N-Q 1 a11-32263_2nq.htm N-Q

 

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

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number

811-7994

 

Western Asset Global Partners Income Fund Inc.

(Exact name of registrant as specified in charter)

 

620 Eighth Avenue, New York, NY

 

10018

(Address of principal executive offices)

 

(Zip code)

 

Robert I. Frenkel, Esq.

Legg Mason & Co., LLC

100 First Stamford Place

Stamford, CT 06902

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:

(888) 777-0102

 

 

Date of fiscal year end:

August 31

 

 

Date of reporting period:

November 30, 2011

 

 



 

ITEM 1.                  SCHEDULE OF INVESTMENTS

 



 

WESTERN ASSET

GLOBAL PARTNERS INCOME FUND INC.

 

FORM N-Q

NOVEMBER 30, 2011

 


 

Schedule of investments (unaudited)

November 30, 2011

 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT 

 

VALUE

 

CORPORATE BONDS & NOTES — 64.7%

 

 

 

 

 

 

 

 

 

CONSUMER DISCRETIONARY — 11.6%

 

 

 

 

 

 

 

 

 

Auto Components — 0.2%

 

 

 

 

 

 

 

 

 

Europcar Groupe SA, Senior Notes

 

9.375%

 

4/15/18

 

500,000

EUR 

$

362,799

(a)

Automobiles — 0.1%

 

 

 

 

 

 

 

 

 

Escrow GCB General Motors

 

7.200%

 

1/15/11

 

480,000

 

7,800

(b)(c)

Escrow GCB General Motors

 

8.375%

 

7/15/33

 

1,105,000

 

17,956

(b)

Jaguar Holding Co. II/Jaguar Merger Sub Inc., Senior Notes

 

9.500%

 

12/1/19

 

120,000

 

121,200

(a)

Total Automobiles

 

 

 

 

 

 

 

146,956

 

Diversified Consumer Services — 0.7%

 

 

 

 

 

 

 

 

 

Odeon & UCI Finco PLC, Senior Secured Notes

 

9.000%

 

8/1/18

 

410,000

GBP

595,005

(a)

Service Corp. International, Senior Notes

 

7.500%

 

4/1/27

 

310,000

 

298,375

 

Sotheby’s, Senior Notes

 

7.750%

 

6/15/15

 

520,000

 

546,000

(d)

Stonemor Operating LLC/Cornerstone Family Services of WV/Osiris Holding, Senior Notes

 

10.250%

 

12/1/17

 

95,000

 

92,269

(d)

Total Diversified Consumer Services

 

 

 

 

 

 

 

1,531,649

 

Hotels, Restaurants & Leisure — 3.7%

 

 

 

 

 

 

 

 

 

Boyd Gaming Corp., Senior Subordinated Notes

 

7.125%

 

2/1/16

 

100,000

 

86,000

(d)

Caesars Entertainment Operating Co. Inc., Senior Notes

 

10.750%

 

2/1/16

 

1,294,000

 

828,160

(d)

Caesars Entertainment Operating Co. Inc., Senior Secured Notes

 

10.000%

 

12/15/15

 

110,000

 

92,125

 

CityCenter Holdings LLC/CityCenter Finance Corp., Senior Secured Notes

 

10.750%

 

1/15/17

 

538,347

 

512,271

(a)(d)(e)

Downstream Development Quapaw, Senior Secured Notes

 

10.500%

 

7/1/19

 

300,000

 

285,000

(a)

El Pollo Loco Inc., Secured Notes

 

17.000%

 

1/1/18

 

660,000

 

567,600

(a)

Enterprise Inns PLC, Senior Secured Bonds

 

6.500%

 

12/6/18

 

494,000

GBP

540,588

 

Fiesta Restaurant Group, Secured Notes

 

8.875%

 

8/15/16

 

160,000

 

157,600

(a)

Hoa Restaurant Group LLC/Hoa Finance Corp., Senior Secured Notes

 

11.250%

 

4/1/17

 

260,000

 

239,200

(a)

Inn of the Mountain Gods Resort & Casino, Senior Secured Notes

 

8.750%

 

11/30/20

 

305,000

 

294,325

(a)

Landry’s Acquisition Co., Secured Notes

 

11.625%

 

12/1/15

 

70,000

 

71,750

(a)

Landry’s Holdings Inc., Senior Secured Notes

 

11.500%

 

6/1/14

 

280,000

 

271,600

(a)

Landry’s Restaurants Inc., Senior Secured Notes

 

11.625%

 

12/1/15

 

320,000

 

335,200

(d)

Landry’s Restaurants Inc., Senior Secured Notes

 

11.625%

 

12/1/15

 

50,000

 

52,375

(a)(d)

MGM Resorts International, Senior Notes

 

5.875%

 

2/27/14

 

360,000

 

347,400

 

MGM Resorts International, Senior Notes

 

6.625%

 

7/15/15

 

70,000

 

66,500

 

MGM Resorts International, Senior Secured Notes

 

10.375%

 

5/15/14

 

40,000

 

45,000

(d)

MGM Resorts International, Senior Secured Notes

 

11.125%

 

11/15/17

 

95,000

 

106,756

(d)

Mohegan Tribal Gaming Authority, Senior Subordinated Notes

 

8.000%

 

4/1/12

 

1,030,000

 

674,650

(d)

Mohegan Tribal Gaming Authority, Senior Subordinated Notes

 

6.875%

 

2/15/15

 

55,000

 

26,675

 

NCL Corp. Ltd., Senior Notes

 

9.500%

 

11/15/18

 

560,000

 

593,600

(d)

NCL Corp. Ltd., Senior Secured Notes

 

11.750%

 

11/15/16

 

480,000

 

556,800

(d)

Pinnacle Entertainment Inc., Senior Notes

 

8.625%

 

8/1/17

 

250,000

 

263,750

(d)

Seven Seas Cruises S de RL LLC, Senior Secured Notes

 

9.125%

 

5/15/19

 

340,000

 

348,925

(a)

Snoqualmie Entertainment Authority, Senior Secured Notes

 

4.179%

 

2/1/14

 

290,000

 

262,450

(a)(f)

Snoqualmie Entertainment Authority, Senior Secured Notes

 

9.125%

 

2/1/15

 

10,000

 

9,700

(a)

Station Casinos Inc., Senior Subordinated Notes

 

6.500%

 

2/1/14

 

475,000

 

0

(b)(g)(h)(i)

Station Casinos Inc., Senior Subordinated Notes

 

6.625%

 

3/15/18

 

50,000

 

0

(b)(g)(h)(i)

Sugarhouse HSP Gaming Prop Mezz LP/Sugarhouse HSP Gaming Finance Corp., Secured Notes

 

8.625%

 

4/15/16

 

313,000

 

323,173

(a)(d)

Total Hotels, Restaurants & Leisure

 

 

 

 

 

 

 

7,959,173

 

 

See Notes to Schedule of Investments.

 

1


 

Schedule of investments (unaudited) (cont’d)

November 30, 2011

 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT 

 

VALUE

 

Household Durables — 0.3%

 

 

 

 

 

 

 

 

 

DFS Furniture Holdings PLC, Senior Secured Notes

 

9.750%

 

7/15/17

 

206,000

GBP

$

276,331

(a)

DFS Furniture Holdings PLC, Senior Secured Notes

 

9.750%

 

7/15/17

 

130,000

GBP

174,383

(a)

Standard Pacific Corp., Senior Notes

 

8.375%

 

1/15/21

 

260,000

 

241,150

 

Total Household Durables

 

 

 

 

 

 

 

691,864

 

Internet & Catalog Retail — 0.4%

 

 

 

 

 

 

 

 

 

Netflix Inc., Senior Notes

 

8.500%

 

11/15/17

 

360,000

 

363,600

(d)

QVC Inc., Senior Secured Notes

 

7.375%

 

10/15/20

 

535,000

 

571,112

(a)(d)

Total Internet & Catalog Retail

 

 

 

 

 

 

 

934,712

 

Media — 3.8%

 

 

 

 

 

 

 

 

 

CCH II LLC/CCH II Capital Corp., Senior Notes

 

13.500%

 

11/30/16

 

27,381

 

31,693

(d)

Cengage Learning Acquisitions Inc., Senior Notes

 

10.500%

 

1/15/15

 

1,090,000

 

795,700

(a)

Cengage Learning Acquisitions Inc., Senior Subordinated Notes

 

13.250%

 

7/15/15

 

200,000

 

134,000

(a)(d)

DISH DBS Corp., Senior Notes

 

6.625%

 

10/1/14

 

30,000

 

31,237

(d)

DISH DBS Corp., Senior Notes

 

7.875%

 

9/1/19

 

285,000

 

303,525

(d)

Entercom Radio LLC, Senior Notes

 

10.500%

 

12/1/19

 

310,000

 

303,800

(a)

Globo Communicacoes e Participacoes SA, Bonds

 

7.250%

 

4/26/22

 

100,000

 

105,500

(a)(d)

Good Sam Enterprises LLC, Secured Notes

 

11.500%

 

12/1/16

 

340,000

 

329,800

 

Grupo Televisa SA, Senior Bonds

 

6.625%

 

1/15/40

 

570,000

 

620,332

(d)

LBI Media Inc., Senior Secured Notes

 

9.250%

 

4/15/19

 

320,000

 

284,800

(a)

Musketeer GmbH, Senior Secured Notes

 

9.500%

 

3/15/21

 

300,000

EUR

392,024

(a)

Musketeer GmbH, Senior Secured Notes

 

9.500%

 

3/15/21

 

180,000

EUR

235,215

(a)

Nara Cable Funding Ltd., Senior Secured Notes

 

8.875%

 

12/1/18

 

500,000

EUR

576,111

(a)

NET Servicos de Comunicacao SA, Bonds

 

7.500%

 

1/27/20

 

610,000

 

698,450

(d)(j)

Nielsen Finance LLC/Nielsen Finance Co., Senior Notes

 

11.500%

 

5/1/16

 

40,000

 

45,800

(d)

Nielsen Finance LLC/Nielsen Finance Co., Senior Notes

 

7.750%

 

10/15/18

 

80,000

 

85,000

(d)

Ono Finance II PLC, Senior Bonds

 

11.125%

 

7/15/19

 

400,000

EUR

425,953

(a)

Polish Television Holding BV, Senior Secured Bonds, step bond

 

11.250%

 

5/15/17

 

300,000

EUR

417,219

(a)(h)

TVN Finance Corp. III AB, Senior Notes

 

7.875%

 

11/15/18

 

100,000

EUR

128,323

(a)

Univision Communications Inc., Senior Notes

 

8.500%

 

5/15/21

 

90,000

 

74,700

(a)

Univision Communications Inc., Senior Secured Notes

 

6.875%

 

5/15/19

 

370,000

 

345,025

(a)

Univision Communications Inc., Senior Secured Notes

 

7.875%

 

11/1/20

 

290,000

 

275,500

(a)

UPC Holding BV, Senior Notes

 

9.875%

 

4/15/18

 

180,000

 

186,300

(a)(d)

UPCB Finance II Ltd., Senior Notes

 

6.375%

 

7/1/20

 

500,000

EUR

614,743

(a)

Ziggo Bond Co. BV, Senior Notes

 

8.000%

 

5/15/18

 

650,000

EUR

851,570

(a)(d)

Total Media

 

 

 

 

 

 

 

8,292,320

 

Multiline Retail — 0.2%

 

 

 

 

 

 

 

 

 

Neiman Marcus Group Inc., Senior Secured Notes

 

7.125%

 

6/1/28

 

440,000

 

404,800

(d)

Specialty Retail — 1.4%

 

 

 

 

 

 

 

 

 

American Greetings Corp., Senior Notes

 

7.375%

 

6/1/16

 

75,000

 

78,360

 

American Greetings Corp., Senior Notes

 

7.375%

 

12/1/21

 

410,000

 

416,663

 

Edcon Proprietary Ltd., Senior Secured Notes

 

9.500%

 

3/1/18

 

825,000

EUR

867,442

(a)

Gymboree Corp., Senior Notes

 

9.125%

 

12/1/18

 

520,000

 

431,600

 

Michaels Stores Inc., Senior Subordinated Bonds

 

11.375%

 

11/1/16

 

350,000

 

369,250

(d)

Michaels Stores Inc., Senior Subordinated Notes

 

13.000%

 

11/1/16

 

650,000

 

692,250

(d)

Spencer Spirit Holdings Inc./Spencer Gifts LLC/Spirit Halloween Superstores, Senior Notes

 

11.000%

 

5/1/17

 

210,000

 

203,175

(a)

Total Specialty Retail

 

 

 

 

 

 

 

3,058,740

 

Textiles, Apparel & Luxury Goods — 0.8%

 

 

 

 

 

 

 

 

 

Boardriders SA, Senior Notes

 

8.875%

 

12/15/17

 

700,000

EUR

893,560

(a)

Empire Today LLC/Empire Today Finance Corp., Senior Secured Notes

 

11.375%

 

2/1/17

 

150,000

 

139,500

(a)

 

See Notes to Schedule of Investments.

