N-Q 1 form.txt United States Securities and Exchange Commission Washington, D.C. 20549 Form N-Q Quarterly Schedule of Portfolio Holdings of Registered Management Investment Companies 811-2677 (Investment Company Act File Number) Federated Municipal Securities Fund, Inc. --------------------------------------------------------------- (Exact Name of Registrant as Specified in Charter) Federated Investors Funds 5800 Corporate Drive Pittsburgh, Pennsylvania 15237-7000 (412) 288-1900 (Registrant's Telephone Number) John W. McGonigle, Esquire Federated Investors Tower 1001 Liberty Avenue Pittsburgh, Pennsylvania 15222-3779 (Name and Address of Agent for Service) (Notices should be sent to the Agent for Service) Date of Fiscal Year End: 3/31/06 Date of Reporting Period: Quarter ended 12/31/05 Item 1. Schedule of Investments FEDERATED MUNICIPAL SECURITIES FUND, INC. PORTFOLIO OF INVESTMENTS December 31, 2005 (unaudited)
Principal Amount Value MUNICIPAL BONDS--98.1% Alabama--1.4% $ 1,000,000 Alabama Agricultural & Mechanical University, Refunding Revenue Bonds, 5.00% (MBIA Insurance Corp. INS)/(Original Issue Yield: 5.15%), 11/1/2016 $ 1,051,880 1,400,000 Camden, AL IDB, Exempt Facilities Refunding Revenue Bonds (Series 2003A), 6.13% (Weyerhaeuser Co.), 12/1/2024 1,554,224 3,000,000 Mobile County, AL IDA, IDRBs (Series 2000), 6.88% TOBs (Ipsco, Inc.), Mandatory Tender 5/1/2010 3,215,010 1,000,000 Tuscaloosa, AL, UT GO Warrants, 5.75% (Original Issue Yield: 5.90%), 1/1/2020 1,086,200 TOTAL 6,907,314 Arizona--0.8% 1,810,000 Show Low, AZ IDA, Hospital Revenue Bonds, 5.00% (Navapache Regional Medical Center)/(Radian Asset Assurance INS), 12/1/2030 1,865,621 2,000,000 Show Low, AZ IDA, Hospital Revenue Bonds, 5.00% (Navapache Regional Medical Center)/(Radian Asset Assurance INS), 12/1/2035 2,055,040 TOTAL 3,920,661 Arkansas--0.2% 1,000,000 Jefferson County, AR, Hospital Revenue Improvement and Refunding Bonds (Series 2001), 5.80% (Jefferson Regional Medical Center)/(Original Issue Yield: 5.90%), 6/1/2021 1,067,960 California--8.5% 1,825,000 California Educational Facilities Authority, Revenue Bonds (Series 2005), 5.00% (California College of the Arts), 6/1/2030 1,836,515 1,000,000 California PCFA, Solid Waste Disposal Revenue Bonds (Series 2005A-2), 5.40% (Waste Management, Inc.), 4/1/2025 1,042,950 3,000,000 California PCFA, Solid Waste Disposal Revenue Bonds (Series 2005C), 5.13% (Waste Management, Inc.), 11/1/2023 3,074,250 3,940,000 California State Department of Veteran Affairs, Home Purpose Revenue Bonds (Series 1997C), 5.50%, 12/1/2019 4,153,272 5,000,000 (1) California State, Economic Recovery Revenue Bonds Trust Program (Series 929) RITES, 6.74% (California State Fiscal Recovery Fund), 7/1/2013 6,017,750 3,250,000 California State, UT GO Bonds, 5.75% (Original Issue Yield: 5.75%), 5/1/2030 3,527,225 3,000,000 California State, Various Purpose UT GO Bonds, 5.13% (Original Issue Yield: 5.16%), 4/1/2023 3,181,980 2,000,000 California State, Various Purpose UT GO Bonds, 5.25% (Original Issue Yield: 5.32%), 11/1/2025 2,132,680 1,495,000 California Statewide Communities Development Authority, COP, 6.00% (Sutter Health)/(FSA INS), 8/15/2013 1,630,043 1,930,000 California Statewide Communities Development Authority, COP, 6.00% (Sutter Health)/(FSA INS), 8/15/2015 2,122,325 2,000,000 Chula Vista, CA, IDRBs (Series 1992D), 5.00% (San Diego Gas & Electric Company), 12/1/2027 2,035,000 1,000,000 Golden State Tobacco Securitization Corp., CA, (Series A-4), 7.80%, 6/1/2042 1,203,010 3,000,000 Golden State Tobacco Securitization Corp., CA, Tobacco Settlement Asset-Backed Revenue Bonds (Series 2003A-1), 6.75% (Original Issue Yield: 7.00%), 6/1/2039 3,374,340 1,350,000 Poway, CA Unified School District, Special Tax Bonds (Series 2005), 5.13% (Community Facilities District No. 6 (4S Ranch))/(Original Issue Yield: 5.21%), 9/1/2035 1,345,815 1,250,000 Southern California Logistics Airport Authority, Tax Allocation Bonds, 5.00% (Radian Asset Assurance INS), 12/1/2035 1,277,275 1,500,000 University of California, General Revenue Bonds, (Series A), 5.13% (AMBAC INS), 5/15/2020 1,616,715 2,500,000 University of California, Hospital Revenue Bonds (Series 2004A), 5.25% (UCLA Medical Center)/(AMBAC INS), 5/15/2030 2,651,050 TOTAL 42,222,195 Colorado--1.5% 760,000 Colorado Health Facilities Authority, Health Facilities Revenue Bonds (Series 2004A), 5.25% (Evangelical Lutheran Good Samaritan Society)/(Original Issue Yield: 5.48%), 6/1/2034 782,048 430,000 Colorado Health Facilities Authority, Health Facilities Revenue Bonds (Series 2005), 5.25% (Evangelical Lutheran Good Samaritan Society), 6/1/2023 452,369 