0001193125-14-257273.txt : 20140701 0001193125-14-257273.hdr.sgml : 20140701 20140701130810 ACCESSION NUMBER: 0001193125-14-257273 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20140430 FILED AS OF DATE: 20140701 DATE AS OF CHANGE: 20140701 EFFECTIVENESS DATE: 20140701 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CREDIT SUISSE HIGH YIELD BOND FUND CENTRAL INDEX KEY: 0001061353 IRS NUMBER: 134009166 STATE OF INCORPORATION: DE FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-08777 FILM NUMBER: 14951592 BUSINESS ADDRESS: STREET 1: ONE MADISON AVENUE CITY: NEW YORK STATE: NY ZIP: 10010 BUSINESS PHONE: 2123252000 MAIL ADDRESS: STREET 1: ONE MADISON AVENUE CITY: NEW YORK STATE: NY ZIP: 10010 FORMER COMPANY: FORMER CONFORMED NAME: DLJ HIGH YIELD BOND FUND DATE OF NAME CHANGE: 19980508 N-CSRS 1 d735599dncsrs.htm CREDIT SUISSE HIGH YIELD BOND FUND CREDIT SUISSE HIGH YIELD BOND FUND

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act File No. 811-08777

 

CREDIT SUISSE HIGH YIELD BOND FUND

 

(Exact Name of Registrant as Specified in Charter)

One Madison Avenue, New York, New York 10010

 

(Address of Principal Executive Offices)        (Zip Code)

John G. Popp

Credit Suisse High Yield Bond Fund

One Madison Avenue

New York, New York 10010

 

Registrant’s telephone number, including area code: (212) 325-2000

Date of fiscal year end: October 31

Date of reporting period: November 1, 2013 to April 30, 2014


Item 1. Reports to Stockholders.


Credit Suisse High Yield Bond Fund

One Madison Avenue

New York, NY 10010

 

 

Trustees

Steven N. Rappaport

Chairman of the Board

Enrique R. Arzac

Terry Fires Bovarnick

James J. Cattano

Lawrence J. Fox

John G. Popp

 

 

Officers

John G. Popp

Chief Executive Officer and President

Thomas J. Flannery

Chief Investment Officer

Emidio Morizio

Chief Compliance Officer

Joanne Doldo

Chief Legal Officer

Bruce Rosenberg

Chief Financial Officer

Karen Regan

Senior Vice President and Secretary

Rocco DelGuercio

Treasurer

 

 

Investment Adviser

Credit Suisse Asset Management, LLC

One Madison Avenue

New York, NY 10010

 

 

Administrator and Custodian

State Street Bank and Trust Co.

One Lincoln Street

Boston, MA 02111

 

 

Shareholder Servicing Agent

Computershare Trust Company, N.A.

P.O. Box 30170

College Station, TX 77842-3170

 

 

Legal Counsel

Willkie Farr & Gallagher LLP

787 7th Avenue

New York, NY 10019

 

 

Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP

300 Madison Avenue

New York, NY 10017

 

 

 

 

Credit Suisse

High Yield Bond Fund

 

 

 

SEMIANNUAL REPORT

April 30, 2014

(unaudited)

 

 

LOGO

 


Credit Suisse High Yield Bond Fund

Semiannual Investment Adviser’s Report

April 30, 2014 (unaudited)

 

 

June 23, 2014

Dear Shareholder:

We are pleased to present this semiannual Report covering the activities of the Credit Suisse High Yield Bond Fund (the “Fund”), for the six-months ended April 30, 2014.

Performance Summary

11/01/13 – 04/30/14

 

Fund & Benchmark    Performance  

Total Return (based on NAV)1

     6.12

Total Return (based on market value)1

     6.44

BofA Merrill Lynch High Yield Master II Constrained Index2

     4.76

Market Review: A positive period

The six-months ended April 30, 2014, was a positive period for the high yield market, with the BofA Merrill Lynch High Yield Master II Constrained Index, the Fund’s benchmark, returning 4.76%. High yield levels have been supported by continued inflows into the asset class as well as Treasury yields, as the 10-year U.S. Treasury, which had widened to 3.03% by December 31, 2013, tightened to 2.65% by the end of April.

Other notable headlines in the high yield market include the highly anticipated default of Energy Futures (TXU), a Texas based utility company, that had been telegraphed for months. Despite the headlines, expectations for default rates continue to remain below historical averages given a constructive outlook on fundamentals. High yield spreads tightened by 57 basis points versus Treasuries to finish April at +388 basis points. The yield-to-worst finished the month close to unchanged at 5.22%, compared to 5.66% at the end of October.

For the market, most rating classes produced positive returns with CC-rated, returning 10.42%, leading the pack. CCC-rated and BB-rated bonds followed closely, returning 5.64% and 4.67%, respectively. B-rated bonds underperformed, returning 4.38%. The best performing sectors for the period were department stores, insurance and tobacco, returning 9.6%, 9.5% and 8.4%, respectively. Sector laggards included specialty retail, 2.5%, and metals/mining, with 2.8%.

The par-weighted, high yield bond default rate, as reported by JPMorgan, increased to 2.15% in April following the default of Energy Futures (TXU). Although the default was one of the largest on record, the issuer-weighted default rate continues to remain at a benign 1.75%. Absent the expected Energy Futures (TXU) default, our default forecast remains sanguine and below long-term averages for the next 1-2 years. The U.S. high yield distress ratio, which measures the proportion of bonds trading at spreads of more than 1,000 basis points over Treasuries, improved slightly, going from 5.7% in October to 5.0% in April, according to Bank of America.

As discussed previously, technicals in the high yield market have supported overall market returns. On a year-to-date basis, high yield mutual funds reported inflows totaling $4.2 billion. From a supply perspective, new issue volumes totaled $130 billion year-to-date — similar to the same period for 2013.

Portfolio Review and Outlook: Looking for pockets of opportunity

For the six months ended April 30, 2014, the Fund outperformed the BofA Merrill Lynch High Yield Master II Constrained Index. Positive security selection positions in B and BB rated debt contributed to returns. In addition, security selection to the specialty retail, oil services and support services sectors, as well as an underweight to consumer/commercial/lease financing, contributed positively to relative returns. In contrast, an underweight to banking and security selection within the auto parts sector detracted from performance.

The Fund’s investment strategy continues to focus on shorter duration bonds and the Fund has also taken advantage of recent interest rate volatility by taking profits in bonds with 8-10 year maturities that have traded up along with the Treasury market. Many of these names were added in the second and third quarter of 2013, when high yield markets were weaker.

 

1


Credit Suisse High Yield Bond Fund

Semiannual Investment Adviser’s Report (continued)

April 30, 2014 (unaudited)

 

 

In addition, the Fund’s trading activity in 2014 has been focused on purchases from the new issue calendar or with 5-8 year maturity. We continued to reduce the Fund’s positions in the very short end of the curve in names that were callable in the next year or two and whose valuations were no longer compelling. The Fund also remained invested in lower beta securities whose valuations were less exposed to market fluctuations and emphasized B-rated bonds that exhibit the most compelling risk-return profiles.

Looking forward, although high yield markets have rallied through the beginning of this year, we believe valuations in many cases are capped as a portion of bonds in the high yield market are already trading at or above their call prices. Against this backdrop, we will remain selective and look for pockets of opportunities within the high yield asset class.

 

LOGO    LOGO

Thomas J. Flannery

Chief Investment Officer*

  

John Popp

Chief Executive Officer and President**

High yield bonds are lower-quality bonds that are also known as “junk bonds.” Such bonds entail greater risks than those found in higher-rated securities.

The Fund is non-diversified, which means it may invest a greater proportion of its assets in securities of a smaller number of issuers than a diversified fund and may therefore be subject to greater volatility.

In addition to historical information, this report contains forward-looking statements, which may concern, among other things, domestic and foreign market, industry and economic trends and developments and government regulation and their potential impact on the Fund’s investments. These statements are subject to risks and uncertainties and actual trends, developments and regulations in the future, and their impact on the Fund could be materially different from those projected, anticipated or implied. The Fund has no obligation to update or revise forward-looking statements.

The views of the Fund’s management are as of the date of the letter and the Fund holdings described in this document are as of April 30, 2014; these views and Fund holdings may have changed subsequent to these dates. Nothing in this document is a recommendation to purchase or sell securities.

 

1  Assuming reinvestment of dividends of $0.1465 per share.
2  The BofA Merrill Lynch U.S. High Yield Master II Constrained Index is an unmanaged index that tracks the performance of below investment-grade U.S. dollar-denominated corporate bonds issued in the U.S. domestic market, where each issuer’s allocation is limited to 2% of the Index. An index does not have transaction costs; investors cannot invest directly in an index.
* Thomas J. Flannery, Managing Director, is the Head of the Credit Suisse U.S. High Yield Management Team. Mr. Flannery joined Credit Suisse Asset Management, LLC (“Credit Suisse”) in June 2010. He is a portfolio manager for the Credit Investment Group (“CIG”) within the Asset Management business of Credit Suisse Group AG with responsibility for trading, directing investment decisions and analyzing investment opportunities. Mr. Flannery is also a member of the CIG Credit Committee. Mr. Flannery joined Credit Suisse AG in 2000 from First Dominion Capital, LLC where he was an Associate. Mr. Flannery holds a B.S. in Finance from Georgetown University.
** John G. Popp is a Managing Director of Credit Suisse and Group Head and Chief Investment Officer of the Credit Investments Group (“CIG”), with primary responsibility for making investment decisions and monitoring processes for CIG’s global investment strategies. Mr. Popp also serves as the Chief Executive Officer of the Credit Suisse Funds, as well as serving as Director, Chief Executive Officer and President for the Credit Suisse Asset Management Income Fund, Inc. and Trustee, Chief Executive Officer and President of the Credit Suisse High Yield Bond Fund. Mr. Popp has been associated with Credit Suisse since 1997.

 

2


Credit Suisse High Yield Bond Fund

Semiannual Investment Adviser’s Report (continued)

April 30, 2014 (unaudited)

 

 

Credit Quality Breakdown*

(% of Total Investments as of April 30, 2014)

 

S&P Ratings

 

BB

     24.9

B

     54.3   

CCC

     15.4   

C

     0.1   

D

     0.0   

NR

     3.8   
  

 

 

 

Subtotal

     98.5   

Equity and Other

     0.1   

Short-Term Investment1

     1.4   
  

 

 

 

Total

     100.0
  

 

 

 

 

* Expressed as a percentage of total investments (excluding securities lending collateral if applicable) and may vary over time.
1  Primarily reflects cash invested in State Street Bank and Trust Co. Euro Time Deposit, for which the purchases of securities have been executed but not yet settled at April 30, 2014.

Average Annual Returns

April 30, 2014 (unaudited)

 

 

       1 Year        3 Years        5 Years        10 Years  

Net Asset Value (NAV)

       9.60%           11.96%           21.92%           8.50%   

Market Value

       5.71%           11.12%           25.09%           8.54%   

Credit Suisse may waive fees and/or reimburses expenses, without which performance would be lower. Waivers and/or reimbursements are subject to change and may be discontinued at any time. Returns represent past performance. 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. Past performance is no guarantee of future results. The current performance of the Fund may be lower or higher than the figures shown. The Fund’s yield, return and market price and NAV will fluctuate. Performance information current to the most recent month-end is available by calling 1-800-293-1232.

 

3


Credit Suisse High Yield Bond Fund

Schedule of Investments

April 30, 2014 (unaudited)

 

 

Par
(000)

        

Ratings†
(S&P/Moody’s)

  

Maturity

    

Rate%

    

Value

 

 

CORPORATE BONDS (118.7%)

           

 

Aerospace & Defense (0.5%)

           
$ 1,462     

Ducommun, Inc., Global Company Guaranteed Notes (Callable 07/15/15 @ 104.88)

   (B-, B3)      07/15/18         9.750       $ 1,637,440   
             

 

 

 

 

Airlines (0.4%)

           
  750     

Continental Airlines 2012-3, Class C Pass Thru Certificates

   (B+, B1)      04/29/18         6.125         798,750   
  300     

United Continental Holdings, Inc., Company Guaranteed Notes§

   (B, B2)      06/01/18         6.375         324,000   
             

 

 

 
                1,122,750   
             

 

 

 

 

Auto Parts & Equipment (3.5%)

           
  1,000     

Gestamp Funding Luxembourg S.A., Rule 144A, Senior Secured Notes (Callable 05/31/16 @ 102.81)‡

   (BB, B1)      05/31/20         5.625         1,036,250   
  525     

Lear Corp., Company Guaranteed Notes (Callable 03/15/15 @ 104.06)

   (BB, Ba2)      03/15/20         8.125         573,562   
  2,250     

Lear Corp., Rule 144A, Company Guaranteed Notes (Callable 01/15/18 @ 102.38)‡

   (BB, Ba2)      01/15/23         4.750         2,221,875   
  500     

Schaeffler Holding Finance B.V., Rule 144A, Senior Secured Notes (Callable 08/15/14 @ 105.16)‡

   (B, B1)      08/15/18         6.875         533,125   
  2,382     

Tomkins, Inc., Global Secured Notes (Callable 10/01/14 @ 104.50)

   (BB-, B1)      10/01/18         9.000         2,566,605   
  4,000     

UCI International, Inc., Global Company Guaranteed Notes (Callable 02/15/15 @ 104.31)

   (CCC, Caa1)      02/15/19         8.625         3,880,000   
             

 

 

 
                10,811,417   
             

 

 

 

 

Automakers (0.4%)

           
  1,000     

CG Co-Issuer, Inc., Rule 144A, Secured Notes (Callable 06/15/16 @ 104.13)‡

   (B, B1)      06/15/21         8.250         1,128,750   
             

 