 

2


 

Schedule of investments (unaudited) (cont’d)

November 30, 2011

 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT 

 

VALUE

 

Textiles, Apparel & Luxury Goods — continued

 

 

 

 

 

 

 

 

 

 

Oxford Industries Inc., Senior Secured Notes

 

11.375%

 

7/15/15

 

725,000

 

$

797,500

(d)

Total Textiles, Apparel & Luxury Goods

 

 

 

 

 

 

 

1,830,560

 

TOTAL CONSUMER DISCRETIONARY

 

 

 

 

 

 

 

25,213,573

 

CONSUMER STAPLES — 1.2%

 

 

 

 

 

 

 

 

 

Food Products — 0.9%

 

 

 

 

 

 

 

 

 

Blue Merger Sub Inc., Senior Notes

 

7.625%

 

2/15/19

 

586,000

 

527,400

(a)(d)

Boparan Holdings Ltd., Senior Notes

 

9.875%

 

4/30/18

 

400,000

GBP

514,991

(a)

Foodcorp Ltd., Senior Secured Notes

 

8.750%

 

3/1/18

 

230,000

EUR

259,603

(a)

Harmony Foods Corp., Senior Secured Notes

 

10.000%

 

5/1/16

 

140,000

 

135,100

(a)(d)

Simmons Foods Inc., Senior Secured Notes

 

10.500%

 

11/1/17

 

630,000

 

494,550

(a)(d)

Smithfield Foods Inc., Senior Secured Notes

 

10.000%

 

7/15/14

 

61,000

 

70,150

(d)

Total Food Products

 

 

 

 

 

 

 

2,001,794

 

Household Products — 0.1%

 

 

 

 

 

 

 

 

 

Reynolds Group DL Escrow Inc./Reynolds Group Escrow LLC, Senior Secured Notes

 

8.750%

 

10/15/16

 

100,000

 

103,750

(a)(d)

Personal Products — 0.1%

 

 

 

 

 

 

 

 

 

Hypermarcas SA, Notes

 

6.500%

 

4/20/21

 

260,000

 

228,800

(a)

Tobacco — 0.1%

 

 

 

 

 

 

 

 

 

Alliance One International Inc., Senior Notes

 

10.000%

 

7/15/16

 

150,000

 

133,125

(d)

TOTAL CONSUMER STAPLES

 

 

 

 

 

 

 

2,467,469

 

ENERGY — 13.4%

 

 

 

 

 

 

 

 

 

Energy Equipment & Services — 1.5%

 

 

 

 

 

 

 

 

 

Complete Production Services Inc., Senior Notes

 

8.000%

 

12/15/16

 

425,000

 

444,125

(d)

Hercules Offshore LLC, Senior Secured Notes

 

10.500%

 

10/15/17

 

495,000

 

477,675

(a)(d)

Parker Drilling Co., Senior Notes

 

9.125%

 

4/1/18

 

400,000

 

420,000

(d)

Petroleum Geo-Services ASA, Senior Notes

 

7.375%

 

12/15/18

 

200,000

 

200,000

(a)

Pioneer Drilling Co., Senior Notes

 

9.875%

 

3/15/18

 

200,000

 

207,250

(a)

Precision Drilling Corp., Senior Notes

 

6.625%

 

11/15/20

 

90,000

 

90,900

 

SESI LLC, Senior Notes

 

7.125%

 

12/15/21

 

490,000

 

499,800

(a)

Vantage Drilling Co., Senior Secured Notes

 

11.500%

 

8/1/15

 

950,000

 

1,023,625

(d)

Total Energy Equipment & Services

 

 

 

 

 

 

 

3,363,375

 

Oil, Gas & Consumable Fuels — 11.9%

 

 

 

 

 

 

 

 

 

Berry Petroleum Co., Senior Notes

 

10.250%

 

6/1/14

 

320,000

 

363,200

(d)

Calumet Specialty Products Partners LP/Calumet Finance Corp., Senior Notes

 

9.375%

 

5/1/19

 

240,000

 

231,600

(a)

Calumet Specialty Products Partners LP/Calumet Finance Corp., Senior Notes

 

9.375%

 

5/1/19

 

90,000

 

85,950

(a)

Chesapeake Energy Corp., Senior Notes

 

7.250%

 

12/15/18

 

25,000

 

27,250

(d)

Compagnie Generale de Geophysique-Veritas, Senior Notes

 

7.750%

 

5/15/17

 

420,000

 

420,000

(d)

CONSOL Energy Inc., Senior Notes

 

8.250%

 

4/1/20

 

480,000

 

518,400

(d)

Corral Petroleum Holdings AB, Senior Notes

 

15.000%

 

12/31/17

 

751,715

 

601,372

(a)(e)(h)

Crosstex Energy LP/Crosstex Energy Finance Corp., Senior Notes

 

8.875%

 

2/15/18

 

250,000

 

267,500

(d)

Denbury Resources Inc., Senior Subordinated Notes

 

8.250%

 

2/15/20

 

100,000

 

109,125

(d)

Dolphin Energy Ltd., Senior Secured Bonds

 

5.888%

 

6/15/19

 

627,356

 

679,144

(a)(d)

Ecopetrol SA, Senior Notes

 

7.625%

 

7/23/19

 

1,000,000

 

1,215,000

(d)

Energy Transfer Equity LP, Senior Notes

 

7.500%

 

10/15/20

 

370,000

 

384,800

(d)

Enterprise Products Operating LLP, Junior Subordinated Notes

 

8.375%

 

8/1/66

 

250,000

 

264,003

(d)(f)

Enterprise Products Operating LLP, Subordinated Notes

 

7.034%

 

1/15/68

 

260,000

 

269,107

(d)(f)

EXCO Resources Inc., Senior Notes

 

7.500%

 

9/15/18

 

520,000

 

483,600

(d)

KazMunaiGaz Finance Sub BV, Senior Notes

 

8.375%

 

7/2/13

 

1,340,000

 

1,420,400

(a)(d)

Kodiak Oil & Gas Corp., Senior Notes

 

8.125%

 

12/1/19

 

290,000

 

294,713

(a)

Milagro Oil & Gas Inc., Secured Notes

 

10.500%

 

5/15/16

 

380,000

 

271,700

(a)

Novatek Finance Ltd., Notes

 

6.604%

 

2/3/21

 

460,000

 

474,950

(a)(d)

Overseas Shipholding Group Inc., Senior Notes

 

8.125%

 

3/30/18

 

705,000

 

504,075

(d)

Pan American Energy LLC, Senior Notes

 

7.875%

 

5/7/21

 

470,000

 

472,350

(a)(d)

Pan American Energy LLC, Senior Notes

 

7.875%

 

5/7/21

 

246,000

 

247,230

(a)

Peabody Energy Corp., Senior Notes

 

7.875%

 

11/1/26

 

330,000

 

354,750

(d)

 

See Notes to Schedule of Investments.

 

3

 

 


 

Schedule of investments (unaudited) (cont’d)

November 30, 2011

 

Western Asset Global Partners Income Fund Inc.

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT 

 

VALUE

 

Oil, Gas & Consumable Fuels — continued

 

 

 

 

 

 

 

 

 

Petrobras International Finance Co., Senior Notes

 

6.875%

 

1/20/40

 

870,000

 

$

969,758

(d)

Petrobras International Finance Co., Senior Notes

 

6.750%

 

1/27/41

 

390,000

 

426,706

(d)

Petroleos Mexicanos, Notes

 

8.000%

 

5/3/19

 

4,280,000

 

5,285,800

(d)

Petroleum Co. of Trinidad & Tobago Ltd., Senior Notes

 

9.750%

 

8/14/19

 

390,000

 

462,150

(a)(d)

Petronas Capital Ltd.

 

5.250%

 

8/12/19

 

1,555,000

 

1,733,632

(a)(d)(j)

Petroplus Finance Ltd., Senior Notes

 

6.750%

 

5/1/14

 

470,000

 

331,350

(a)

Plains Exploration & Production Co., Senior Notes

 

10.000%

 

3/1/16

 

325,000

 

368,875

(d)

Plains Exploration & Production Co., Senior Notes

 

8.625%

 

10/15/19

 

330,000

 

361,350

(d)

PT Adaro Indonesia, Senior Notes

 

7.625%

 

10/22/19

 

110,000

 

117,150

(a)(d)

PT Pertamina Persero, Notes

 

5.250%

 

5/23/21

 

570,000

 

571,425

(a)(d)

Quicksilver Resources Inc., Senior Notes

 

11.750%

 

1/1/16

 

790,000

 

892,700

(d)

Quicksilver Resources Inc., Senior Notes

 

9.125%

 

8/15/19

 

230,000

 

242,363

(d)

Range Resources Corp., Senior Subordinated Notes

 

8.000%

 

5/15/19

 

10,000

 

11,150

(d)

Ras Laffan Liquefied Natural Gas Co., Ltd. III, Senior Secured Bonds

 

6.750%

 

9/30/19

 

570,000

 

683,287

(a)(d)

Reliance Holdings USA Inc., Senior Notes

 

4.500%

 

10/19/20

 

530,000

 

482,876

(a)

SandRidge Energy Inc., Senior Notes

 

7.500%

 

3/15/21

 

110,000

 

101,200

 

Saratoga Resources Inc., Senior Secured Notes

 

12.500%

 

7/1/16

 

300,000

 

300,000

 

Teekay Corp., Senior Notes

 

8.500%

 

1/15/20

 

615,000

 

588,862

(d)

TNK-BP Finance SA, Senior Notes

 

7.500%

 

7/18/16

 

150,000

 

161,775

(a)(d)

TNK-BP Finance SA, Senior Notes

 

7.875%

 

3/13/18

 

1,160,000

 

1,289,050

(a)(d)

Whiting Petroleum Corp., Senior Subordinated Notes

 

6.500%

 

10/1/18

 

130,000

 

135,200

(d)

Xinergy Ltd., Senior Secured Notes

 

9.250%

 

5/15/19

 

330,000

 

284,625

(a)

Total Oil, Gas & Consumable Fuels

 

 

 

 

 

 

 

25,761,503

 

TOTAL ENERGY

 

 

 

 

 

 

 

29,124,878

 

FINANCIALS — 4.0%

 

 

 

 

 

 

 

 

 

Capital Markets — 0.1%

 

 

 

 

 

 

 

 

 

Goldman Sachs Group Inc., Subordinated Notes

 

6.750%

 

10/1/37

 

300,000

 

267,684

(d)

Commercial Banks — 0.4%

 

 

 

 

 

 

 

 

 

BankAmerica Institutional Capital A, Junior Subordinated Bonds

 

8.070%

 

12/31/26

 

620,000

 

573,500

(a)(d)

Credit Agricole SA, Subordinated Notes

 

8.375%

 

10/13/19

 

290,000

 

211,700

(a)(d)(f)(k)

Royal Bank of Scotland Group PLC, Junior Subordinated Bonds

 

7.648%

 

9/30/31

 

200,000

 

133,000

(f)(k)

Total Commercial Banks

 

 

 

 

 

 

 

918,200

 

Consumer Finance — 0.8%

 

 

 

 

 

 

 

 

 

Ally Financial Inc., Senior Bonds

 

0.000%

 

12/1/12

 

400,000

 

374,000

(d)

Fiat Finance & Trade Ltd. SA, Senior Notes

 

6.125%

 

7/8/14

 

330,000

EUR

404,622

 

GMAC International Finance BV, Senior Bonds

 

7.500%

 

4/21/15

 

410,000

EUR

520,616

 

SLM Corp., Medium-Term Notes

 

8.000%

 

3/25/20

 

220,000

 

215,600

(d)

SLM Corp., Medium-Term Notes, Senior Notes

 

8.450%

 

6/15/18

 

210,000

 

209,625

(d)

Total Consumer Finance

 

 

 

 

 

 

 

1,724,463

 

Diversified Financial Services — 2.2%

 

 

 

 

 

 

 

 

 

Bank of America Corp., Senior Notes

 

6.500%

 

8/1/16

 

100,000

 

96,767

 

Bankrate Inc., Senior Secured Notes

 

11.750%

 

7/15/15

 

290,000

 

329,512

(d)

Boats Investments (Netherlands) BV, Secured Notes

 

9.044%

 

12/15/15

 

641,801

EUR

526,056

(e)(f)

Capital One Capital V, Junior Subordinated Notes, Cumulative Trust Preferred Securities

 

10.250%

 

8/15/39

 

310,000

 

323,562

(d)

Countrywide Capital III, Junior Subordinated Notes

 

8.050%

 

6/15/27

 

130,000

 

121,875

 

International Lease Finance Corp., Medium-Term Notes

 

6.375%

 

3/25/13

 

296,000

 

294,520

(d)

International Lease Finance Corp., Medium-Term Notes, Senior Notes

 

5.625%

 

9/20/13

 

460,000

 

445,625

 

International Lease Finance Corp., Senior Notes

 

8.625%

 

9/15/15

 

70,000

 

70,088

(d)

International Lease Finance Corp., Senior Notes

 

8.875%

 

9/1/17

 

980,000

 

997,150

(d)

International Lease Finance Corp., Senior Notes

 

8.250%

 

12/15/20

 

90,000

 

89,775

 

ISS Financing PLC, Senior Secured Bonds

 

11.000%

 

6/15/14

 

300,000

EUR

422,258

(a)

Leucadia National Corp., Senior Notes

 

7.125%

 

3/15/17

 

140,000

 

142,100

(d)

 

See Notes to Schedule of Investments.

 

4


 

Schedule of investments (unaudited) (cont’d)

November 30, 2011

 

Western Asset Global Partners Income Fund Inc.

