Intelsat Jackson Holdings SA, Global Company Guaranteed Notes (Callable 04/01/15 @ 103.63) |
(B, B3) |
04/01/19 |
7.250 |
1,939,500 |
||||||||||||||||||
1,250 |
Intelsat Jackson Holdings SA, Global Company Guaranteed Notes (Callable 04/01/16 @ 103.75) |
(B, B3) |
04/01/21 |
7.500 |
1,346,875 |
||||||||||||||||||
1,500 |
Intelsat Jackson Holdings SA, Rule 144A, Company Guaranteed Notes (Callable 12/15/17 @ 103.31) ‡§ |
(CCC+, Caa2) |
12/15/22 |
6.625 |
1,494,375 |
||||||||||||||||||
1,350 |
Zayo Capital, Inc., Global Senior Secured Notes (Callable 07/01/15 @ 104.06) |
(B, B1) |
01/01/20 |
8.125 |
1,485,000 |
||||||||||||||||||
6,265,750 |
|||||||||||||||||||||||
Telecom - Wireless (1.3%) | |||||||||||||||||||||||
250 |
Cricket Communications, Inc., Global Senior Secured Notes (Callable 12/03/12 @ 105.81) |
(B+, Ba2) |
05/15/16 |
7.750 |
265,625 |
||||||||||||||||||
800 |
GeoEye, Inc., Global Senior Secured Notes (Callable 10/01/13 @ 104.81) § |
(B, B1) |
10/01/15 |
9.625 |
894,000 |
||||||||||||||||||
300 |
GeoEye, Inc., Senior Secured Notes (Callable 10/01/13 @ 104.31) |
(CCC, Caa1) |
10/01/16 |
8.625 |
328,500 |
||||||||||||||||||
1,300 |
Telesat LLC, Rule 144A, Senior Unsecured Notes (Callable 05/15/14 @ 103.00) ‡ |
(B-, B3) |
05/15/17 |
6.000 |
1,361,750 |
||||||||||||||||||
350 |
Wind Acquisition Finance SA, Rule 144A, Company Guaranteed Notes (Callable 07/15/13 @ 105.88) ‡ |
(BB-, B3) |
07/15/17 |
11.750 |
343,000 |
||||||||||||||||||
400 |
Wind Acquisition Finance SA, Rule 144A, Company Guaranteed Notes (Callable 07/15/13 @ 105.88) ‡€ |
(BB-, B3) |
07/15/17 |
11.750 |
505,362 |
||||||||||||||||||
3,698,237 |
|||||||||||||||||||||||
Telecommunications Equipment (1.6%) | |||||||||||||||||||||||
1,950 |
Avaya, Inc., Rule 144A, Senior Secured Notes (Callable 04/01/15 @ 103.50) ‡ |
(B, B1) |
04/01/19 |
7.000 |
1,789,125 |
||||||||||||||||||
2,490 |
Brightstar Corp., Rule 144A, Company Guaranteed Notes (Callable 12/01/14 @ 104.75) ‡ |
(BB-, B1) |
12/01/16 |
9.500 |
2,676,750 |
||||||||||||||||||
4,465,875 |
|||||||||||||||||||||||
Textiles & Apparel (0.0%) | |||||||||||||||||||||||
75 |
IT Holding Finance SA, Rule 144A, Company Guaranteed Notes ‡€Ø |
(NR, NR) |
11/15/12 |
9.875 |
996 |
See Accompanying Notes to Financial Statements
F-11
Credit Suisse High Yield Bond Fund
Schedule of Investments (continued)
October 31, 2012
Par (000) |
|
Ratings† (S&P/Moody's) |
Maturity |
Rate% |
Value |
||||||||||||||||||
CORPORATE BONDS |
|||||||||||||||||||||||
Theaters & Entertainment (2.5%) | |||||||||||||||||||||||
$ |
2,075 |
AMC Entertainment, Inc., Global Company Guaranteed Notes (Callable 12/01/15 @ 104.88) |
(CCC+, Caa1) |
12/01/20 |
9.750 |
$ |
2,339,562 |
||||||||||||||||
750 |
AMC Entertainment, Inc., Global Senior Unsecured Notes (Callable 06/01/14 @ 104.38) |
(B-, B2) |
06/01/19 |
8.750 |
832,500 |
||||||||||||||||||
2,500 |
Regal Entertainment Group, Company Guaranteed Notes (Callable 08/15/14 @ 104.56) § |
(B-, B3) |
08/15/18 |
9.125 |
2,787,500 |
||||||||||||||||||
950 |
Wallace Theater Holdings, Inc., Rule 144A, Senior Secured Notes (Callable 12/15/12 @ 100.00) ‡# |
(CCC, NR) |
06/15/13 |
12.500 |
945,250 |
||||||||||||||||||
6,904,812 |
|||||||||||||||||||||||
Tobacco (0.7%) | |||||||||||||||||||||||
1,850 |
Vector Group, Ltd., Global Senior Secured Notes (Callable 12/03/12 @ 103.68) |
(NR, B1) |
08/15/15 |
11.000 |
1,935,563 |
||||||||||||||||||
Transportation - Excluding Air/Rail (0.6%) | |||||||||||||||||||||||
650 |
Navios Maritime Holdings Finance II US, Inc., Global Company Guaranteed Notes (Callable 02/15/15 @ 104.06) |
(B+, Caa1) |
02/15/19 |
8.125 |
578,500 |
||||||||||||||||||
1,000 |
Ship Finance International, Ltd., Global Company Guaranteed Notes |
(B+, B3) |
12/15/13 |
8.500 |
1,006,250 |
||||||||||||||||||
1,584,750 |
|||||||||||||||||||||||
TOTAL CORPORATE BONDS (Cost $324,419,754) |
327,812,354 |
||||||||||||||||||||||
BANK LOANS (16.0%) | |||||||||||||||||||||||
Aerospace & Defense (1.9%) | |||||||||||||||||||||||
2,500 |
Arinc, Inc. # |
(B, Caa1) |
10/25/15 |
6.220 |
2,471,875 |
||||||||||||||||||
1,500 |
LM US Member LLC # |
(CCC, Caa2) |
10/26/20 |
9.500 |
1,515,000 |
||||||||||||||||||
944 |
Stork Topco BV €# |
(B, B1) |
12/31/19 |
17.000 |
1,187,118 |
||||||||||||||||||
5,173,993 |
|||||||||||||||||||||||
Chemicals (2.3%) | |||||||||||||||||||||||
1,990 |
Ascend Performance Materials Operations LLC # |
(NR, NR) |
04/10/18 |
6.750 |
1,999,950 |
||||||||||||||||||
1,764 |
PQ Corp. # |
(B+, B3) |
07/30/14 |
3.962 |
1,761,870 |
||||||||||||||||||
2,500 |
PQ Corp. # |
(B-, Caa1) |
07/30/15 |
0.000 |
2,487,500 |
||||||||||||||||||