 

 

 

Beverages (0.5%)

           
  1,400     

Beverages & More, Inc., Rule 144A, Senior Secured Notes (Callable 11/15/15 @ 105.00)‡

   (CCC+, Caa2)      11/15/18         10.000         1,454,250   
             

 

 

 

 

Brokerage (2.5%)

           
  3,090     

CCRE Finance Corp., Rule 144A, Company Guaranteed Notes (Callable 02/15/15 @ 105.81)‡

   (B, B1)      02/15/18         7.750         3,352,650   
  2,950     

Jefferies Finance Co-Issuer Corp., Rule 144A, Senior Unsecured Notes (Callable 04/01/16 @ 105.53)‡

   (B, B1)      04/01/20         7.375         3,104,875   
  1,400     

Jefferies Finance Co-Issuer Corp., Rule 144A, Senior Unsecured Notes (Callable 04/15/17 @ 105.16)‡

   (B, B1)      04/15/22         6.875         1,407,000   
             

 

 

 
                7,864,525   
             

 

 

 

 

Building & Construction (0.9%)

           
  600     

K Hovnanian Enterprises, Inc., Global Senior Secured Notes

   (CCC+, Ba3)      11/01/21         2.000         423,000   
  2,200     

Rialto Corp., Rule 144A, Company Guaranteed Notes (Callable 12/01/15 @ 103.50)‡

   (B, B2)      12/01/18         7.000         2,297,625   
             

 

 

 
                2,720,625   
             

 

 

 

 

Building Materials (3.6%)

           
  4,400     

Euramax International, Inc., Global Senior Secured Notes (Callable 06/02/14 @ 104.75)

   (B-, Caa2)      04/01/16         9.500         4,433,000   
  3,750     

Headwaters, Inc., Global Secured Notes (Callable 04/01/15 @ 103.81)

   (B+, B2)      04/01/19         7.625         4,050,000   
  2,500     

Headwaters, Inc., Rule 144A, Company Guaranteed Notes (Callable 01/15/16 @ 103.63)‡

   (CCC+, Caa2)      01/15/19         7.250         2,643,750   
             

 

 

 
                11,126,750   
             

 

 

 

 

Chemicals (5.1%)

           
  300     

Axalta Coating Systems Dutch Holding B, Rule 144A, Company Guaranteed Notes (Callable 02/04/16 @ 105.53)§‡

   (B-, Caa1)      05/01/21         7.375         330,750   
  3,025     

Chemtura Corp., Company Guaranteed Notes (Callable 07/15/16 @ 104.31)

   (BB-, B1)      07/15/21         5.750         3,153,562   
  3,196     

GrafTech International Ltd., Global Company Guaranteed Notes (Callable 11/15/16 @ 103.19)

   (BB+, Ba2)      11/15/20         6.375         3,283,890   
  250     

Ineos Finance PLC, Rule 144A, Senior Secured Notes (Callable 02/15/15 @ 102.00)‡#

   (BB-, Ba3)      02/15/19         7.250         366,136   
  1,500     

Ineos Finance PLC, Rule 144A, Senior Secured Notes (Callable 05/01/15 @ 105.63)‡

   (BB-, Ba3)      05/01/20         7.500         1,646,250   

 

See Accompanying Notes to Financial Statements.

 

4


Credit Suisse High Yield Bond Fund

Schedule of Investments (continued)

April 30, 2014 (unaudited)

 

 

Par
(000)

        

Ratings†
(S&P/Moody’s)

  

Maturity

    

Rate%

    

Value

 

 

CORPORATE BONDS

           

 

Chemicals

           
$ 650     

Ineos Group Holdings S.A., Rule 144A, Company Guaranteed Notes (Callable 05/15/15 @ 103.25)§‡

   (B-, B3)      08/15/18         6.125       $ 676,000   
  3,060     

Polymer Group, Inc., Global Senior Secured Notes (Callable 02/01/15 @ 103.88)

   (B-, B1)      02/01/19         7.750         3,297,150   
  148     

Reichhold Industries, Inc., PIK, Rule 144A, Senior Secured Notes‡

   (CCC-, NR)      05/08/17         11.000         96,950   
  2,500     

Taminco Global Chemical Corp., Rule 144A, Secured Notes (Callable 03/31/15 @ 107.31)‡

   (B-, Caa1)      03/31/20         9.750         2,828,125   
             

 

 

 
                15,678,813   
             

 

 

 

 

Computer Hardware (0.3%)

           
  1,000     

NCR Corp., Rule 144A, Senior Unsecured Notes (Callable 12/15/18 @ 103.19)‡

   (BB, Ba3)      12/15/23         6.375         1,075,000   
             

 

 

 

 

Consumer Products (2.9%)

           
  3,100     

Alphabet Holding Co., Inc., PIK, Global Senior Unsecured Notes (Callable 11/01/14 @ 102.00)

   (B-, Caa1)      11/01/17         7.750         3,212,375   
  3,690     

NBTY, Inc., Global Company Guaranteed Notes (Callable 10/01/14 @ 104.50)

   (B, B3)      10/01/18         9.000         3,977,451   
  1,250     

Ontex IV S.A., Rule 144A, Senior Secured Notes (Callable 05/30/14 @ 103.75)‡

   (B, B1)      04/15/18         7.500         1,811,180   
             

 

 

 
                9,001,006   
             

 

 

 

 

Consumer/Commercial/Lease Financing (0.7%)

           
  2,000     

Jefferies LoanCore Finance Corp., Rule 144A, Senior Unsecured Notes (Callable 06/01/16 @ 105.16)‡

   (B, B2)      06/01/20         6.875         2,025,000   
             

 

 

 

 

Diversified Capital Goods (2.9%)

           
  3,460     

Anixter, Inc., Global Company Guaranteed Notes

   (BB, Ba3)      05/01/19         5.625         3,710,850   
  3,584     

Belden, Inc., Rule 144A, Company Guaranteed Notes (Callable 09/01/17 @ 102.75)‡

   (B+, Ba2)      09/01/22         5.500         3,664,640   
  6     

FCC Holdings, Inc., Rule 144A, Senior Unsecured Notes (Callable 12/15/14 @ 100.00)‡^

   (CCC+, Ca)      12/15/15         13.000         5,989   
  1,561     

Mueller Water Products, Inc., Global Company Guaranteed Notes (Callable 09/01/15 @ 104.38)

   (NR, B1)      09/01/20         8.750         1,748,320   
             

 

 

 
                9,129,799   
             

 

 

 

 

Electronics (0.4%)

           
  1,350     

Sensata Technologies B.V., Rule 144A, Company Guaranteed Notes‡

   (BB+, Ba3)      10/15/23         4.875         1,329,750   
             

 

 

 

 

Energy - Exploration & Production (8.5%)

           
  4,150     

Bonanza Creek Energy, Inc., Global Company Guaranteed Notes (Callable 04/15/17 @ 103.38)

   (B-, B3)      04/15/21         6.750         4,461,250   
  500     

Comstock Resources, Inc., Company Guaranteed Notes (Callable 04/01/15 @ 103.88)

   (B-, B3)      04/01/19         7.750         537,500   
  4,350     

EPL Oil & Gas, Inc., Global Company Guaranteed Notes (Callable 02/15/15 @ 104.13)

   (B-, B3)      02/15/18         8.250         4,719,750   
  500     

Harkand Finance, Inc. Reg S, Rule 144A, Senior Secured Notes (Callable 03/28/16 @ 104.50)‡

   (NR, NR)      03/28/19         7.500         502,500   
  1,400     

Memorial Production Finance Corp., Global Company Guaranteed Notes (Callable 05/01/17 @ 103.81)

   (B-, Caa1)      05/01/21         7.625         1,482,250   
  1,250     

Oasis Petroleum, Inc., Global Company Guaranteed Notes (Callable 02/01/15 @ 103.63)

   (B+, B2)      02/01/19         7.250         1,340,625   
  2,000     

Oasis Petroleum, Inc., Rule 144A, Company Guaranteed Notes (Callable 09/15/17 @ 103.44)‡

   (B+, B2)      03/15/22         6.875         2,180,000   
  3,072     

PDC Energy, Inc., Global Company Guaranteed Notes (Callable 10/15/17 @ 103.88)

   (B-, B3)      10/15/22         7.750         3,386,880   
  2,750     

Stone Energy Corp., Global Company Guaranteed Notes (Callable 11/15/17 @ 103.75)

   (B-, B3)      11/15/22         7.500         2,997,500   
  3,000     

W&T Offshore, Inc., Global Company Guaranteed Notes (Callable 06/15/15 @ 104.25)

   (B-, B3)      06/15/19         8.500         3,255,000   
  1,350     

Whiting Petroleum Corp., Company Guaranteed Notes (Callable 12/15/20 @ 100.00)

   (BB+, Ba2)      03/15/21         5.750         1,451,250   
             

 

 

 
                26,314,505   
             

 

 

 

 

Environmental (1.5%)

           
  4,400     

EnergySolutions LLC, Global Company Guaranteed Notes (Callable 08/15/14 @ 105.38)

   (B+, Caa2)      08/15/18         10.750         4,631,000   
             

 

 

 

 

Food - Wholesale (0.8%)

           
  1,090     

Big Heart Pet Brands, Global Company Guaranteed Notes (Callable 06/02/14 @ 103.81)

   (CCC+, Caa1)      02/15/19         7.625         1,137,688   
  1,400     

Smithfield Foods, Inc., Rule 144A, Senior Unsecured Notes (Callable 08/01/16 @ 104.41)‡

   (BB-, B2)      08/01/21         5.875         1,475,250   
             

 

 

 
                2,612,938   
             

 

 

 

 

See Accompanying Notes to Financial Statements.

 

5


Credit Suisse High Yield Bond Fund

Schedule of Investments (continued)

April 30, 2014 (unaudited)

 

 

Par
(000)

        

Ratings†
(S&P/Moody’s)

  

Maturity

    

Rate%

    

Value

 

 

CORPORATE BONDS

           

 

Forestry & Paper (0.1%)

           
$ 300     

Lecta S.A., Rule 144A, Senior Secured Notes (Callable 05/15/15 @ 106.66)‡

   (B, B2)      05/15/19         8.875       $ 418,527   
  950     

Stone & Webster, Inc.1

   (NR, NR)      10/23/19         0.000         950   
             

 

 

 
                419,477   
             

 

 

 

 

Gaming (1.6%)

           
  1,700     

Affinity Gaming Finance Corp., Global Company Guaranteed Notes (Callable 05/15/15 @ 104.50)

   (B-, NR)      05/15/18         9.000         1,810,500   
  1,043     

Choctaw Resort Development Enterprise, Rule 144A, Senior Notes (Callable 11/15/14 @ 100.00)‡

   (B, Caa1)      11/15/19         7.250         1,043,000   
  1,500     

Safari Holding Verwaltungs GmbH, Rule 144A, Senior Secured Notes (Callable 02/15/17 @ 104.13)‡

   (B, B2)      02/15/21         8.250         2,235,810   
             

 

 

 
                5,089,310   
             

 

 

 

 

Gas Distribution (3.1%)

           
  3,469     

Energy Transfer Equity LP, Senior Secured Notes

   (BB, Ba2)      10/15/20         7.500         4,015,368   
  1,450     

Genesis Energy LP, Global Company Guaranteed Notes (Callable 02/15/17 @ 102.88)

   (B, B1)      02/15/21         5.750         1,515,250   
  3,850     

Holly Energy Finance Corp., Global Company Guaranteed Notes (Callable 03/01/16 @ 103.25)

   (BB-, B1)      03/01/20         6.500         4,119,500   
             

 

 

 
                9,650,118   
             

 

 

 

 

Health Facilities (3.8%)

           
  1,850     

MPT Finance Corp., Company Guaranteed Notes (Callable 02/15/17 @ 103.19)

   (BB, Ba1)      02/15/22         6.375         1,993,375   
  2,350     

MPT Finance Corp., Global Company Guaranteed Notes (Callable 05/01/16 @ 103.44)

   (BB, Ba1)      05/01/21         6.875         2,567,375   
  2,220     

Symbion, Inc., Global Company Guaranteed Notes

   (CCC+, Caa2)      08/23/15         11.000         2,234,430   
  1,950     

Symbion, Inc., Global Senior Secured Notes (Callable 06/15/14 @ 104.00)

   (B, B2)      06/15/16         8.000         2,047,500   
  2,100     

Tenet Healthcare Corp., Global Senior Unsecured Notes

   (CCC+, B3)      04/01/22         8.125         2,336,250   
  500     

Universal Hospital Services, Inc., Global Secured Notes (Callable 08/15/15 @ 105.72)

   (B, B3)      08/15/20         7.625         537,500   
             

 

 

 
                11,716,430   
             

 

 

 

 

Health Services (2.9%)

           
  1,500     

Catalent Pharma Solutions, Inc., Global Company Guaranteed Notes (Callable 10/15/14 @ 103.94)

   (B, Caa1)      10/15/18         7.875         1,529,250   
  675     

inVentiv Health, Inc., Rule 144A, Company Guaranteed Notes (Callable 08/15/14 @ 105.00)‡

   (CCC, Caa2)      08/15/18         11.000         627,750   
  2,400     

MedAssets, Inc., Global Company Guaranteed Notes (Callable 11/15/14 @ 104.00)

   (B, B3)      11/15/18         8.000         2,562,000   
  425     

Service Corp. International, Senior Unsecured Notes

   (BB-, B1)      11/15/21         8.000         494,615   
  3,428     

STHI Holding Corp., Rule 144A, Secured Notes (Callable 06/02/14 @ 106.00)‡

   (B, B2)      03/15/18         8.000         3,637,965   
             

 

 

 
                8,851,580   
             

 

 

 

 

Insurance Brokerage (1.6%)

           
  2,300     

A-S Merger Sub LLC, Rule 144A, Senior Unsecured Notes (Callable 12/15/15 @ 103.94)‡

   (CCC+, Caa2)      12/15/20         7.875         2,449,500   
  1,150     

Hockey Merger Sub 2, Inc., Rule 144A, Senior Unsecured Notes (Callable 10/01/16 @ 105.91)‡

   (CCC+, Caa2)      10/01/21         7.875         1,233,375   
  700     

Towergate Finance PLC, Rule 144A, Senior Secured Notes (Callable 05/15/14 @ 101.00)‡#£

   (NR, B1)      02/15/18         6.027         1,198,237   
             

 

 

 
                4,881,112   
             

 

 

 

 

Investments & Misc. Financial Services (1.8%)

           
  1,500     

Arrow Global Finance PLC, Rule 144A, Senior Secured Notes (Callable 03/01/16 @ 103.94)‡£

   (BB-, B2)      03/01/20         7.875         2,738,617   
  1,500     

Cabot Financial Luxembourg S.A., Rule 144A, Senior Secured Notes (Callable 10/01/15 @ 107.78)‡£

   (B+, B2)      10/01/19         10.375         2,881,089   
             

 

 

 
                5,619,706   
             

 

 

 

 

Leisure (0.9%)

           
  2,825     

Six Flags Entertainment Corp., Rule 144A, Company Guaranteed Notes (Callable 01/15/16 @ 103.94)‡

   (BB-, B3)      01/15/21         5.250         2,860,313   
             

 

 

 

 

Media - Broadcast (0.8%)

           
  2,450     

Sinclair Television Group, Inc., Global Unsecured Notes (Callable 10/01/17 @ 103.06)

   (B, B1)      10/01/22         6.125         2,514,313   
             

 

 

 

 

See Accompanying Notes to Financial Statements.