5,000,000 Colorado Health Facilities Authority, Revenue Bonds (Series 2005), 5.25% (Covenant Retirement Communities, Inc.), 12/1/2025 5,126,100 1,000,000 Westminster, CO, Sales & Use Tax Revenue Refunding Bonds, (Series A), 5.60%, 12/1/2016 1,059,550 TOTAL 7,420,067 Connecticut--0.3% 600,000 Connecticut State HEFA, Revenue Bonds (Series 2005C), 5.13% (Eastern Connecticut Health Network)/(Radian Asset Assurance INS), 7/1/2030 624,498 1,000,000 New Haven, CT, UT GO Bonds, (Series B), 5.75% (U.S. Treasury PRF 11/1/2009 @101)/(Original Issue Yield: 5.83%), 11/1/2018 1,093,150 TOTAL 1,717,648 Delaware--0.7% 800,000 Delaware Health Facilities Authority, Refunding Revenue Bonds (Series 2004A), 5.50% (Beebe Medical Center), 6/1/2024 851,192 2,500,000 Delaware State, UT GO (Series 2000A), 5.25% (U.S. Treasury PRF 4/1/2010 @100)/(Original Issue Yield: 5.40%), 4/1/2016 2,682,075 TOTAL 3,533,267 District Of Columbia--0.7% 3,000,000 (1) District of Columbia, Residual Interest Tax-Exempt Securities (PA-1343), 5.66% (AMBAC INS), 6/1/2023 3,329,400 Florida--3.0% 1,000,000 Broward County, FL Educational Facilities Authority, Educational Facilities Revenue Bonds (Series 2004B), 5.50% (Nova Southeastern University), 4/1/2024 1,052,590 665,000 Florida State Board of Education Administration, UT GO Capital Outlay Bonds, 9.13% (Florida State)/(Escrowed In Treasuries COL)/(Original Issue Yield: 9.17%), 6/1/2014 909,421 4,335,000 Florida State Board of Education Administration, UT GO Capital Outlay Bonds, 9.13% (Florida State)/(Original Issue Yield: 9.17%), 6/1/2014 5,550,274 3,000,000 (2) Florida State, UT GO Bonds, Broward County Expressway Authority, 10.00% (Escrowed In Treasuries COL)/(Original Issue Yield: 10.11%), 7/1/2014 4,048,320 1,000,000 Miami-Dade County, FL Expressway Authority, Toll System Revenue Bonds, 6.00% (FGIC INS), 7/1/2013 1,109,000 2,255,000 St. Johns County, FL IDA, First Mortgage Revenue Bonds (Series 2004A), 5.85% (Presbyterian Retirement Communities ), 8/1/2024 2,435,084 TOTAL 15,104,689 Georgia--2.7% 5,000,000 Atlanta, GA Airport Passenger Facilities Charge Revenue, Passenger Facilities Charge Revenue Bonds, 5.00% (FSA INS), 1/1/2034 5,185,250 615,000 Atlanta, GA, Tax Allocation Bonds (Series 2005B), 5.60% (Eastside Tax Allocation District)/(Original Issue Yield: 5.65%), 1/1/2030 620,270 1,850,000 Bibb County, GA Development Authority, Revenue Bonds, (Series 1991 IR-1), 4.85% (Temple-Inland, Inc.), 12/1/2009 1,881,487 1,000,000 Chatham County, GA Hospital Authority, Hospital Improvement Revenue Bonds (Series 2004A), 5.75% (Memorial Health University Medical Center), 1/1/2029 1,077,310 2,000,000 Floyd County, GA Development Authority, Environmental Revenue Bonds, 5.70% (Temple-Inland, Inc.), 12/1/2015 2,121,540 2,000,000 Savannah, GA EDA, Revenue Bonds, 6.80% (Savannah College of Art and Design, Inc.)/(U. S. Treasury PRF 10/1/2009 @102), 10/1/2019 2,251,080 TOTAL 13,136,937 Illinois--1.7% 1,000,000 Chicago, IL Public Building Commission, Revenue Bonds, (Series A), 7.00% (Escrowed In Treasuries COL)/(Original Issue Yield: 7.13%), 1/1/2020 1,284,900 3,165,000 Illinois Finance Authority, Refunding Revenue Bonds (Series 2004A), 5.38% (Depaul University), 10/1/2019 3,465,200 1,500,000 Illinois Finance Authority, Refunding Revenue Bonds, 5.25% (OSF Health Care Systems)/(Original Issue Yield: 5.30%), 11/15/2023 1,559,130 1,000,000 Illinois Finance Authority, Solid Waste Disposal Revenue Bonds, 5.05% (Waste Management, Inc.), 8/1/2029 998,590 1,000,000 Lake County, IL Community School District No. 116, UT GO Bonds, 7.60% (Escrowed In Treasuries COL), 2/1/2014 1,263,010 TOTAL 8,570,830 Indiana--3.9% 1,000,000 Indiana Development Finance Authority, Environmental Improvement Revenue Bonds, 5.25% TOBs (Marathon Oil Corp.) Optional Tender 12/2/2011 1,062,990 3,000,000 Indiana Health & Educational Facility Financing Authority, Revenue Bonds (Series 2005), 5.25% (Baptist Homes of Indiana), 11/15/2035 3,055,380 2,000,000 Indiana Health Facility Financing Authority, Hospital Revenue Bonds (Series 2004A), 6.25% (Community Foundation of Northwest Indiana), 3/1/2025 2,164,500 1,000,000 Indiana Health Facility Financing Authority, Hospital Revenue Refunding Bonds, 5.25% (Floyd Memorial Hospital, IN)/(Original Issue Yield: 5.50%), 2/15/2022 1,023,170 2,200,000 Indiana Health Facility Financing Authority, Revenue Bonds (Series 2004A), 5.38% (Deaconess Hospital)/(AMBAC INS), 3/1/2029 2,355,078 1,140,000 Indiana State HFA, SFM Revenue Bonds (Series A), 5.30% (GNMA COL Home Mortgage Program GTD), 7/1/2022 1,177,460 1,500,000 Indiana State Office Building Commission Capitol Complex, Revenue Bonds, (Series