6,249,320 |
|||||||||||||||||||||||
Diversified Capital Goods (0.5%) | |||||||||||||||||||||||
1,496 |
Electrical Components International, Inc. # |
(B+, B1) |
02/04/17 |
6.750 |
1,486,841 |
||||||||||||||||||
Energy - Exploration & Production (0.7%) | |||||||||||||||||||||||
1,750 |
Delek Benelux BV €# |
(NR, NR) |
02/08/17 |
5.235 |
2,023,452 |
||||||||||||||||||
Environmental (0.3%) | |||||||||||||||||||||||
706 |
EnviroSolutions Real Property Holdings, Inc. # |
(CCC-, Caa1) |
07/29/14 |
8.000 |
704,118 |
||||||||||||||||||
Gaming (0.6%) | |||||||||||||||||||||||
2,000 |
CKX Entertainment, Inc. # |
(B+, B1) |
06/21/17 |
9.000 |
1,730,000 |
||||||||||||||||||
Health Services (0.5%) | |||||||||||||||||||||||
1,477 |
Onex Carestream Finance LP # |
(BB-, B1) |
02/25/17 |
5.000 |
1,463,764 |
||||||||||||||||||
Investments & Misc. Financial Services (0.9%) | |||||||||||||||||||||||
2,500 |
BNY ConvergEX Group LLC # |
(B-, B3) |
12/18/17 |
8.750 |
2,332,300 |
||||||||||||||||||
Leisure (1.7%) | |||||||||||||||||||||||
947 |
Deluxe Entertainment Services Group, Inc. # |
(B, B2) |
07/03/17 |
8.000 |
938,785 |
||||||||||||||||||
1,987 |
Legendary Pictures Funding LLC # |
(NR, NR) |
03/29/18 |
9.000 |
1,946,933 |
||||||||||||||||||
511 |
Technicolor SA # |
(B-, NR) |
03/31/16 |
9.350 |
516,426 |
||||||||||||||||||
1,367 |
Technicolor SA # |
(B, NR) |
05/26/17 |
9.350 |
1,382,069 |
||||||||||||||||||
4,784,213 |
See Accompanying Notes to Financial Statements
F-12
Credit Suisse High Yield Bond Fund
Schedule of Investments (continued)
October 31, 2012
Par (000) |
|
Ratings† (S&P/Moody's) |
Maturity |
Rate% |
Value |
||||||||||||||||||
BANK LOANS |
|||||||||||||||||||||||
Machinery (0.8%) | |||||||||||||||||||||||
$ |
2,250 |
CPM Acquisition Corp. # |
(NR, B2) |
03/01/18 |
10.250 |
$ |
2,278,125 |
||||||||||||||||
Media - Diversified (0.6%) | |||||||||||||||||||||||
861 |
Flint Group Holdings Sarl # |
(B-, B2) |
06/30/16 |
7.724 |
727,394 |
||||||||||||||||||
1,141 |
Flint Group Holdings Sarl # |
(B-, B2) |
12/31/16 |
7.224 |
881,729 |
||||||||||||||||||
1,609,123 |
|||||||||||||||||||||||
Oil Field Equipment & Services (0.4%) | |||||||||||||||||||||||
1,200 |
Amtrol, Inc. # |
(NR, NR) |
12/05/14 |
6.900 |
1,122,000 |
||||||||||||||||||
Packaging (0.3%) | |||||||||||||||||||||||
829 |
Hilex Poly Co. LLC # |
(B+, B3) |
11/19/15 |
11.250 |
846,016 |
||||||||||||||||||
Printing & Publishing (0.7%) | |||||||||||||||||||||||
1,386 |
Harland Clarke Holdings Corp. # |
(B+, B1) |
06/30/17 |
5.462 |
1,275,262 |
||||||||||||||||||
4,189 |
Yell Group PLC # |
(B-, B2) |
07/31/14 |
4.459 |
752,553 |
||||||||||||||||||
2,027,815 |
|||||||||||||||||||||||
Software/Services (3.4%) | |||||||||||||||||||||||
1,855 |
AVG Technologies N.V. # |
(B+, B1) |
03/15/16 |
7.500 |
1,857,541 |
||||||||||||||||||
2,000 |
Decision Insight Information Group # |
(B, B1) |
01/04/17 |
7.000 |
1,990,000 |
||||||||||||||||||
1,500 |
Flexera Software LLC # |
(CCC+, Caa2) |
09/30/18 |
11.000 |
1,530,000 |
||||||||||||||||||
2,000 |
SafeNet, Inc. # |
(B-, Caa1) |
04/12/15 |
6.212 |
1,990,000 |
||||||||||||||||||
2,000 |
Wall Street Systems Delaware, Inc. # |
(B-, Caa2) |
10/25/20 |
9.250 |
1,987,500 |
||||||||||||||||||
9,355,041 |
|||||||||||||||||||||||
Telecommunications Equipment (0.4%) | |||||||||||||||||||||||
1,000 |
Mitel US Holdings, Inc. # |
(NR, Caa1) |
08/16/15 |
7.000 |
970,000 |
||||||||||||||||||
TOTAL BANK LOANS (Cost $43,800,042) |
44,156,121 |
||||||||||||||||||||||
ASSET BACKED SECURITIES (1.9%) | |||||||||||||||||||||||
Collateralized Debt Obligations (1.9%) | |||||||||||||||||||||||
1,500 |
Carlyle Global Market Strategies ‡# |
(BBB, NR) |
04/20/22 |
4.469 |
1,422,776 |
||||||||||||||||||
1,500 |
Commercial Industrial Finance Corp. ‡# |
(BBB, NR) |
01/19/23 |
3.421 |
1,428,778 |
||||||||||||||||||
2,000 |
Gale Force CLO Ltd., Rule 144A ‡# |
(BBB+, Baa2) |
11/15/17 |
2.285 |
1,780,138 |
||||||||||||||||||
750 |
Race Point CLO Ltd. ‡# |
(BB, NR) |
05/24/23 |
5.931 |
694,748 |
||||||||||||||||||
TOTAL ASSET BACKED SECURITIES (Cost $4,713,587) |
5,326,440 |
||||||||||||||||||||||
Number of Shares |
|||||||||||||||||||||||
PREFERRED STOCK (0.0%) | |||||||||||||||||||||||
688 |
Dayton Superior Corp. (Cost $250,835) ^* |
|
|||||||||||||||||||||
COMMON STOCKS (0.2%) | |||||||||||||||||||||||
Building & Construction (0.1%) | |||||||||||||||||||||||
161,330 |
William Lyon Homes, Inc. * |
177,463 |
|||||||||||||||||||||
Building Materials (0.0%) | |||||||||||||||||||||||
619 |
Dayton Superior Corp. ^ * |
|
|||||||||||||||||||||
437 |
Nortek, Inc. * |
26,006 |
|||||||||||||||||||||
26,006 |
|||||||||||||||||||||||