 

6


Credit Suisse High Yield Bond Fund

Schedule of Investments (continued)

April 30, 2014 (unaudited)

 

 

Par
(000)

        

Ratings†
(S&P/Moody’s)

  

Maturity

    

Rate%

    

Value

 

 

CORPORATE BONDS

           

 

Media - Cable (3.6%)

           
$ 2,000     

Altice Financing S.A., Rule 144A, Senior Secured Notes (Callable 12/15/16 @ 104.88)‡

   (BB-, B1)      01/15/22         6.500       $ 2,100,000   
  75     

Cablevision Systems Corp., Senior Unsecured Notes

   (B, B1)      04/15/18         7.750         85,312   
  1,150     

Cablevision Systems Corp., Senior Unsecured Notes

   (B, B1)      04/15/20         8.000         1,334,000   
  1,500     

DISH DBS Corp., Global Company Guaranteed Notes

   (BB-, Ba3)      09/01/19         7.875         1,783,125   
  500     

DISH DBS Corp., Global Company Guaranteed Notes

   (BB-, Ba3)      06/01/21         6.750         566,250   
  1,000     

Harron Finance Corp., Rule 144A, Senior Unsecured Notes (Callable 04/01/16 @ 104.56)‡

   (B-, Caa1)      04/01/20         9.125         1,130,000   
  1,250     

Midcontinent Communications & Midcontinent Finance Corp., Rule 144A, Company Guaranteed Notes (Callable 08/01/16 @ 104.69)‡

   (B-, B3)      08/01/21         6.250         1,300,000   
  850     

Virgin Media Finance PLC, Rule 144A, Company Guaranteed Notes (Callable 04/15/18 @ 103.19)‡

   (B, B2)      04/15/23         6.375         896,750   
  1,000     

Virgin Media Finance PLC, Rule 144A, Company Guaranteed Notes (Callable 04/15/18 @ 103.50)‡£

   (B, B2)      04/15/23         7.000         1,815,192   
             

 

 

 
                11,010,629   
             

 

 

 

 

Media - Diversified (2.8%)

           
  4,000     

Block Communications, Inc., Rule 144A, Senior Unsecured Notes (Callable 02/01/16 @ 103.63)‡

   (BB-, Ba3)      02/01/20         7.250         4,280,000   
  1,000     

National CineMedia LLC, Global Senior Secured Notes (Callable 04/15/17 @ 103.00)

   (BB-, Ba2)      04/15/22         6.000         1,055,000   
  3,074     

National CineMedia LLC, Global Senior Unsecured Notes (Callable 07/15/16 @ 103.94)

   (B, B2)      07/15/21         7.875         3,404,455   
             

 

 

 
                8,739,455   
             

 

 

 

 

Media - Services (3.0%)

           
  500     

CBS Outdoor Americas Capital Corp., Rule 144A, Company Guaranteed Notes (Callable 02/15/19 @ 102.81)‡

   (BB-, B1)      02/15/24         5.625         515,000   
  700     

Clear Channel Worldwide Holdings, Inc., Global Company Guaranteed Notes (Callable 11/15/17 @ 103.25)

   (B, B1)      11/15/22         6.500         749,000   
  1,000     

Clear Channel Worldwide Holdings, Inc., Series B, Global Company Guaranteed Notes (Callable 03/15/15 @ 105.72)

   (B, B3)      03/15/20         7.625         1,082,500   
  2,450     

Clear Channel Worldwide Holdings, Inc., Series B, Global Company Guaranteed Notes (Callable 11/15/17 @ 103.25)

   (B, B1)      11/15/22         6.500         2,633,750   
  4,000     

WMG Acquisition Corp., Rule 144A, Senior Secured Notes (Callable 01/15/16 @ 104.50)‡

   (B+, B1)      01/15/21         6.000         4,210,000   
             

 

 

 
                9,190,250   
             

 

 

 

 

Metals & Mining - Excluding Steel (8.2%)

           
  3,100     

Boart Longyear Management Pty. Ltd., Rule 144A, Company Guaranteed Notes (Callable 04/01/16 @ 103.50)§‡

   (CCC+, Caa2)      04/01/21         7.000         2,371,500   
  1,300     

Boart Longyear Management Pty. Ltd., Rule 144A, Senior Secured Notes‡

   (B, B2)      10/01/18         10.000         1,371,500   
  3,250     

Calcipar S.A., Rule 144A, Senior Secured Notes (Callable 05/01/15 @ 103.44)‡

   (BB, Ba3)      05/01/18         6.875         3,453,125   
  1,800     

Eldorado Gold Corp., Rule 144A, Senior Unsecured Notes (Callable 12/15/16 @ 103.06)‡

   (BB, Ba3)      12/15/20         6.125         1,813,500   
  2,250     

Global Brass & Copper, Inc., Global Senior Secured Notes (Callable 06/01/16 @ 104.75)

   (B, B3)      06/01/19         9.500         2,604,375   
  4,200     

KGHM International Ltd., Rule 144A, Company Guaranteed Notes (Callable 06/15/15 @ 103.88)‡

   (BB-, B1)      06/15/19         7.750         4,536,000   
  3,250     

Noranda Aluminum Acquisition Corp., Global Company Guaranteed Notes (Callable 03/01/16 @ 105.50)

   (CCC+, Caa2)      06/01/19         11.000         3,063,125   
  4,000     

Taseko Mines Ltd., Company Guaranteed Notes (Callable 04/15/15 @ 103.88)

   (B, B3)      04/15/19         7.750         4,100,000   
  3,100     

Xinergy Corp., Rule 144A, Senior Secured Notes (Callable 05/15/15 @ 104.63)‡

   (NR, NR)      05/15/19         9.250         2,092,500   
             

 

 

 
                25,405,625   
             

 

 

 

 

Oil Field Equipment & Services (7.2%)

           
  4,000     

Calfrac Holdings LP, Rule 144A, Company Guaranteed Notes (Callable 12/01/15 @ 103.75)‡

   (BB-, B1)      12/01/20         7.500         4,250,000   
  1,700     

Pacific Drilling S.A., Reg S, Senior Unsecured Notes

   (NR, NR)      02/23/15         8.250         1,765,875   
  325     

Pacific Drilling V Ltd., Rule 144A, Senior Secured Notes (Callable 12/01/15 @ 103.63)‡

   (B+, B2)      12/01/17         7.250         349,375   
  200     

Parker Drilling Co., Global Company Guaranteed Notes (Callable 08/01/16 @ 103.75)

   (B+, B1)      08/01/20         7.500         215,000   

 

See Accompanying Notes to Financial Statements.

 

7


Credit Suisse High Yield Bond Fund

Schedule of Investments (continued)

April 30, 2014 (unaudited)

 

 

Par
(000)

        

Ratings†
(S&P/Moody’s)

  

Maturity

    

Rate%

    

Value

 

 

CORPORATE BONDS

           

 

Oil Field Equipment & Services

           
$ 2,050     

Parker Drilling Co., Rule 144A, Company Guaranteed Notes (Callable 01/15/18 @ 103.38)‡

   (B+, B1)      07/15/22         6.750       $ 2,132,000   
  1,218     

Permian Holdings, Inc., Rule 144A, Senior Secured Notes (Callable 07/15/15 @ 107.88)‡

   (B-, B3)      01/15/18         10.500         1,236,270   
  3,925     

Pioneer Energy Services Corp., Global Company Guaranteed Notes (Callable 06/02/14 @ 104.93)

   (B+, B2)      03/15/18         9.875         4,136,165   
  2,250     

Shelf Drilling Holdings Ltd., Rule 144A, Senior Secured Notes (Callable 05/01/15 @ 104.31)§‡

   (B+, B1)      11/01/18         8.625         2,435,625   
  3,000     

Sidewinder Drilling, Inc., Rule 144A, Senior Unsecured Notes (Callable 11/15/16 @ 104.88)‡

   (B-, B3)      11/15/19         9.750         2,985,000   
  2,500     

Trinidad Drilling Ltd., Rule 144A, Company Guaranteed Notes (Callable 01/15/15 @ 103.94)‡

   (BB, B1)      01/15/19         7.875         2,681,250   
             

 

 

 
                22,186,560   
             

 

 

 

 

Oil Refining & Marketing (3.5%)

           
  4,400     

Coffeyville Finance, Inc., Global Secured Notes (Callable 11/01/17 @ 103.25)

   (B+, B2)      11/01/22         6.500         4,642,000   
  1,250     

Northern Tier Finance Corp., Global Senior Secured Notes (Callable 11/15/2015 @ 105.34)

   (BB-, B1)      11/15/20         7.125         1,346,875   
  4,500     

PBF Finance Corp., Global Senior Secured Notes (Callable 02/15/16 @ 104.13)

   (BB+, Ba3)      02/15/20         8.250         4,938,750   
             

 

 

 
                10,927,625   
             

 

 

 

 

Packaging (4.1%)

           
  850     

Ardagh Glass Finance PLC, Rule 144A, Company Guaranteed Notes (Callable 06/15/14 @ 101.19)‡

   (CCC+, Caa1)      06/15/17         7.125         1,200,665   
  200     

Ardagh Holdings U.S.A., Inc., Rule 144A, Company Guaranteed Notes (Callable 01/31/17 @ 103.38)§‡

   (CCC+, Caa1)      01/31/21         6.750         209,000   
  700     

Ardagh Packaging Finance PLC, Rule 144A, Company Guaranteed Notes (Callable 10/15/15 @ 104.63)‡

   (CCC+, Caa1)      10/15/20         9.250         1,080,988   
  450     

Ardagh Packaging Finance PLC, Rule 144A, Senior Secured Notes (Callable 10/15/14 @ 103.69)‡

   (B+, Ba3)      10/15/17         7.375         661,197   
  2,170     

BWAY Holding Co., Global Company Guaranteed Notes (Callable 06/15/14 @ 105.00)

   (CCC+, Caa1)      06/15/18         10.000         2,292,063   
  2,850     

Reynolds Group Issuer LLC, Global Company Guaranteed Notes (Callable 02/15/16 @ 104.13)§

   (CCC+, Caa2)      02/15/21         8.250         3,095,812   
  2,475     

Reynolds Group Issuer LLC, Global Company Guaranteed Notes (Callable 10/15/14 @ 104.50)

   (CCC+, Caa2)      04/15/19         9.000         2,654,437   
  1,475     

Signode Industrial Group U.S., Inc., Rule 144A, Senior Unsecured Notes (Callable 05/01/17 @ 104.78)‡

   (CCC+, Caa1)      05/01/22         6.375         1,493,438   
             

 

 

 
                12,687,600   
             

 

 

 

 

Pharmaceuticals (1.9%)

           
  650     

Capsugel Finance Co. S.C.A., Rule 144A, Company Guaranteed Notes (Callable 08/01/14 @ 107.41)‡

   (B-, B3)      08/01/19         9.875         985,930   
  1,000     

Capsugel S.A., PIK, Rule 144A, Senior Unsecured Notes (Callable 11/15/14 @ 102.00)‡

   (B-, Caa1)      05/15/19         7.000         1,031,875   
  1,000     

Forest Laboratories, Inc., Rule 144A, Senior Unsecured Notes‡

   (BB+, Ba1)      02/01/19         4.375         1,065,000   
  1,750     

Forest Laboratories, Inc., Rule 144A, Senior Unsecured Notes‡

   (BB+, Ba1)      02/15/21         4.875         1,868,125   
  1,000     

Valeant Pharmaceuticals International, Rule 144A, Company Guaranteed Notes (Callable 02/15/16 @ 103.38)‡

   (B, B1)      08/15/21         6.750         1,077,500   
             

 

 

 
                6,028,430   
             

 

 

 

 

Real Estate Investment Trusts (1.3%)

           
  3,750     

CNL Lifestyle Properties, Inc., Global Company Guaranteed Notes (Callable 04/15/15 @ 103.63)

   (B, Ba3)      04/15/19         7.250         3,956,250   
             

 

 

 

 

Restaurants (1.1%)

           
  3,300     

Seminole Hard Rock International LLC, Rule 144A, Company Guaranteed Notes (Callable 05/15/16 @ 104.41)‡

   (BB-, B2)      05/15/21         5.875         3,308,250   
             

 

 

 

 

Software/Services (6.4%)

           
  4,000     

Epicor Software Corp., Global Company Guaranteed Notes (Callable 05/01/15 @ 104.31)

   (CCC+, Caa1)      05/01/19         8.625         4,380,000   
  2,150     

First Data Corp., Rule 144A, Senior Secured Notes (Callable 06/15/15 @ 103.69)‡

   (B+, B1)      06/15/19         7.375         2,311,250   

 

See Accompanying Notes to Financial Statements.