A), 7.40% (MBIA Insurance Corp. INS)/(Original Issue Yield: 7.488%), 7/1/2015 1,885,545 2,500,000 Indianapolis, IN Airport Authority, Special Facilities Revenue Refunding Bonds (Series 2004A), 5.10% (FedEx Corp.), 1/15/2017 2,603,925 1,500,000 Indianapolis, IN Local Public Improvement Bond Bank, Refunding Revenue Bonds, (Series D), 6.75% (Original Issue Yield: 6.90%), 2/1/2014 1,753,380 2,000,000 St. Joseph County, IN Hospital Authority, Health Facilities Revenue Bonds (Series 2005), 5.38% (Madison Center Obligated Group), 2/15/2034 2,010,620 TOTAL 19,092,048 Iowa--0.2% 1,000,000 Scott County, IA, Revenue Refunding Bonds (Series 2004), 5.63% (Ridgecrest Village), 11/15/2018 1,037,610 Kansas--0.3% 1,150,000 University of Kansas Hospital Authority, Health Facilities Revenue Bonds, 5.50% (KU Health System)/(Original Issue Yield: 5.62%), 9/1/2022 1,225,095 Louisiana--1.9% 5,000,000 De Soto Parish, LA Environmental Improvement Authority, Refunding Revenue Bonds (Series 2005A), 4.75% (International Paper Co.), 3/1/2019 4,851,950 3,000,000 St. James Parish, LA, Solid Waste Disposal Revenue Bonds, 7.70% (IMC Phosphates Co.)/(Original Issue Yield: 7.75%), 10/1/2022 3,003,300 1,500,000 St. John the Baptist Parish, LA, Environmental Improvement Refunding Revenue Bonds (Series 1998), 5.35% (Marathon Oil Corp.), 12/1/2013 1,564,500 TOTAL 9,419,750 Massachusetts--5.0% 5,000,000 Commonwealth of Massachusetts, UT GO Bonds (Series 2000B), 6.00% (U.S. Treasury PRF 6/1/2010 @100), 6/1/2016 5,523,050 1,830,000 Massachusetts Bay Transportation Authority General Transportation System, Special Assessment Bonds, 5.75% (U.S. Treasury PRF 7/1/2010 @100), 7/1/2016 2,005,351 170,000 Massachusetts Bay Transportation Authority General Transportation System, Special Assessment Bonds, 5.75%, 7/1/2016 184,958 2,000,000 Massachusetts HEFA, Revenue Bonds (Series 2004A), 6.38% (Northern Berkshire Health System )/(Original Issue Yield: 6.60%), 7/1/2034 2,108,560 790,000 Massachusetts HEFA, Revenue Bonds (Series 2002D), 6.35% (Milford-Whitinsville Hospital)/(Original Issue Yield: 6.38%), 7/15/2032 841,074 1,000,000 Massachusetts HEFA, Revenue Bonds (Series 2002D), 6.50% (Milford-Whitinsville Hospital), 7/15/2023 1,090,910 4,550,000 Massachusetts HEFA, Revenue Bonds (Series 2005E), 5.00% (Emerson Hospital)/(Radian Asset Assurance INS), 8/15/2025 4,697,147 2,000,000 Massachusetts State Development Finance Agency, Revenue Bonds, 5.00% (Seven Hills Foundation & Affiliates)/(Radian Asset Assurance INS), 9/1/2035 2,047,620 1,250,000 Massachusetts State Development Finance Agency, Solid Waste Disposal Revenue Bonds, 5.45% (Waste Management, Inc.), 6/1/2014 1,336,475 40,000 Massachusetts Water Pollution Abatement Trust Pool, Program Bonds (Series 6) Revenue Bonds Unrefunded, 5.25% (Original Issue Yield: 5.50%), 8/1/2019 42,832 2,460,000 Massachusetts Water Pollution Abatement Trust Pool, Program (Series 6) Revenue Bonds, 5.25% (U.S. Treasury PRF 8/1/2010 @101)/(Original Issue Yield: 5.50%), 8/1/2019 2,668,608 1,000,000 Springfield, MA, UT GO Refunding Bonds, 5.00% (FSA INS)/(Original Issue Yield: 5.12%), 11/15/2018 1,055,610 1,000,000 Sterling, MA, UT GO Bonds, 6.00% (FGIC INS), 2/15/2020 1,102,090 TOTAL 24,704,285 Michigan--4.6% 2,090,000 Cornell Township MI, Economic Development Corp., Refunding Revenue Bonds, 5.88% (MeadWestvaco Corp.)/(U.S. Treasury PRF 5/1/2012 @100), 5/1/2018 2,357,374 2,515,000 Delta County, MI Economic Development Corp., Environmental Improvement Revenue Refunding Bonds (Series A), 6.25% (MeadWestvaco Corp.)/(U.S. Treasury PRF 4/15/2012 @100), 4/15/2027 2,886,013 1,000,000 Dexter, MI Community Schools, UT GO Bonds, 5.10% (FGIC INS), 5/1/2018 1,099,570 500,000 Gaylord, MI Hospital Finance Authority, Hospital Revenue Refunding Bonds (Series 2004), 6.20% (Otsego Memorial Hospital Obligated Group)/(Original Issue Yield: 6.45%), 1/1/2025 514,790 150,000 Gaylord, MI Hospital Finance Authority, Hospital Revenue Refunding Bonds (Series 2004), 6.50% (Otsego Memorial Hospital Obligated Group)/(Original Issue Yield: 6.70%), 1/1/2037 155,243 2,000,000 Kent Hospital Finance Authority, MI, Revenue Bonds (Series 2005A), 6.00% (Metropolitan Hospital ), 7/1/2035 2,156,260 2,390,000 Michigan Municipal Bond Authority, Revenue Bonds (Series 2000), 5.88% (Clean Water Revolving Fund)/(U.S. Treasury PRF 10/1/2010 @101), 10/1/2015 2,662,795 2,595,000 Michigan Municipal Bond Authority, Revenue Bonds (Series 2000), 5.88% (Drinking Water Revolving Fund)/(U.S. Treasury PRF 10/1/2010 @101), 10/1/2015 2,882,734 1,500,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds (Series 2002A), 6.00% (Oakwood Obligated Group), 