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT 

 

VALUE

 

Diversified Financial Services — continued

 

 

 

 

 

 

 

 

 

MBNA Capital A, Junior Subordinated Notes

 

8.278%

 

12/1/26

 

250,000

 

$

234,063

(d)

Telenet Finance III Luxembourg S.C.A., Senior Secured Notes

 

6.625%

 

2/15/21

 

500,000

EUR

634,898

(a)

Total Diversified Financial Services

 

 

 

 

 

 

 

4,728,249

 

Insurance — 0.5%

 

 

 

 

 

 

 

 

 

American International Group Inc., Senior Notes

 

8.250%

 

8/15/18

 

450,000

 

482,309

(d)

Dai-ichi Life Insurance Co., Ltd., Subordinated Notes

 

7.250%

 

7/25/21

 

150,000

 

151,125

(a)(f)(k)

ING Capital Funding Trust III, Junior Subordinated Bonds

 

3.969%

 

3/31/12

 

100,000

 

71,802

(f)(k)

MetLife Capital Trust IV, Junior Subordinated Notes

 

7.875%

 

12/15/37

 

250,000

 

256,250

(a)(d)

Total Insurance

 

 

 

 

 

 

 

961,486

 

TOTAL FINANCIALS

 

 

 

 

 

 

 

8,600,082

 

HEALTH CARE — 3.7%

 

 

 

 

 

 

 

 

 

Health Care Equipment & Supplies — 0.3%

 

 

 

 

 

 

 

 

 

Biomet Inc., Senior Notes

 

10.000%

 

10/15/17

 

20,000

 

21,650

(d)

Biomet Inc., Senior Toggle Notes

 

10.375%

 

10/15/17

 

170,000

 

183,175

(d)(e)

Ontex IV, Senior Notes

 

9.000%

 

4/15/19

 

300,000

EUR

285,200

(a)

Ontex IV, Senior Notes

 

9.000%

 

4/15/19

 

200,000

EUR

190,134

(a)

Total Health Care Equipment & Supplies

 

 

 

 

 

 

 

680,159

 

Health Care Providers & Services — 3.0%

 

 

 

 

 

 

 

 

 

Acadia Healthcare, Senior Notes

 

12.875%

 

11/1/18

 

180,000

 

178,200

(a)

American Renal Associates Holdings Inc., Senior Notes

 

9.750%

 

3/1/16

 

336,520

 

328,738

 

American Renal Holdings, Senior Secured Notes

 

8.375%

 

5/15/18

 

300,000

 

310,500

 

AMERIGROUP Corp., Senior Notes

 

7.500%

 

11/15/19

 

220,000

 

226,600

 

Community Health Systems Inc., Senior Notes

 

8.000%

 

11/15/19

 

520,000

 

505,700

(a)

CRC Health Corp., Senior Subordinated Notes

 

10.750%

 

2/1/16

 

1,080,000

 

1,034,100

(d)

Crown Newco 3 PLC, Senior Subordinated Notes

 

8.875%

 

2/15/19

 

125,000

GBP

153,948

(a)

ExamWorks Group Inc., Senior Notes

 

9.000%

 

7/15/19

 

210,000

 

188,475

(a)

Fresenius Medical Care U.S. Finance Inc., Senior Notes

 

6.875%

 

7/15/17

 

750,000

 

798,750

(d)

Fresenius U.S. Finance II Inc., Senior Notes

 

9.000%

 

7/15/15

 

160,000

 

178,800

(a)(d)

HCA Inc., Senior Secured Notes

 

8.500%

 

4/15/19

 

620,000

 

672,700

(d)

INC Research LLC, Senior Notes

 

11.500%

 

7/15/19

 

160,000

 

144,800

(a)

InVentiv Health Inc., Senior Notes

 

10.000%

 

8/15/18

 

330,000

 

314,325

(a)

Tenet Healthcare Corp., Senior Secured Notes

 

10.000%

 

5/1/18

 

491,000

 

554,830

(d)

Universal Hospital Services Inc., Senior Secured Notes

 

8.500%

 

6/1/15

 

635,000

 

642,938

(d)(e)

US Oncology Inc.

 

9.125%

 

8/15/17

 

255,000

 

3,825

 

Vanguard Health Holdings Co., II LLC, Senior Notes

 

8.000%

 

2/1/18

 

250,000

 

238,750

(d)

Total Health Care Providers & Services

 

 

 

 

 

 

 

6,475,979

 

Pharmaceuticals — 0.4%

 

 

 

 

 

 

 

 

 

ConvaTec Healthcare E SA, Senior Notes

 

10.875%

 

12/15/18

 

660,000

EUR

780,420

(a)

Giant Funding Corp., Senior Secured Notes

 

8.250%

 

2/1/18

 

100,000

 

103,500

(a)(d)

Total Pharmaceuticals

 

 

 

 

 

 

 

883,920

 

TOTAL HEALTH CARE

 

 

 

 

 

 

 

8,040,058

 

INDUSTRIALS — 8.3%

 

 

 

 

 

 

 

 

 

Aerospace & Defense — 1.1%

 

 

 

 

 

 

 

 

 

Ducommun Inc., Senior Notes

 

9.750%

 

7/15/18

 

220,000

 

227,700

(a)(d)

FGI Operating Co. Inc., Senior Secured Notes

 

10.250%

 

8/1/15

 

477,000

 

500,850

(d)

Huntington Ingalls Industries Inc., Senior Notes

 

6.875%

 

3/15/18

 

220,000

 

216,700

(a)

Huntington Ingalls Industries Inc., Senior Notes

 

7.125%

 

3/15/21

 

160,000

 

157,600

(a)

Kratos Defense & Security Solutions Inc., Senior Notes

 

10.000%

 

6/1/17

 

50,000

 

50,625

(a)

Kratos Defense & Security Solutions Inc., Senior Secured Notes

 

10.000%

 

6/1/17

 

500,000

 

506,250

(d)

Triumph Group Inc., Senior Notes

 

8.625%

 

7/15/18

 

190,000

 

208,050

(d)

Wyle Services Corp., Senior Subordinated Notes

 

10.500%

 

4/1/18

 

560,000

 

541,800

(a)(d)

Total Aerospace & Defense

 

 

 

 

 

 

 

2,409,575

 

 

See Notes to Schedule of Investments.

 

5


 

Schedule of investments (unaudited) (cont’d)

November 30, 2011

 

Western Asset Global Partners Income Fund Inc.

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT

 

VALUE

 

Airlines — 1.2%

 

 

 

 

 

 

 

 

 

American Airlines Pass-Through Trust, Secured Notes

 

7.000%

 

1/31/18

 

178,812

 

$

137,685

(a)

BAA SH PLC, Senior Secured Notes

 

7.125%

 

3/1/17

 

400,000

GBP

592,004

 

Continental Airlines Inc., Pass-Through Certificates

 

7.373%

 

12/15/15

 

21,939

 

21,417

 

Continental Airlines Inc., Pass-Through Certificates

 

9.250%

 

5/10/17

 

4,191

 

4,317

 

Continental Airlines Inc., Pass-Through Certificates, Subordinated Secured Notes

 

7.339%

 

4/19/14

 

65,645

 

64,004

(d)

Continental Airlines Inc., Senior Secured Notes

 

6.750%

 

9/15/15

 

260,000

 

254,150

(a)(d)

DAE Aviation Holdings Inc., Senior Notes

 

11.250%

 

8/1/15

 

950,000

 

992,750

(a)(d)

Delta Air Lines, Secured Notes

 

6.375%

 

1/2/16

 

190,000

 

172,900

(a)

Delta Air Lines Inc., Pass-Through Certificates, Subordinated Secured Notes

 

9.750%

 

12/17/16

 

125,235

 

132,748

(d)

Delta Air Lines Inc., Senior Secured Notes

 

9.500%

 

9/15/14

 

166,000

 

170,150

(a)(d)

United Air Lines Inc., Senior Secured Notes

 

9.875%

 

8/1/13

 

144,000

 

147,960

(a)(d)

Total Airlines

 

 

 

 

 

 

 

2,690,085

 

Building Products — 0.5%

 

 

 

 

 

 

 

 

 

Ashton Woods USA LLC/Ashton Woods Finance Co., Senior Subordinated Notes, step bond

 

0.000%

 

6/30/15

 

174,200

 

120,198

(a)(g)

Building Materials Corp. of America, Senior Notes

 

6.750%

 

5/1/21

 

370,000

 

369,075

(a)(d)

GTL Trade Finance Inc., Senior Notes

 

7.250%

 

10/20/17

 

231,000

 

251,444

(a)(d)

Rearden G Holdings EINS GmbH, Senior Notes

 

7.875%

 

3/30/20

 

200,000

 

202,000

(a)

Shea Homes LP, Senior Secured Notes

 

8.625%

 

5/15/19

 

220,000

 

201,850

(a)

Total Building Products

 

 

 

 

 

 

 

1,144,567

 

Commercial Services & Supplies — 0.9%

 

 

 

 

 

 

 

 

 

Altegrity Inc., Senior Subordinated Notes

 

10.500%

 

11/1/15

 

50,000

 

46,750

(a)

Altegrity Inc., Senior Subordinated Notes

 

11.750%

 

5/1/16

 

780,000

 

729,300

(a)(d)

American Reprographics Co., Senior Notes

 

10.500%

 

12/15/16

 

370,000

 

334,850

 

Geo Group Inc., Senior Notes

 

7.750%

 

10/15/17

 

455,000

 

481,162

(d)

JM Huber Corp., Senior Notes

 

9.875%

 

11/1/19

 

200,000

 

202,000

(a)

RSC Equipment Rental Inc./RSC Holdings III LLC, Senior Notes

 

8.250%

 

2/1/21

 

180,000

 

171,900

 

Total Commercial Services & Supplies

 

 

 

 

 

 

 

1,965,962

 

Construction & Engineering — 0.5%

 

 

 

 

 

 

 

 

 

Abengoa Finance SAU, Senior Notes

 

8.875%

 

11/1/17

 

350,000

 

336,000

(a)

Odebrecht Finance Ltd., Senior Notes

 

7.000%

 

4/21/20

 

550,000

 

589,875

(a)(d)

Odebrecht Finance Ltd., Senior Notes

 

6.000%

 

4/5/23

 

220,000

 

221,100

(a)

Total Construction & Engineering

 

 

 

 

 

 

 

1,146,975

 

Electrical Equipment — 0.2%

 

 

 

 

 

 

 

 

 

NES Rentals Holdings Inc., Senior Secured Notes

 

12.250%

 

4/15/15

 

400,000

 

344,000

(a)(d)

Industrial Conglomerates — 0.3%

 

 

 

 

 

 

 

 

 

Leucadia National Corp., Senior Notes

 

8.125%

 

9/15/15

 

240,000

 

254,400

(d)

Sinochem Overseas Capital Co., Ltd., Senior Notes

 

4.500%

 

11/12/20

 

370,000

 

358,120

(a)

Total Industrial Conglomerates

 

 

 

 

 

 

 

612,520

 

Machinery — 0.3%

 

 

 

 

 

 

 

 

 

Dematic SA, Senior Secured Notes

 

8.750%

 

5/1/16

 

510,000

 

497,250

(a)(d)

Lonking Holdings Ltd., Senior Notes

 

8.500%

 

6/3/16

 

230,000

 

207,000

(a)

Total Machinery

 

 

 

 

 

 

 

704,250

 

Marine — 0.5%

 

 

 

 

 

 

 

 

 

Horizon Lines LLC, Senior Secured Notes

 

11.000%

 

10/15/16

 

220,000

 

207,900

(a)

Horizon Lines LLC, Senior Secured Notes

 

13.000%

 

10/15/16

 

290,000

 

274,050

(a)(e)(h)

Navios Maritime Acquisition Corp./Navios Acquisition Finance U.S. Inc., Senior Secured Notes

 

8.625%

 

11/1/17

 

670,000

 

512,550

(d)

Navios Maritime Holdings Inc./Navios Maritime Finance II U.S. Inc., Senior Notes

 

8.125%

 

2/15/19

 

180,000

 

139,500

 

Total Marine

 

 

 

 

 

 

 

1,134,000

 

Road & Rail — 1.7%

 

 

 

 

 

 

 

 

 

AE Escrow Corp., Senior Notes

 

9.750%

 

3/15/20

 

220,000

 

221,100

(a)

Avis Budget Car Rental LLC/Avis Budget Finance Inc., Senior Notes

 

9.625%

 

3/15/18

 

100,000

 

101,250

 

 

See Notes to Schedule of Investments.

 

6


 

Schedule of investments (unaudited) (cont’d)

November 30, 2011

 

Western Asset Global Partners Income Fund Inc.

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT

 

VALUE

 

Road & Rail — continued

 

 

 

 

 

 

 

 

 

Florida East Coast Holdings Corp., Senior Notes

 

10.500%

 

8/1/17

 

827,625

 

$

661,842

(e)

Florida East Coast Railway Corp., Senior Secured Notes

 

8.125%

 

2/1/17

 

100,000

 

100,125

 

Jack Cooper Holdings Corp., Senior Secured Notes

 

13.250%

 

12/15/15

 

546,000

 

535,080

(a)(d)(h)

Kansas City Southern de Mexico, Senior Notes

 

12.500%

 

4/1/16

 

740,000

 

862,100

(d)

Kansas City Southern de Mexico, Senior Notes

 

8.000%

 

2/1/18

 

85,000

 

93,500

(d)

Kansas City Southern Railway, Senior Notes

 

13.000%

 

12/15/13

 

49,000

 

55,615

(d)

Kansas City Southern Railway, Senior Notes

 

8.000%

 

6/1/15

 

85,000

 

90,844

(d)

Quality Distribution LLC/QD Capital Corp., Secured Notes

 

9.875%

 

11/1/18

 

460,000

 

463,450

 

RailAmerica Inc., Senior Secured Notes

 

9.250%

 

7/1/17

 

362,000

 

396,390

(d)

Total Road & Rail

 

 

 

 

 

 

 

3,581,296

 

Trading Companies & Distributors — 0.2%

 

 

 

 

 

 

 

 

 

H&E Equipment Services Inc., Senior Notes

 

8.375%

 

7/15/16

 

455,000

 

464,100

(d)

Transportation — 0.9%

 

 

 

 

 

 

 

 

 

CMA CGM, Senior Notes

 

8.500%

 

4/15/17

 

1,000,000

 

355,000

(a)(d)

CMA CGM, Senior Notes

 

8.875%

 

4/15/19

 

700,000

EUR

329,206

(a)

Hapag-Lloyd AG, Senior Notes

 

9.750%

 

10/15/17

 

710,000

 

465,050

(a)(d)

Syncreon Global Ireland Ltd./Syncreon Global Finance US Inc., Senior Notes

 

9.500%

 

5/1/18

 

770,000

 

713,213

(a)(d)

Total Transportation

 

 

 

 

 

 

 

1,862,469

 