 

8


Credit Suisse High Yield Bond Fund

Schedule of Investments (continued)

April 30, 2014 (unaudited)

 

 

Par
(000)

        

Ratings†
(S&P/Moody’s)

  

Maturity

    

Rate%

    

Value

 

 

CORPORATE BONDS

           

 

Software/Services

           
$ 1,500     

First Data Corp., Rule 144A, Senior Secured Notes (Callable 11/01/15 @ 105.06)‡

   (B+, B1)      11/01/20         6.750       $ 1,608,750   
  1,100     

Infor U.S., Inc., Global Company Guaranteed Notes (Callable 04/01/15 @ 107.03)

   (B-, Caa1)      04/01/19         9.375         1,240,250   
  1,000     

Infor U.S., Inc., Global Company Guaranteed Notes (Callable 04/01/15 @ 107.50)

   (B-, Caa1)      04/01/19         10.000         1,587,599   
  3,000     

NeuStar, Inc., Global Company Guaranteed Notes (Callable 01/15/18 @ 102.25)§

   (BB-, Ba3)      01/15/23         4.500         2,625,000   
  1,842     

Serena Software, Inc., Global Company Guaranteed Notes

   (CCC+, Caa1)      03/15/16         10.375         1,850,841   
  600     

SSI Co-Issuer LLC, Global Company Guaranteed Notes (Callable 05/14/14 @ 100.00)

   (CCC+, Caa1)      06/01/18         11.125         639,000   
  3,250     

Syniverse Holdings, Inc., Global Company Guaranteed Notes (Callable 01/15/15 @ 104.56)

   (B-, Caa1)      01/15/19         9.125         3,542,500   
             

 

 

 
                19,785,190   
             

 

 

 

 

Specialty Retail (2.4%)

           
  500     

Academy Finance Corp., Rule 144A, Company Guaranteed Notes (Callable 08/01/14 @ 106.94)‡

   (CCC+, B3)      08/01/19         9.250         546,875   
  2,700     

Brown Shoe Co., Inc., Global Company Guaranteed Notes (Callable 05/15/14 @ 105.34)

   (B+, B3)      05/15/19         7.125         2,862,027   
  2,175     

Netflix, Inc., Rule 144A, Senior Unsecured Notes‡

   (BB-, Ba3)      03/01/24         5.750         2,262,000   
  1,810     

Penske Automotive Group, Inc., Global Company Guaranteed Notes (Callable 10/01/17 @ 102.88)

   (B, B2)      10/01/22         5.750         1,902,763   
             

 

 

 
                7,573,665   
             

 

 

 

 

Steel Producers/Products (0.4%)

           
  1,150     

JMC Steel Group, Inc., Rule 144A, Senior Notes (Callable 06/02/14 @ 106.19)‡

   (B-, Caa1)      03/15/18         8.250         1,167,250   
             

 

 

 

 

Support-Services (8.5%)

           
  500     

BlueLine Rental Finance Corp., Rule 144A, Secured Notes (Callable 02/01/16 @ 103.50)‡

   (B, B3)      02/01/19         7.000         536,250   
  1,300     

CDL Acquisition Co., Inc., Rule 144A, Senior Secured Notes (Callable 04/15/16 @ 106.19)‡

   (B+, B1)      10/15/18         8.250         1,387,750   
  3,500     

CoreLogic, Inc., Global Company Guaranteed Notes (Callable 06/01/16 @ 103.63)

   (B+, B1)      06/01/21         7.250         3,815,000   
  225     

DigitalGlobe, Inc., Company Guaranteed Notes (Callable 02/01/17 @ 102.63)§

   (BB, B1)      02/01/21         5.250         220,500   
  500     

Emdeon, Inc., Global Company Guaranteed Notes (Callable 12/31/15 @ 105.50)

   (CCC+, Caa1)      12/31/19         11.000         581,250   
  1,000     

Europcar Groupe S.A., Rule 144A, Secured Notes‡

   (B-, Caa1)      05/15/17         11.500         1,609,950   
  4,100     

H&E Equipment Services, Inc., Global Company Guaranteed Notes (Callable 09/01/17 @ 103.50)

   (B+, B3)      09/01/22         7.000         4,530,500   
  1,800     

Sabre GLBL, Inc., Rule 144A, Senior Secured Notes (Callable 05/15/15 @ 106.38)‡

   (B+, B1)      05/15/19         8.500         1,991,250   
  2,075     

Safway Finance Corp., Rule 144A, Secured Notes (Callable 05/15/15 @ 103.50)‡

   (B, B3)      05/15/18         7.000         2,209,875   
  1,000     

Techem Energy Metering Service GmbH & Co. KG, Rule 144A, Company Guaranteed Notes (Callable 10/01/16 @ 103.94)‡

   (B-, B3)      10/01/20         7.875         1,564,790   
  875     

The Geo Group, Inc., Global Company Guaranteed Notes (Callable 02/15/16 @ 103.31)

   (B+, B1)      02/15/21         6.625         945,000   
  3,000     

The Geo Group, Inc., Global Company Guaranteed Notes (Callable 04/01/18 @ 102.56)

   (B+, B1)      04/01/23         5.125         2,985,000   
  765     

The Hertz Corp., Gloabl Company Guaranteed Notes (Callable 01/15/16 @ 103.69)

   (B, B2)      01/15/21         7.375         846,281   
  2,100     

United Rentals North America, Inc., Global Company Guaranteed Notes (Callable 05/15/16 @ 103.69)

   (BB-, B2)      05/15/20         7.375         2,336,250   
  625     

United Rentals North America, Inc., Global Senior Unsecured Notes (Callable 02/01/16 @ 104.13)

   (BB-, B2)      02/01/21         8.250         702,344   
             

 

 

 
                26,261,990   
             

 

 

 

 

Telecom - Integrated/Services (5.9%)

           
  1,000     

Cogent Communications Finance, Inc., Rule 144A, Senior Unsecured Notes (Callable 04/15/17 @ 104.22)‡

   (B-, Caa1)      04/15/21         5.625         985,000   
  550     

Hellas Telecommunications Luxembourg II S.C.A., Rule 144A, Subordinated Notes‡^1ø

   (NR, NR)      01/15/15         0.000           
  4,500     

Hughes Satellite Systems Corp., Global Company Guaranteed Notes

   (B-, B3)      06/15/21         7.625         5,096,250   
  500     

Intelsat Jackson Holdings S.A., Global Company Guaranteed Notes (Callable 04/01/15 @ 103.63)

   (B+, B3)      04/01/19         7.250         538,125   
  1,250     

Intelsat Jackson Holdings S.A., Global Company Guaranteed Notes (Callable 04/01/16 @ 103.75)

   (B+, B3)      04/01/21         7.500         1,375,000   
  1,500     

Intelsat Jackson Holdings S.A., Global Company Guaranteed Notes (Callable 12/15/17 @ 103.31)

   (B-, Caa1)      12/15/22         6.625         1,548,750   
  700     

Intelsat Luxembourg S.A., Global Company Guaranteed Notes (Callable 06/01/17 @ 103.88)

   (B-, Caa2)      06/01/21         7.750         732,375   
  1,700     

Numericable Group S.A., Rule 144A, Senior Secured Notes (Callable 05/15/17 @ 104.50)‡

   (B+, Ba3)      05/15/22         6.000         1,742,500   

 

See Accompanying Notes to Financial Statements.

 

9


Credit Suisse High Yield Bond Fund

Schedule of Investments (continued)

April 30, 2014 (unaudited)

 

 

Par
(000)

        

Ratings†
(S&P/Moody’s)

  

Maturity

    

Rate%

    

Value

 

 

CORPORATE BONDS

           

 

Telecom - Integrated/Services

           
$ 2,800     

Numericable Group S.A., Rule 144A, Senior Secured Notes (Callable 05/15/19 @ 103.13)‡

   (B+, Ba3)      05/15/24         6.250       $ 2,870,000   
  3,124     

Zayo Capital, Inc., Global Senior Secured Notes (Callable 07/01/15 @ 104.06)

   (B, B1)      01/01/20         8.125         3,440,305   
             

 

 

 
                18,328,305   
             

 

 

 

 

Telecom - Wireless (0.5%)

           
  1,600     

Sprint Corp., Rule 144A, Company Guaranteed Notes‡

   (BB-, B1)      06/15/24         7.125         1,684,000   
             

 

 

 

 

Telecommunications Equipment (2.2%)

           
  2,450     

Avaya, Inc., Rule 144A, Senior Secured Notes (Callable 04/01/15 @ 103.50)‡

   (B, B1)      04/01/19         7.000         2,450,000   
  3,995     

Brightstar Corp., Rule 144A, Company Guaranteed Notes (Callable 12/01/14 @ 104.75)‡

   (BB+, Ba1)      12/01/16         9.500         4,354,550   
             

 

 

 
                6,804,550   
             

 

 

 

 

Textiles & Apparel (0.6%)

           
  75     

IT Holding Finance S.A., Company Guaranteed Notesø

   (NR, NR)      11/15/25         9.875         1,024   
  1,500     

Takko Luxembourg 2 S.C.A., Rule 144A, Senior Secured Notes (Callable 04/15/16 @ 104.94)‡

   (B-, B3)      04/15/19         9.875         1,957,239   
             

 

 

 
                1,958,263   
             

 

 

 

 

Theaters & Entertainment (2.9%)

           
  1,600     

Activision Blizzard, Inc., Rule 144A, Company Guaranteed Notes (Callable 09/15/16 @ 104.22)‡

   (BB+, Ba2)      09/15/21         5.625         1,710,000   
  1,250     

Activision Blizzard, Inc., Rule 144A, Company Guaranteed Notes (Callable 09/15/18 @ 103.06)‡

   (BB+, Ba2)      09/15/23         6.125         1,362,500   
  2,075     

AMC Entertainment, Inc., Global Company Guaranteed Notes (Callable 12/01/15 @ 104.88)

   (B-, B3)      12/01/20         9.750         2,396,625   
  1,600     

AMC Entertainment, Inc., Rule 144A, Company Guaranteed Notes (Callable 02/15/17 @ 104.41)‡

   (B-, B3)      02/15/22         5.875         1,640,000   
  1,550     

Carmike Cinemas, Inc., Global Secured Notes (Callable 05/15/15 @ 105.53)

   (B, B1)      05/15/19         7.375         1,697,250   
  250     

Cinemark U.S.A., Inc., Global Company Guaranteed Notes (Callable 06/01/18 @ 102.44)

   (BB-, B2)      06/01/23         4.875         243,750   
             

 

 

 
                9,050,125   
             

 

 

 

 

Transportation - Excluding Air/Rail (0.2%)

           
  600     

Navios Maritime Finance II U.S., Inc., Rule 144A, Senior Secured Notes (Callable 01/15/17 @ 105.53)‡

   (BB-, B1)      01/15/22         7.375         607,500   
             

 

 

 

 

TOTAL CORPORATE BONDS (Cost $353,257,825)

              367,928,189   
             

 

 

 

 

BANK LOANS (20.8%)

           

 

Aerospace & Defense (0.5%)

           
  1,500     

LM U.S. Corp. Acquisition, Inc.#

   (CCC, Caa2)      10/26/20         9.500         1,528,125   
             

 

 

 

 

Beverages (0.5%)

           
  1,500     

Del Monte Foods, Inc.#

   (CCC+, Caa1)      08/18/21         8.250         1,488,750   
             

 

 

 

 

Chemicals (2.9%)

           
  1,960     

Ascend Performance Materials Operations LLC#

   (B, B2)      04/10/18         6.750         1,950,200   
  2,000     

Oxbow Carbon & Minerals Holdings, Inc.#

   (BB-, B2)      01/18/20         8.000         2,043,750   
  3,000     

Ravago Holdings America, Inc.#

   (BB-, B2)      12/18/20         5.500         3,035,625   
  2,000     

Royal Adhesives and Sealants LLC#

   (CCC+, Caa2)      01/31/19         9.750         2,035,000   
             

 

 

 
                9,064,575   
             

 

 

 

 

Consumer Products (1.0%)

           
  3,000     

Ranpak Corp.#

   (B-, Caa1)      04/23/20         8.500         3,071,250   
             

 

 

 

 

See Accompanying Notes to Financial Statements.