4/1/2022 1,646,070 2,000,000 Michigan State Hospital Finance Authority, Refunding Revenue Bonds (Series 2002A), 5.50% (Crittenton Hospital, MI)/(Original Issue Yield: 5.67%), 3/1/2022 2,121,900 1,000,000 Michigan State Strategic Fund, Revenue Refunding PCR Bonds (Series C), 5.45% (Detroit Edison Co.), 9/1/2029 1,039,850 2,000,000 Michigan State, Environmental Protection Program UT GO Bonds, 5.25% (U.S. Treasury PRF 11/1/2010 @100)/(Original Issue Yield: 5.34%), 11/1/2018 2,159,180 1,000,000 Northern Michigan University, Revenue Bonds, 5.13% (MBIA Insurance Corp. INS)/(Original Issue Yield: 5.35%), 12/1/2020 1,041,440 TOTAL 22,723,219 Minnesota--0.2% 1,000,000 St. Paul, MN Housing & Redevelopment Authority, Revenue Bonds (Series 1997A), 5.70% (Healtheast, MN)/(Original Issue Yield: 5.76%), 11/1/2015 1,036,770 Mississippi--0.4% 2,050,000 Mississippi Business Finance Corp., Refunding PCR Bonds, 5.90% (System Energy Resources, Inc.)/(Original Issue Yield: 5.93%), 5/1/2022 2,085,875 Missouri--0.5% 655,000 Kansas City, MO IDA, MFH Revenue Bonds, 6.70% (Woodbridge Apartments Project), 8/1/2015 627,529 1,335,000 Missouri Development Finance Board, Infrastructure Facilities Revenue Bonds (Series 2005A), 5.00% (Branson, MO), 6/1/2035 1,352,969 285,000 Missouri State Environmental Improvement & Energy Authority, State Revolving Funds Revenue Bonds, (Series B), 5.63% (U.S. Treasury PRF 10/1/2010 @100), 7/1/2015 312,269 265,000 Missouri State Environmental Improvement & Energy Authority, State Revolving Funds Revenue Bonds, (Series B), 5.63%, 7/1/2015 288,537 TOTAL 2,581,304 Nevada--0.4% 1,000,000 Henderson, NV, Health Facility Revenue Bonds (Series 2004A), 5.63% (Catholic Healthcare West)/(Original Issue Yield: 5.72%), 7/1/2024 1,072,550 250,000 Henderson, NV, Local Improvement District No. T-16 LT Obligation Improvement Bonds, 5.10% (Falls at Lake Las Vegas LID No. T-16)/(Original Issue Yield: 5.15%), 3/1/2022 250,755 600,000 Henderson, NV, Local Improvement District No. T-16 LT Obligation Improvement Bonds, 5.13% (Falls at Lake Las Vegas LID No. T-16)/(Original Issue Yield: 5.20%), 3/1/2025 602,778 TOTAL 1,926,083 New Hampshire--0.4% 1,685,000 New Hampshire Higher Educational & Health Facilities Authority, Healthcare System Revenue Bonds (Series 2004), 5.38% (Covenant Health Systems)/(Original Issue Yield: 5.50%), 7/1/2024 1,775,434 New Jersey--3.1% 1,100,000 New Jersey EDA, Revenue Refunding Bonds (Series A), 5.75% (Winchester Gardens at Ward Homestead)/(Original Issue Yield: 5.75%), 11/1/2024 1,161,072 5,000,000 New Jersey EDA, School Facilities Revenue Bonds (Series 2003F), 5.00% (New Jersey State)/(U.S. Treasury PRF 6/15/2013 @100)/(Original Issue Yield: 5.08%), 6/15/2026 5,429,350 650,000 New Jersey Health Care Facilities Financing Authority, Revenue Bonds, (Series 2005A), 5.50% (Children's Specialized Hospital), 7/1/2030 680,102 5,000,000 (1) New Jersey State Transportation Trust Fund Authority, RITES (PA-1204), 6.64% (FSA INS), 12/15/2013 6,297,400 1,500,000 Newark, NJ Housing Authority, Revenue Bonds (Series 2004), 5.25% (Port Authority-Port Newark Marine Terminal)/(MBIA Insurance Corp. INS), 1/1/2022 1,618,275 TOTAL 15,186,199 New Mexico--0.9% 4,000,000 New Mexico State Finance Authority Transportation Revenue, Senior Lien Transportation Revenue Bonds (Series 2004A), 5.25% (MBIA Insurance Corp. INS), 6/15/2024 4,336,320 New York--13.2% 700,000 Albany County, NY IDA, IDRBs (Series 2004A), 5.63% (Albany College of Pharmacy), 12/1/2034 736,288 2,000,000 Hempstead Town, NY IDA, Civic Facility Revenue Bonds, 5.00% (Adelphi University), 10/1/2035 2,062,960 2,000,000 Hempstead Town, NY IDA, Civic Facility Revenue Bonds, 5.25% (Hofstra University), 7/1/2018 2,120,080 5,000,000 (1) Metropolitan Transportation Authority, NY, RITES (PA-1042R), 6.64% (MBIA Insurance Corp. INS), 1/1/2010 5,974,400 3,000,000 (1) New York City, NY IDA, Liberty Revenue Bonds (Series A), 6.25% (7 World Trade Center LLC), 3/1/2015 3,075,120 4,000,000 New York City, NY IDA, Special Airport Facility Revenue Bonds (Series 2001A), 5.50% (Airis JFK I LLC Project at JFK International)/(Original Issue Yield: 5.65%), 7/1/2028 4,029,200 300,000 New York City, NY IDA, Special Facilities Revenue Bonds, 5.50% (Terminal One Group Association), 1/1/2024 320,583 3,000,000 New York City, NY Municipal Water Finance Authority, Water & Sewer System Revenue Bonds (Fiscal 2005 Series C), 5.00%, 6/15/2030 3,142,710 3,000,000 New York City, NY Transitional Finance Authority, Revenue Bonds (Series 2000C), 5.50% (U.S. Treasury PRF 11/1/2020 @101)/(Original Issue Yield: 5.68%), 11/1/2020 3,280,050 3,000,000 New York City, NY, UT GO Bonds (Fiscal 2005 Series J), 5.00%, 3/1/2035 3,098,970 2,000,000 New York City, NY, UT GO Bonds (Series 2003J), 5.50%, 6/1/2023 2,159,580 800,000 New York State Dormitory Authority, Revenue Bonds (Series 2005), 5.00% (Rochester General Hospital)/(Radian Asset Assurance INS), 12/1/2035 827,160 2,500,000 New York State Dormitory Authority, Revenue Bonds (Series A), 5.50% (University of Rochester, NY)/(Original Issue Yield: 5.60%), 7/1/2016 2,661,350 5,000,000 New York State Dormitory Authority, Revenue Bonds, 6.00% (State University of New York)/(MBIA Insurance Corp. INS), 5/15/2016 5,559,700 1,510,000 New York State Environmental Facilities Corp., Clean Water & Drinking Revenue Bonds, 5.25% (Escrowed In Treasuries COL), 6/15/2014 1,590,211 990,000 New York State Environmental Facilities Corp., Clean Water & Drinking Revenue Bonds, 5.25%, 6/15/2014 1,041,153 3,315,000 New York State Mortgage Agency, Mortgage Revenue Bonds (Twenty-Ninth Series), 5.40%, 10/1/2022 3,438,119 1,250,000 (1) New York State Thruway Authority, Drivers (Series 1069), 8.52% (New York State Thruway Authority-Highway & Bridge Trust Fund)/(AMBAC INS), 4/1/2013 1,611,625 4,000,000 New York State Thruway Authority, Local Highway & Bridge Service Contract Revenue Bonds (Series A-2), 5.38% (New York State)/(U.S. Treasury PRF 4/1/2008 @101), 4/1/2016 4,220,640 3,000,000 Suffolk County, NY Water Authority, Waterworks Refunding Revenue Bonds, 6.00% (MBIA Insurance Corp. INS), 6/1/2014 3,481,020 4,000,000 Tobacco Settlement Financing Corp., NY, Asset Backed Revenue Bonds (Series 2003A-1), 5.25% (New York State)/(AMBAC INS), 6/1/2021 4,300,840 5,320,000 Triborough Bridge & Tunnel Authority, NY, General Purpose Revenue Bonds (Series 1999B), 5.75% (Escrowed In Treasuries COL), 1/1/2015 5,774,860 1,000,000 United Nations, NY Development Corp., Senior Lien Refunding Revenue Bonds (Series 2004A), 5.25%, 7/1/2021 1,032,290 TOTAL 65,538,909 North Carolina--1.7% 2,000,000 Gaston County, NC Industrial Facilities and Pollution Control Financing Authority, Exempt Facilities Revenue Bonds, 5.75% (National Gypsum Co.), 8/1/2035 2,090,320 3,000,000 North Carolina Eastern Municipal Power Agency, Power Supply System Revenue Refunding Bonds (Series D), 5.13% (Original Issue Yield: 5.25%), 1/1/2023 3,108,810 1,725,000 North Carolina HFA, Home Ownership Revenue Bonds (Series 13-A), 5.25%, 1/1/2022 1,776,854 1,600,000 North Carolina Medical Care Commission, Health Care Housing Revenue Bonds (Series 2004A), 5.80% (Arc of North Carolina Projects), 10/1/2034 1,655,856 TOTAL 8,631,840 Ohio--4.4% 1,700,000 Cleveland, OH Municipal School District, UT GO Bonds, 5.25% (FSA INS), 12/1/2024 1,836,068 400,000 Franklin County, OH Health Care Facilities, Improvement Revenue Bonds (Series 2005A), 5.13% (Ohio Presbyterian Retirement Services)/(Original Issue Yield: 5.25%), 7/1/2035 407,288 3,000,000 Franklin County, OH Health Care Facilities, Revenue Refunding Bonds, 5.50% (Ohio Presbyterian Retirement Services)/(Original Issue Yield: 5.64%), 7/1/2017 3,082,740 915,000 Ohio HFA, Residential Mortgage Revenue Bonds (Series 2002A-2), 5.50% (GNMA COL Home Mortgage Program LOC), 9/1/2022 959,487 4,000,000 Ohio State Air Quality Development Authority, PCR Refunding Bonds (Series 2002A), 6.00% (Cleveland Electric Illuminating Co.), 12/1/2013 4,166,640 4,135,000 Ohio State, Infrastructure Improvement UT GO Bonds (Series 1999A), 5.75% (U.S Treasury PRF 2/1/2010 @101), 2/1/2017 4,538,369 5,500,000 Ohio State, Infrastructure Improvement UT GO Bonds (Series A), 5.50% (U.S. Treasury PRF 2/1/2010 @101)/(Original Issue Yield: 5.65%), 2/1/2019 5,984,495 775,000 Toledo-Lucas County, OH Port Authority, Revenue Bonds (Series 2004C), 6.375% (Northwest Ohio Bond Fund), 11/15/2032 832,319 TOTAL 21,807,406 Oklahoma--0.2% 1,000,000 Tulsa, OK Industrial Authority, Revenue Bonds, (Series A), 6.00% (University of Tulsa)/(MBIA Insurance Corp. INS), 10/1/2016 1,145,620 Oregon--0.3% 1,500,000 Clackamas County, OR Hospital Facilities Authority, Revenue Refunding Bonds (Series 2001), 5.25% (Legacy Health System)/(Original Issue Yield: 5.50%), 5/1/2021 1,582,470 Pennsylvania--5.1% 3,000,000 Allegheny County, PA HDA, Health System Revenue Bonds (Series 2000B), 9.25% (West Penn Allegheny Health System)/(Original Issue Yield: 9.70%), 11/15/2030 3,572,160 1,280,000 Allegheny County, PA HDA, Refunding Revenue Bonds (Series 1998A), 5.13% (South Hills Health System)/(Original Issue Yield: 5.40%), 5/1/2029 1,235,980 1,085,000 Allegheny County, PA IDA, Environmental Improvement Refunding Revenue Bonds (Series 2005), 5.50% (United States Steel Corp.), 11/1/2016 1,100,482 4,000,000 (1) Delaware