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

811-21337

 

 

Western Asset Global High Income Fund Inc.

(Exact name of registrant as specified in charter)

 

55 Water Street, New York, NY

 

10041

(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:

Funds Investor Services 1-800-822-5544

 

or

                                         Institutional Shareholder Services 1-888-425-6432

 

Date of fiscal year end:

May 31

 

 

 

 

Date of reporting period:

February 28, 2010

 

 



 

ITEM 1.                                                     SCHEDULE OF INVESTMENTS

 


 


 

WESTERN ASSET

GLOBAL HIGH INCOME FUND INC.
 

FORM N-Q

FEBRUARY 28, 2010

 


 

Schedule of investments (unaudited)

February 28, 2010

 

WESTERN ASSET GLOBAL HIGH INCOME FUND INC.

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT

 

VALUE

 

CORPORATE BONDS & NOTES — 80.4%

 

 

 

 

 

 

 

 

 

CONSUMER DISCRETIONARY — 13.7%

 

 

 

 

 

 

 

 

 

Auto Components — 0.5%

 

 

 

 

 

 

 

 

 

Allison Transmission Inc., Senior Notes

 

11.250%

 

11/1/15

 

 

750,200

 

$

780,208

(a)(b)

Europcar Groupe SA, Senior Subordinated Notes

 

8.125%

 

5/15/14

 

720,000

EUR

922,174

(a)

Keystone Automotive Operations Inc.,
Senior Subordinated Notes

 

9.750%

 

11/1/13

 

790,000

 

343,650

 

Visteon Corp., Senior Notes

 

8.250%

 

8/1/10

 

154,000

 

106,260

(c)

Visteon Corp., Senior Notes

 

12.250%

 

12/31/16

 

503,000

 

470,305

(a)(c)

Total Auto Components

 

 

 

 

 

 

 

2,622,597

 

Automobiles — 0.3%

 

 

 

 

 

 

 

 

 

Motors Liquidation Co., Senior Debentures

 

8.250%

 

7/15/23

 

300,000

 

90,750

(c)

Motors Liquidation Co., Senior Debentures

 

8.375%

 

7/15/33

 

3,500,000

 

1,076,250

(c)

Motors Liquidation Co., Senior Notes

 

7.200%

 

1/15/11

 

570,000

 

175,275

(c)

Total Automobiles

 

 

 

 

 

 

 

1,342,275

 

Diversified Consumer Services — 0.1%

 

 

 

 

 

 

 

 

 

Service Corp. International, Senior Notes

 

7.625%

 

10/1/18

 

185,000

 

186,850

 

Service Corp. International, Senior Notes

 

7.500%

 

4/1/27

 

210,000

 

190,575

 

Total Diversified Consumer Services

 

 

 

 

 

 

 

377,425

 

Hotels, Restaurants & Leisure — 3.0%

 

 

 

 

 

 

 

 

 

Choctaw Resort Development Enterprise,
Senior Notes

 

7.250%

 

11/15/19

 

521,000

 

356,885

(a)

El Pollo Loco Inc., Senior Notes

 

11.750%

 

11/15/13

 

1,435,000

 

1,291,500

 

El Pollo Loco Inc., Senior Secured Notes

 

11.750%

 

12/1/12

 

180,000

 

186,300

 

Harrah’s Operating Co. Inc., Senior Notes

 

10.750%

 

2/1/16

 

1,340,000

 

1,038,500

 

Harrah’s Operating Co. Inc., Senior Secured Notes

 

11.250%

 

6/1/17

 

2,410,000

 

2,512,425

 

Inn of the Mountain Gods Resort & Casino,
Senior Notes

 

12.000%

 

11/15/10

 

1,130,000

 

553,700

(c)(d)

Landry’s Restaurants Inc., Senior Secured Notes

 

11.625%

 

12/1/15

 

455,000

 

477,750

(a)

MGM MIRAGE Inc., Notes

 

6.750%

 

9/1/12

 

560,000

 

520,800

 

MGM MIRAGE Inc., Senior Secured Notes

 

10.375%

 

5/15/14

 

475,000

 

505,875

(a)

MGM MIRAGE Inc., Senior Secured Notes

 

11.125%

 

11/15/17

 

1,135,000

 

1,231,475

(a)

Mohegan Tribal Gaming Authority,
Senior Secured Notes

 

11.500%

 

11/1/17

 

1,450,000

 

1,515,250

(a)

Mohegan Tribal Gaming Authority,
Senior Subordinated Notes

 

7.125%

 

8/15/14

 

675,000

 

502,875

 

Mohegan Tribal Gaming Authority,
Senior Subordinated Notes

 

6.875%

 

2/15/15

 

625,000

 

437,500

 

NCL Corp. Ltd., Senior Secured Notes

 

11.750%

 

11/15/16

 

700,000

 

729,750

(a)

Penn National Gaming Inc.,
Senior Subordinated Notes

 