TOTAL INDUSTRIALS

 

 

 

 

 

 

 

18,059,799

 

INFORMATION TECHNOLOGY — 1.4%

 

 

 

 

 

 

 

 

 

Communications Equipment — 0.3%

 

 

 

 

 

 

 

 

 

Lucent Technologies Inc., Debentures

 

6.450%

 

3/15/29

 

880,000

 

638,000

(d)

Electronic Equipment, Instruments & Components — 0.4%

 

 

 

 

 

 

 

NXP BV/NXP Funding LLC, Senior Secured Notes

 

9.750%

 

8/1/18

 

850,000

 

928,625

(a)(d)

IT Services — 0.0%

 

 

 

 

 

 

 

 

 

Sterling Merger Inc., Senior Notes

 

11.000%

 

10/1/19

 

70,000

 

67,725

(a)

Semiconductors & Semiconductor Equipment — 0.7%

 

 

 

 

 

 

 

CDW LLC/CDW Finance Corp., Senior Notes

 

11.000%

 

10/12/15

 

180,000

 

180,900

(d)

CDW LLC/CDW Finance Corp., Senior Notes

 

11.500%

 

10/12/15

 

140,000

 

140,700

(e)

Freescale Semiconductor Inc., Senior Secured Notes

 

9.250%

 

4/15/18

 

140,000

 

146,650

(a)(d)

Freescale Semiconductor Inc., Senior Subordinated Notes

 

10.125%

 

12/15/16

 

620,000

 

647,900

(d)

STATS ChipPAC Ltd., Senior Notes

 

7.500%

 

8/12/15

 

244,000

 

252,540

(a)(d)

Total Semiconductors & Semiconductor Equipment

 

 

 

 

 

1,368,690

 

TOTAL INFORMATION TECHNOLOGY

 

 

 

 

 

 

 

3,003,040

 

MATERIALS — 9.6%

 

 

 

 

 

 

 

 

 

Chemicals — 1.2%

 

 

 

 

 

 

 

 

 

Braskem Finance Ltd., Senior Notes

 

7.000%

 

5/7/20

 

540,000

 

569,700

(a)(d)

Georgia Gulf Corp., Senior Secured Notes

 

9.000%

 

1/15/17

 

340,000

 

353,600

(a)(d)

Ineos Finance PLC, Senior Secured Notes

 

9.000%

 

5/15/15

 

310,000

 

313,875

(a)

Kerling PLC, Senior Secured Notes

 

10.625%

 

1/28/17

 

268,000

EUR

315,097

(a)

Lyondell Chemical Co., Senior Secured Notes

 

8.000%

 

11/1/17

 

122,310

EUR

175,852

 

Lyondell Chemical Co., Senior Secured Notes

 

8.000%

 

11/1/17

 

124,000

 

135,160

(d)

Solutia Inc., Senior Notes

 

8.750%

 

11/1/17

 

5,000

 

5,425

(d)

Solutia Inc., Senior Notes

 

7.875%

 

3/15/20

 

310,000

 

331,700

(d)

Styrolution GmbH, Senior Secured Notes

 

7.625%

 

5/15/16

 

500,000

EUR

453,499

(a)

Total Chemicals

 

 

 

 

 

 

 

2,653,908

 

Containers & Packaging — 2.1%

 

 

 

 

 

 

 

 

 

Ardagh Packaging Finance PLC, Senior Notes

 

9.250%

 

10/15/20

 

1,000,000

EUR

1,187,495

(a)

Berry Plastics Corp., Secured Notes

 

9.750%

 

1/15/21

 

350,000

 

336,000

(d)

Longview Fibre Paper & Packaging Inc., Senior Secured Notes

 

8.000%

 

6/1/16

 

280,000

 

282,800

(a)

Pretium Packaging LLC/Pretium Finance Inc., Senior Secured Notes

 

11.500%

 

4/1/16

 

510,000

 

507,450

(a)(d)

Reynolds Group Issuer Inc./Reynolds Group Issuer LLC, Senior Notes

 

9.250%

 

5/15/18

 

290,000

 

265,350

(a)

 

See Notes to Schedule of Investments.

 

7

 

 

 

 


 

Schedule of investments (unaudited) (cont’d)

November 30, 2011

 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT

 

VALUE

 

Containers & Packaging — continued

 

 

 

 

 

 

 

 

 

Reynolds Group Issuer Inc./Reynolds Group Issuer LLC, Senior Notes

 

9.875%

 

8/15/19

 

120,000

 

$

110,400

(a)

Reynolds Group Issuer Inc./Reynolds Group Issuer LLC, Senior Notes

 

8.250%

 

2/15/21

 

270,000

 

230,850

(a)

Reynolds Group Issuer Inc./Reynolds Group Issuer LLC, Senior Secured Notes

 

6.875%

 

2/15/21

 

200,000

 

192,000

(a)

Rock-Tenn Co., Senior Notes

 

9.250%

 

3/15/16

 

200,000

 

213,000

(d)

Suzano Trading Ltd., Senior Notes

 

5.875%

 

1/23/21

 

500,000

 

455,000

(a)

Viskase Cos. Inc., Senior Secured Notes

 

9.875%

 

1/15/18

 

610,000

 

611,525

(a)(d)

Total Containers & Packaging

 

 

 

 

 

 

 

4,391,870

 

Metals & Mining — 5.2%

 

 

 

 

 

 

 

 

 

China Oriental Group Co. Ltd.

 

7.000%

 

11/17/17

 

490,000

 

374,850

(a)

Corporacion Nacional del Cobre de Chile, Senior Notes

 

3.875%

 

11/3/21

 

490,000

 

489,844

(a)

CSN Resources SA, Senior Bonds

 

6.500%

 

7/21/20

 

270,000

 

284,175

(a)(d)

CSN Resources SA, Senior Bonds

 

6.500%

 

7/21/20

 

250,000

 

263,125

(a)(d)

Evraz Group SA, Notes

 

8.250%

 

11/10/15

 

130,000

 

132,925

(a)

Evraz Group SA, Notes

 

6.750%

 

4/27/18

 

1,310,000

 

1,182,275

(a)(d)

Evraz Group SA, Senior Notes

 

9.500%

 

4/24/18

 

540,000

 

560,925

(a)

FMG Resources (August 2006) Pty Ltd., Senior Notes

 

7.000%

 

11/1/15

 

80,000

 

77,800

(a)

FMG Resources (August 2006) Pty Ltd., Senior Notes

 

8.250%

 

11/1/19

 

620,000

 

611,475

(a)

Midwest Vanadium Pty Ltd., Senior Secured Notes

 

11.500%

 

2/15/18

 

840,000

 

609,000

(a)(d)

Mirabela Nickel Ltd., Senior Notes

 

8.750%

 

4/15/18

 

300,000

 

268,500

(a)

New World Resources NV, Senior Bonds

 

7.375%

 

5/15/15

 

330,000

EUR

407,947

(a)

Novelis Inc., Senior Notes

 

8.750%

 

12/15/20

 

510,000

 

540,600

(d)

Optima Specialty Steel Inc., Senior Secured Notes

 

12.500%

 

12/15/16

 

260,000

 

249,600

(a)

Rio Tinto Finance USA Ltd., Senior Notes

 

9.000%

 

5/1/19

 

260,000

 

350,241

(d)

Ryerson Holding Corp., Senior Secured Notes

 

0.000%

 

2/1/15

 

810,000

 

352,350

(d)

Southern Copper Corp., Senior Notes

 

5.375%

 

4/16/20

 

200,000

 

206,788

(d)

Southern Copper Corp., Senior Notes

 

6.750%

 

4/16/40

 

230,000

 

232,506

(d)

Tempel Steel Co., Senior Secured Notes

 

12.000%

 

8/15/16

 

210,000

 

198,450

(a)(d)

Vale Overseas Ltd., Notes

 

8.250%

 

1/17/34

 

460,000

 

581,002

(d)

Vale Overseas Ltd., Notes

 

6.875%

 

11/21/36

 

1,757,000

 

1,929,084

(d)

Vedanta Resources PLC, Senior Notes

 

8.750%

 

1/15/14

 

920,000

 

892,400

(a)(d)

Vedanta Resources PLC, Senior Notes

 

6.750%

 

6/7/16

 

450,000

 

384,750

(a)

Vedanta Resources PLC, Senior Notes

 

9.500%

 

7/18/18

 

100,000

 

90,000

(a)

Total Metals & Mining

 

 

 

 

 

 

 

11,270,612

 

Paper & Forest Products — 1.1%

 

 

 

 

 

 

 

 

 

Appleton Papers Inc., Senior Secured Notes

 

11.250%

 

12/15/15

 

407,000

 

368,335

(d)

Celulosa Arauco y Constitucion SA, Senior Notes

 

7.250%

 

7/29/19

 

222,000

 

261,922

(d)

China Forestry Holdings Co., Ltd., Senior Secured Bonds

 

10.250%

 

11/17/15

 

366,000

 

236,070

(a)(g)

Empresas CMPC SA, Notes

 

4.750%

 

1/19/18

 

250,000

 

259,904

(a)

Fibria Overseas Finance Ltd., Senior Notes

 

7.500%

 

5/4/20

 

240,000

 

236,400

(a)

Fibria Overseas Finance Ltd., Senior Notes

 

6.750%

 

3/3/21

 

250,000

 

235,625

(a)(d)

PE Paper Escrow GmbH, Senior Secured Notes

 

12.000%

 

8/1/14

 

150,000

 

160,500

(a)(d)

Verso Paper Holdings LLC, Senior Subordinated Notes

 

11.375%

 

8/1/16

 

480,000

 

290,400

 

Verso Paper Holdings LLC/Verso Paper Inc., Senior Secured Notes

 

8.750%

 

2/1/19

 

520,000

 

340,600

 

Total Paper & Forest Products

 

 

 

 

 

 

 

2,389,756

 

TOTAL MATERIALS

 

 

 

 

 

 

 

20,706,146

 

TELECOMMUNICATION SERVICES — 6.8%

 

 

 

 

 

 

 

 

 

Diversified Telecommunication Services — 4.4%

 

 

 

 

 

 

 

 

 

Axtel SAB de CV, Senior Notes

 

7.625%

 

2/1/17

 

1,363,000

 

1,029,065

(a)(d)

Axtel SAB de CV, Senior Notes

 

7.625%

 

2/1/17

 

730,000

 

551,150

(a)(d)

Axtel SAB de CV, Senior Notes

 

9.000%

 

9/22/19

 

356,000

 

268,780

(a)

Cincinnati Bell Telephone Co., Senior Debentures

 

6.300%

 

12/1/28

 

50,000

 

37,750

(d)

Cogent Communications Group Inc., Senior Secured Notes

 

8.375%

 

2/15/18

 

380,000

 

388,550

(a)(d)

Inmarsat Finance PLC, Senior Notes

 

7.375%

 

12/1/17

 

580,000

 

595,950

(a)(d)

 

See Notes to Schedule of Investments.

 

8


 

Schedule of investments (unaudited) (cont’d)

November 30, 2011

 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT

 

VALUE

 

Diversified Telecommunication Services — continued

 

 

 

 

 

 

 

Intelsat Jackson Holdings Ltd., Senior Notes

 

11.250%

 

6/15/16

 

150,000

 

$

156,375

(d)

Intelsat Jackson Holdings Ltd., Senior Notes

 

8.500%

 

11/1/19

 

150,000

 

153,375

 

Intelsat Jackson Holdings SA, Senior Notes

 

7.250%

 

10/15/20

 

450,000

 

429,750

(a)

Intelsat Luxembourg SA, Senior Notes

 

11.250%

 

2/4/17

 

200,000

 

184,500

 

Level 3 Financing Inc., Senior Notes

 

9.250%

 

11/1/14

 

345,000

 

353,194

(d)

Primus Telecommunications Holding Inc., Senior Notes

 

10.000%

 

4/15/17

 

55,946

 

54,268

(a)

Qtel International Finance Ltd., Senior Notes

 

4.750%

 

2/16/21

 

220,000

 

220,000

(a)

Satmex Escrow SA de CV, Secured Senior Notes

 

9.500%

 

5/15/17

 

250,000

 

255,000

 

Sunrise Communications Holdings SA, Senior Secured Notes

 

8.500%

 

12/31/18

 

156,000

EUR

205,425

(a)

Sunrise Communications International SA, Senior Secured Notes

 

7.000%

 

12/31/17

 

132,000

EUR

181,802

(a)

Telemar Norte Leste SA, Senior Notes

 

5.500%

 

10/23/20

 

380,000

 

374,300

(a)

TW Telecom Holdings Inc., Senior Notes

 

8.000%

 

3/1/18

 

380,000

 

400,900

(d)

UBS Luxembourg SA for OJSC Vimpel Communications, Loan Participation Notes

 

8.250%

 

5/23/16

 

480,000

 

481,200

(a)

Vimpel Communications, Loan Participation Notes

 

8.375%

 

4/30/13

 

520,000

 

546,000

(a)

Vimpel Communications, Notes

 

6.493%

 

2/2/16

 

250,000

 

236,875

(a)

VIP Finance Ireland Ltd. for OJSC Vimpel Communications, Loan Participation Notes, Secured Notes

 

8.375%

 

4/30/13

 

248,000

 

260,400

(a)(d)

West Corp., Senior Notes

 

8.625%

 

10/1/18

 

370,000

 

370,925

 

West Corp., Senior Notes

 

7.875%

 

1/15/19

 

470,000

 

472,350

 

West Corp., Senior Subordinated Notes

 

11.000%

 

10/15/16

 

290,000

 

307,037

(d)

Wind Acquisition Finance SA, Senior Notes

 

11.750%

 

7/15/17

 

200,000

 

173,500

(a)(d)

Wind Acquisition Finance SA, Senior Secured Notes

 

7.250%

 

2/15/18

 

200,000

 

175,000

(a)

