EX-99

The Board of Trustees and Shareholders
Putnam High Yield Advantage Fund

In planning and performing our audit of the financial statements of
Putnam High Yield Advantage Fund, for the year ended November 30,
2003, we considered its internal control, including control
activities for safeguarding securities, in order to determine our
auditing procedures for the purpose of expressing our opinion on
the financial statements and to comply with the requirements of
Form N-SAR, not to provide assurance on internal control.

The management of Putnam High Yield Advantage Fund is responsible
for establishing and maintaining internal control.  In fulfilling
this responsibility, estimates and judgments by management are
required to assess the expected benefits and related costs of
controls. Generally, controls that are relevant to an audit pertain
to the entitys objective of preparing financial statements for
external purposes that are fairly presented in conformity with
accounting principles generally accepted in the United States of
America.  Those controls include the safeguarding of assets against
unauthorized acquisition, use, or disposition.

Because of inherent limitations in internal control, error or fraud
may occur and not be detected.  Also, projection of any evaluation
of internal control to future periods is subject to the risk that
it may become inadequate because of changes in conditions or that
the effectiveness of the design and operation may deteriorate.

Our consideration of internal control would not necessarily
disclose all matters in internal control that might be material
weaknesses under standards established by the American Institute of
Certified Public Accountants.  A material weakness is a condition
in which the design or operation of one or more of the internal
control components does not reduce to a relatively low level the
risk that misstatements caused by error or fraud in amounts that
would be material in relation to the financial statements being
audited may occur and not be detected within a timely period by
employees in the normal course of performing their assigned
functions.  However, we noted no matters involving internal control
and its operation, including controls for safeguarding securities,
which we consider to be material weaknesses as defined above as of
November 30, 2003.

This report is intended solely for the information and use of
management and the Board of Trustees of the Putnam High Yield
Advantage Fund and the Securities and Exchange Commission and is
not intended to be and should not be used by anyone other than
these specified parties.

KPMG, LLP

Boston, Massachusetts
December 30, 2003

EX-99

Note 5
Regulatory matters and litigation

On November 13, 2003, Putnam Management agreed to entry of an
order by the Securities and Exchange Commission in partial
resolution of administrative and cease-and-desist proceedings
initiated by the SEC on October 28, 2003 in connection with
alleged excessive short-term trading by at least six Putnam
Management investment professionals.  The SECs findings reflect
that four of those employees engaged in such trading in funds
over which they had investment decision-making responsibility and
had access to non-public information regarding, among other
things, current portfolio holdings, and valuations.  The six
individuals are no longer employed by
Putnam Management.  Under the order, Putnam Management will make
restitution for losses attributable to excessive short-term
trading by Putnam employees, institute new employee trading
restrictions and enhanced employee trading compliance, retain an
independent compliance consultant, and take other remedial
actions.  Putnam Management neither admitted nor denied the
orders findings, which included findings that Putnam Management
willfully violated provisions of the federal securities laws.  A
civil monetary penalty and other monetary relief, if any, will be
determined at a later date.  If a hearing is necessary to
determine the amounts of such penalty or other relief, Putnam
Management will be precluded from arguing that it did not violate
the federal securities laws in the manner described in the SEC
order, the findings set forth in the SEC order will be accepted
as true by the hearing officer and additional evidence may be
presented.  Putnam Management, and not the investors in any
Putnam fund, will bear all costs, including restitution, civil
penalties and associated legal fees.  Administrative proceedings
instituted by the Commonwealth of Massachusetts on October 28,
2003 against Putnam Management in connection with alleged market
timing activities by Putnam employees and by participants in some
Putnam-administered 401(k) plans are pending.  Putnam Management
has committed to make complete restitution for any losses
suffered by Putnam shareholders as a result of any improper
market-timing activities by Putnam employees or within Putnam-
administered 401(k) plans.

The SECs and Commonwealths allegations and related matters also
serve as the general basis for numerous lawsuits, including
purported class action lawsuits filed against Putnam Management
and certain related parties, including certain Putnam funds.
Putnam Management has agreed to bear any costs incurred by Putnam
funds in connection with these lawsuits.  Based on currently
available information, Putnam Management believes that the
likelihood that the pending private lawsuits and purported class
action lawsuits will have a material adverse financial impact on
the fund is remote, and the pending actions are not likely to
materially affect its ability to provide investment management
services to its clients, including the Putnam funds.

Review of these matters by counsel for Putnam Management and by
separate independent counsel for the Putnam funds and their
independent Trustees is continuing.  In addition, Marsh &
McLennan Companies, Inc., Putnam Managements parent company, has
engaged counsel to conduct a separate review of Putnam
Managements policies and controls related to short-term trading.
The fund may experience increased redemptions as a result of
these matters, which could result in increased transaction costs
and operating expenses.