8.750%

 

8/15/19

 

220,000

 

218,900

(a)

Sbarro Inc., Senior Notes

 

10.375%

 

2/1/15

 

770,000

 

633,325

 

Seneca Gaming Corp., Senior Notes

 

7.250%

 

5/1/12

 

1,150,000

 

1,127,000

 

Snoqualmie Entertainment Authority,
Senior Secured Notes

 

4.136%

 

2/1/14

 

150,000

 

102,750

(a)(e)

Station Casinos Inc., Senior Notes

 

6.000%

 

4/1/12

 

110,000

 

16,500

(c)(d)

Station Casinos Inc., Senior Notes

 

7.750%

 

8/15/16

 

760,000

 

114,000

(c)(d)

Total Hotels, Restaurants & Leisure

 

 

 

 

 

 

 

14,073,060

 

Household Durables — 0.2%

 

 

 

 

 

 

 

 

 

American Greetings Corp., Senior Notes

 

7.375%

 

6/1/16

 

80,000

 

78,800

 

Jarden Corp., Senior Subordinated Notes

 

7.500%

 

1/15/20

 

484,000

EUR

656,177

 

Norcraft Holdings LP/Norcraft Capital Corp., Senior Discount Notes

 

9.750%

 

9/1/12

 

202,000

 

190,890

(d)

Total Household Durables

 

 

 

 

 

 

 

925,867

 

Leisure Equipment & Products — 0.6%

 

 

 

 

 

 

 

 

 

Cirsa Capital Luxembourg, Senior Notes

 

7.875%

 

7/15/12

 

2,000,000

EUR

2,697,849

(a)

Media — 7.6%

 

 

 

 

 

 

 

 

 

Affinion Group Inc., Senior Notes

 

10.125%

 

10/15/13

 

2,315,000

 

2,349,725

 

Affinion Group Inc., Senior Subordinated Notes

 

10.125%

 

10/15/13

 

1,785,000

 

1,811,775

 

Affinion Group Inc., Senior Subordinated Notes

 

11.500%

 

10/15/15

 

380,000

 

389,500

 

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

 

13.500%

 

11/30/16

 

611,752

 

719,573

(a)

Cengage Learning Acquisitions Inc., Senior Notes

 

10.500%

 

1/15/15

 

1,570,000

 

1,438,512

(a)

 

See Notes to Schedule of Investments.

 

1


 

Schedule of investments (unaudited) (continued)

February 28, 2010

 

WESTERN ASSET GLOBAL HIGH INCOME FUND INC.

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT

 

VALUE

 

Media — continued

 

 

 

 

 

 

 

 

 

 

 

Charter Communications Operating LLC/Charter Communications Operating Capital, Senior Secured Notes

 

10.875%

 

9/15/14

 

 

1,150,000

 

$

1,286,563

(a)

Charter Communications Operating LLC/Charter Communications Operating Capital, Senior Secured Notes

 

8.000%

 

4/30/12

 

250,000

 

260,000

(a)

Clear Channel Communications Inc., Senior Notes

 

6.250%

 

3/15/11

 

480,000

 

458,400

 

CMP Susquehanna Corp.

 

4.774%

 

5/15/14

 

46,000

 

11,500

(a)(d)(e)

Comcast Corp.

 

5.700%

 

5/15/18

 

1,120,000

 

1,191,637

 

CSC Holdings Inc., Senior Debentures

 

7.875%

 

2/15/18

 

1,500,000

 

1,571,250

 

CSC Holdings Inc., Senior Notes

 

6.750%

 

4/15/12

 

575,000

 

599,438

 

DISH DBS Corp., Senior Notes

 

7.750%

 

5/31/15

 

3,060,000

 

3,190,050

 

DISH DBS Corp., Senior Notes

 

7.875%

 

9/1/19

 

4,000,000

 

4,140,000

 

Grupo Televisa SA, Senior Bonds

 

6.625%

 

1/15/40

 

1,730,000

 

1,708,877

(a)

Grupo Televisa SA, Senior Notes

 

6.625%

 

3/18/25

 

1,810,000

 

1,838,752

 

ITV PLC, Senior Notes

 

10.000%

 

6/30/14

 

2,000,000

EUR

3,113,481

 

NET Servicos de Comunicacao SA, Bonds

 

7.500%

 

1/27/20

 

900,000

 

924,750

(a)

Rogers Cable Inc., Senior Secured Notes

 

7.875%

 

5/1/12

 

1,100,000

 

1,234,952

 

Seat Pagine Gialle SpA, Senior Secured Notes

 

10.500%

 

1/31/17

 

661,000

EUR

836,475

(a)

Sun Media Corp., Senior Notes

 

7.625%

 

2/15/13

 

270,000

 

258,525

 

Time Warner Cable Inc., Senior Notes

 

8.750%

 

2/14/19

 

200,000

 

249,330

 

Time Warner Inc.