Wind Acquisition Holdings Finance SpA, Senior Notes

 

12.250%

 

7/15/17

 

301,168

 

219,470

(a)(e)

Windstream Corp., Senior Notes

 

7.500%

 

6/1/22

 

340,000

 

325,550

(a)

Windstream Corp., Senior Notes

 

7.500%

 

4/1/23

 

270,000

 

255,150

 

Total Diversified Telecommunication Services

 

 

 

 

 

 

 

9,663,591

 

Wireless Telecommunication Services — 2.4%

 

 

 

 

 

 

 

 

 

America Movil SAB de CV, Senior Notes

 

5.625%

 

11/15/17

 

340,000

 

388,609

(d)

Indosat Palapa Co. BV, Senior Notes

 

7.375%

 

7/29/20

 

540,000

 

585,900

(a)(d)

MetroPCS Wireless Inc., Senior Notes

 

7.875%

 

9/1/18

 

290,000

 

281,300

 

MetroPCS Wireless Inc., Senior Notes

 

6.625%

 

11/15/20

 

450,000

 

393,750

 

Phones4u Finance PLC, Senior Secured Notes

 

9.500%

 

4/1/18

 

490,000

GBP

603,478

(a)

Phones4u Finance PLC, Senior Secured Notes

 

9.500%

 

4/1/18

 

100,000

GBP

123,159

(a)

Sprint Capital Corp., Senior Notes

 

8.750%

 

3/15/32

 

2,115,000

 

1,654,987

(d)

Sprint Nextel Corp., Senior Notes

 

9.000%

 

11/15/18

 

470,000

 

474,700

(a)

Syniverse Holdings Inc., Senior Notes

 

9.125%

 

1/15/19

 

425,000

 

437,750

(d)

VimpelCom Holdings BV, Senior Notes

 

7.504%

 

3/1/22

 

200,000

 

174,750

(a)

Total Wireless Telecommunication Services

 

 

 

 

 

 

 

5,118,383

 

TOTAL TELECOMMUNICATION SERVICES

 

 

 

 

 

 

 

14,781,974

 

UTILITIES — 4.7%

 

 

 

 

 

 

 

 

 

Electric Utilities — 1.3%

 

 

 

 

 

 

 

 

 

AES Red Oak LLC, Secured Notes

 

9.200%

 

11/30/29

 

660,000

 

673,200

(d)

Astoria Depositor Corp., Pass-Through Certificates

 

8.144%

 

5/1/21

 

420,000

 

369,600

(a)

EEB International Ltd., Senior Bonds

 

8.750%

 

10/31/14

 

420,000

 

439,446

(a)(d)

Majapahit Holding BV, Senior Notes

 

7.750%

 

1/20/20

 

280,000

 

322,000

(a)(d)

Midwest Generation LLC, Pass-Through Certificates

 

8.560%

 

1/2/16

 

62,138

 

62,294

 

Reliant Energy Mid-Atlantic Power Holdings LLC, Senior Notes

 

9.681%

 

7/2/26

 

800,000

 

784,000

(d)

Texas Competitive Electric Holdings Co. LLC/TCEH Finance Inc., Senior Secured Notes

 

11.500%

 

10/1/20

 

350,000

 

292,250

(a)

Total Electric Utilities

 

 

 

 

 

 

 

2,942,790

 

Gas Utilities — 0.2%

 

 

 

 

 

 

 

 

 

Southern Natural Gas Co., Senior Notes

 

8.000%

 

3/1/32

 

70,000

 

87,172

(d)

 

See Notes to Schedule of Investments.

 

9


 

Schedule of investments (unaudited) (cont’d)

November 30, 2011

 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT

 

VALUE

 

Gas Utilities — continued

 

 

 

 

 

 

 

 

 

Suburban Propane Partners LP/Suburban Energy Finance Corp., Senior Notes

 

7.375%

 

3/15/20

 

330,000

 

$

342,375

(d)

Total Gas Utilities

 

 

 

 

 

 

 

429,547

 

Independent Power Producers & Energy Traders — 3.1%

 

 

 

 

 

 

 

AES Corp., Senior Notes

 

9.750%

 

4/15/16

 

500,000

 

567,500

(d)

AES Gener SA, Notes

 

5.250%

 

8/15/21

 

250,000

 

254,375

(a)

Atlantic Power Corp., Senior Notes

 

9.000%

 

11/15/18

 

270,000

 

267,975

(a)

Calpine Corp., Senior Secured Notes

 

7.875%

 

7/31/20

 

200,000

 

208,500

(a)(d)

Calpine Corp., Senior Secured Notes

 

7.500%

 

2/15/21

 

100,000

 

102,500

(a)(d)

Calpine Corp., Senior Secured Notes

 

7.875%

 

1/15/23

 

620,000

 

643,250

(a)(d)

Colbun SA, Senior Notes

 

6.000%

 

1/21/20

 

390,000

 

407,932

(a)(d)

Dynegy Inc., Bonds

 

7.670%

 

11/8/16

 

280,000

 

169,400

(b)(d)

Edison Mission Energy, Senior Notes

 

7.625%

 

5/15/27

 

200,000

 

117,000

(d)

Energy Future Holdings Corp., Senior Notes

 

10.875%

 

11/1/17

 

1,351,000

 

1,090,933

(d)

Energy Future Holdings Corp., Senior Notes

 

11.250%

 

11/1/17

 

583,539

 

475,648

(d)(e)

First Wind Holdings Inc., Senior Secured Notes

 

10.250%

 

6/1/18

 

270,000

 

257,850

(a)

Foresight Energy LLC/Foresight Energy Corp., Senior Notes

 

9.625%

 

8/15/17

 

810,000

 

810,000

(a)(d)

Mirant Americas Generation LLC, Senior Notes

 

9.125%

 

5/1/31

 

1,430,000

 

1,279,850

(d)

Total Independent Power Producers & Energy Traders

 

 

 

 

 

6,652,713

 

Multi-Utilities — 0.1%

 

 

 

 

 

 

 

 

 

Empresas Publicas de Medellin ESP, Senior Notes

 

7.625%

 

7/29/19

 

200,000

 

234,720

(a)(d)

TOTAL UTILITIES

 

 

 

 

 

 

 

10,259,770

 

TOTAL CORPORATE BONDS & NOTES (Cost — $144,509,106)

 

 

 

 

 

140,256,789

 

COLLATERALIZED SENIOR LOANS — 1.6%

 

 

 

 

 

 

 

 

 

CONSUMER DISCRETIONARY — 0.7%

 

 

 

 

 

 

 

 

 

Diversified Consumer Services — 0.5%

 

 

 

 

 

 

 

 

 

Realogy Corp., Term Loan

 

13.500%

 

10/15/17

 

1,000,000

 

983,750

(l)

Hotels, Restaurants & Leisure — 0.1%

 

 

 

 

 

 

 

 

 

El Pollo Loco Inc., First Lien Term Loan

 

9.250%

 

7/14/17

 

299,250

 

269,325

(l)

Specialty Retail — 0.1%

 

 

 

 

 

 

 

 

 

BCBG Maxazria International, Term Loan B

 

9.870%

 

5/19/15

 

329,175

 

307,161

(l)

TOTAL CONSUMER DISCRETIONARY

 

 

 

 

 

 

 

1,560,236

 

INDUSTRIALS — 0.1%

 

 

 

 

 

 

 

 

 

Marine — 0.1%

 

 

 

 

 

 

 

 

 

Trico Shipping AS, Term Loan A

 

10.000%

 

5/12/14

 

97,612

 

98,099

(g)(l)

Trico Shipping AS, Term Loan B

 

—    

 

5/12/14

 

97,612

 

98,100

(g)(l)(m)

TOTAL INDUSTRIALS

 

 

 

 

 

 

 

196,199

 

INFORMATION TECHNOLOGY — 0.1%

 

 

 

 

 

 

 

 

 

IT Services — 0.1%

 

 

 

 

 

 

 

 

 

SRA International Inc., Term Loan B

 

6.500%

 

7/20/18

 

245,714

 

230,562

(l)

MATERIALS — 0.2%

 

 

 

 

 

 

 

 

 

Chemicals — 0.2%

 

 

 

 

 

 

 

 

 

Kerling PLC, Term Loan

 

10.000%

 

6/30/16

 

300,000

EUR

352,721

(l)

TELECOMMUNICATION SERVICES — 0.4%

 

 

 

 

 

 

 

 

 

Wireless Telecommunication Services — 0.4%

 

 

 

 

 

 

 

 

 

Vodafone Americas Finance 2 Inc., Term Loan A

 

6.875%

 

8/11/15

 

802,711

 

802,711

(l)

UTILITIES — 0.1%

 

 

 

 

 

 

 

 

 

Electric Utilities — 0.1%

 

 

 

 

 

 

 

 

 

Texas Competitive Electric Holdings Co. LLC, Term Loan

 

4.748%

 

10/10/17

 

323,528

 

212,518

(l)

TOTAL COLLATERALIZED SENIOR LOANS (Cost — $3,528,020)

 

 

 

 

3,354,947

 

CONVERTIBLE BONDS & NOTES — 0.4%

 

 

 

 

 

 

 

 

 

CONSUMER DISCRETIONARY — 0.2%

 

 

 

 

 

 

 

 

 

Diversified Consumer Services — 0.2%

 

 

 

 

 

 

 

 

 

Realogy Corp., Senior Subordinated Bonds

 

11.000%

 

4/15/18

 

770,000

 

454,300

(a)(d)

 

See Notes to Schedule of Investments.

 

10


 

Schedule of investments (unaudited) (cont’d)

November 30, 2011

 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT

 

VALUE

 

INDUSTRIALS — 0.2%

 

 

 

 

 

 

 

 

 

Marine — 0.2%

 

 

 

 

 

 

 

 

 

Horizon Lines Inc., Secured Senior Notes

 

6.000%

 

4/15/17

 

370,909

 

$

320,836

(h)

Horizon Lines Inc., Secured Senior Notes

 

6.000%

 

4/15/17

 

206,060

 

83,455

(h)

TOTAL INDUSTRIALS

 

 

 

 

 

 

 

404,291

 

MATERIALS — 0.0%

 

 

 

 

 

 

 

 

 

Chemicals — 0.0%

 

 

 

 

 

 

 

 

 

Hercules Inc.

 

6.500%

 

6/30/29

 

100,000

 

79,500

 

TOTAL CONVERTIBLE BONDS & NOTES (Cost — $1,131,028)

 

 

 

 

938,091

 

SOVEREIGN BONDS — 29.8%

 

 

 

 

 

 

 

 

 

Argentina — 2.7%

 

 

 

 

 

 

 

 

 

Republic of Argentina, Discount Notes

 

8.280%

 

12/31/33

 

1,383,142

 

1,009,694

(j)

Republic of Argentina, GDP Linked Securities, Senior Bonds

 

0.000%

 

12/15/35

 

5,670,000

 

881,685

(f)(n)

Republic of Argentina, Senior Bonds

 

7.000%

 

9/12/13

 

3,321,000

 

3,220,091

 

Republic of Argentina, Senior Bonds

 

7.000%

 

10/3/15

 

485,000

 

422,926

 

Republic of Argentina, Senior Notes

 

8.750%

 

6/2/17

 

450,000

 

400,500

 

Total Argentina

 

 

 

 

 

 

 

5,934,896

 

Brazil — 4.2%

 

 

 

 

 

 

 

 

 

Brazil Nota do Tesouro Nacional, Notes

 

10.000%

 

1/1/14

 

665,000

BRL

367,025

 

Brazil Nota do Tesouro Nacional, Notes

 

10.000%

 

1/1/17

 

7,614,000

BRL

4,059,767

 

Federative Republic of Brazil

 

7.125%

 

1/20/37

 

427,550

 

573,986

 

Federative Republic of Brazil, Collective Action Securities

 

8.000%

 

1/15/18

 

2,620,222

 

3,059,109

(j)

Federative Republic of Brazil, Collective Action Securities

 

8.750%

 

2/4/25

 

685,000

 

1,013,800

 

Total Brazil

 

 

 

 

 

 

 

9,073,687

 

Chile — 0.7%

 

 

 

 

 

 

 

 

 

Banco del Estado de Chile, Senior Notes

 

4.125%

 

10/7/20

 

260,000

 

265,850

(a)

Corporacion Nacional del Cobre de Chile, Senior Notes

 

3.750%

 

11/4/20

 

250,000

 

251,244

(a)(d)

Republic of Chile, Senior Notes

 

3.875%

 

8/5/20

 

412,000

 

439,810

 

Republic of Chile, Senior Notes

 

5.500%

 

8/5/20

 

273,500,000

CLP

555,592

 

Total Chile

 

 

 

 

 

 

 

1,512,496

 

Colombia — 1.6%

 

 

 

 

 

 

 

 

 

Republic of Colombia

 

7.375%

 

9/18/37

 

2,150,000

 

2,934,750

(d)(j)

Republic of Colombia, Senior Bonds

 

6.125%

 

1/18/41

 

180,000

 

214,650

 

Republic of Colombia, Senior Notes

 

7.375%

 

3/18/19

 

255,000

 

320,663

 

Total Colombia

 

 

 

 

 

 

 

3,470,063

 

India — 0.1%

 

 

 

 

 

 

 

 

 

ICICI Bank Ltd., Junior Subordinated Bonds

 

6.375%

 

4/30/22

 

186,000

 

167,400

(a)(f)

ICICI Bank Ltd., Subordinated Bonds

 

6.375%

 

4/30/22

 

130,000

 

117,000

(a)(f)

Total India

 

 

 

 

 

 

 

284,400

 

Indonesia — 2.0%

 

 

 

 

 

 

 

 

 

Republic of Indonesia, Senior Bonds

 

6.875%

 

1/17/18

 

100,000

 

117,250

(a)

Republic of Indonesia, Senior Bonds

 

10.250%

 

7/15/22

 

7,931,000,000

IDR

1,091,624

 

Republic of Indonesia, Senior Bonds

 

11.000%

 

9/15/25

 

4,954,000,000

IDR

729,719

 

Republic of Indonesia, Senior Bonds

 

10.250%

 

7/15/27

 

5,058,000,000

IDR

698,770

 

Republic of Indonesia, Senior Bonds

 

6.625%

 

2/17/37

 

775,000

 

937,750

(a)

Republic of Indonesia, Senior Bonds

 

9.750%

 

5/15/37

 

5,998,000,000

IDR

795,613

 

Total Indonesia

 

 

 

 

 

 

 

4,370,726

 

Malaysia — 0.8%

 

 

 

 

 

 

 

 

 

Government of Malaysia, Senior Bonds

 

3.835%

 

8/12/15

 

5,360,000

MYR

1,721,547

 

Government of Malaysia, Senior Bonds

 

4.262%

 

9/15/16

 

130,000

MYR

42,547

 

Total Malaysia

 

 

 

 

 

 

 

1,764,094

 

Mexico — 1.9%

 

 

 

 

 

 

 

 

 

Mexican Bonos, Bonds

 

8.000%

 

6/11/20

 

42,129,500

MXN

3,488,057

 

 

See Notes to Schedule of Investments.