Chemicals (0.0%) | |||||||||||||||||||||||
4,893 |
Huntsman Corp. |
73,591 |
See Accompanying Notes to Financial Statements
F-13
Credit Suisse High Yield Bond Fund
Schedule of Investments (continued)
October 31, 2012
Number of Shares |
|
Value |
|||||||||||||||||||||
COMMON STOCKS |
|||||||||||||||||||||||
Forestry & Paper (0.1%) | |||||||||||||||||||||||
11,000 |
Resolute Forest Products *§ |
$ |
134,200 |
||||||||||||||||||||
Gaming (0.0%) | |||||||||||||||||||||||
55,100 |
Majestic Holdco LLC |
110,200 |
|||||||||||||||||||||
Media - Broadcast (0.0%) | |||||||||||||||||||||||
43,413 |
Cumulus Media, Inc., Class A * |
106,796 |
|||||||||||||||||||||
Printing & Publishing (0.0%) | |||||||||||||||||||||||
1,322 |
SuperMedia, Inc. *§ |
3,371 |
|||||||||||||||||||||
TOTAL COMMON STOCKS (Cost $2,222,638) |
631,627 |
||||||||||||||||||||||
WARRANTS (0.0%) | |||||||||||||||||||||||
Building Materials (0.0%) | |||||||||||||||||||||||
1,152 |
Nortek, Inc., strike price $1.00, expires 12/07/14 * |
7,488 |
|||||||||||||||||||||
Printing & Publishing (0.0%) | |||||||||||||||||||||||
5,735 |
The Readers Digest Association, Inc., strike price $0.00, expires 02/19/14 ^* |
|
|||||||||||||||||||||
TOTAL WARRANTS (Cost $1,152) |
7,488 |
||||||||||||||||||||||
SHORT-TERM INVESTMENTS (8.9%) | |||||||||||||||||||||||
10,008,551 |
State Street Navigator Prime Portfolio, 0.31% §§ |
10,008,551 |
|||||||||||||||||||||
Par (000) |
Maturity |
Rate% |
|
||||||||||||||||||||
$ |
14,764 |
State Street Bank and Trust Co. Euro Time Deposit |
11/01/12 |
0.010 |
14,764,000 |
||||||||||||||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $24,772,551) |
24,772,551 |
||||||||||||||||||||||
TOTAL INVESTMENTS AT VALUE (145.5%) (Cost $400,180,559) |
402,706,581 |
||||||||||||||||||||||
LIABILITIES IN EXCESS OF OTHER ASSETS (-45.5%) |
(125,986,191 |
) |
|||||||||||||||||||||
NET ASSETS (100.0%) |
$ |
276,720,390 |
INVESTMENT ABBREVIATION
NR = Not Rated
PIK = Payment in Kind
† 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, 2012, these securities amounted to a value of $171,102,461 or 61.8% of net assets.
€ This security is denominated in Euro.
£ This security is denominated in British Pound.
^ Not readily marketable security; security is valued at fair value as determined in good faith by, or under the direction of, the Board of Trustees.
# Variable rate obligations - The interest rate is the rate as of October 31, 2012.
+ Step Bond - The interest rate is as of October 31, 2012 and will reset at a future date.
Ø Bond is currently in default.
* Non-income producing security.
§ Security or portion thereof is out on loan.
§§ Represents security purchased with cash collateral received for securities on loan. The rate shown is the annualized one-day yield at October 31, 2012.
See Accompanying Notes to Financial Statements
F-14
Credit Suisse High Yield Bond Fund
Statement of Assets and Liabilities
October 31, 2012
Assets |
|||||||
Investments at value, including collateral for securities on loan of $10,008,551 (Cost $400,180,559) (Note 2) |
$ |
402,706,581 |
(1) |
||||
Cash |
208 |
||||||
Foreign currency at value (cost $1,445,827) |
1,437,728 |
||||||
Interest receivable |
7,474,552 |
||||||
Receivable for investments sold |
4,861,997 |
||||||
Unrealized appreciation on forward currency contracts (Note 2) |
296,601 |
||||||
Receivable for fund shares sold |
10 |
||||||
Prepaid expenses and other assets |
17,479 |
||||||
Total Assets |
416,795,156 |
||||||
Liabilities |
|||||||
Advisory fee payable (Note 3) |
265,592 |
||||||
Administrative services fee payable (Note 3) |
17,106 |
||||||
Loan payable (Note 4) |
116,000,000 |
||||||
Payable for investments purchased |
13,419,733 |
||||||
Payable upon return of securities loaned (Note 2) |
10,008,551 |
||||||
Interest payable |
113,991 |
||||||
Trustees' fee payable |
41,100 |
||||||
Other accrued expenses payable |
208,693 |
||||||
Total Liabilities |
140,074,766 |
||||||
Net Assets |
|||||||
Applicable to 91,579,927 shares outstanding |
$ |
276,720,390 |
|||||
Net Assets |
|||||||
Capital stock, $.001 par value (Note 6) |
91,580 |
||||||
Paid-in capital (Note 6) |
356,463,784 |
||||||
Accumulated net investment loss |
(721,477 |
) |
|||||
Accumulated net realized loss on investments and foreign currency transactions |
(81,938,257 |
) |
|||||
Net unrealized appreciation from investments and foreign currency translations |
2,824,760 |
||||||
Net Assets |
$ |
276,720,390 |
|||||
Net Asset Value Per Share ($276,720,390 / 91,579,927) |
$ |
3.02 |
|||||
Market Price Per Share |
$ |
3.16 |
(1) Including $9,765,223 of securities on loan.