Valley, PA Regional Finance Authority, RITES (PA-1029), 7.14%, 7/1/2017 5,094,600 2,000,000 Pennsylvania HFA, SFM Revenue Bonds (Series 2002-73A), 5.45%, 10/1/2032 2,062,180 1,000,000 Pennsylvania State Higher Education Facilities Authority, Revenue Bonds (Series 2001A), 6.00% (UPMC Health System)/(Original Issue Yield: 6.10%), 1/15/2022 1,086,970 5,000,000 Pennsylvania State Higher Education Facilities Authority, Revenue Bonds (Series 2001A), 6.25% (UPMC Health System), 1/15/2016 5,546,300 1,000,000 Pennsylvania State Higher Education Facilities Authority, Revenue Bonds (Series 2004A), 5.25% (Philadelphia University)/(Original Issue Yield: 5.32%), 6/1/2032 1,011,550 3,480,000 Philadelphia, PA Redevelopment Authority, Neighborhood Transformation Revenue Bonds (Series 2005C), 5.00% (FGIC INS), 4/15/2030 3,633,572 1,000,000 Pittsburgh & Allegheny County PA, Public Auditorium Hotel Room Revenue Bonds, 5.00% (AMBAC INS)/(Original Issue Yield: 5.15%), 2/1/2017 1,054,330 TOTAL 25,398,124 Puerto Rico--1.0% 4,500,000 Puerto Rico Electric Power Authority, Revenue Bonds (Series II), 5.25% (XL Capital Assurance Inc. INS)/(Original Issue Yield: 5.27%), 7/1/2022 4,857,840 Rhode Island--0.6% 2,500,000 Rhode Island State Health and Educational Building Corp., Hospital Financing Revenue Bonds (Series 2002), 6.38% (Lifespan Obligated Group)/(Original Issue Yield: 6.58%), 8/15/2021 2,771,100 South Carolina--1.5% 1,395,000 Lexington County, SC Health Services District, Inc., Hospital Revenue Bonds (Series 2004), 6.00% (Lexington Medical Center), 5/1/2019 1,553,891 2,850,000 South Carolina, EDA, EDRBs, (Series 2002A), 5.50% (Bon Secours Health System)/(Original Issue Yield: 5.75%), 11/15/2023 3,009,002 2,795,000 South Carolina, EDA, Health System Revenue Bonds (Series A), 5.63% (Bon Secours Health System)/(Original Issue Yield: 5.84%), 11/15/2030 2,956,160 TOTAL 7,519,053 South Dakota--1.0% 2,225,000 South Dakota Housing Development Authority, Home Ownership Mortgage Revenue Bonds (Series 2002C), 5.35%, 5/1/2022 2,357,165 2,420,000 South Dakota Housing Development Authority, Multiple Purpose Revenue Bonds (Series 2002A), 5.15% (FSA INS), 11/1/2020 2,521,955 TOTAL 4,879,120 Tennessee--1.5% 1,000,000 Harpeth Valley Utilities District, TN, Revenue Bonds, 5.05% (MBIA Insurance Corp. INS)/(Original Issue Yield: 5.08%), 9/1/2020 1,044,790 1,880,000 Shelby County, TN Health Education & Housing Facilities Board, Hospital Revenue Bonds, 6.50% (Methodist Healthcare)/(U.S. Treasury PRF 9/1/2012 @100)/(Original Issue Yield: 6.57%), 9/1/2021 2,196,348 1,120,000 Shelby County, TN Health Education & Housing Facilities Board, Hospital Revenue Bonds, 6.50% (Methodist Healthcare)/(U.S. Treasury PRF 9/1/2012 @100)/(Original Issue Yield: 6.57%), 9/1/2021 1,308,462 2,500,000 Sullivan County, TN Health Educational & Housing Facilities Board, Hospital Revenue Bonds, 6.25% (Wellmont Health System)/(Original Issue Yield: 6.45%), 9/1/2022 2,799,475 TOTAL 7,349,075 Texas--8.7% 4,900,000 Aledo, TX ISD, School Building UT GO Bonds (Series 2005A), 5.00% (PSFG INS), 2/15/2030 5,105,653 4,600,000 Austin, TX Electric Utility System, Refunding Revenue Bonds, 5.25% (MBIA Insurance Corp. INS), 11/15/2022 4,954,752 3,965,000 Brazos River Authority, TX, Refunding PCR Bonds (Series 2001C), 5.75% TOBs (TXU Energy Company LLC), Mandatory Tender 11/1/2011 4,186,644 2,845,000 Cedar Hill, TX ISD, School Building UT GO Bonds, 5.00% (PSFG INS), 2/15/2030 2,942,128 2,000,000 Comal County, TX HFDC, Revenue Bonds (Series 2002A), 6.13% (McKenna Memorial Hospital)/(Original Issue Yield: 6.28%), 2/1/2022 2,144,460 3,000,000 Decatur, TX Hospital Authority, Hospital Revenue Bonds (Series 2004A), 7.00% (Wise Regional Health System)/(Original Issue Yield: 7.13%), 9/1/2025 3,250,770 2,200,000 Harris County, TX HFDC, Hospital Revenue Bonds, (Series 1997A), 6.00% (Memorial Hospital System)/(MBIA Insurance Corp. LOC), 6/1/2011 2,456,982 4,000,000 Harris County, TX HFDC, Hospital Revenue Bonds, (Series 1997A), 6.00% (Memorial Hospital System)/(MBIA Insurance Corp. LOC), 6/1/2012 4,519,320 600,000 Matagorda County, TX Navigation District No. 1, COL Refunding Revenue Bonds, 5.60% (Centerpoint Energy Houston Electric), 3/1/2027 630,768 2,300,000 Port of Corpus Christi, TX IDC, Revenue Refunding Bonds (Series C), 5.40% (Valero Energy Corp.), 4/1/2018 2,390,965 2,165,000 Richardson, TX Hospital Authority, Refunding & Improvement Hospital Revenue Bonds, 5.88% (Richardson Regional Medical Center)/(Original Issue Yield: 6.05%), 12/1/2024 2,336,706 1,000,000 Sabine River Authority, TX, PCR Refunding Bonds (Series 2001C), 5.20% (TXU Energy Company LLC), 5/1/2028 1,008,360 