 

10


Credit Suisse High Yield Bond Fund

Schedule of Investments (continued)

April 30, 2014 (unaudited)

 

 

Par
(000)

        

Ratings†
(S&P/Moody’s)

  

Maturity

    

Rate%

    

Value

 

 

BANK LOANS

           

 

Diversified Capital Goods (0.7%)

           
$ 867     

Flint Group Holdings Sarl#

   (NR, NR)      06/30/18         7.334       $ 871,380   
  1,222     

Flint Group Holdings Sarl#

   (NR, NR)      12/31/18         7.334         1,221,530   
             

 

 

 
                2,092,910   
             

 

 

 

 

Energy - Exploration & Production (0.8%)

           
  1,750     

Delek Benelux B.V.#

   (NR, NR)      02/08/17         5.378         2,429,494   
             

 

 

 

 

Financial Services (0.6%)

           
  2,000     

MergerMarket U.S.A., Inc.#

   (CCC+, Caa2)      01/07/22         7.500         1,974,170   
             

 

 

 

 

Gaming (1.6%)

           
  1,995     

Abercrombie & Kent U.S. Group Holdings, Inc.#

   (NR, NR)      12/07/18         5.000         1,905,225   
  2,995     

CityCenter Holdings LLC#

   (B+, B3)      10/16/20         5.000         3,014,662   
             

 

 

 
                4,919,887   
             

 

 

 

 

Hotels (0.6%)

           
  1,750     

Four Seasons Holdings, Inc.#

   (B-, Caa1)      12/28/20         6.250         1,780,625   
             

 

 

 

 

Insurance Brokerage (0.3%)

           
  1,000     

AssuredPartners, Inc.#

   (CCC+, Caa2)      04/02/22         7.750         1,002,500   
             

 

 

 

 

Investments & Misc. Financial Services (2.1%)

           
  1,500     

Ascensus, Inc.#

   (CCC+, Caa1)      12/11/20         9.000         1,533,750   
  3,000     

ION Trading Technologies Sarl#

   (CCC+, Caa2)      05/22/21         8.250         3,020,625   
  1,885     

StoneRiver Group LP#

   (CCC+, Caa1)      05/29/20         8.500         1,902,900   
             

 

 

 
                6,457,275   
             

 

 

 

 

Machinery (0.7%)

           
  2,250     

CPM Acquisition Corp.#

   (B, Caa1)      03/01/18         10.250         2,289,375   
             

 

 

 

 

Oil Field Equipment & Services (1.2%)

           
  2,000     

Philadelphia Energy Solutions Refining and Marketing LLC#

   (BB-, B1)      04/04/18         6.250         1,797,500   
  2,000     

Shelf Drilling Holdings Ltd.#

   (B+, B2)      10/08/18         10.000         2,050,000   
             

 

 

 
                3,847,500   
             

 

 

 

 

Printing & Publishing (0.6%)

           
  1,182     

Harland Clarke Holdings Corp.#

   (B+, B1)      06/30/17         5.484         1,182,607   
  113     

Hibu Connect S.A.#

   (CCC+, NR)      03/03/19         1.500         40,881   
  960     

YH Ltd.#

   (CCC+, NR)      03/03/19         5.254         251,441   
  1,767     

YH Ltd.#1

   (CCC-, NR)      03/03/24         0.000         462,651   
             

 

 

 
                1,937,580   
             

 

 

 

 

Software/Services (1.8%)

           
  3,000     

Intralinks, Inc.#

   (NR, NR)      02/24/19         7.250         3,003,750   
  2,500     

Landslide Holdings, Inc.#

   (CCC+, Caa1)      02/25/21         8.250         2,509,375   
             

 

 

 
                5,513,125   
             

 

 

 

 

Specialty Retail (0.8%)

           
  2,500     

BJ’s Wholesale Club, Inc.#

   (CCC, Caa2)      03/31/20         8.500         2,562,187   
             

 

 

 

 

Support-Services (0.5%)

           
  1,496     

Redtop Acquisitions Ltd.#

   (CCC+, B3)      06/03/21         8.250         1,541,138   
             

 

 

 

 

See Accompanying Notes to Financial Statements.

 

11


Credit Suisse High Yield Bond Fund

Schedule of Investments (continued)

April 30, 2014 (unaudited)

 

 

Par
(000)

        

Ratings†
(S&P/Moody’s)

  

Maturity

    

Rate%

    

Value

 

 

BANK LOANS

           

 

Telecom - Integrated/Services (0.6%)

           
$ 2,000     

Coronado Guarantor LLC#

   (CCC+, Caa1)      05/25/21         8.750       $ 2,023,130   
             

 

 

 

 

Telecom - Wireless (0.6%)

           
  1,973     

Maritime Telecommunications Network, Inc.#

   (B+, NR)      03/04/16         7.500         1,716,164   
             

 

 

 

 

Theaters & Entertainment (1.7%)

           
  2,000     

CKX Entertainment, Inc.#

   (B+, B1)      06/21/17         9.000         1,800,000   
  3,500     

Tech Finance & Co. S.C.A.#

   (B+, B2)      07/11/20         5.500         3,513,125   
             

 

 

 
                5,313,125   
             

 

 

 

 

Transportation - Excluding Air/Rail (0.7%)

           
  2,000     

Navios Maritime Partners LP#

   (BB, Ba3)      06/27/18         5.250         2,028,750   
             

 

 

 

 

TOTAL BANK LOANS (Cost $63,195,209)

              64,581,635   
             

 

 

 

Number of
Shares

                               

 

COMMON STOCKS (0.3%)

           

 

Building & Construction (0.1%)

           
  22,800     

Ashton Woods U.S.A. LLC, Class B^*

              381,672   
             

 

 

 

 

Building Materials (0.0%)

           
  619     

Dayton Superior Corp.^*

                
             

 

 

 

 

Chemicals (0.1%)

           
  4,893     

Huntsman Corp.

              122,570   
             

 

 

 

 

Gaming (0.0%)

           
  55,100     

Majestic Holdco LLC*

              42,702   
             

 

 

 

 

Media (0.0%)

           
  682,105     

Hibu PLC^£*

                
             

 

 

 

 

Media - Broadcast (0.1%)

           
  43,413     

Cumulus Media, Inc., Class A*

              278,277   
             

 

 

 

 

TOTAL COMMON STOCKS (Cost $398,239)

              825,221   
             

 

 

 

 

PREFERRED STOCK (0.0%)

           

 

Building Materials (0.0%)

           
  688     

Dayton Superior Corp.^* (Cost $250,835)

                
             

 

 

 

 

SHORT-TERM INVESTMENTS (5.1%)

           
  9,511,790     

State Street Navigator Prime Portfolio, 0.14%§§

              9,511,790   

 

See Accompanying Notes to Financial Statements.

 

12


Credit Suisse High Yield Bond Fund

Schedule of Investments (continued)

April 30, 2014 (unaudited)

 

 

Par
(000)

        

 

  

Maturity

    

Rate%

    

Value

 
$ 6,332     

State Street Bank and Trust Co. Euro Time Deposit

        05/01/14         0.010       $ 6,332,000   
             

 

 

 

 

TOTAL SHORT-TERM INVESTMENTS (Cost $15,843,790)

              15,843,790   
             

 

 

 

 

TOTAL INVESTMENTS AT VALUE (144.9%) (Cost $432,945,898)

              449,178,835   

 

LIABILITIES IN EXCESS OF OTHER ASSETS (-44.9%)

              (139,169,668
             

 

 

 

 

NET ASSETS (100.0%)

            $ 310,009,167   
             

 

 

 

INVESTMENT ABBREVIATIONS

NR = Not Rated

PIK = Payment in Kind

Reg S = Regulation S

 

 

 

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 or portion thereof is out on loan (See note 2-J).

 

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 April 30, 2014, these securities amounted to a value of $161,013,687 or 51.9% of net assets.

 

This security is denominated in Euro.

 

# Variable rate obligations - The interest rate is the rate as of April 30, 2014.

 

^ 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.

 

1  Zero-coupon security.

 

£ This security is denominated in British Pound.

 

ø Bond is currently in default.

 

* Non-income producing security.

 

§§ Represents security purchased with cash collateral received for securities on loan. The rate shown is the annualized one-day yield at April 30, 2014.

 

See Accompanying Notes to Financial Statements.

 

13


Credit Suisse High Yield Bond Fund

Statement of Assets and Liabilities

April 30, 2014 (unaudited)

 

 

Assets

  

Investments at value, including collateral for securities on loan of $9,511,790
(Cost $432,945,898) (Note 2)

   $         449,178,835 1 

Cash

     926   

Foreign currency at value (cost $391,648)

     393,076   

Dividend and interest receivable

     7,539,901   

Receivable for investments sold

     4,801,900   

Unrealized appreciation on forward currency contracts (Note 2)

     11,880   

Receivable for fund shares sold

     12   

Prepaid expenses and other assets

     51,326   
  

 

 

 

Total Assets

     461,977,856   
  

 

 

 

Liabilities

  

Advisory fee payable (Note 3)

     292,827   

Administrative services fee payable (Note 3)

     19,710   

Loan payable (Note 4)

     133,500,000   

Payable upon return of securities loaned (Note 2)

     9,511,790   

Payable for investments purchased

     8,310,029   

Unrealized depreciation on forward currency contracts (Note 2)

     147,513   

Interest payable

     99,053   

Trustees’ fee payable

     34,624   

Accrued expenses

     53,143   
  

 

 

 

Total Liabilities

     151,968,689   
  

 

 

 

Net Assets

  

Applicable to 98,108,092 shares outstanding

   $ 310,009,167   
  

 

 

 

Net Assets

  

Capital stock, $.001 par value (Note 6)

     98,108   

Paid-in capital (Note 6)

     374,786,081   

Accumulated net investment loss

     (832,789

Accumulated net realized loss on investments and foreign currency transactions

     (80,143,726

Net unrealized appreciation from investments and foreign currency translations

     16,101,493   
  

 

 

 

Net Assets

   $ 310,009,167   
  

 

 

 

Net Asset Value Per Share ($310,009,167 / 98,108,092)

     $3.16   
  

 

 

 

Market Price Per Share

     $3.21   
  

 

 

 

 

 

1  Including $9,304,506 of securities on loan.

 

See Accompanying Notes to Financial Statements.

 

14


Credit Suisse High Yield Bond Fund

Statement of Operations

For the Six Months Ended April 30, 2014 (unaudited)

 

 

Investment Income (Note 2)

  

Interest

   $         16,760,285   

Dividends

     4,649   

Securities lending (net of rebates)

     29,727   
  

 

 

 

Total investment income

     16,794,661   
  

 

 

 

Expenses

  

Investment advisory fees (Note 3)

     1,973,725   

Administrative services fees (Note 3)

     38,346   

Interest expense (Note 4)

     712,454   

Trustees’ fees

     64,280   

Legal fees

     41,486   

Printing fees (Note 3)

     41,069   

Custodian fees

     27,047   

Commitment fees (Note 4)

     26,592   

Audit and tax fees

     20,909   

Stock exchange listing fees

     16,764   

Transfer agent fees (Note 3)

     14,159   

Insurance expense

     4,677   

Miscellaneous expense

     4,478   
  

 

 

 

Total expenses

     2,985,986   

Less: fees waived (Note 3)

     (210,753
  

 

 

 

Net expenses

     2,775,233   
  

 

 

 

Net investment income

     14,019,428   
  

 

 

 

Net Realized and Unrealized Gain (Loss) from Investments and Foreign Currency Related Items

  

Net realized gain from investments

     641,236   

Net realized loss from foreign currency transactions

     (895,225

Net change in unrealized appreciation (depreciation) from investments

     4,600,669   

Net change in unrealized appreciation (depreciation) from foreign currency translations

     32,473   
  

 

 

 

Net realized and unrealized gain from investments and foreign currency related items

     4,379,153   
  

 

 

 

Net increase in net assets resulting from operations

   $ 18,398,581   
  

 

 

 

 

See Accompanying Notes to Financial Statements.

 

15


Credit Suisse High Yield Bond Fund

Statement of Changes in Net Assets

 

 

     For the Six Months
Ended
April 30, 2014
(unaudited)
     For the Year
Ended
  October 31, 2013  
 

From Operations

     

Net investment income

   $ 14,019,428       $ 28,820,810   

Net realized gain (loss) from investments and foreign currency transactions

     (253,989      1,308,315   

Net change in unrealized appreciation (depreciation) from investments and foreign currency translations

     4,633,142         8,643,591   
  

 

 

    

 

 

 

Net increase in net assets resulting from operations

     18,398,581         38,772,716   
  

 

 

    

 

 

 

From Dividends and Distributions

     

Dividends from net investment income

     (14,332,575      (29,385,686

Return of Capital

             (1,113,850
  

 

 

    

 

 

 

Total dividends and distributions

     (14,332,575      (30,499,536
  

 

 

    

 

 

 

From Capital Share Transactions (Note 6)

     

Issuance of 10,159 and 18,006 shares through the trustees compensation plan (Note 3)

     31,493         55,278   

Net proceeds from at-the-market offering cost (Note 7)

     798,624         19,054,896   

At-the-market offering costs

             (86,798

Reinvestment of dividends

     318,601         777,497   
  

 

 

    

 

 

 

Net increase in net assets from capital share transactions

     1,148,718         19,800,873   
  

 

 

    

 

 

 

Net increase in net assets

     5,214,724         28,074,053   

Net Assets

     

Beginning of period

     304,794,443         276,720,390   
  

 

 

    

 

 

 

End of period

   $         310,009,167       $         304,794,443   
  

 

 

    

 

 

 

Accumulated net investment loss

   $ (832,789    $ (519,642
  

 

 

    

 

 

 

 

See Accompanying Notes to Financial Statements.