See Accompanying Notes to Financial Statements
F-15
Credit Suisse High Yield Bond Fund
Statement of Operations
For the Year Ended October 31, 2012
Investment Income (Note 2) | |||||||
Interest |
$ |
29,915,461 |
|||||
Dividends |
20,416 |
||||||
Securities lending |
59,468 |
||||||
Total investment income |
29,995,345 |
||||||
Expenses |
|||||||
Investment advisory fees (Note 3) |
3,176,626 |
||||||
Administrative services fees (Note 3) |
66,622 |
||||||
Interest expense (Note 4) |
1,286,330 |
||||||
Trustees' fees |
123,165 |
||||||
Legal fees |
110,673 |
||||||
Commitment fees |
94,262 |
||||||
Printing fees (Note 3) |
73,275 |
||||||
Audit and tax fees |
41,600 |
||||||
Stock exchange listing fees |
30,061 |
||||||
Custodian fees |
29,130 |
||||||
Transfer agent fees |
25,313 |
||||||
Insurance expense |
7,826 |
||||||
Miscellaneous expense |
5,054 |
||||||
Total expenses |
5,069,937 |
||||||
Less: fees waived (Note 3) |
(424,999 |
) |
|||||
Net expenses |
4,644,938 |
||||||
Net investment income |
25,350,407 |
||||||
Net Realized and Unrealized Gain from Investments and Foreign Currency Related Items |
|||||||
Net realized gain from investments |
997,841 |
||||||
Net realized gain from foreign currency transactions |
1,158,985 |
||||||
Net change in unrealized appreciation (depreciation) from investments |
11,982,368 |
||||||
Net change in unrealized appreciation (depreciation) from foreign currency translations |
1,003,781 |
||||||
Net realized and unrealized gain from investments and foreign currency related items |
15,142,975 |
||||||
Net increase in net assets resulting from operations |
$ |
40,493,382 |
See Accompanying Notes to Financial Statements
F-16
Credit Suisse High Yield Bond Fund
Statement of Changes in Net Assets
For the Year Ended October 31, 2012 |
For the Year Ended October 31, 2011 |
||||||||||
From Operations |
|||||||||||
Net investment income |
$ |
25,350,407 |
$ |
23,679,158 |
|||||||
Net realized gain from investments and foreign currency transactions |
2,156,826 |
5,232,435 |
|||||||||
Net change in unrealized appreciation (depreciation) from investments and foreign currency translations |
12,986,149 |
(13,844,599 |
) |
||||||||
Net increase in net assets resulting from operations |
40,493,382 |
15,066,994 |
|||||||||
From Dividends |
|||||||||||
Dividends from net investment income |
(26,226,410 |
) |
(23,874,498 |
) |
|||||||
From Capital Share Transactions (Note 6) | |||||||||||
Issuance of 18,468 shares and 16,879 shares through the trustees compensation plan (Note 3) |
52,667 |
50,035 |
|||||||||
Net proceeds from at-the-market offerings (Note 8) |
49,803,158 |
|
|||||||||
Offering costs (Note 7) |
|
(62,923 |
) |
||||||||
At-the-market offering costs |
(338,000 |
) |
|
||||||||
Reinvestment of dividends |
811,171 |
797,400 |
|||||||||
Net increase in net assets from capital share transactions |
50,328,996 |
784,512 |
|||||||||
Net increase (decrease) in net assets |
64,595,968 |
(8,022,992 |
) |
||||||||
Net Assets |
|||||||||||
Beginning of year |
212,124,422 |
220,147,414 |
|||||||||
End of year |
$ |
276,720,390 |
$ |
212,124,422 |
|||||||
Accumulated net investment loss |
$ |
(721,477 |
) |
$ |
(1,041,808 |
) |
See Accompanying Notes to Financial Statements
F-17
Credit Suisse High Yield Bond Fund
Statement of Cash Flows
For the Year Ended October 31, 2012
Cash flows from operating activities |
|||||||||||
Investment income received |
$ |
28,015,423 |
|||||||||
Operating expenses paid |
(3,176,251 |
) |
|||||||||
Interest expenses paid |
(1,332,279 |
) |
|||||||||
Purchases of long-term securities |
(334,922,783 |
) |
|||||||||
Proceeds from sales of long-term securities |
267,648,311 |
||||||||||
Purchases of short-term securities, net |
(10,255,000 |
) |
|||||||||
Net cash used in operating activities |
$ |
(54,022,579 |
) |
||||||||
Cash flows from financing activities |
|||||||||||
Increase in loan payable |
27,000,000 |
||||||||||
Proceeds from issuance of shares through trustee compensation |
52,667 |
||||||||||
Net proceeds from at-the-market offerings |
49,803,148 |
||||||||||
At-the-market offering costs |
(338,000 |
) |
|||||||||
Cash dividends paid |
(25,415,239 |
) |
|||||||||
Net cash provided by financing activities |
51,102,576 |
||||||||||
Effect of exchange rate on cash |
1,163,725 |
||||||||||
Net decrease in cash |
(1,756,278 |
) |
|||||||||
Cash beginning of year |
3,194,214 |
||||||||||
Cash end of year |
$ |
1,437,936 |
|||||||||
RECONCILIATION OF NET INCREASE IN NET ASSETS FROM OPERATIONS TO NET CASH USED IN OPERATING ACTIVITIES |
|||||||||||
Net increase in net assets resulting from operations |
$ |
40,493,382 |
|||||||||
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities |
|||||||||||
Increase in interest receivable |
$ |
(971,428 |
) |
||||||||
Increase in accrued expenses |
124,213 |
||||||||||
Decrease in interest payable |
(45,949 |
) |
|||||||||
Increase in prepaid expenses and other assets |
(4,773 |
) |
|||||||||
Increase in advisory fees payable |
62,917 |
||||||||||
Net amortization of discount on investments |
(1,008,494 |
) |
|||||||||
Purchases of long-term securities |
(334,922,783 |
) |
|||||||||
Proceeds from sales of long-term securities |
267,648,311 |
||||||||||
Purchases of short-term securities, net |
(10,255,000 |
) |
|||||||||
Net change in unrealized appreciation from investments and foreign currency translations |
(12,986,149 |
) |
|||||||||
Net realized gain from investments and foreign currency transactions |
(2,156,826 |
) |
|||||||||
Total adjustments |
(94,515,961 |
) |
|||||||||
Net cash used in operating activities |
$ |
(54,022,579 |
) |
||||||||
Non-cash activity: |
|||||||||||
Issuance of shares through dividend reinvestments |
$ |
811,171 |
See Accompanying Notes to Financial Statements
F-18
Credit Suisse High Yield Bond Fund
Financial Highlights
For the Year Ended |
|||||||||||||||||||||||
Per share operating performance |
10/31/12 |
10/31/11 |
10/31/10 |
10/31/09 |
10/31/08 |
||||||||||||||||||
Net asset value, beginning of year |
$ |
2.82 |
$ |
2.94 |
$ |
2.71 |
$ |
2.09 |
$ |
4.10 |
|||||||||||||
INVESTMENT OPERATIONS |
|||||||||||||||||||||||
Net investment income |
0.31 |
0.32 |
0.30 |
0.28 |
0.401 |
||||||||||||||||||
Net gain (loss) on investments, swap contracts and foreign currency related items (both realized and unrealized) |
0.19 |
(0.12 |
) |
0.32 |
0.68 |
(2.00 |
) |
||||||||||||||||
Total from investment activities |
0.50 |
0.20 |
0.62 |
0.96 |
(1.60 |
) |
|||||||||||||||||
LESS DIVIDENDS AND DISTRIBUTIONS |
|||||||||||||||||||||||
Dividends from net investment income |
(0.32 |
) |
(0.32 |
) |
(0.31 |
) |
(0.33 |
) |
(0.41 |
) |
|||||||||||||
Return of capital |
|
|
(0.01 |
) |
(0.01 |
) |
|
||||||||||||||||
Total dividends and distributions |
(0.32 |
) |
(0.32 |
) |
(0.32 |
) |
(0.34 |
) |
(0.41 |
) |
|||||||||||||
CAPITAL SHARE TRANSACTIONS |
|||||||||||||||||||||||
Decrease to Net Asset Value due to Shares Issued through Rights Offering |
|
|
(0.07 |
) |
|
|
|||||||||||||||||
Increase to Net Asset Value due to Shares Issued through at-the-market offerings |
0.02 |
|
|
||||||||||||||||||||
Net asset value, end of year |
$ |
3.02 |
$ |
2.82 |
$ |
2.94 |
$ |
2.71 |
$ |
2.09 |
|||||||||||||
Per share market value, end of year |
$ |
3.16 |
$ |
2.95 |
$ |
2.92 |
$ |
2.62 |
$ |
1.97 |
|||||||||||||
TOTAL INVESTMENT RETURN2 |
|||||||||||||||||||||||
Net asset value |
19.44 |
% |
6.84 |
% |
21.32 |
% |
53.12 |
% |
(42.45 |
)% |
|||||||||||||
Market value |
19.46 |
% |
12.51 |
% |
24.11 |
% |
59.92 |
% |
(38.20 |
)% |
|||||||||||||
RATIOS AND SUPPLEMENTAL DATA |
|||||||||||||||||||||||
Net assets, end of year (000s omitted) |
$ |
276,720 |
$ |
212,124 |
$ |
220,147 |
$ |
151,546 |
$ |
116,492 |
|||||||||||||
Average debt per share |
$ |
1.22 |
$ |
1.22 |
$ |
0.69 |
$ |
0.58 |
$ |
1.69 |
|||||||||||||
Ratio of expenses to average net assets |
1.94 |
% |
2.00 |
% |
2.05 |
% |
2.67 |
% |
3.76 |
% |
|||||||||||||
Ratio of expenses to average net assets excluding interest expense |
1.40 |
% |
1.46 |
% |
1.52 |
% |
1.80 |
% |
1.50 |
% |
|||||||||||||
Ratio of net investment income to average net assets |
10.56 |
% |
10.70 |
% |
10.40 |
% |
13.32 |
% |
11.68 |
% |
|||||||||||||
Decrease reflected in above operating expense ratios due to waivers/reimbursements |