1,000,000 Sam Rayburn, TX Municipal Power Agency, Refunding Revenue Bonds (Series 2002A), 6.00%, 10/1/2021 1,062,800 5,000,000 Texas State Affordable Housing Corp., MFH Revenue Bonds (Series 2002A), 5.40% (American Housing Foundation)/(MBIA Insurance Corp. INS), 9/1/2022 5,049,900 1,000,000 Texas Water Development Board, State Revolving Funds Revenue Bonds, (Series B), 5.00% (Original Issue Yield: 5.28%), 7/15/2019 1,031,770 TOTAL 43,071,978 Utah--3.7% 13,500,000 Salt Lake City, UT Hospital Authority, Hospital Revenue Refunding Bonds (Series A), 8.125% (IHC Hospitals Inc., UT)/(Escrowed In Treasuries COL)/(Original Issue Yield: 8.17%), 5/15/2015 16,376,040 2,000,000 Utah County, UT IDA, Environmental Improvement Revenue Bonds, 5.05% TOBs (Marathon Oil Corp.), Mandatory Tender 11/1/2011 2,110,080 TOTAL 18,486,120 Virginia--3.2% 3,000,000 Chesapeake, VA IDA, PCR Bonds, 5.25% (Virginia Electric & Power Co.), 2/1/2008 3,019,440 5,000,000 Richmond, VA, UT GO Bonds, 5.50% (FSA INS)/(Original Issue Yield: 5.58%), 1/15/2018 5,443,550 3,000,000 Tobacco Settlement Financing Corp., VA, Revenue Bonds, 5.625% (Original Issue Yield: 5.78%), 6/1/2037 3,028,230 3,900,000 Virginia Peninsula Port Authority, Coal Terminal Revenue Refunding Bonds (Series 2003), 6.00% (Brinks Co.), 4/1/2033 4,202,406 TOTAL 15,693,626 Washington--4.1% 4,500,000 Port of Seattle, WA, Subordinate Lien Revenue Bonds (Series 1999A), 5.25% (FGIC INS), 9/1/2021 4,804,470 1,000,000 Seattle, WA Water System, Revenue Bonds, 5.25%, 3/1/2013 1,049,230 1,235,000 Skagit County, WA Public Hospital District No. 1, Revenue Bonds (Series 2005), 5.50% (Skagit Valley Hospital), 12/1/2030 1,275,459 5,595,000 Washington State Convention & Trade Center, Lease Revenue COP, 5.13% (MBIA Insurance Corp. INS)/(Original Issue Yield: 5.30%), 7/1/2013 5,881,912 6,675,000 Washington State, UT GO Bonds, (Series A), 5.63% (Original Issue Yield: 5.66%), 7/1/2022 7,204,928 TOTAL 20,215,999 Wisconsin--4.0% 1,000,000 Marinette County, WI, UT GO Refunding Bonds, 6.50% (FGIC INS), 9/1/2018 1,126,540 2,045,000 Wisconsin Housing & EDA, Housing Revenue Bonds (Series 2002C), 5.35% (MBIA Insurance Corp. INS), 11/1/2022 2,135,430 5,500,000 Wisconsin State HEFA, Refunding Revenue Bonds, 5.75% (Wheaton Franciscan Services)/(Original Issue Yield: 5.96%), 8/15/2025 5,901,445 300,000 Wisconsin State HEFA, Revenue Bonds (Series 2004), 5.50% (Blood Center of Southeastern Wisconsin, Inc.)/(Original Issue Yield: 5.58%), 6/1/2024 315,558 430,000 Wisconsin State HEFA, Revenue Bonds (Series 2004), 5.75% (Blood Center of Southeastern Wisconsin, Inc.)/(Original Issue Yield: 5.82%), 6/1/2034 456,901 2,000,000 Wisconsin State HEFA, Revenue Bonds (Series 2004), 5.75% (Fort Healthcare, Inc.)/(Original Issue Yield: 5.84%), 5/1/2029 2,127,000 1,340,000 Wisconsin State HEFA, Revenue Bonds (Series 2004A), 6.75% (Beaver Dam Community Hospitals, Inc.)/(Original Issue Yield: 6.95%), 8/15/2034 1,455,615 2,650,000 Wisconsin State HEFA, Revenue Bonds (Series 2005), 5.25% (Vernon Memorial Healthcare, Inc.)/(Original Issue Yield: 5.28%), 3/1/2035 2,634,895 2,000,000 Wisconsin State HEFA, Revenue Bonds, 6.00% (SynergyHealth, Inc.)/(Original Issue Yield: 6.10%), 11/15/2023 2,166,200 1,630,000 Wisconsin State HEFA, Revenue Bonds, 6.00% (Agnesian Healthcare, Inc.)/(Original Issue Yield: 6.15%), 7/1/2030 1,723,203 TOTAL 20,042,787 Wyoming--0.6% 2,000,000 Sweetwater County, WY, Solid Waste Disposal Refunding Revenue Bonds (Series 2005), 5.60% (FMC Corp.), 12/1/2035 2,028,620 1,000,000 University of Wyoming, University Facilities Improvement Revenue Bonds, 5.50% (MBIA Insurance Corp. INS)/(Original Issue Yield: 5.70%), 6/1/2019 1,062,070 TOTAL 3,090,690 TOTAL MUNICIPAL BONDS (IDENTIFIED COST $458,083,500) 486,142,717 SHORT-TERM MUNICIPAL--0.4% Alaska--0.4% 2,000,000 Valdez, AK Marine Terminal, (Series 2003B) Daily VRDNs (BP Pipelines (Alaska) Inc.)/(BP PLC GTD), 3.78%, 1/2/2006 (AT AMORTIZED COST) 2,000,000 OTHER--0.3% 1,500,000 (1) GMAC Municipal Mortgage Trust, Pfd., (Series B-2), 5.50%, 10/31/2040 (IDENTIFIED COST $1,500,000) 1,505,970 TOTAL MUNICIPAL INVESTMENTS -98.8% (IDENTIFIED COST $461,583,500)(3) $ 489,648,687 OTHER ASSETS AND LIABILITIES - NET - 1.2% 5,783,743 TOTAL NET ASSETS - 100% 495,432,430