 

16


Credit Suisse High Yield Bond Fund

Statement of Cash Flows

April 30, 2014 (unaudited)

 

 

RECONCILIATION OF NET INCREASE IN NET ASSETS FROM OPERATIONS TO NET CASH PROVIDED BY OPERATING ACTIVITIES

     

Net increase in net assets resulting from operations

      $ 18,398,581   

Adjustments to Reconcile Net Increase in Net Assets from Operations to Net Cash Provided by Operating Activities

     

Decrease in interest receivable

   $ 374,066      

Decrease in accrued expenses

     (32,526   

Decrease in interest payable

     (11,363   

Increase in prepaid expenses and other assets

     (22,776   

Decrease in advisory fees payable

     (5,950   

Net amortization of discount on investments

     (228,355   

Purchases of long-term securities

     (137,084,392   

Proceeds from sales of long-term securities

             140,218,806      

Purchases of short-term securities, net

     5,941,000      

Net change in unrealized (appreciation) depreciation from investments and foreign currency translations

     (4,633,142   

Net realized loss from investments and foreign currency transactions

     253,989      
  

 

 

    

Total adjustments

        4,769,357   
     

 

 

 

Net cash provided by operating activities*

      $         23,167,938   
     

 

 

 

Cash Flows From Financing Activities

     

Decrease in loan payable

     (8,500,000   

Proceeds from issuance of shares through trustee compensation

     31,493      

Net proceeds from at-the-market offerings

     798,624      

Cash dividends paid

     (14,013,974   
  

 

 

    

Net cash used in financing activities

        (21,683,857

Effect of exchange rate on cash

        (900,776
     

 

 

 

Net increase in cash

        583,305   

Cash — beginning of period

        (189,303
     

 

 

 

Cash — end of period

      $ 394,002   
     

 

 

 

Non-Cash Activity:

     

Issuance of shares through dividend reinvestments

      $ 318,601   
     

 

 

 

 

 

* Included in operating expenses is cash of $723,817 paid for interest on borrowings.

 

See Accompanying Notes to Financial Statements.

 

17


Credit Suisse High Yield Bond Fund

Financial Highlights

 

 

    For the Six Months
Ended
April 30, 2014

(unaudited)
    For the Year Ended October 31,  
      2013     2012     2011     2010     2009  

Per share operating performance

           

Net asset value, beginning of period

  $ 3.12      $ 3.02      $ 2.82      $ 2.94      $ 2.71      $ 2.09   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

INVESTMENT OPERATIONS

           

Net investment income1

    0.14        0.30        0.31        0.32        0.30        0.28   

Net gain (loss) on investments, swap contracts and foreign currency related items (both realized and unrealized)

    0.05        0.11        0.19        (0.12     0.32        0.68   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total from investment activities

    0.19        0.41        0.50        0.20        0.62        0.96   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

LESS DIVIDENDS AND DISTRIBUTIONS

           

Dividends from net investment income

    (0.15     (0.31     (0.32     (0.32     (0.31     (0.33

Return of capital

           (0.01                   (0.01     (0.01
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total dividends and distributions

    (0.15     (0.32     (0.32     (0.32     (0.32     (0.34
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

    0.00 2      0.01        0.02                        
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

  $ 3.16      $ 3.12      $ 3.02      $ 2.82      $ 2.94      $ 2.71   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Per share market value, end of period

  $ 3.21      $ 3.16      $ 3.16      $ 2.95      $ 2.92      $ 2.62   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL INVESTMENT RETURN3

           

Net asset value

    6.12     14.47     19.44     6.84     21.32     53.12

Market value

    6.44     10.80     19.46     12.51     24.11     59.92

RATIOS AND SUPPLEMENTAL DATA

           

Net assets, end of period (000s omitted)

  $ 310,009      $ 304,794      $ 276,720      $ 212,124      $ 220,147      $ 151,546   

Average debt per share

  $ 1.44      $ 1.24      $ 1.22      $ 1.22      $ 0.69      $ 0.58   

Ratio of expenses to average net assets

    1.83 %4      1.75     1.94     2.00     2.05     2.67

Ratio of expenses to average net assets excluding interest expense

    1.36 %4      1.32     1.40     1.46     1.52     1.80

Ratio of net investment income to average net assets

    9.23 %4      9.72     10.56     10.70     10.40     13.32

Decrease reflected in above operating expense ratios due to waivers/reimbursements

    0.14 %4      0.14     0.18     0.19     0.15     0.15

Portfolio turnover rate

    31     73     58     66     62     49

 

 

1  Per share information is calculated using the average shares outstanding method.
2  This amount represents less than $0.01 per share.
3  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.
4  Annualized.

 

See Accompanying Notes to Financial Statements.

 

18


Credit Suisse High Yield Bond Fund

Notes to Financial Statements

April 30, 2014 (unaudited)

 

 

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

The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

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. The valuations for fixed income securities (which may include, but are not limited to, corporate, government, municipal, mortgage-backed, collateralized mortgage obligations and asset-backed securities) and certain derivative instruments are typically the prices supplied by independent third party pricing services, which may use market prices or broker/dealer quotations or a variety of valuation techniques and methodologies. The independent third party pricing services use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Short-term fixed income securities that will mature in 60 days or less may be valued at amortized cost. Structured note agreements are valued in accordance with a dealer-supplied valuation based on changes in the value of the underlying index. Forward contracts are valued at the London closing spot rates and the London closing forward point rates on a daily basis. The currency forward contract pricing model derives the differential in point rates to the expiration date of the forward and calculates its present value. The forward contracts are valued at the net of the present value and the spot rate and are generally categorized as Level 2. Equity securities for which market quotations are available are valued at the last reported sales price or official closing price on the primary market or exchange on which they trade. The Fund may utilize a service provided by an independent third party which has been approved by the Board of Trustees (the “Board”) to fair value certain securities. When fair value pricing is employed, the prices of securities used by the Fund to calculate its net asset value may differ from quoted or published prices for the same securities. If independent third party pricing services are unable to supply prices for a portfolio investment, or if the prices supplied are deemed by the investment adviser to be unreliable, the market price may be determined by the investment adviser using quotations from one or more broker/dealers or at the transaction price if the security has recently been purchased and no value has yet been obtained from a pricing service or pricing broker. When reliable prices are not readily available, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund values these securities as determined in accordance with procedures approved and established by the Fund’s Board.

The Fund uses valuation techniques to measure fair value that are consistent with the market approach and/or income approach, depending on the type of security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable securities. The income approach uses valuation techniques to discount estimated future cash flows to present value.

 

19


Credit Suisse High Yield Bond Fund

Notes to Financial Statements (continued)

April 30, 2014 (unaudited)

 

 

GAAP established a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These inputs are 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 methodologies used to value 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 April 30, 2014 in valuing the Fund’s assets and liabilities carried at fair value:

 

     Level 1      Level 2      Level 3      Total  

Investments in Securities

           

Corporate Bonds

   $       $ 367,922,200       $ 5,989       $ 367,928,189   

Bank Loans

             64,581,635                 64,581,635   

Common Stocks

     400,847         42,702         381,672         825,221   

Preferred Stocks

                               

Short-term Investments

             15,843,790                 15,843,790   

Other Financial Instruments *

           

Forward Foreign Currency Contracts

             (135,633              (135,633
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 400,847       $ 448,254,694       $ 387,661       $ 449,043,202   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  * Other financial instruments include unrealized appreciation (depreciation) on forward foreign currency contracts.

The following is a reconciliation of investments as of April 30, 2014 in which significant unobservable inputs were used in determining value. Transfers in or out of Level 3 represent the end of the period value of any security or instrument where a change in the level has occurred from the beginning to the end of the period.

 

     Corporate
Bonds
     Asset
Backed
Securities
     Common
Stocks
     Total  

Balance as of October 31, 2013

   $ 7,818       $ 1,793,400       $ 339,948       $ 2,141,166   

Accrued discounts (premiums)

     6         8,200                 8,206   

Purchases

     (1,873                      (1,873

Sales

             (1,835,000              (1,835,000

Realized gain (loss)

     (1,340,818      33,400                 (1,307,418

Change in unrealized appreciation (depreciation)

     1,340,856                 41,724         1,382,580   

Transfers into Level 3

                               

Transfers out of Level 3

                               
  

 

 

    

 

 

    

 

 

    

 

 

 

Balance as of April 30, 2014

   $ 5,989       $       $ 381,672       $ 387,661   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net change in unrealized appreciation (depreciation) from investments still held as of April 30, 2014

   $ 166       $ 0       $ 41,724       $ 41,890   

The Fund follows Financial Accounting Standards Board (“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 six months ended April 30, 2014, there were no transfers in and out of Level 1, Level 2 and Level 3.

 

20


Credit Suisse High Yield Bond Fund

Notes to Financial Statements (continued)

April 30, 2014 (unaudited)

 

 

B) DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES — The Fund adopted amendments to authoritative guidance on disclosures about derivative instruments and hedging activities which require that a fund disclose (a) how and why an entity uses derivative instruments, (b) how derivative instruments and hedging activities are accounted for, and (c) how derivative instruments and related hedging activities affect a fund’s financial position, financial performance, and cash flows. For the six months ended April 30, 2014, the Fund’s derivatives did not qualify for hedge accounting as they are held at fair value.

Fair Values of Derivative Instruments as of April 30, 2014

 

         Asset Derivatives             Liability Derivatives  
         Balance Sheet Location    Fair Value             Balance Sheet Location    Fair Value  

Currency Contracts

    

Unrealized appreciation on forward currency contracts

   $ 11,880           

Unrealized depreciation on forward currency contracts

   $ 147,513   
       

 

 

            

 

 

 

Effect of Derivative Instruments on the Statement of Operations

 

         Location   

Realized

Gain (Loss)

          Location   

Net Unrealized

Appreciation

(Depreciation)

 

Currency Contracts

    

Net realized loss from foreign currency transactions

   $ (846,359      

Net change in unrealized appreciation (depreciation) from foreign currency translations

   $ 38,024   
       

 

 

          

 

 

 

The notional amount of forward foreign currency contracts at the period ended April 30, 2014 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 9.5% of net assets of the Fund.

The Fund is a party to International Swap and Derivatives Association, Inc. (“ISDA”) Master Agreements (“Master Agreements”) with certain counterparties that govern over-the-counter derivative (including Total Return, Credit Default and Interest Rate Swaps) and foreign exchange contracts entered into by the Fund. The Master Agreements may contain provisions regarding, among other things, the parties’ general obligations, representations, agreements, collateral requirements, events of default and early termination. Termination events applicable to the Fund may occur upon a decline in the Fund’s net assets below a specified threshold over a certain period of time.

The following table presents by counterparty the Fund’s derivative assets net of related collateral held by the Fund at April 30, 2014:

 

Counterparty

   Gross Amounts of
Assets Presented in the
Statement of Assets
and Liabilities
(a)
     Financial
Instruments
and Derivatives
Available for Offset
     Non-Cash
Collateral
Received
     Cash
Collateral
Received
     Net Amount
of Derivative
Assets
 

Morgan Stanley

   $ 11,880       $ (11,880    $       $       $   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

21


Credit Suisse High Yield Bond Fund

Notes to Financial Statements (continued)

April 30, 2014 (unaudited)

 

 

The following table presents by counterparty the Fund’s derivative liabilities net of related collateral pledged by the Fund at April 30, 2014:

 

Counterparty

   Gross Amounts of
Liabilities Presented in the
Statement of Assets
and Liabilities
(a)
     Financial
Instruments
and Derivatives
Available for Offset
     Non-Cash
Collateral
Pledged
     Cash
Collateral
Pledged
     Net Amount
of Derivative
Liabilities
 

Morgan Stanley

   $ 147,513       $ (11,880    $       $       $ 135,633   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)  Forward foreign currency exchange contracts are included.

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/EXPENSE — Security transactions are accounted for on a trade date basis. Interest income/expense is recorded on the accrual basis. The Fund amortizes premiums and accretes discounts using the effective interest method. Dividend income/expense is 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.

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

 

22


Credit Suisse High Yield Bond Fund

Notes to Financial Statements (continued)

April 30, 2014 (unaudited)

 

 

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) SHORT-TERM INVESTMENTS — The Fund, together with other funds/portfolios advised by 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.

H) 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.

I) 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 financial statement purposes as unrealized until the contract settlement date or an offsetting position is entered into. At April 30, 2014, 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
    

Counterparty

   Value on
Settlement
Date
     Current
Value
     Net Unrealized
Appreciation
(Depreciation)
 

EUR

     1,700,000       USD      2,344,873         07/15/14       Morgan Stanley    $ 2,344,873       $ 2,356,753       $ 11,880   

USD

     20,730,735       EUR      15,000,000         07/15/14       Morgan Stanley      (20,730,735      (20,794,879      (64,144

USD

     8,649,893       GBP      5,175,000         07/15/14       Morgan Stanley      (8,649,893      (8,733,262      (83,369
                       

 

 

 
                        $ (135,633
                       

 

 

 

Currency Abbreviations:

EUR = Euro

GBP = British Pound

USD = United States Dollar

 

23


Credit Suisse High Yield Bond Fund

Notes to Financial Statements (continued)

April 30, 2014 (unaudited)

 

 

J) 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. As of April 30, 2014, the Fund had investment securities on loan with a fair value of $9,304,506 and a related liability of $9,511,790 for collateral received on securities loaned, both of which are presented gross on the Statement of Assets and Liabilities. The carrying value of the collateral for securities loaned approximates fair value which would have been considered level 2 under the fair value hierarchy if the collateral for securities loaned were carried at fair value. For the six months ended April 30, 2014, the value of the related collateral exceeded the value of the securities loaned.

The Fund’s securities lending arrangement provides that the Fund and SSB will share the net income earned from securities lending activities. During the six months ended April 30, 2014, total earnings from the Fund’s investment in cash collateral received in connection with securities lending arrangements was $35,009, of which $0 was rebated to borrowers (brokers). The Fund retained $29,727 in income from the cash collateral investment, and SSB, as lending agent, was paid $5,282. Securities lending income is accrued as earned.

K) 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.

L) SUBSEQUENT EVENTS — In preparing the financial statements as of April 30, 2014, 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 to $200 million and 0.25% of the fees payable under the Advisory Agreement on the next $50 million. For the six months ended April 30, 2014, investment advisory fees earned and voluntarily waived were $1,973,725 and $210,753, respectively. Fee waivers and expense reimbursements are voluntary and may be discontinued by Credit Suisse at any time.