0.18 |
% |
0.19 |
% |
0.15 |
% |
0.15 |
% |
0.15 |
% |
|||||||||||||
Portfolio turnover rate |
58.00 |
% |
66.00 |
% |
62.00 |
% |
49.00 |
% |
32.01 |
% |
1 Per share information is calculated using the average shares outstanding method.
2 Total investment return at net asset value is based on changes in the net asset value of fund shares and assumes reinvestment of dividends and distributions, if any. Total investment return at market value is based on changes in the market price at which the fund's shares traded on the stock exchange during the period and assumes reinvestment of dividends and distributions, if any, at actual prices pursuant to the fund's dividend reinvestment program. Because the fund's shares trade in the stock market based on investor demand, the fund may trade at a price higher or lower than its NAV. Therefore, returns are calculated based on share price and NAV.
3 Unaudited.
See Accompanying Notes to Financial Statements
F-19
Credit Suisse High Yield Bond Fund
Financial Highlights
For the Year Ended |
|||||||||||||||||||||||
Per share operating performance |
10/31/07 |
10/31/06 |
10/31/05 |
10/31/04 |
10/31/03 |
||||||||||||||||||
Net asset value, beginning of year |
$ |
4.18 |
$ |
4.12 |
$ |
4.53 |
$ |
4.34 |
$ |
3.53 |
|||||||||||||
INVESTMENT OPERATIONS |
|||||||||||||||||||||||
Net investment income |
0.401 |
0.40 |
0.47 |
0.53 |
0.55 |
||||||||||||||||||
Net gain (loss) on investments, swap contracts and foreign currency related items (both realized and unrealized) |
(0.08 |
) |
0.11 |
(0.35 |
) |
0.24 |
0.87 |
||||||||||||||||
Total from investment activities |
0.32 |
0.51 |
0.12 |
0.77 |
1.42 |
||||||||||||||||||
LESS DIVIDENDS AND DISTRIBUTIONS |
|||||||||||||||||||||||
Dividends from net investment income |
(0.40 |
) |
(0.42 |
) |
(0.51 |
) |
(0.58 |
) |
(0.61 |
) |
|||||||||||||
Return of capital |
|
(0.03 |
) |
(0.02 |
) |
|
|
||||||||||||||||
Total dividends and distributions |
(0.40 |
) |
(0.45 |
) |
(0.53 |
) |
(0.58 |
) |
(0.61 |
) |
|||||||||||||
CAPITAL SHARE TRANSACTIONS |
|||||||||||||||||||||||
Decrease to Net Asset Value due to Shares Issued through Rights Offering |
|
|
|
|
|
||||||||||||||||||
Increase to Net Asset Value due to Shares Issued through at-the-market offerings |
|||||||||||||||||||||||
Net asset value, end of year |
$ |
4.10 |
$ |
4.18 |
$ |
4.12 |
$ |
4.53 |
$ |
4.34 |
|||||||||||||
Per share market value, end of year |
$ |
3.65 |
$ |
4.50 |
$ |
4.77 |
$ |
5.24 |
$ |
4.76 |
|||||||||||||
TOTAL INVESTMENT RETURN2 |
|||||||||||||||||||||||
Net asset value |
7.65 |
% |
13.13 |
% |
2.62 |
% |
18.98 |
%3 |
43.04 |
%3 |
|||||||||||||
Market value |
(10.72 |
)% |
5.23 |
% |
2.71 |
% |
25.49 |
% |
35.07 |
% |
|||||||||||||
RATIOS AND SUPPLEMENTAL DATA |
|||||||||||||||||||||||
Net assets, end of year (000s omitted) |
$ |
228,724 |
$ |
231,765 |
$ |
255,760 |
$ |
244,523 |
$ |
229,255 |
|||||||||||||
Average debt per share |
$ |
1.98 |
$ |
1.96 |
$ |
2.05 |
$ |
2.05 |
$ |
1.81 |
|||||||||||||
Ratio of expenses to average net assets |
4.11 |
% |
4.20 |
% |
3.27 |
% |
2.51 |
% |
2.57 |
% |
|||||||||||||
Ratio of expenses to average net assets excluding interest expense |
1.37 |
% |
1.65 |
% |
1.68 |
% |
1.70 |
% |
1.73 |
% |
|||||||||||||
Ratio of net investment income to average net assets |
9.48 |
% |
9.67 |
% |
10.72 |
% |
11.99 |
% |
13.85 |
% |
|||||||||||||
Decrease reflected in above operating expense ratios due to waivers/reimbursements |
0.15 |
% |
|
% |
|
% |
|
% |
|
% |
|||||||||||||
Portfolio turnover rate |
49.18 |
% |
61.91 |
% |
31.05 |
% |
12.10 |
% |
15.96 |
% |
1 Per share information is calculated using the average shares outstanding method.
2 Total investment return at net asset value is based on changes in the net asset value of fund shares and assumes reinvestment of dividends and distributions, if any. Total investment return at market value is based on changes in the market price at which the fund's shares traded on the stock exchange during the period and assumes reinvestment of dividends and distributions, if any, at actual prices pursuant to the fund's dividend reinvestment program. Because the fund's shares trade in the stock market based on investor demand, the fund may trade at a price higher or lower than its NAV. Therefore, returns are calculated based on share price and NAV.
3 Unaudited.
See Accompanying Notes to Financial Statements
F-20
Credit Suisse High Yield Bond Fund
Notes to Financial Statements
October 31, 2012
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 (the "1940 Act"), as a non-diversified, closed-end management investment company. The Fund's primary objective is to seek high current income.