 

11

 


 

Schedule of investments (unaudited) (cont’d)

November 30, 2011

 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT

 

VALUE

 

Mexico — continued

 

 

 

 

 

 

 

 

 

United Mexican States, Bonds

 

10.000%

 

12/5/24

 

4,800,000

MXN

$

459,553

 

United Mexican States, Medium-Term Notes

 

5.625%

 

1/15/17

 

160,000

 

181,840

 

Total Mexico

 

 

 

 

 

 

 

4,129,450

 

Panama — 1.0%

 

 

 

 

 

 

 

 

 

Republic of Panama

 

7.250%

 

3/15/15

 

1,807,000

 

2,094,313

(d)

Peru — 1.8%

 

 

 

 

 

 

 

 

 

Republic of Peru

 

8.750%

 

11/21/33

 

490,000

 

723,975

 

Republic of Peru, Bonds

 

7.840%

 

8/12/20

 

3,093,000

PEN

1,311,418

 

Republic of Peru, Bonds

 

6.550%

 

3/14/37

 

151,000

 

184,975

 

Republic of Peru, Global Senior Bonds

 

7.350%

 

7/21/25

 

1,200,000

 

1,560,000

(j)

Total Peru

 

 

 

 

 

 

 

3,780,368

 

Poland — 1.9%

 

 

 

 

 

 

 

 

 

Republic of Poland, Bonds

 

5.500%

 

4/25/15

 

4,320,000

PLN

1,305,116

 

Republic of Poland, Senior Notes

 

6.375%

 

7/15/19

 

900,000

 

976,500

(d)

Republic of Poland, Senior Notes

 

5.125%

 

4/21/21

 

500,000

 

496,250

 

Republic of Poland, Senior Notes

 

5.000%

 

3/23/22

 

1,270,000

 

1,236,663

 

Total Poland

 

 

 

 

 

 

 

4,014,529

 

Russia — 2.5%

 

 

 

 

 

 

 

 

 

RSHB Capital, Loan Participation Notes, Senior Secured Bonds

 

6.299%

 

5/15/17

 

756,000

 

763,560

(a)(d)

Russian Foreign Bond-Eurobond

 

12.750%

 

6/24/28

 

42,000

 

72,450

(a)

Russian Foreign Bond-Eurobond, Senior Bonds

 

7.500%

 

3/31/30

 

3,972,513

 

4,667,702

(a)(j)

Total Russia

 

 

 

 

 

 

 

5,503,712

 

Sri Lanka — 0.2%

 

 

 

 

 

 

 

 

 

Sri Lanka Government International Bond, Senior Notes

 

6.250%

 

7/27/21

 

390,000

 

394,463

(a)

Turkey — 4.1%

 

 

 

 

 

 

 

 

 

Republic of Turkey, Notes

 

6.750%

 

5/30/40

 

1,545,000

 

1,633,838

 

Republic of Turkey, Senior Bonds

 

11.875%

 

1/15/30

 

575,000

 

954,500

(j)

Republic of Turkey, Senior Notes

 

6.875%

 

3/17/36

 

5,836,000

 

6,259,110

(d)(j)

Total Turkey

 

 

 

 

 

 

 

8,847,448

 

Venezuela — 4.3%

 

 

 

 

 

 

 

 

 

Bolivarian Republic of Venezuela

 

5.750%

 

2/26/16

 

5,296,000

 

4,064,680

(a)

Bolivarian Republic of Venezuela

 

7.650%

 

4/21/25

 

233,000

 

143,295

 

Bolivarian Republic of Venezuela, Collective Action Securities, Global Senior Bonds

 

9.375%

 

1/13/34

 

1,982,000

 

1,318,030

 

Bolivarian Republic of Venezuela, Collective Action Securities, Notes

 

10.750%

 

9/19/13

 

391,000

 

393,932

 

Bolivarian Republic of Venezuela, Global Senior Bonds

 

8.500%

 

10/8/14

 

3,733,000

 

3,453,025

 

Total Venezuela

 

 

 

 

 

 

 

9,372,962

 

TOTAL SOVEREIGN BONDS (Cost — $62,874,353)

 

 

 

 

64,547,607

 

 

 

 

 

 

 

 

SHARES

 

 

 

COMMON STOCKS — 2.1%

 

 

 

 

 

 

 

 

 

CONSUMER DISCRETIONARY — 1.5%

 

 

 

 

 

 

 

 

 

Automobiles — 0.0%

 

 

 

 

 

 

 

 

 

General Motors Co.

 

 

 

 

 

264

 

5,621

*

Media — 1.5%

 

 

 

 

 

 

 

 

 

Charter Communications Inc., Class A Shares

 

 

 

 

 

62,292

 

3,293,378

*

TOTAL CONSUMER DISCRETIONARY

 

 

 

 

 

 

 

3,298,999

 

ENERGY — 0.3%

 

 

 

 

 

 

 

 

 

Energy Equipment & Services — 0.3%

 

 

 

 

 

 

 

 

 

KCAD Holdings I Ltd.

 

 

 

 

 

66,487,354

 

670,059

*(g)(h)

Oil, Gas & Consumable Fuels — 0.0%

 

 

 

 

 

 

 

 

 

SemGroup Corp., Class A Shares

 

 

 

 

 

892

 

25,110

*

TOTAL ENERGY

 

 

 

 

 

 

 

695,169

 

 

See Notes to Schedule of Investments.

 

12


 

Schedule of investments (unaudited) (cont’d)

November 30, 2011

 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

SECURITY

 

 

 

 

 

SHARES

 

VALUE

 

INDUSTRIALS — 0.3%

 

 

 

 

 

 

 

 

 

Building Products — 0.1%

 

 

 

 

 

 

 

 

 

Ashton Woods USA LLC, Class B Membership

 

 

 

 

 

54

 

$

45,360

(g)(h)

Nortek Inc.

 

 

 

 

 

696

 

15,312

*

Total Building Products

 

 

 

 

 

 

 

60,672

 

Marine — 0.2%

 

 

 

 

 

 

 

 

 

DeepOcean Group Holding AS

 

 

 

 

 

26,137

 

457,398

*(h)

Horizon Lines Inc., Class A

 

 

 

 

 

103,030

 

24,727

*

Total Marine

 

 

 

 

 

 

 

482,125

 

TOTAL INDUSTRIALS

 

 

 

 

 

 

 

542,797

 

TOTAL COMMON STOCKS (Cost — $2,644,212)

 

 

 

 

 

4,536,965

 

 

 

 

RATE

 

 

 

 

 

 

 

CONVERTIBLE PREFERRED STOCKS — 0.8%

 

 

 

 

 

 

 

 

 

FINANCIALS — 0.8%

 

 

 

 

 

 

 

 

 

Diversified Financial Services — 0.8%

 

 

 

 

 

 

 

 

 

Citigroup Inc. (Cost - $2,405,380)

 

7.500%

 

 

 

20,300

 

1,710,275

 

PREFERRED STOCKS — 0.4%

 

 

 

 

 

 

 

 

 

FINANCIALS — 0.4%

 

 

 

 

 

 

 

 

 

Consumer Finance — 0.4%

 

 

 

 

 

 

 

 

 

GMAC Capital Trust I

 

8.125%

 

 

 

40,749

 

774,231

(f)

Thrifts & Mortgage Finance — 0.0%

 

 

 

 

 

 

 

 

 

Federal National Mortgage Association (FNMA)

 

8.250%

 

 

 

4,925

 

9,604

*(f)

TOTAL FINANCIALS

 

 

 

 

 

 

 

783,835

 

INDUSTRIALS — 0.0%

 

 

 

 

 

 

 

 

 

Road & Rail — 0.0%

 

 

 

 

 

 

 

 

 

Jack Cooper Holdings Corp.

 

20.00%

 

 

 

1,017

 

101,700

(a)(h)

TOTAL PREFERRED STOCKS (Cost — $1,213,025)

 

 

 

885,535

 

 

 

 

 

 

EXPIRATION
DATE

 

NOTIONAL
AMOUNT

 

 

 

PURCHASED OPTIONS — 0.0%

 

 

 

 

 

 

 

 

 

Credit default swaption with BNP Paribas to buy protection on Markit CDX.NA.HY.17 Index, Put @ $87.00 (Cost - $103,500)

 

 

 

12/21/11

 

6,900,000

 

20,950

 

 

 

 

 

 

 

 

WARRANTS

 

 

 

WARRANTS — 0.2%

 

 

 

 

 

 

 

 

 

Bolivarian Republic of Venezuela, Oil-linked payment obligations

 

 

 

4/15/20

 

9,125

 

252,078

*(f)

Buffets Restaurant Holdings

 

 

 

4/28/14

 

498

 

5

*(g)(h)

Charter Communications Inc.

 

 

 

11/30/14

 

641

 

7,474

*(h)

General Motors Co.

 

 

 

7/10/16

 

5,867

 

74,218

*

General Motors Co.

 

 

 

7/10/19

 

5,867

 

51,278

*

Jack Cooper Holdings Corp.

 

 

 

12/15/17

 

496

 

31,000

*(h)

Jack Cooper Holdings Corp.

 

 

 

5/6/18

 

228

 

14,250

*(h)

Nortek Inc.

 

 

 

12/7/14

 

1,175

 

3,172

*(g)(h)

SemGroup Corp.

 

 

 

11/30/14

 

2,968

 

21,577

*(g)

TOTAL WARRANTS (Cost — $707,365)

 

 

 

 

 

 

 

455,052

 

TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS (Cost — $219,115,989)

 

216,706,211

 

 

 

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT

 

 

 

SHORT-TERM INVESTMENTS — 0.0%

 

 

 

 

 

 

 

 

 

U.S. Government Agencies — 0.0%

 

 

 

 

 

 

 

 

 

Federal Home Loan Mortgage Corp. (FHLMC), Discount Notes (Cost - $74,991)

 

0.100 - 0.120%

 

1/10/12

 

75,000

 

74,991

(o)

TOTAL INVESTMENTS — 100.0% (Cost — $219,190,980#)

 

 

 

216,781,202

 

 

 

Face amount denominated in U.S. dollars, unless otherwise noted.

*

Non-income producing security.

 

See Notes to Schedule of Investments.

 

13


 

Schedule of investments (unaudited) (cont’d)

November 30, 2011

 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

(a)

Security is exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid pursuant to guidelines approved by the Board of Directors, unless otherwise noted.

(b)

The coupon payment on these securities is currently in default as of November 30, 2011.

(c)

The maturity principal is currently in default as of November 30, 2011.

(d)

All or a portion of this security is pledged as collateral pursuant to the loan agreement.

(e)

Payment-in-kind security for which part of the income earned may be paid as additional principal.

(f)

Variable rate security. Interest rate disclosed is as of the most recent information available.

(g)

Illiquid security (unaudited).

(h)

Security is valued in good faith in accordance with procedures approved by the Board of Directors (See Note 1).

(i)

Value is less than $1.

(j)

All or a portion of this security is held by the counterparty as collateral for open reverse repurchase agreements.

(k)

Security has no maturity date. The date shown represents the next call date.

(l)

Interest rates disclosed represent the effective rates on collateralized senior loans. Ranges in interest rates are attributable to multiple contracts under the same loan.

(m)

All or a portion of this loan is unfunded as of November 30, 2011. The interest rate for fully unfunded term loans is to be determined.

(n)

The security’s interest income payments are contingent upon the performance of Argentina’s GDP. There are no principal payments over the life of the security or upon the expiration of the security.

(o)

Rate shown represents yield-to-maturity.

#

Aggregate cost for federal income tax purposes is substantially the same.

 

 

Abbreviations used in this schedule:

 

BRL

- Brazilian Real

 

CLP

- Chilean Peso

 

EUR

- Euro

 

GBP

- British Pound

 

GDP

- Gross Domestic Product

 

IDR

- Indonesian Rupiah

 

MXN

- Mexican Peso

 

MYR

- Malaysian Ringgit

 

OJSC

- Open Joint Stock Company

 

PEN

- Peruvian Nuevo Sol

 

PLN

- Polish Zloty

 

 

 

SCHEDULE OF WRITTEN OPTIONS

 

SECURITY

 

EXPIRATION
DATE

 

STRIKE
PRICE

 

NOTIONAL
AMOUNT

 

VALUE

 

Credit default swaption with BNP Paribas to buy protection on Markit CDX.NA.HY.17 Index, Call

 

12/21/11

 

$

91.50

 

6,900,000

 

$

124,418

 

 

Summary of Investments by Country **

 

 

 

United States

 

37.7

%

Brazil

 

8.1

 

Mexico

 

6.4

 

Russia

 

4.8

 

Venezuela

 

4.4

 

Turkey

 

4.1

 

Argentina

 

3.1

 

United Kingdom

 

2.9

 

Indonesia

 

2.8

 

Colombia

 

2.5

 

Luxembourg

 

2.4

 

Poland

 

1.8

 

Peru

 

1.7

 

Netherlands

 

1.7

 

Malaysia

 

1.6

 

Chile

 

1.5

 

Panama

 

1.1

 

 

See Notes to Schedule of Investments.