 

24


Credit Suisse High Yield Bond Fund

Notes to Financial Statements (continued)

April 30, 2014 (unaudited)

 

 

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 six months ended April 30, 2014, administrative services fees earned by SSB (including out-of-pocket expenses) with respect to the Fund were $38,346.

The Independent Trustees receive fifty percent (50%) of their annual retainer in the form of shares. During the year ended October 31, 2013 and the six months ended April 30, 2014, 18,006 shares and 10,159 shares were issued through the Trustees’ compensation plan, respectively. 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 six months ended April 30, 2014, Merrill was paid $13,829 for its services by the Fund. This amount was included in the printing fees presented on the Statement of Operations.

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 6, 2013, 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. Under the terms of the SSB Agreement, the Fund pays a commitment on the unused amount. In addition, the Fund pays interest on borrowings at LIBOR plus a spread. At April 30, 2014, the Fund had loans outstanding under the Agreement of $148,000,000. During the six months ended April 30, 2014, the Fund had borrowings under the Agreement as follows:

 

Average Daily

Loan Balance

  Weighted Average
Interest Rate %
    Maximum Daily
Loan Outstanding
    Interest Rate  
$140,936,464     1.139   $ 148,000,000      $ 712,454   

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.

Certain types of borrowings by the Fund may result in the Fund being subject to covenants in credit agreements, including those relating to asset coverage and portfolio composition requirements. The Fund’s

 

25


Credit Suisse High Yield Bond Fund

Notes to Financial Statements (continued)

April 30, 2014 (unaudited)

 

 

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 the Fund has 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 six months ended April 30, 2014, purchases and sales of investment securities (excluding short-term investments) were $136,204,057 and $143,510,394, 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 Six Months Ended
April 30, 2014 (unaudited)
     For the Year Ended
October 31, 2013
 

Shares issued through the Trustees compensation plan

    10,159         18,006   

Shares issued through at-the-market offerings

    251,761         5,895,016   

Shares issued through reinvestment of dividends

    101,753         251,470   
 

 

 

    

 

 

 

Net increase

    363,673         6,164,492   
 

 

 

    

 

 

 

Note 7. Shelf Offering

The Fund has an effective “shelf” registration statement. The shelf registration statement enables the Fund to issue up to 93,778,401 in shares of common stocks through one or more public offerings. Shares may be offered at prices and terms to be set forth in one or more supplements to the Fund’s prospectus included in the shelf registration statement. On April 14, 2014, the Fund filed a prospectus supplement relating to an at-the-market offering of the Fund’s shares of common stock. Any proceeds raised through such offering will be used for investment purposes. Transactions in shares of common stock in at-the-market offerings, resulting in proceeds (net of commissions) of the Fund were as follows:

 

     For the Six Months Ended
April 30, 2014 (unaudited)
     For the Year Ended
October 31, 2013
 

Shares issued through at-the-market offerings

     251,761         5,895,016   

Proceeds (net of commissions)

   $ 798,624       $ 19,054,896   

Note 8. 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.

 

26


Credit Suisse High Yield Bond Fund

Notes to Financial Statements (continued)

April 30, 2014 (unaudited)

 

 

Note 9. Other Matters

On May 19, 2014, the U.S. Department of Justice (the “Department of Justice”) filed a one-count criminal information (the “Information”) in the District Court for the Eastern District of Virginia charging Credit Suisse AG (“CSAG”) with conspiracy to commit tax fraud related to accounts CSAG established for cross-border clients. The Department of Justice and CSAG entered into a plea agreement (the “Plea Agreement”) settling the action pursuant to which CSAG pleaded guilty to the charge set out in the Information.

The Plea Agreement requires CSAG to pay over $1.8 billion to the U.S. government, including the U.S. Internal Revenue Service. The Plea Agreement also requires CSAG to lawfully undertake certain remedial actions to address the conduct described in the Plea Agreement.

CSAG has entered into other settlements relating to the conduct set out in the Plea Agreement. CSAG has entered into a Consent Order with the Federal Reserve Board (the “Federal Reserve”) to resolve certain findings by the Federal Reserve, including that the activities of CSAG regarding opening of foreign accounts for U.S. taxpayers, provision of investment services to U.S. clients, and operation of CSAG’s New York representative office prior to 2009 lacked adequate enterprise-wide risk management and compliance policies and procedures sufficient to ensure that all of its activities comply with U.S. laws and regulations. In addition, CSAG has entered into a Consent Order with the New York State Department of Financial Services (the “DFS”) to resolve the DFS’s investigation into the conduct described in the Plea Agreement. The settlement with the Federal Reserve requires CSAG to pay $100 million to the Federal Reserve, and the settlement with the DFS requires CSAG to pay $715 million to the DFS.

These settlements follow a settlement by Credit Suisse Group AG (“CS Group”), the parent company of CSAG, with the Securities and Exchange Commission (the “Commission”) on February 21, 2014 to resolve an investigation by the Commission into solicitation and provision of broker-dealer and investment advisory services to certain U.S. cross-border clients by CS Group while not registered with the Commission as a broker-dealer or investment adviser. As part of the settlement, CS Group retained an independent consultant to evaluate its policies and procedures and examine its broker-dealer and investment adviser activities to fully verify that the business that was the subject of the Commission investigation has been completely exited. CS Group also agreed to pay $196,511,014, which includes $82,170,990 in disgorgement, $64,340,024 in interest and a $50,000,000 penalty.

CSAG is the indirect parent company of Credit Suisse and CSSU. Neither Credit Suisse, CSSU nor the Fund was named in the Plea Agreement (as defined below) or other settlements relating to the conduct set out in the Plea Agreement. The conduct set out in the Plea Agreement did not involve the Fund, Credit Suisse or CSSU with respect to its investment adviser and distribution activities relating to the Fund.

Credit Suisse, CSSU and certain of their affiliates have received a permanent exemptive order from the Commission to permit them to continue serving as investment advisers and principal underwriters for U.S.-registered investment companies, such as the Fund. Due to a provision in the law governing the operation of U.S.-registered investment companies, they would otherwise have become ineligible to perform these activities as a result of the plea in the Plea Agreement. The permanent exemptive order permits Credit Suisse and CSSU to continue to provide services to the Fund, so long as, among other things, no current or former employee of CSAG or any affiliate of CSAG who previously has been or who subsequently may be identified by CSAG or any U.S. or non-U.S. regulatory or enforcement agencies as having been responsible for the conduct described in the Plea

 

27


Credit Suisse High Yield Bond Fund

Notes to Financial Statements (continued)

April 30, 2014 (unaudited)

 

 

Agreement will be employed by Credit Suisse and certain of its affiliates. Credit Suisse and CSSU have informed the Fund that, Credit Suisse and CSSU believe the Settlements will not have any material impact on the Fund or on the ability of Credit Suisse or CSSU to perform services for the Fund.

 

28


Credit Suisse High Yield Bond Fund

Results of Annual Meeting of Shareholders (unaudited)

 

 

On February 18, 2014, the Annual Meeting of Shareholders of the Fund was held. Robert Wilson, in his capacity as Inspector, reported that, with respect to the proposal relating to the election of two Trustees, the following number of Shares were voted:

 

NOMINEE

  “FOR” NOMINEE     WITHHELD  
Enrique R. Arzac     80,949,294        3,363,889   
Terry Fires Bovarnick     81,488,223        2,821,960   

In addition to the Trustees elected at the meeting, Steven N. Rappaport, James J. Cattano, Lawrence J. Fox and John G. Popp continue to serve as Trustees of the Fund.

 

29


Credit Suisse High Yield Bond Fund

Board Approval of Advisory Agreement (unaudited)

 

 

In approving the renewal of the current Advisory Agreement for the Fund, the Board, including all of the Trustees who are not “interested persons” of the Fund as defined in the Investment Company Act of 1940 (the “Independent Trustees”), at a meeting held on November 11 and 12, 2013 considered the following factors:

Investment Advisory Fee Rates and Expenses

The Board reviewed and considered the contractual investment advisory fee rate of 1.00% of the average weekly value of the Fund’s total assets minus the sum of accrued liabilities (other than aggregate indebtedness constituting leverage) (the “Managed Assets”) less than or equal to $250 million and 0.75% of the Managed Assets greater than $250 million (the “Gross Advisory Fee”) in light of the extent and quality of the advisory services provided by Credit Suisse Asset Management, LLC (“Credit Suisse”). The Board also reviewed and considered the voluntary fee waivers currently in place for the Fund and considered the actual fee rate of 0.85% paid by the Fund after taking waivers and breakpoints into account (the “Net Advisory Fee”) as of September 30, 2013. The Board noted that Credit Suisse, at the Board’s request, had revised the voluntary waiver as of January 1, 2011 so that it was voluntarily waiving 0.15% of the fees payable under the Advisory Agreement up to $200 million and 0.25% of the fees payable under the Advisory Agreement on the next $50 million. The Board acknowledged that voluntary fee waivers could be discontinued at any time.

Additionally, the Board received and considered information comparing the Gross Advisory Fee, the combined Gross Advisory Fee and gross administration fee (together, the “Gross Management Fee”), the Gross Management Fee less waivers and/or reimbursements (the “Net Management Fee”), and the Fund’s net total expenses with those of funds in the relevant expense group (“Expense Group”) provided by an independent provider of investment company data. The Board also received and considered information comparing the Fund’s net total expenses and Net Management Fee to the funds in the relevant Morningstar category (“Morningstar Category”). The Board was provided with a description of the methodology used to arrive at the funds included in the Expense Group and the Morningstar Category.

Nature, Extent and Quality of the Services under the Advisory Agreement

The Board received and considered information regarding the nature, extent and quality of services provided to the Fund by Credit Suisse under the Advisory Agreement. The Board also noted information received at regular meetings throughout the year related to the services rendered by Credit Suisse. The Board reviewed background information about Credit Suisse, including its Form ADV Part 2 – Disclosure Brochure and Brochure Supplement. The Board considered the background and experience of Credit Suisse’s senior management and the expertise of, and the amount of attention given to the Fund by, senior personnel of Credit Suisse. In addition, the Board reviewed the qualifications, backgrounds and responsibilities of the portfolio management team primarily responsible for the day-to-day portfolio management of the Fund and the extent of the resources devoted to research and analysis of actual and potential investments. The Board evaluated the ability of Credit Suisse, based on its resources, reputation and other attributes, to attract and retain qualified investment professionals, including research, advisory, and supervisory personnel. The Board also received and considered information about the nature, extent and quality of services and fee rates offered to other Credit Suisse clients for comparable services.

Fund Performance

The Board received and considered performance results of the Fund over time, along with comparisons both to the Expense Group and the Morningstar Category for the Fund.

 

30


Credit Suisse High Yield Bond Fund

Board Approval of Advisory Agreement (unaudited) (continued)

 

 

Credit Suisse Profitability

The Board received and considered a profitability analysis of Credit Suisse based on the fees payable under the Advisory Agreement for the Fund, including any fee waivers, as well as other relationships between the Fund on the one hand and Credit Suisse affiliates on the other. The Board also considered Credit Suisse’s methodology for allocating costs to the Fund, recognizing that cost allocation methodologies are inherently subjective.

Economies of Scale

The Board considered information regarding whether there have been economies of scale with respect to the management of the Fund, whether the Fund has appropriately benefited from any economies of scale, and whether there is potential for realization of any further economies of scale. Accordingly, the Board considered whether the breakpoints in the Fund’s advisory fee structure were appropriate and reasonable taking into consideration economies of scale or other efficiencies that might accrue from increases in the Fund’s asset levels.

Other Benefits to Credit Suisse

The Board considered other benefits received by Credit Suisse and its affiliates as a result of their relationship with the Fund. Such benefits include, among others, benefits potentially derived from an increase in Credit Suisse’s businesses as a result of its relationship with the Fund (such as the ability to market to shareholders other financial products offered by Credit Suisse and its affiliates).

The Board considered the standards applied in seeking best execution and reviewed Credit Suisse’s method for allocating portfolio investment opportunities among its advisory clients.

Other Factors and Broader Review

As discussed above, the Board reviews detailed materials received from Credit Suisse as part of the annual re-approval process. The Board also reviews and assesses the quality of the services that the Fund receives throughout the year. In this regard, the Board reviews reports of Credit Suisse at least quarterly, which include, among other things, detailed portfolio and market reviews, detailed fund performance reports and Credit Suisse’s compliance procedures.

Conclusions

In selecting Credit Suisse, and approving the renewal of the Advisory Agreement and the investment advisory fee under such agreement, the Board concluded that:

 

    Although the Gross Advisory Fee, the Gross Management Fee and the Net Management Fee and the net total expenses were all above the median of the Expense Group, the fees were reasonable. The Trustees noted that the Net Advisory Fee for the year ended September 30, 2013 was lower than for the year ended September 30, 2012.

 

    The Fund’s performance was below the median of the Expense Group for the ten-year period ended September 30, 2013, but was above the median for the year-to-date, one-, three- and five-year periods. The Fund also outperformed its Morningstar Category average for the year-to-date, one-, three- and five-year periods ended September 30, 2013, but was in the third quartile for the ten-year period ended September 30, 2013.

 

31


Credit Suisse High Yield Bond Fund

Board Approval of Advisory Agreement (unaudited) (continued)

 

 

 

    The Board was satisfied with the nature, extent and quality of the investment advisory services provided to the Fund by Credit Suisse and that, based on dialogue with management and counsel, the services provided by Credit Suisse under the Advisory Agreement are typical of, and consistent with, those provided to similar mutual funds by other investment advisers.