Note 2. Significant Accounting Policies
A) SECURITY VALUATION The net asset value of the Fund is determined daily as of the close of regular trading on the New York Stock Exchange, Inc. (the "Exchange") on each day the Exchange is open for business. Debt securities with a remaining maturity greater than 60 days are valued in accordance with the price supplied by a pricing service, which may use a matrix, formula or other objective method that takes into consideration market indices, yield curves and other specific adjustments. 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 represent fair value. Debt securities are generally categorized as Level 2. Equity investments 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 at the time of valuation (the "Valuation Time"). If no sales are reported, equity investments are generally valued at the most recent bid quotation as of the Valuation Time or at the lowest asked quotation in the case of a short sale of securities. Equity investments are generally categorized as Level 1. Investments in open-end investment companies are valued at their net asset value each business day and are generally categorized as Level 1. Forward currency contracts are valued at the prevailing forward exchange rate of the underlying currencies and are generally categorized as Level 2. Securities and other assets for which market quotations are not readily available, or whose values have been materially affected by events occurring before the Fund's Valuation Time but after the close of the securities' primary markets, 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 and are generally categorized as Level 3. At October 31, 2012, the Fund held less than 0.01% of its net assets in securities valued at fair value as determined in good faith under procedures established by the Board of Trustees with an aggregate cost of $3,041,641 and fair value of $199. The Fund's estimate of fair value assumes a willing buyer and a willing seller neither acting under the compulsion to buy or sell. Although these securities may be resold in privately negotiated transactions, the prices realized on such sales could differ from the prices originally paid by the Fund or the current carrying values, and the difference could be material.
In accordance with the authoritative guidance on fair value measurements and disclosures under accounting principles generally accepted in the United States of America ("GAAP"), the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. In accordance with GAAP, fair value is defined as the price that the Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. GAAP established a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value including such a pricing model and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In accordance with the Fund's valuation procedures, factors used in determining value may include, but are not limited to, the type of the security, the size of the holding, the initial cost of the security, the existence of any contractual restrictions on the security's disposition, the price and extent of public trading in similar securities of the issuer or of comparable companies, quotations or evaluated prices from broker-dealers and/or pricing services, information obtained from the issuer, analysts, and/or the appropriate
F-21
Credit Suisse High Yield Bond Fund
Notes to Financial Statements (continued)
October 31, 2012
stock exchange (for exchange-traded securities), an analysis of the company's or issuer's financial statements, an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold and with respect to debt securities, the maturity, coupon, creditworthiness, currency denomination, and the movement of the market in which the security is normally traded. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.
• Level 1 quoted prices in active markets for identical investments
• Level 2 other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
• Level 3 significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used as of October 31, 2012 in valuing the Fund's investments carried at value:
Level 1 |
Level 2 |
Level 3 |
Total |
||||||||||||||||
Investments in Securities |
|||||||||||||||||||
Corporate Bonds |
$ |
|
$ |
327,812,155 |
$ |
199 |
$ |
327,812,354 |
|||||||||||
Bank Loans |
|
44,156,121 |
|
44,156,121 |
|||||||||||||||
Asset Backed Securities |
|
5,326,440 |
|
5,326,440 |
|||||||||||||||
Preferred Stock |
|
|
|
|
|||||||||||||||
Common Stocks |
343,964 |
287,663 |
|
631,627 |
|||||||||||||||
Warrants |
7,488 |
|
|
7,488 |
|||||||||||||||
Short-Term Investments |
10,008,551 |
14,764,000 |
|
24,772,551 |
|||||||||||||||
Other Financial Instruments* |
|||||||||||||||||||
Forward Foreign Currency Contracts |
|
296,601 |
|
296,601 |
|||||||||||||||
$ |
10,360,003 |
$ |
392,642,980 |
$ |
199 |
$ |
403,003,182 |
* Other financial instruments include forwards foreign currency contracts.
The following is a reconciliation of investments as of October 31, 2012 in which significant unobservable inputs (Level 3) were used in determining value. Transfers in or out of Level 3 represent the beginning value of any security or instrument where a change in the level has occurred from the beginning to the end of the period.
Investments |
|||||||
Balance as of October 31, 2011 |
$ |
118,590 |
|||||
Accrued discounts/premiums |
|
||||||
Purchases |
|
||||||
Sales |
(39 |
) |
|||||
Realized Gain/(Loss) |
|
||||||
Change in Unrealized Appreciation/(Depreciation) |
(118,485 |
) |
|||||
Transfers Into Level 3 |
133 |
||||||
Transfers Out of Level 3 |
|
||||||
Balance as of October 31, 2012 |
$ |
199 |
|||||
Net change in unrealized Appreciation/(Depreciation) from investments still held as of October 31, 2012 |
$ |
(118,485 |
) |
The Fund adopted FASB amendments to authoritative guidance which require the Fund to disclose details of transfers in and out of Level 1 and Level 2 measurements and Level 2 and Level 3 measurements and the reasons for the transfers. For the year ended October 31, 2012, there were no significant transfers in and out of Level 1, Level 2 and Level 3.
B) DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Fund adopted amendments to authoritative guidance on disclosures about derivative instruments and hedging activities which require that the Fund disclose (a) how and why an entity uses derivative instruments, (b) how derivative instruments and hedging
F-22
Credit Suisse High Yield Bond Fund
Notes to Financial Statements (continued)
October 31, 2012
activities are accounted for, and (c) how derivative instruments and related hedging activities affect a fund's financial position, financial performance, and cash flows.
Fair Values of Derivative Instruments as of October 31, 2012
Asset Derivatives |
Liability Derivatives |
||||||||||||||||||
Balance Sheet Location |
Fair Value |
Balance Sheet Location |
Fair Value |
||||||||||||||||
Unrealized appreciation/ depreciation on forward currency |
Unrealized appreciation/ depreciation on forward currency |
||||||||||||||||||
Currency Contracts |
contracts |
$ |
296,601 |
* |
contracts |
$ |
|
* Includes cumulative appreciation/depreciation of forward foreign currency contracts as reported in the Statement of Assets and Liabilities and Notes to Financial Statements.
Effect of Derivative Instruments on the Statement of Operations
Location |
Realized Gain/Loss |
Location |
Unrealized Appreciation/ Depreciation |
||||||||||||||||
Net realized gain from foreign currency |
Net change in unrealized appreciation (depreciation) from foreign currency |
||||||||||||||||||
Currency Contracts |
transactions |
$ |
1,113,807 |
translations |
$ |
999,041 |
The notional amount of forward foreign currency contracts at year end are reflected in the Notes to Financial Statements. The notional amounts of forward foreign currency contracts at each month end throughout the reporting period averaged approximately 9.65% of net assets of the Fund.
C) 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.
D) SECURITY TRANSACTIONS AND INVESTMENT INCOME Security transactions are accounted for on a trade date basis. Interest income is recorded on the accrual basis. The Fund amortizes premiums and accretes discounts using the effective interest method. 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.
E) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS The Fund declares and pays dividends on a monthly basis and records them on ex-date. Distributions of net realized capital gains, if any, are declared and paid at least annually. However, to the extent that a net realized capital gain can be reduced by a capital loss carryforward, such gain will not be distributed. Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP.
F-23
Credit Suisse High Yield Bond Fund
Notes to Financial Statements (continued)
October 31, 2012
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.
F) 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 ("RIC") under the Internal Revenue Code of 1986, as amended (the "Code"), and to make the requisite distributions to its shareholders, which will be sufficient to relieve it from federal income and excise taxes.
In order to qualify as a RIC under the Code, the Fund must meet certain requirements regarding the source of its income, the diversification of its assets and the distribution of its income. One of these requirements is that the Fund derive at least 90% of its gross income for each taxable year from dividends, interest, payments with respect to certain securities loans, gains from the sale or other disposition of stock, securities or foreign currencies, other income derived with respect to its business of investing in such stock, securities or currencies or net income derived from interests in certain publicly traded partnerships ("Qualifying Income").
The Fund adopted the authoritative guidance for uncertainty in income taxes and recognizes a tax benefit or liability from an uncertain position only if it is more likely than not that the position is sustainable based solely on its technical merits and consideration of the relevant taxing authority's widely understood administrative practices and procedures. The Fund has reviewed its current tax positions and has determined that no provision for income tax is required in the Fund's financial statements. The Fund's federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.
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 these estimates.
H) SHORT-TERM INVESTMENTS The Fund, together with other funds/portfolios advised by Credit Suisse Asset Management, LLC ("Credit Suisse"), an indirect, wholly-owned subsidiary of Credit Suisse Group AG, pools available cash into a short-term variable rate time deposit issued by State Street Bank and Trust Company ("SSB"), the Fund's custodian. The short-term time deposit issued by SSB is a variable rate account classified as a short-term investment.
I) CASH FLOW INFORMATION Cash, as used in the Statement of Cash Flows, is the amount reported in the Statement of Assets and Liabilities, including domestic and foreign currencies. 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.
J) FORWARD FOREIGN CURRENCY CONTRACTS The Fund may enter into forward foreign currency contracts for the purchase or sale of a specific foreign currency at a fixed price on a future date. Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency. The Fund will enter into forward foreign currency contracts primarily for hedging foreign currency risk. Forward foreign currency contracts are adjusted by the daily forward exchange rate of the underlying currency and any gains or losses are recorded for
F-24
Credit Suisse High Yield Bond Fund
Notes to Financial Statements (continued)
October 31, 2012
financial statement purposes as unrealized until the contract settlement date or an offsetting position is entered into. At October 31, 2012, the Fund had the following open forward foreign currency contracts:
Forward Foreign Currency to be Purchased (Local) |
Forward Foreign Currency to be Sold (Local) |
Expiration Date |
Counterparties |
Value on Settlement Date |
Current Value |
Unrealized Appreciation/ (Depreciation) |
|||||||||||||||||||||
USD |
22,351,343 |
EUR |
17,027,000 |
1/18/13 |
Morgan Stanley |
$ |
(22,351,343 |
) |
$ |
(22,080,939 |
) |
$ |
270,404 |
||||||||||||||
USD |
2,020,640 |
EUR |
1,538,000 |
1/18/13 |
Morgan Stanley |
(2,020,640 |
) |
(1,994,508 |
) |
26,132 |
|||||||||||||||||
USD |
2,512,692 |
GBP |
1,560,000 |
1/18/13 |
Morgan Stanley |
(2,512,692 |
) |
(2,512,627 |
) |
65 |
|||||||||||||||||
$ |
296,601 |
Currency Abbreviations:
EUR = Euro
GBP = British Pound
USD = United States Dollar
K) SECURITIES LENDING Loans of securities are required at all times to be secured by collateral at least equal to 102% of the market value of domestic securities on loan (including any accrued interest thereon) and 105% of the market value of foreign securities on loan (including any accrued interest thereon). Cash collateral received by the Fund in connection with securities lending activity may be pooled together with cash collateral for other funds/portfolios advised by Credit Suisse and may be invested in a variety of investments, including funds advised by SSB, the Fund's securities lending agent, or money market instruments. However, in the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings.
SSB has been engaged by the Fund to act as the Fund's securities lending agent. The Fund's securities lending arrangement provides that the Fund and SSB will share the net income earned from securities lending activities. During the year ended October 31, 2012, total earnings from the Fund's investment in cash collateral received in connection with securities lending arrangements was $69,962, of which $0 was rebated to borrowers (brokers). The Fund retained $59,468 in income from the cash collateral investment, and SSB, as lending agent, was paid $10,494. Securities lending income is accrued as earned.
L) OTHER Lower-rated debt securities (commonly known as "junk bonds") possess speculative characteristics and are subject to greater market fluctuations and risk of lost income and principal than higher-rated debt securities for a variety of reasons. Also, during an economic downturn or substantial period of rising interest rates, highly leveraged issuers may experience financial stress which would adversely affect their ability to service their principal and interest payment obligations, to meet projected business goals and to obtain additional financing.
In addition, periods of economic uncertainty and changes can be expected to result in increased volatility of market prices of lower-rated debt securities and the Fund's net asset value.
M) SUBSEQUENT EVENTS In preparing the financial statements as of October 31, 2012, management considered the impact of subsequent events for potential recognition or disclosure in these financial statements through the date of release of this report. No such events requiring recognition or disclosure were identified through the date of the release of this report.
Note 3. Transactions with Affiliates and Related Parties
The Fund has entered into an Investment Advisory Agreement (the "Advisory Agreement") with Credit Suisse. 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. Effective January 1, 2011, Credit Suisse has agreed to waive 0.15% of the fees payable under the Advisory Agreement up
F-25
Credit Suisse High Yield Bond Fund
Notes to Financial Statements (continued)
October 31, 2012
to $200 million and 0.25% of the fees payable under the Advisory Agreement on the next $50 million. For the year ended October 31, 2012, investment advisory fees earned and voluntary waived were $3,176,626 and $424,999, respectively. Credit Suisse will not recapture from the Fund any fees it waived during the year ended October 31, 2012. Fee waivers and expense reimbursements are voluntary and may be discontinued by Credit Suisse at any time.
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 the relative average net assets of each fund/portfolio, subject to an annual minimum fee. For the year ended October 31, 2012, administrative services fees earned by SSB (including out-of-pocket expenses) were $66,622.
The Independent Trustees receive fifty percent (50%) of their annual retainer in the form of shares. Since 2008, the Independent Trustees have been able to elect to receive up to 100% of their annual retainer in shares of the Fund. During the year ended October 31, 2012, 18,468 shares were issued through the trustees compensation plan. Trustees as a group own less than 1% of the Fund's outstanding shares.
Merrill Corporation ("Merrill"), an affiliate of Credit Suisse, has been engaged by the Fund to provide certain financial printing services. For the year ended October 31, 2012, Merrill was paid $52,634 for its services by the Fund.