 

14


 

Schedule of investments (unaudited) (cont’d)

November 30, 2011

 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Cayman Islands

 

1.1

 

Ireland

 

1.0

 

India

 

1.0

 

Australia

 

0.9

 

Bermuda

 

0.8

 

France

 

0.8

 

Germany

 

0.7

 

Kazakhstan

 

0.7

 

Canada

 

0.6

 

South Africa

 

0.5

 

Qatar

 

0.4

 

Norway

 

0.4

 

Sweden

 

0.3

 

United Arab Emirates

 

0.3

 

Marshall Islands

 

0.3

 

Mongolia

 

0.3

 

Belgium

 

0.2

 

Trinidad and Tobago

 

0.2

 

Sri Lanka

 

0.2

 

China

 

0.2

 

Spain

 

0.1

 

Singapore

 

0.1

 

Italy

 

0.1

 

Austria

 

0.1

 

Japan

 

0.1

 

Short-term investments

 

0.0

 

 

 

100.0

%

**As a percentage of total investments. Please note that Fund holdings are as of November 30, 2011 and are subject to change.

 

 

See Notes to Schedule of Investments.

 

15

 


 

Notes to schedule of investments (unaudited)

 

1. Organization and significant accounting policies

 

Western Asset Global Partners Income Fund Inc. (the “Fund”) was incorporated in Maryland on September 3, 1993 and is registered as a non-diversified, closed-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund seeks to maintain a high level of current income. As a secondary objective, the Fund seeks capital appreciation.

 

The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”).

 

(a) Investment valuation.  The valuations for fixed income 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 fair valuation techniques and methodologies. Short-term fixed income securities that will mature in 60 days or less are valued at amortized cost, unless it is determined that using this method would not reflect an investment’s fair value. 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. If independent third party pricing services are unable to supply prices for a portfolio investment, or if the prices supplied are deemed by the manager to be unreliable, the market price may be determined by the manager using quotations from one or more broker/dealers. When the Fund holds securities or other assets that are denominated in a foreign currency, the Fund will normally use the currency exchange rates as of 4:00 p.m. (Eastern Time). 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 by the Fund’s Board of Directors.

 

The Fund has adopted Financial Accounting Standards Board Codification Topic 820 (“ASC Topic 820”). ASC Topic 820 establishes a single definition of fair value, creates a three-tier hierarchy as a framework for measuring fair value based on inputs used to value the Fund’s investments, and requires additional disclosure about fair value. The hierarchy of inputs is summarized below.

 

·                  Level 1—quoted prices in active markets for identical investments

·                  Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

·                  Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

 

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

 

The 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.

 

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities carried at fair value:

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

QUOTED
PRICES

 

OTHER
SIGNIFICANT
OBSERVABLE
INPUTS

 

SIGNIFICANT
UNOBSERVABLE
INPUTS

 

 

 

DESCRIPTION

 

(LEVEL 1)

 

(LEVEL 2)

 

(LEVEL 3)

 

TOTAL

 

Long-term investments†:

 

 

 

 

 

 

 

 

 

Corporate bonds & notes

 

 

$

138,846,287

 

$

1,410,502

 

$

140,256,789

 

Collateralized senior loans

 

 

3,354,947

 

 

3,354,947

 

Convertible bonds & notes

 

 

533,800

 

404,291

 

938,091

 

Sovereign bonds

 

 

64,547,607

 

 

64,547,607

 

Common stocks:

 

 

 

 

 

 

 

 

 

Consumer discretionary

 

$

3,298,999

 

 

 

3,298,999

 

Energy

 

25,110

 

 

670,059

 

695,169

 

Industrials

 

40,039

 

 

502,758

 

542,797

 

Convertible preferred stocks

 

1,710,275

 

 

 

1,710,275

 

Preferred stocks

 

783,835

 

 

101,700

 

885,535

 

Purchased options

 

 

20,950

 

 

20,950

 

Warrants

 

125,496

 

273,655

 

55,901

 

455,052

 

Total long-term investments

 

$

5,983,754

 

$

207,577,246

 

$

3,145,211

 

$

216,706,211

 

Short-term investments†

 

 

74,991

 

 

74,991

 

Total investments

 

$

5,983,754

 

$

207,652,237

 

$

3,145,211

 

$

216,781,202

 

Other financial instruments:

 

 

 

 

 

 

 

 

 

Forward foreign currency contracts

 

 

$

592,197

 

 

$

592,197

 

Interest rate swaps

 

 

3,001

 

 

3,001

 

Total other financial instruments

 

 

$

595,198

 

 

$

595,198

 

Total

 

$

5,983,754

 

$

208,247,435

 

$

3,145,211

 

$

217,376,400

 

 

16


 

Notes to schedule of investments (unaudited) (continued)

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

QUOTED
PRICES

 

OTHER
SIGNIFICANT
OBSERVABLE
INPUTS

 

SIGNIFICANT
UNOBSERVABLE
INPUTS

 

 

 

DESCRIPTION

 

(LEVEL 1)

 

(LEVEL 2)

 

(LEVEL 3)

 

TOTAL

 

Written options

 

 

$

124,418

 

 

$

124,418

 

 

†See Schedule of Investments for additional detailed categorizations.

 

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:

 

 

 

 

 

 

 

PREFERRED STOCK

 

COMMON STOCKS

 

 

 

 

 

 

 

CORPORATE

 

 

 

 

 

 

 

 

 

 

 

 

 

BONDS &

 

CONVERTBLE

 

 

 

 

 

 

 

 

 

INVESTMENTS IN SECURITIES

 

NOTES

 

BONDS & NOTES

 

INDUSTRIALS

 

ENERGY

 

INDUSTRIALS

 

WARRANTS

 

TOTAL

 

Balance as of August 31, 2011

 

$

1,186,662

 

 

 

$

660,825

 

$

34,830

 

$

2,355

 

$

1,884,672

 

Accrued premiums/discounts

 

2,026

 

$

1,553

 

 

 

 

 

3,579

 

Realized gain (loss)

 

(4,194

)

0

*

 

 

 

 

(4,194

)

Change in unrealized appreciation (depreciation)(1)

 

(110,511

)

$

(195,644

)

$

12,468

 

1,171

 

10,530

 

822

 

(281,164

)

Purchases

 

523,108

 

598,382

 

89,232

 

8,063

 

 

 

1,218,785

 

Sales

 

(721,669

)

 

 

 

 

 

(721,669

)

Transfers into Level 3(2)

 

535,080

 

 

 

 

457,398

 

52,724

 

1,045,202

 

Transfers out of Level 3

 

 

 

 

 

 

 

 

Balance as of November 30, 2011

 

$

1,410,502

 

$

404,291

 

$

101,700

 

$

670,059

 

$

502,758

 

$

55,901

 

$

3,145,211

 

Net change in unrealized appreciation (depreciation) for investments in securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

still held at November 30, 2011(2)

 

$

(136,869

)

$

(195,644

)

$

12,468

 

$

1,171

 

$

10,530

 

$

822

 

$

(307,522

)

 

The Fund’s policy is to recognize transfers between levels as of the end of the reporting period.

* Value is less than $1.

(1) Change in unrealized appreciation (depreciation) includes net unrealized appreciation (depreciation) resulting from changes in investment values during the reporting period and the reversal of previously recorded unrealized appreciation (depreciation) when gains or losses are realized.

(2) Transferred in to Level 3 as a result of the unavailability of a quoted price in an active market for an identical investment or the unavailability of other significant observable inputs.

 

17


 

Notes to schedule of investments (unaudited) (continued)

 

(b) Repurchase agreements. The Fund may enter into repurchase agreements with institutions that its investment adviser has determined are creditworthy. Each repurchase agreement is recorded at cost. Under the terms of a typical repurchase agreement, the Fund acquires a debt security subject to an obligation of the seller to repurchase, and of the Fund to resell, the security at an agreed-upon price and time, thereby determining the yield during the Fund’s holding period. When entering into repurchase agreements, it is the Fund’s policy that its custodian or a third party custodian, acting on the Fund’s behalf, take possession of the underlying collateral securities, the market value of which, at all times, at least equals the principal amount of the repurchase transaction, including accrued interest. To the extent that any repurchase transaction maturity exceeds one business day, the value of the collateral is marked-to-market and measured against the value of the agreement in an effort to ensure the adequacy of the collateral. If the counterparty defaults, the Fund generally has the right to use the collateral to satisfy the terms of the repurchase transaction. However, if the market value of the collateral declines during the period in which the Fund seeks to assert its rights or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Fund may be delayed or limited.

 

(c) Reverse repurchase agreements. The Fund may enter into reverse repurchase agreements. Under the terms of a typical reverse repurchase agreement, a fund sells a security subject to an obligation to repurchase the security from the buyer at an agreed-upon time and price. In the event the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes insolvent, the Fund’s use of the proceeds of the agreement may be restricted pending a determination by the counterparty, or its trustee or receiver, whether to enforce the Fund’s obligation to repurchase the securities. In entering into reverse repurchase agreements, the Fund will maintain cash, U.S. government securities or other liquid debt obligations at least equal in value to its obligations with respect to reverse repurchase agreements or will take other actions permitted by law to cover its obligations.

 

(d) Futures contracts. The Fund may use futures contracts generally to gain exposure to, or hedge against, changes in interest rates or gain exposure to, or hedge against, changes in certain asset classes.  A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date.

 

Upon entering into a futures contract, the Fund is required to deposit cash or cash equivalents with a broker in an amount equal to a certain percentage of the contract amount. This is known as the ‘‘initial margin’’ and subsequent payments (‘‘variation margin’’) are made or received by the Fund each day, depending on the daily fluctuation in the value of the contract. For certain futures, including foreign denominated futures, variation margin is not settled daily, but is recorded as a net variation margin payable or receivable. Futures contracts are valued daily at the settlement price established by the board of trade or exchange on which they are traded.

 

Futures contracts involve, to varying degrees, risk of loss. In addition, there is the risk that the Fund may not be able to enter into a closing transaction because of an illiquid secondary market.

 

(e) Loan participations. The Fund may invest in loans arranged through private negotiation between one or more financial institutions. The Fund’s investment in any such loan may be in the form of a participation in or an assignment of the loan. In connection with purchasing participations, the Fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement related to the loan, or any rights of off-set against the borrower and the Fund may not benefit directly from any collateral supporting the loan in which it has purchased the participation.

 

The Fund assumes the credit risk of the borrower, the lender that is selling the participation and any other persons interpositioned between the Fund and the borrower. In the event of the insolvency of the lender selling the participation, the Fund may be treated as a general creditor of the lender and may not benefit from any off-set between the lender and the borrower.

 

(f) Swap agreements. The Fund invests in swaps for the purpose of managing its exposure to interest rate, credit or market risk, or for other purposes. The use of swaps involves risks that are different from those associated with ordinary portfolio transactions.

 

Swap contracts are marked-to-market daily and changes in value are recorded as unrealized appreciation (depreciation). Gains or losses are realized upon termination of the swap agreement. Collateral, in the form of restricted cash or securities, may be required to be held in segregated accounts with the Fund’s custodian in compliance with the terms of the swap contracts. Securities posted as collateral for swap contracts are identified in the Schedule of Investments.

 

Credit default swaps

 

The Fund may enter into credit default swap (“CDS”) contracts for investment purposes, to manage its credit risk or to add leverage.  CDS agreements involve one party making a stream of payments to another party in exchange for the

 

18


 

Notes to schedule of investments (unaudited) (continued)

 

right to receive a specified return in the event of a default by a third party, typically corporate or sovereign issuers, on a specified obligation, or in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising a credit index. The Fund may use a CDS to provide protection against defaults of the issuers (i.e., to reduce risk where the Fund has exposure to an issuer) or to take an active long or short position with respect to the likelihood of a particular issuer’s default. As a seller of protection, the Fund generally receives an upfront payment or a stream of payments throughout the term of the swap provided that there is no credit event. If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the maximum potential amount of future payments (undiscounted) that the Fund could be required to make under a credit default swap agreement would be an amount equal to the notional amount of the agreement. These amounts of potential payments will be partially offset by any recovery of values from the respective referenced obligations. As a seller of protection, the Fund effectively adds leverage to its portfolio because, in addition to its total net assets, the Fund is subject to investment exposure on the notional amount of the swap. As a buyer of protection, the Fund generally receives an amount up to the notional value of the swap if a credit event occurs.

 

Implied spreads are the theoretical prices a lender receives for credit default protection. When spreads rise, market perceived credit risk rises and when spreads fall, market perceived credit risk falls. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to enter into the agreement. Wider credit spreads and decreasing market values, when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. Credit spreads utilized in determining the period end market value of credit default swap agreements on corporate or sovereign issues are disclosed in the Notes to the Schedule of Investments and serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for credit derivatives. For credit default swap agreements on asset-backed securities and credit indices, the quoted market prices and resulting values, particularly in relation to the notional amount of the contract as well as the annual payment rate, serve as an indication of the current status of the payment/performance risk.

 

The Fund’s maximum risk of loss from counterparty risk, as the protection buyer, is the fair value of the contract (this risk is mitigated by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty). As the protection seller, the Fund’s maximum risk is the notional amount of the contract. Credit default swaps are considered to have credit risk-related contingent features since they require payment by the protection seller to the protection buyer upon the occurrence of a defined credit event.

 

Entering into a CDS agreement involves, to varying degrees, elements of credit, market and documentation risk. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreement may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreement, and that there will be unfavorable changes in net interest rates.

