The Securities and Exchange Commission has not necessarily reviewed the information in this filing and has not determined if it is accurate and complete.
The reader should not assume that the information is accurate and complete.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 13F

FORM 13F INFORMATION TABLE
OMB APPROVAL
OMB Number: 3235-0006
Estimated average burden
hours per response: 23.8
COLUMN 1 COLUMN 2 COLUMN 3 COLUMN 4 COLUMN 5 COLUMN 6 COLUMN 7 COLUMN 8
VALUE SHRS OR SH/ PUT/ INVESTMENT OTHER VOTING AUTHORITY
NAME OF ISSUER TITLE OF CLASS CUSIP (x$1000) PRN AMT PRN CALL DISCRETION MANAGER SOLE SHARED NONE
ABBOTT LABS COM 002824100 2,454 60,000 SH   OTR 1 0 60,000 0
ABBVIE INC COM 00287Y109 3,386 60,000 SH   OTR 1 0 60,000 0
AIR PRODS & CHEMS INC COM 009158106 1,543 12,000 SH   OTR 1 0 12,000 0
ALTRIA GROUP INC COM 02209S103 5,033 120,000 SH   OTR 1 0 120,000 0
APPLE INC COM 037833100 1,561 16,800 SH   OTR 1 0 16,800 0
AUTOMATIC DATA PROCESSING IN COM 053015103 2,775 35,000 SH   OTR 1 0 35,000 0
BANK OF AMERICA CORPORATION 7.25%CNV PFD L 060505682 293 250 SH   DFND 1 250 0 0
BARCLAYS BANK PLC ADS7.75%PFD S4 06739H511 13,400 520,000 SH   DFND 2 520,000 0 0
BLACKROCK INC COM 09247X101 2,077 6,500 SH   OTR 1 0 6,500 0
CANADIAN PAC RY LTD COM 13645T100 1,250 6,900 SH   OTR 1 0 6,900 0
CAPITALA FIN CORP COM 14054R106 4,070 215,476 SH   SOLE 215,476 0 0
CATERPILLAR INC DEL COM 149123101 3,369 31,000 SH   OTR 1 0 31,000 0
CHEVRON CORP NEW COM 166764100 8,486 65,000 SH   OTR 1 0 65,000 0
CIT GROUP INC COM NEW 125581801 42 927 SH   DFND 927 0 0
CIT GROUP INC COM NEW 125581801 279 6,099 SH   DFND 6,099 0 0
COCA COLA CO COM 191216100 8,472 200,000 SH   OTR 1 0 200,000 0
COMCAST CORP NEW CL A 20030N101 1,879 35,000 SH   OTR 1 0 35,000 0
CONOCOPHILLIPS COM 20825C104 4,715 55,000 SH   OTR 1 0 55,000 0
DIAGEO P L C SPON ADR NEW 25243Q205 1,476 11,600 SH   OTR 1 0 11,600 0
DISNEY WALT CO COM DISNEY 254687106 986 11,500 SH   OTR 1 0 11,500 0
ENTERPRISE PRODS PARTNERS L COM 293792107 5,872 75,000 SH   OTR 1 0 75,000 0
EXXON MOBIL CORP COM 30231G102 11,075 110,000 SH   OTR 1 0 110,000 0
FIFTH STR SR FLOATNG RATE CO COM 31679F101 5,472 390,000 SH   SOLE 390,000 0 0
FREEPORT-MCMORAN COPPER & GO COM 35671D857 2,190 60,000 SH   OTR 1 0 60,000 0
GILEAD SCIENCES INC COM 375558103 290 3,500 SH   OTR 1 0 3,500 0
INTEL CORP COM 458140100 2,472 80,000 SH   OTR 1 0 80,000 0
INTERNATIONAL BUSINESS MACHS COM 459200101 4,169 23,000 SH   OTR 1 0 23,000 0
ISHARES CORE S&P500 ETF 464287200 50,826 258,000 SH   DFND 1 258,000 0 0
ISHARES IBOXX INV CP ETF 464287242 5,367 45,000 SH   DFND 45,000 0 0
ISHARES IBOXX INV CP ETF 464287242 3,578 30,000 SH   DFND 2 30,000 0 0
ISHARES MSCI EAFE ETF 464287465 16,682 244,000 SH   DFND 1 244,000 0 0
JOHNSON & JOHNSON COM 478160104 6,800 65,000 SH   OTR 1 0 65,000 0
JPMORGAN CHASE & CO COM 46625H100 3,688 64,000 SH   OTR 1 0 64,000 0
KRAFT FOODS GROUP INC COM 50076Q106 1,699 28,333 SH   OTR 1 0 28,333 0
LAUDER ESTEE COS INC CL A 518439104 1,589 21,400 SH   OTR 1 0 21,400 0
MCDONALDS CORP COM 580135101 5,339 53,000 SH   OTR 1 0 53,000 0
MERCK & CO INC NEW COM 58933Y105 2,025 35,000 SH   OTR 1 0 35,000 0
MONDELEZ INTL INC CL A 609207105 3,197 85,000 SH   OTR 1 0 85,000 0
NOVARTIS A G SPONSORED ADR 66987V109 1,295 14,300 SH   OTR 1 0 14,300 0
NRG ENERGY INC COM NEW 629377508 4 118 SH   DFND 118 0 0
OCCIDENTAL PETE CORP DEL COM 674599105 3,335 32,500 SH   OTR 1 0 32,500 0
PEPSICO INC COM 713448108 4,020 45,000 SH   OTR 1 0 45,000 0
PHILIP MORRIS INTL INC COM 718172109 10,117 120,000 SH   OTR 1 0 120,000 0
PHILLIPS 66 COM 718546104 2,212 27,500 SH   OTR 1 0 27,500 0
PLAINS ALL AMERN PIPELINE L UNIT LTD PARTN 726503105 7,807 130,000 SH   OTR 1 0 130,000 0
POWERSHARES ETF TRUST II SENIOR LN PORT 73936Q769 14,922 600,000 SH   DFND 2 600,000 0 0
PRAXAIR INC COM 74005P104 2,391 18,000 SH   OTR 1 0 18,000 0
PROCTER & GAMBLE CO COM 742718109 4,747 60,400 SH   OTR 1 0 60,400 0
RESOLUTE FST PRODS INC COM 76117W109 74 4,425 SH   DFND 2 4,425 0 0
TARGET CORP COM 87612E106 2,434 42,000 SH   OTR 1 0 42,000 0
TCP CAP CORP COM 87238Q103 13,498 741,225 SH   SOLE 741,225 0 0
TEXAS INSTRS INC COM 882508104 2,390 50,000 SH   OTR 1 0 50,000 0
TIME WARNER CABLE INC COM 88732J207 2,062 14,000 SH   OTR 1 0 14,000 0
UNION PAC CORP COM 907818108 1,097 11,000 SH   OTR 1 0 11,000 0
VANGUARD INDEX FDS S&P 500 ETF SHS 922908363 34,092 190,000 SH   DFND 1 190,000 0 0
VANGUARD INTL EQUITY INDEX F FTSE EMR MKT ETF 922042858 5,478 127,000 SH   DFND 1 127,000 0 0
WALGREEN CO COM 931422109 3,707 50,000 SH   OTR 1 0 50,000 0
WAL-MART STORES INC COM 931142103 3,228 43,000 SH   OTR 1 0 43,000 0
WELLS FARGO & CO NEW COM 949746101 788 15,000 SH   OTR 1 0 15,000 0
WILLIAMS PARTNERS L P COM UNIT L P 96950F104 3,529 65,000 SH   OTR 1 0 65,000 0