Note 4. Line of Credit
The Fund has a line of credit provided by SSB primarily to leverage its investment portfolio (the "SSB Agreement"). Effective December 9, 2011, under the SSB Agreement, the Fund may borrow the least of: a) $140,000,000; b) an amount that is no greater than 33 1/3% of the Fund's total assets minus the sum of liabilities (other than aggregate indebtedness constituting leverage); and c) the Borrowing Base as defined in the SSB Agreement. Effective December 7, 2012, the Fund may borrow the least of: a) $170,000,000; b) an amount that is no greater than 33 1/3% of the Fund's total assets minus the sum of liabilities (other than aggregate indebtedness constituting leverage); and c) the Borrowing Base as defined in the SSB Agreement. At October 31, 2012, the Fund had loans outstanding under the Agreement of $116,000,000. At October 31, 2012 and during the year ended October 31, 2012, the Fund had borrowings under the Agreement as follows:
Average Daily Loan Balance |
Weighted Average Interest Rate % |
Maximum Daily Loan Outstanding |
|||||||||
$ |
100,221,311 |
1.284 |
% |
$ |
116,000,000 |
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, Credit Suisse in its best judgment nevertheless may determine to maintain the Fund's leveraged position if it deems such action to be appropriate under the circumstances. During periods in which the Fund is utilizing leverage, the management 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.
F-26
Credit Suisse High Yield Bond Fund
Notes to Financial Statements (continued)
October 31, 2012
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 1940 Act. There is no guarantee that the Fund's borrowing arrangements or other arrangements for obtaining leverage will continue to be available, or if available, will be available on terms and conditions acceptable to the Fund. Expiration or termination of available financing for leveraged positions can result in adverse effects to its access to liquidity and its ability to maintain leverage positions, and may cause the Fund to incur losses. Unfavorable economic conditions also could increase funding costs, limit access to the capital markets or result in a decision by lenders not to extend credit to the Fund. In addition, a decline in market value of the Fund's assets may have particular adverse consequences in instances where they have borrowed money based on the market value of those assets. A decrease in market value of those assets may result in the lender requiring the Fund to sell assets at a time when it may not be in the Fund's best interest to do so.
Note 5. Purchases and Sales of Securities
For the year ended October 31, 2012, purchases and sales of investment securities (excluding short-term investments) were $265,230,277 and $191,867,466, respectively.
Note 6. Fund Shares
The Fund has one class of shares of beneficial interest, par value $.001 per share; an unlimited number of shares are authorized. Transactions in shares of beneficial interest of the Fund were as follows:
For the Year Ended October 31, 2012 |
For the Year Ended October 31, 2011 |
||||||||||
Shares issued through the trustees compensation plan |
18,468 |
16,879 |
|||||||||
Shares issued through at-the-market offerings |
16,058,741 |
|
|||||||||
Shares issued through reinvestment of dividends |
274,683 |
269,290 |
|||||||||
Net increase |
16,351,892 |
286,169 |
Note 7. Rights Offering
On August 25, 2010, the Board of Trustees of the Fund announced the approval of a transferable rights offering for the Fund. Rights offering costs of $62,923 were charged to capital during the year ended October 31, 2011.
Note 8. Shelf Offering
On December 8, 2011, the Fund filed a "shelf" registration statement with the SEC, which permitted the Fund to issue up to $50 million in shares of beneficial interest through one or more public offerings. On October 16, 2012, the Fund filed "shelf" registration statement with the SEC which permit the Fund to issue up to $90 million in shares of beneficial interest through one or more public offerings. Under the shelf registration statements, the Fund sold and may sell the Fund's shares of beneficial interest in one or more at-the market offering when market conditions are considered favorable. Such shares were and would only be issued when the premium to net asset value is greater than the costs associated with the transaction. Any proceeds raised are used for investment purposes. As of October 31, 2012, the Fund had offered and sold 16,058,741 shares of beneficial interest pursuant to sales agreements, resulting in proceeds (net of all fees and commissions) of $49,803,158.
Note 9. Federal Income Taxes
Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP.
F-27
Credit Suisse High Yield Bond Fund
Notes to Financial Statements (continued)
October 31, 2012
The tax characteristics of dividends and distributions paid during the years ended October 31, 2012 and 2011, respectively, by the Fund were as follows:
Ordinary Income |
|||||||||||
2012 |
2011 |
||||||||||
$ |
26,226,410 |
$ |
23,874,498 |
The tax basis 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, income from defaulted bonds, partnership basis adjustments and mark to market of forward contracts. At October 31, 2012, the components of distributable earnings on a tax basis for the Funds were as follows:
Accumulated realized loss |
$ |
(81,647,267 |
) |
||||
Unrealized depreciation |
1,812,293 |
||||||
$ |
(79,834,974 |
) |
At October 31, 2012, the Funds had capital loss carryforwards available to offset possible future capital gains as follows:
Expires October 31, |
|||||||||||||||||||
2013 |
2014 |
2016 |
2017 |
2018 |
|||||||||||||||
$ |
1,583,878 |
$ |
8,944,708 |
$ |
24,144,149 |
$ |
40,767,194 |
$ |
6,207,338 |
During the tax year ended October 31, 2012, the Fund utilized $3,135,234 of the capital loss carryforwards.
Under the Regulated Investment Company Modernization Act of 2010, the Fund will be permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law. It is uncertain whether the Fund will be able to realize the full benefits of the capital loss carryforwards before they expire.
At October 31, 2012, the cost of investments (excluding foreign currency related transactions) and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Cost of Investments |
$ |
400,896,425 |
|||||
Unrealized appreciation |
17,425,157 |
||||||
Unrealized depreciation |
(15,615,001 |
) |
|||||
Net unrealized appreciation (depreciation) |
$ |
1,810,156 |
At October 31, 2012, the Fund reclassified $1,196,334 to net investment loss and $2,948,419 to accumulated net realized loss from investments from paid in capital, to adjust for current period permanent book/tax differences which arose principally from differing book/tax treatment of foreign currency gain/(loss), partnership basis adjustments, defaulted bonds, distributions in excess of current earnings and expiration of capital loss carryforwards. Net assets were not affected by these reclassifications.
Note 10. 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.
F-28
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 and of changes in net assets 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, 2012, the results of its operations for the year then ended and the changes in its net assets and the financial highlights for the periods presented, 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 audits 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, 2012 by correspondence with the custodian, brokers, agent banks, and the application of alternative auditing procedures where securities purchased confirmations had not been received, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
December 28, 2012
F-29
(This page has been left blank intentionally.)
18,000,000 Common Shares of Beneficial Interest
CREDIT SUISSE HIGH YIELD BOND FUND
PROSPECTUS SUPPLEMENT
March 1, 2013
Until March 26, 2013 (25 days after the date of this Prospectus Supplement), all dealers that buy, sell or trade the Common Shares, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to the dealers' obligation to deliver a prospectus when acting as underwriters.