 

Interest rate swaps

 

The Fund enters into interest rate swap contracts to manage its exposure to interest rate risk.  Interest rate swaps are agreements between two parties to exchange cash flows based on a notional principal amount. The Fund may elect to pay a fixed rate and receive a floating rate, or, receive a fixed rate and pay a floating rate on a notional principal amount.  Interest rate swaps are marked-to-market daily based upon quotations from market makers.

 

The risks of interest rate swaps include changes in market conditions that will affect the value of the contract or changes in the present value of the future cash flow streams and the possible inability of the counterparty to fulfill its obligations under the agreement. The Fund’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life, to the extent that that amount is positive. This risk is mitigated by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty.

 

(g) Written Option. When the Fund writes an option, an amount equal to the premium received by the Fund is recorded as a liability, the value of which is marked-to-market daily to reflect the current market value of the option written. If the option expires, the premium received is recorded as a realized gain. When a written call option is exercised, the difference between the premium received plus the option exercise price and the Fund’s basis in the underlying security (in the case of a covered written call option), or the cost to purchase the underlying security (in the case of an uncovered written call option), including brokerage commission, is recognized as a realized gain or loss. When a written put option is exercised, the amount of the premium received is subtracted from the cost of the security purchased by the Fund from the exercise of the written put option to form the Fund’s basis in the underlying security purchased. The writer or buyer of an option traded on an exchange can liquidate the position before the exercise of the option by entering into a closing transaction. The cost of a closing transaction is deducted from the original premium

 

19


 

Notes to schedule of investments (unaudited) (continued)

 

received resulting in a realized gain or loss to the Fund.

 

The risk in writing a covered call option is that the Fund may forego the opportunity of profit if the market price of the underlying security increases and the option is exercised. The risk in writing a put option is that the Fund may incur a loss if the market price of the underlying security decreases and the option is exercised. The risk in writing an uncovered call option is that the Fund is exposed to the risk of loss if the market price of the underlying security increases. In addition, there is the risk that the Fund may not be able to enter into a closing transaction because of an illiquid secondary market.

 

(h) Swaptions. The Fund purchases and writes swaption contracts to manage exposure to an underlying instrument. The Fund may also purchase or write options to manage exposure to fluctuations in interest rates or to enhance yield. Swaption contracts written by the Fund represent an option that gives the purchaser the right, but not the obligation, to enter into a previously agreed upon swap contract at a future date. Swaption contracts purchased by the Fund represent an option that gives the Fund the right, but not the obligation, to enter into a previously agreed upon swap contract at a future date.

 

When the Fund writes a swaption, an amount equal to the premium received by the Fund is recorded as a liability, the value of which is marked-to-market daily to reflect the current market value of the swaption written. If the swaption expires, the Fund realizes a gain equal to the amount of the premium received.

 

When the Fund purchases a swaption, an amount equal to the premium paid by the Fund is recorded as an investment on the statement of assets and liabilities, the value of which is marked-to-market daily to reflect the current market value of the swaption purchased. If the swaption expires, the Fund realizes a loss equal to the amount of the premium paid.

 

Swaptions are marked-to-market daily based upon quotations from market makers.

 

(i) Forward foreign currency contracts. The Fund enters into a forward foreign currency contract to hedge against foreign currency exchange rate risk on its non-U.S. dollar denominated securities or to facilitate settlement of a foreign currency denominated portfolio transaction.  A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price with delivery and settlement at a future date. The contract is marked-to-market daily and the change in value is recorded by the Fund as an unrealized gain or loss. When a forward foreign currency contract is closed, through either delivery or offset by entering into another forward foreign currency contract, the Fund recognizes a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value of the contract at the time it is closed.

 

When entering into a forward foreign currency contract, the Fund bears the risk of an unfavorable change in the foreign exchange rate underlying the forward foreign currency contract. Risks may also arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts.

 

(j) Foreign currency translation. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the date of valuation.  Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the respective dates of such transactions.

 

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar denominated transactions as a result of, among other factors, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.

 

(k) Credit and market risk. The Fund invests in high-yield and emerging market instruments that are subject to certain credit and market risks. The yields of high-yield and emerging market debt obligations reflect, among other things, perceived credit and market risks. The Fund’s investment in securities rated below investment grade typically involve risks not associated with higher rated securities including, among others, greater risk related to timely and ultimate payment of interest and principal, greater market price volatility and less liquid secondary market trading. The consequences of political, social, economic or diplomatic changes may have disruptive effects on the market prices of investments held by the Fund. The Fund’s investment in non-U.S. dollar denominated securities may also result in foreign currency losses caused by devaluations and exchange rate fluctuations.

 

(l) Counterparty risk and credit-risk-related contingent features of derivative instruments. The Fund may invest in certain securities or engage in other transactions, where the Fund is exposed to counterparty credit risk in addition to broader market risks. The Fund may invest in securities of issuers, which may also be considered counterparties as

 

20


 

Notes to schedule of investments (unaudited) (continued)

 

trading partners in other transactions. This may increase the risk of loss in the event of default or bankruptcy by the counterparty or if the counterparty otherwise fails to meet its contractual obligations. The Fund’s investment manager attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. Market events and changes in overall economic conditions may impact the assessment of such counterparty risk by the investment manager. In addition, declines in the values of underlying collateral received may expose the Fund to increased risk of loss.

 

The Fund has entered into master agreements with certain of its derivative counterparties that provide for general obligations, representations, agreements, collateral, events of default or termination and credit related contingent features.  The credit related contingent features include, but are not limited to, a percentage decrease in the Fund’s net assets or NAV over a specified period of time.  If these credit related contingent features were triggered, the derivatives counterparty could terminate the positions and demand payment or require additional collateral.

 

As of November 30, 2011, the Fund held written options with credit related contingent features which had a liability position of $124,418. If a contingent feature in the master agreements would have been triggered, the Fund would have been required to pay this amount to its derivatives counterparties.

 

(m) Security transactions.  Security transactions are accounted for on a trade date basis.

 

2.  Investments

 

At November 30, 2011, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:

 

Gross unrealized appreciation

 

$

14,697,543

 

Gross unrealized depreciation

 

(17,107,321

)

Net unrealized depreciation

 

$

(2,409,778

)

 

During the period ended November 30, 2011, written option transactions for the Fund were as follows:

 

 

 

Number of Contracts

 

Premiums

 

Written options, outstanding as of August 31, 2011

 

66,660,000

 

$

1,006,530

 

Options written

 

6,900,000

 

84,180

 

Options expired

 

(66,660,000

)

(1,006,530

)

Written options, outstanding as of November 30, 2011

 

6,900,000

 

$

84,180

 

 

Transactions in reverse repurchase agreements for the Fund during the period ended November 30, 2011 were as follows:

 

Average
Daily
Balance*

 

Weighted
Average
Interest Rate*

 

Maximum
Amount
Outstanding*

 

$18,429,993

 

0.76%

 

$20,269,400

 

 

* Averages based on the number of days that Fund had reverse repurchase agreements outstanding.

 

Interest rates on reverse repurchase agreements ranged from 0.10% to 0.85% during the period ended November 30, 2011. Interest expense incurred on reverse repurchase agreements totaled $34,733.

 

21


 

Notes to schedule of investments (unaudited) (continued)

 

At November 30, 2011, the Fund had the following open reverse repurchase agreements:

 

Counterparty

 

Rate

 

Effective Date

 

Maturity Date

 

Face Amount of Reverse
Repurchase Agreements

 

 

 

 

 

 

 

 

 

 

 

Credit Suisse

 

0.75

%

3/15/2011

 

TBD*

 

$

461,000

 

Credit Suisse

 

0.75

%

3/15/2011

 

TBD*

 

3,595,867

 

Credit Suisse

 

0.85

%

3/15/2011

 

TBD*

 

1,257,960

 

Credit Suisse

 

0.65

%

5/26/2011

 

TBD*

 

1,397,640

 

Credit Suisse

 

0.85

%

6/10/2011

 

TBD*

 

2,124,600

 

Credit Suisse

 

0.75

%

9/2/2011

 

TBD*

 

2,728,982

 

Credit Suisse

 

0.75

%

9/29/2011

 

TBD*

 

4,341,661

 

Credit Suisse

 

0.85

%

9/29/2011

 

TBD*

 

751,812

 

JPMorgan Chase Bank

 

0.75

%

11/3/2011

 

TBD*

 

1,118,250

 

 

 

 

 

 

 

 

 

$

17,777,772

 

 

* TBD — To Be Determined; These reverse repurchase agreements have no maturity dates because they are renewed daily and can be terminated by either the Fund or the counterparty in accordance with the terms of the agreements.

 

On November 30, 2011, the total market value of underlying collateral (refer to the Schedule of Investments for positions held at the counterparty as collateral for reverse repurchase agreements) for open reverse repurchase agreements was $21,321,524.

 

At November 30, 2011, the Fund had the following open forward foreign currency contracts:

 

FOREIGN CURRENCY

 

COUNTERPARTY

 

LOCAL
CURRENCY

 

MARKET
VALUE

 

SETTLEMENT
DATE

 

UNREALIZED
GAIN

 

Contracts to Sell:

 

 

 

 

 

 

 

 

 

 

 

 

 

Brazilian Real

 

JPMorgan Chase Bank

 

2,038,000

 

$

1,123,712

 

12/15/11

 

$

35,230

 

Euro

 

JPMorgan Chase Bank

 

1,079,885

 

1,451,230

 

12/15/11

 

34,530

 

British Pound

 

Citibank N.A.

 

1,759,613

 

2,758,755

 

2/16/12

 

57,665

 

British Pound

 

UBS AG

 

596,646

 

935,433

 

2/16/12

 

18,577

 

Euro

 

BNP Paribas SA

 

1,607,030

 

2,160,969

 

2/16/12

 

49,906

 

Euro

 

Citibank N.A.

 

266,373

 

358,191

 

2/16/12

 

7,944

 

Euro

 

Citibank N.A.

 

2,005,654

 

2,696,998

 

2/16/12

 

76,371

 

Euro

 

UBS AG

 

8,563,049

 

11,514,709

 

2/16/12

 

311,974

 

Net unrealized gain on open forward foreign currency contracts

 

 

 

$

592,197

 

 

At November 30, 2011, the Fund held the following interest rate swap contracts:

 

 

INTEREST RATE SWAPS

SWAP COUNTERPARTY

 

NOTIONAL
AMOUNT

 

TERMINATION
DATE

 

PAYMENTS
MADE BY THE
FUND

 

PAYMENTS
RECEIVED BY
THE FUND†

 

UPFRONT
PREMIUMS
PAID
(RECEIVED)

 

UNREALIZED
APPRECIATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit Suisse First Boston Inc.

 

$

912,398

 

1/2/12

 

BRL-CDI ‡

 

10.510

%

 

$

3,001

*

 

† Percentage shown is an annual percentage rate.

‡ Based on the Overnight Brazilian Interbank Deposit Rate. As of November 30, 2011, the Brazilian CETIP Interbank Deposit (CDI) rate was 11.36%.

* Swap contract is valued in good faith in accordance with procedures approved by the Board of Directors (See Note 1).

 

3. Derivative instruments and hedging activities

 

Financial Accounting Standards Board Codification Topic 815 requires enhanced disclosure about an entity’s derivative and hedging activities.

 

The following is a summary of the Fund’s derivative instruments categorized by risk exposure at November 30, 2011.

 

22


 

Notes to schedule of investments (unaudited) (continued)

 

 

 

 

 

Written

 

Forward Foreign Currency
Contracts

 

Swap

 

 

 

Primary Underlying
Risk Disclosure

 

Purchased
Options, at value

 

Options, at
value

 

Unrealized
Appreciation

 

Unrealized
Depreciation

 

Contracts, at
value

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit Contracts

 

$

20,950

 

$

(124,418

)

 

 

 

$

(103,468

)

Interest Rate Contracts

 

 

 

 

 

$

3,001

 

3,001

 

Foreign Exchange Contracts

 

 

 

$

592,197

 

 

 

592,197

 

Total

 

$

20,950

 

$

(124,418

)

$

592,197

 

 

$

3,001

 

$

491,730

 

 

During the period ended November 30, 2011, the volume of derivative activity for the Fund was as follows:

 

 

 

Average Market
Value

 

Purchased options

 

$

8,047

 

Written options

 

52,733

 

Futures contracts (to sell)†

 

5,790,340

 

Forward foreign currency contracts (to buy)†

 

764,826

 

Forward foreign currency contracts (to sell)

 

23,376,506

 

 

 

 

Average Notional
Balance

 

Interest rate swap contracts

 

$

912,398

 

 

†At November 30, 2011, there were no open positions held in this derivative.

 

4. Recent accounting pronouncement

 

In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs (“ASU No. 2011-04”). ASU No. 2011-04 establishes common requirements for measuring fair value and for disclosing information about fair value measurements. ASU No. 2011-04 is effective during interim and annual periods beginning after December 15, 2011.  Management is currently evaluating the impact the adoption of ASU No. 2011-04 will have on the Fund’s financial statements and related disclosures.

 

23


 

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 Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934.

 

(b)                                 There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are likely to materially affect the registrant’s internal control over financial reporting.

 

ITEM 3.                  EXHIBITS.

 

Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are attached hereto.

 



 

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.

 

Western Asset Global Partners Income Fund Inc.

 

 

By

/s/ R. Jay Gerken

 

 

R. Jay Gerken

 

 

Chief Executive Officer

 

 

 

 

 

Date:  January 25, 2012

 

 

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/ R. Jay Gerken

 

 

R. Jay Gerken

 

 

Chief Executive Officer

 

 

 

 

 

Date:  January 25, 2012

 

 

 

 

 

By

/s/ Richard F. Sennett

 

 

Richard F. Sennett

 

 

Principal Financial Officer

 

 

 

Date:   January 25, 2012