Securities that are subject to the federal alternative minimum tax (AMT) represent 10.2% of the portfolio as calculated based upon total portfolio market value. 1 Denotes a restricted security, including securities purchased under Rule 144A of the Securities Act of 1933. These securities, all of which have been deemed liquid by criteria approved by the Fund's Board of Directors, unless registered under the Act or exempted from registration, may only be sold to qualified institutional investors. At December 31, 2005, these securities amounted to $32,906,265 which represents 6.6% of total net assets. 2 Pledged as collateral to ensure the Fund is able to satisfy the obligations of its outstanding short futures contracts. At December 31, 2005, the Fund had the following open futures contracts: Contracts Number of Notional Value Expiration Unrealized Contracts Date Depreciation U.S. Treasury Note 225 $(24,616,406) March 2006 $(170,856) 10-Year Futures 3 At December 31, 2005, the cost of investments for federal tax purposes amounts to $461,569,175. The net unrealized appreciation of investments for federal tax purposes excluding any unrealized appreciation/depreciation from futures contracts was $28,079,512. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $28,458,913 and net unrealized depreciation from investments for those securities having an excess of cost over value of $379,401. Note: The categories of investments are shown as a percentage of total net assets at December 31, 2005. Investment Valuation Municipal bonds are valued by an independent pricing service, taking into consideration yield, liquidity, risk, credit quality, coupon, maturity, type of issue, and any other factors or market data the pricing service deems relevant. The Fund generally values fixed income and short-term securities according to prices furnished by an independent pricing service, except that securities with remaining maturities of less than 60 days at the time of purchase may be valued at amortized cost. Prices furnished by an independent pricing service are intended to be indicative of the mean between the bid and asked prices currently offered to institutional investors for the securities. Securities for which no quotations are readily available are valued at fair value as determined in accordance with procedures established by and under general supervision of the Board of Directors. Restricted Securities Additional information on restricted securities, excluding securities purchased under Rule 144A that have been deemed liquid by the Directors, held at December 31, 2005 is as follows: Security Acquisition Date Acquisition Cost New York City, NY IDA, 3/15/2005 $3,000,000 Liberty Revenue Bonds (Series A), 6.25% (7 World Trade Center LLC), 3/1/2015 The following acronyms are used throughout this portfolio: AMBAC --American Municipal Bond Assurance Corporation COL --Collateralized COP --Certificate of Participation EDA --Economic Development Authority EDRBs --Economic Development Revenue Bonds FGIC --Financial Guaranty Insurance Company FSA --Financial Security Assurance GNMA --Government National Mortgage Association GO --General Obligation GTD --Guaranteed HDA --Hospital Development Authority HEFA --Health and Education Facilities Authority HFA --Housing Finance Authority HFDC --Health Facility Development Corporation IDA --Industrial Development Authority IDB --Industrial Development Bond IDC --Industrial Development Corporation IDRBs --Industrial Development Revenue Bonds INS --Insured ISD --Independent School District LOC --Letter of Credit LT --Limited Tax MFH --Multi-Family Housing PCFA --Pollution Control Finance Authority PCR --Pollution Control Revenue PLC --Public Limited Company PRF --Prerefunded PSFG --Permanent School Fund Guarantee RITES --Residual Interest Tax-Exempt Securities SFM --Single Family Mortgage TOBs --Tender Option Bonds UT --Unlimited Tax VRDNs --Variable Rate Demand Notes Item 2. Controls and Procedures (a) The registrant's Principal Executive Officer and Principal Financial Officer have concluded that the registrant's disclosure controls and procedures (as defined in rule 30a-3(c) under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-(2) under the Act, based on their evaluation of these disclosure controls and procedures within 90 days of the filing date of this report on Form N-Q. (b) There were no changes in the registrant's internal control over financial reporting (as defined in rule 30a-3(d) under the Act) during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 3. Exhibits SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Registrant Federated Municipal Securities Fund, Inc. By /S/ Richard A. Novak Richard A. Novak, Principal Financial Officer (insert name and title) Date February 23, 2006 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By /S/ J. Christopher Donahue J. Christopher Donahue, Principal Executive Officer Date February 22, 2006 By /S/ Richard A. Novak Richard A. Novak, Principal Financial Officer Date February 23, 2006