 

    In light of the costs of providing investment management and other services to the Fund and Credit Suisse’s ongoing commitment to the Fund and willingness to waive fees, Credit Suisse’s profitability based on fees payable under the Advisory Agreement, as well as other ancillary benefits that Credit Suisse and its affiliates received, were considered reasonable.

 

    In light of the information received and considered by the Board, the Fund’s current fee structure was considered reasonable.

No single factor reviewed by the Board was identified by the Board as the principal factor in determining whether to approve the renewal of the Advisory Agreement. The Independent Trustees were advised by separate independent legal counsel throughout the process.

 

32


Credit Suisse High Yield Bond Fund

Notice of Privacy and Information Practices (unaudited)

 

 

At Credit Suisse, we know that you are concerned with how we protect and handle nonpublic personal information that identifies you. This notice is designed to help you understand what nonpublic personal information we collect from you and from other sources, and how we use that information in connection with your investments and investment choices that may be available to you. Except where otherwise noted, this notice is applicable only to consumers who are current or former investors, meaning individual persons whose investments are primarily for household, family or personal use (“individual investors”). Specified sections of this notice, however, also apply to other types of investors (called “institutional investors”). Where the notice applies to institutional investors, the notice expressly states so. This notice is being provided by Credit Suisse Funds and Credit Suisse Closed-End Funds. This notice applies solely to U.S. registered investment companies advised by Credit Suisse Asset Management, LLC.

Categories of information we may collect:

We may collect information about you, including nonpublic personal information, such as

 

    Information we receive from you on applications, forms, agreements, questionnaires, Credit Suisse websites and other websites that are part of our investment program, or in the course of establishing or maintaining a customer relationship, such as your name, address, e-mail address, Social Security number, assets, income, financial situation; and

 

    Information we obtain from your transactions and experiences with us, our affiliates, or others, such as your account balances or other investment information, assets purchased and sold, and other parties to a transaction, where applicable.

Categories of information we disclose and parties to whom we disclose it:

 

    We do not disclose nonpublic personal information about our individual investors, except as permitted or required by law or regulation. Whether you are an individual investor or institutional investor, we may share the information described above with our affiliates that perform services on our behalf, and with our asset management and private banking affiliates; as well as with unaffiliated third parties that perform services on our behalf, such as our accountants, auditors, attorneys, broker-dealers, fund administrators, and other service providers.

 

    We want our investors to be informed about additional products or services. We do not disclose nonpublic personal information relating to individual investors to our affiliates for marketing purposes, nor do we use such information received from our affiliates to solicit individual investors for such purposes. Whether you are an individual investor or an institutional investor, we may disclose information, including nonpublic personal information, regarding our transactions and experiences with you to our affiliates.

 

    In addition, whether you are an individual investor or an institutional investor, we reserve the right to disclose information, including nonpublic personal information, about you to any person or entity, including without limitation any governmental agency, regulatory authority or self-regulatory organization having jurisdiction over us or our affiliates, if (i) we determine in our discretion that such disclosure is necessary or advisable pursuant to or in connection with any United States federal, state or local, or non-U.S., court order (or other legal process), law, rule, regulation, or executive order or policy, including without limitation any anti-money laundering law or the USA PATRIOT Act of 2001; and (ii) such disclosure is not otherwise prohibited by law, rule, regulation, or executive order or policy.

 

33


Credit Suisse High Yield Bond Fund

Notice of Privacy and Information Practices (unaudited) (continued)

 

 

Confidentiality and security

 

    To protect nonpublic personal information about individual investors, we restrict access to those employees and agents who need to know that information to provide products or services to us and to our investors. We maintain physical, electronic, and procedural safeguards to protect nonpublic personal information.

Other Disclosures

This notice is not intended to be incorporated in any offering materials, but is a statement of our current Notice of Privacy and Information Practices and may be amended from time to time. This notice is current as of March 31, 2014.

 

34


Credit Suisse High Yield Bond Fund

Proxy Voting and Portfolio Holdings Information (unaudited)

 

 

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 month period ended June 30 of each year, as well as the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities are available:

 

    By calling 1-800-293-1232

 

    On the Fund’s website, www.credit-suisse.com/us/funds

 

    On the website of the Securities and Exchange Commission, www.sec.gov.

The Fund files a complete schedule of its portfolio holdings for the first and third quarters of its fiscal year with the SEC on Form N-Q. The Fund’s Forms N-Q are available on the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the SEC’s Public Reference Room may be obtained by calling 1-202-551-8090.

Funds Managed by Credit Suisse Asset Management, LLC

 

CLOSED-END FUNDS

Fixed Income

Credit Suisse Asset Management Income Fund, Inc. (NYSE Amex: CIK)

Credit Suisse High Yield Bond Fund (NYSE Amex: DHY)

Literature Request — Call today for free descriptive information on the closed-ended funds listed above at 1-800-293-1232 or visit our website at www.credit-suisse.com/us/funds.

 

 

OPEN-END FUNDS

 

Credit Suisse Commodity Return Strategy Fund    Credit Suisse Strategic Income Fund
Credit Suisse Floating Rate High Income Fund    Credit Suisse Commodity ACCESS Strategy Fund
Credit Suisse Multialternative Strategy Fund    Credit Suisse Managed Futures Strategy Fund
Credit Suisse Emerging Market Equity Fund    Credit Suisse Volaris US Strategies Fund

Fund shares are not deposits or other obligation of Credit Suisse Asset Management, LLC or any affiliate, are not FDIC-insured and are not guaranteed by Credit Suisse Asset Management, LLC or any affiliate. Fund investments are subject to investment risks, including loss of your investment. There are special risk considerations associated with international, global, emerging-markets, small-company, private equity, high-yield debt, single-industry, single-country and other special, aggressive or concentrated investment strategies. Past performance cannot guarantee future results.

More complete information about a fund, including charges and expenses, is provided in the Prospectus, which should be read carefully before investing. You may obtain copies by calling Credit Suisse Funds at 1-877-870-2874. Performance information current to the most recent month-end is available at www.credit-suisse.com/us/funds.

Credit Suisse Securities (USA) LLC, Distributor.

 

35


Credit Suisse High Yield Bond Fund

Dividend Reinvestment and Cash Purchase Plan (unaudited)

 

 

Credit Suisse High Yield Bond Fund (the “Fund”) offers a Dividend Reinvestment and Cash Purchase Plan (the “Plan”) to its common stockholders. The Plan offers common stockholders a prompt and simple way to reinvest net investment income dividends and capital gains and other periodic distributions in shares of the Fund’s common stock. Computershare Trust Company, N.A. (“Computershare”) acts as Plan Agent for stockholders in administering the Plan.

If your shares of common stock of the Fund are registered in your own name, you will automatically participate in the Plan, unless you have indicated that you do not wish to participate and instead wish to receive dividends and capital gains distributions in cash. If you are a beneficial owner of the Fund having your shares registered in the name of a bank, broker or other nominee, you must first make arrangements with the organization in whose name your shares are registered to have the shares transferred into your own name. Registered shareholders can join the Plan via the Internet by going to www.computershare.com, authenticating your online account, agreeing to the Terms and Conditions of online “Account Access” and completing an online Plan Enrollment Form. Alternatively, you can complete the Plan Enrollment Form and return it to Computershare at the address below.

By participating in the Plan, your dividends and distributions will be promptly paid to you in additional shares of common stock of the Fund. The number of shares to be issued to you will be determined by dividing the total amount of the distribution payable to you by the greater of (i) the net asset value per share (“NAV”) of the Fund’s common stock on the payment date, or (ii) 95% of the market price per share of the Fund’s common stock on the payment date. If the NAV of the Fund’s common stock is greater than the market price (plus estimated brokerage commissions) on the payment date, then Computershare (or a broker-dealer selected by Computershare) shall endeavor to apply the amount of such distribution on your shares to purchase shares of Fund common stock in the open market.

You should be aware that all net investment income dividends and capital gain distributions are taxable to you as ordinary income and capital gain, respectively, whether received in cash or reinvested in additional shares of the Fund’s common stock.

The Plan also permits participants to purchase shares of the Fund through Computershare. You may invest $100 or more monthly, with a maximum of $100,000 in any annual period. Computershare will purchase shares for you on the open market on the 25th of each month or the next trading day if the 25th is not a trading day.

There is no service fee payable by Plan participants for dividend reinvestment. For voluntary cash payments, Plan participants must pay a service fee of $5.00 per transaction. Plan participants will also be charged a pro rata share of the brokerage commissions for all open market purchases ($0.03 per share as of October 2006). Participants will also be charged a service fee of $5.00 for each sale and brokerage commissions of $0.03 per share (as of October 2006).

You may terminate your participation in the Plan at any time by notifying Computershare or requesting a sale of your shares held in the Plan. Your withdrawal will be effective immediately if your notice is received by Computershare prior to any dividend or distribution record date; otherwise, such termination will be effective only with respect to any subsequent dividend or distribution. Your dividend participation option will remain the same unless you withdraw all of your whole and fractional Plan shares, in which case your participation in the Plan will be terminated and you will receive subsequent dividends and capital gains distributions in cash instead of shares.

 

36


Credit Suisse High Yield Bond Fund

Dividend Reinvestment and Cash Purchase Plan (unaudited) (continued)

 

 

If you want further information about the Plan, including a brochure describing the Plan in greater detail, please contact Computershare as follows:

 

  By Internet: www.computershare.com

 

  By phone: (800) 730-6001 (U.S. and Canada)
    (781) 575-3100 (Outside U.S. and Canada)

Customer service associates are available from 9:00 a.m. to 5:00 p.m. Eastern time, Monday through Friday

 

  By mail: Credit Suisse High Yield Bond Fund
    c/o Computershare
    P.O. Box 30170
    College Station, TX 77842-3170

Overnight correspondence should be sent to:

 

    Computershare
    211 Quality Circle, Suite 210
    College Station, TX 77845

All notices, correspondence, questions or other communications sent by mail should be sent by registered or certified mail, return receipt requested.

The Plan may be terminated by the Fund or Computershare upon notice in writing mailed to each participant at least 30 days prior to any record date for the payment of any dividend or distribution.

 

37


 

 

 

This report, including the financial statements herein, is sent to the shareholders of the Fund for their information. It is not a prospectus, circular or representation intended for use in the purchase or sale of shares of the Fund or of any securities mentioned in this report.

 

 

DHY-SAR-0414


Item 2. Code of Ethics.

This item is inapplicable to a semi-annual report on Form N-CSR.

Item 3. Audit Committee Financial Expert.

This item is inapplicable to a semi-annual report on Form N-CSR.

Item 4. Principal Accountant Fees and Services.

This item is inapplicable to a semi-annual report on Form N-CSR.

Item 5. Audit Committee of Listed Registrants.

This item is inapplicable to a semi-annual report on Form N-CSR.

Item 6. Schedule of Investments.

Included as part of the report to shareholders filed under Item 1 of this Form.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

This item is inapplicable to a semi-annual report on Form N-CSR.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

This item is inapplicable to a semi-annual report on Form N-CSR.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

None.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors since the registrant last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(g) of Schedule 14A in its definitive proxy statement dated December 30, 2013.

Item 11. Controls and Procedures.

(a)        As of a date within 90 days from the filing date of this report, the principal executive officer and principal financial officer concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) were effective based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934.

(b)        There were no changes in registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the registrant’s second fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.


Item 12. Exhibits.

 

(a)(1) Not applicable.

 

(a)(2) The certifications of the registrant as required by Rule 30a-2(a) under the Act are exhibits to this report.

 

(a)(3) Not applicable.

 

(b) The certifications of the registrant as required by Rule 30a-2(b) under the Act are an exhibit to this report.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

CREDIT SUISSE HIGH YIELD BOND FUND

/s/  John G. Popp    

Name:   John G. Popp

Title:     Chief Executive Officer and President

Date:     July 1, 2014

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

/s/  John G. Popp    

Name:   John G. Popp

Title:     Chief Executive Officer and President

Date:     July 1, 2014

/s/  Bruce S. Rosenberg    

Name:   Bruce S. Rosenberg

Title:     Chief Financial Officer

Date:     July 1, 2014


EX-99.CERT

 

EXHIBIT 12(a)(2)

 

CERTIFICATIONS

 

I, Bruce S. Rosenberg, certify that:

1.        I have reviewed this report on Form N-CSR of Credit Suisse High Yield Bond Fund;

2.        Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.        Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4.        The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a)        Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)        Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)        Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and


(d)        Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.        The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)        All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

(b)        Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 1, 2014

 

 

/s/  Bruce S. Rosenberg

Bruce S. Rosenberg

Chief Financial Officer


I, John G. Popp, certify that:

1.        I have reviewed this report on Form N-CSR of Credit Suisse High Yield Bond Fund;

2.        Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.        Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4.        The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a)        Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)        Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)        Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d)        Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.        The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):


(a)        All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

(b)        Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 1, 2014

 

/s/  John G. Popp

John G. Popp

Chief Executive Officer and President


EX-99.906CERT

 

EXHIBIT 12(b)

SECTION 906 CERTIFICATIONS

SECTION 906 CERTIFICATION

         John G. Popp, Chief Executive Officer and President, and Bruce S. Rosenberg, Chief Financial Officer, of Credit Suisse High Yield Bond Fund (the “Fund”), each certify to his knowledge that:

(1)        The Fund’s periodic report on Form N-CSR for the period ended April 30, 2014 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)        The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund.

 

 

/s/  John G. Popp

 

/s/  Bruce S. Rosenberg

 
 

John G. Popp

  Bruce S. Rosenberg  
 

Chief Executive Officer and President

  Chief Financial Officer  
 

July 1, 2014

  July 1, 2014  

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Fund and will be retained by the Fund and furnished to the Securities and Exchange Commission or its staff upon request.

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