 

6.500%

 

11/15/36

 

160,000

 

170,010

 

Univision Communications Inc.,
Senior Secured Notes

 

12.000%

 

7/1/14

 

1,810,000

 

1,968,375

(a)

UPC Holding BV, Senior Notes

 

9.875%

 

4/15/18

 

330,000

 

344,850

(a)

Virgin Media Finance PLC, Senior Bonds

 

9.500%

 

8/15/16

 

955,000

 

1,017,075

 

Virgin Media Finance PLC, Senior Notes

 

9.125%

 

8/15/16

 

2,030,000

 

2,106,125

 

Total Media

 

 

 

 

 

 

 

35,189,500

 

Multiline Retail — 0.7%

 

 

 

 

 

 

 

 

 

Neiman Marcus Group Inc., Senior Notes

 

9.000%

 

10/15/15

 

1,171,662

 

1,159,945

(b)

Neiman Marcus Group Inc., Senior Secured Notes

 

7.125%

 

6/1/28

 

2,490,000

 

2,153,850

 

Total Multiline Retail

 

 

 

 

 

 

 

3,313,795

 

Specialty Retail — 0.4%

 

 

 

 

 

 

 

 

 

Blockbuster Inc., Senior Secured Notes

 

11.750%

 

10/1/14

 

1,363,000

 

988,175

(a)

Michaels Stores Inc., Senior Notes

 

10.000%

 

11/1/14

 

860,000

 

877,200

 

Total Specialty Retail

 

 

 

 

 

 

 

1,865,375

 

Textiles, Apparel & Luxury Goods — 0.3%

 

 

 

 

 

 

 

 

 

Oxford Industries Inc., Senior Secured Notes

 

11.375%

 

7/15/15

 

1,115,000

 

1,243,225

 

TOTAL CONSUMER DISCRETIONARY

 

 

 

 

 

 

 

63,650,968

 

CONSUMER STAPLES — 1.1%

 

 

 

 

 

 

 

 

 

Beverages — 0.4%

 

 

 

 

 

 

 

 

 

Constellation Brands Inc., Senior Notes

 

8.375%

 

12/15/14

 

785,000

 

839,950

 

Dr. Pepper Snapple Group Inc., Senior Notes

 

6.820%

 

5/1/18

 

340,000

 

387,992

 

PepsiCo Inc., Senior Notes

 

7.900%

 

11/1/18

 

390,000

 

488,544

 

Total Beverages

 

 

 

 

 

 

 

1,716,486

 

Food & Staples Retailing — 0.2%

 

 

 

 

 

 

 

 

 

CVS Pass-Through Trust, Secured Notes

 

5.298%

 

1/11/27

 

161,515

 

153,092

(a)(f)

CVS Pass-Through Trust, Secured Notes

 

5.880%

 

1/10/28

 

98,803

 

98,439

 

CVS Pass-Through Trust, Secured Notes

 

6.036%

 

12/10/28

 

609,605

 

610,553

 

Total Food & Staples Retailing

 

 

 

 

 

 

 

862,084

 

Food Products — 0.2%

 

 

 

 

 

 

 

 

 

Campofrio Food Group SA, Senior Notes

 

8.250%

 

10/31/16

 

750,000

EUR

1,006,520

(a)

Household Products — 0.1%

 

 

 

 

 

 

 

 

 

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

 

7.750%

 

10/15/16

 

640,000

 

651,200

(a)

Tobacco — 0.2%

 

 

 

 

 

 

 

 

 

Alliance One International Inc., Senior Notes

 

10.000%

 

7/15/16

 

710,000

 

741,950

(a)

TOTAL CONSUMER STAPLES

 

 

 

 

 

 

 

4,978,240

 

ENERGY — 13.7%

 

 

 

 

 

 

 

 

 

Energy Equipment & Services — 0.6%

 

 

 

 

 

 

 

 

 

Baker Hughes Inc., Senior Notes

 

7.500%

 

11/15/18

 

210,000

 

255,175

 

 

See Notes to Schedule of Investments.

 

2


 

Schedule of investments (unaudited) (continued)

February 28, 2010

 

WESTERN ASSET GLOBAL HIGH INCOME FUND INC.

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT

 

VALUE

 

Energy Equipment & Services — continued

 

 

 

 

 

 

 

 

 

 

 

Complete Production Services Inc., Senior Notes

 

8.000%

 

12/15/16

 

 

560,000

 

$

547,400

 

Hercules Offshore LLC, Senior Secured Notes

 

10.500%

 

10/15/17

 

655,000

 

655,000

(a)

Key Energy Services Inc., Senior Notes

 

8.375%

 

12/1/14

 

750,000

 

746,250

 

Pride International Inc., Senior Notes

 

7.375%

 

7/15/14

 

270,000

 

278,775

 

Transocean Inc., Senior Notes

 

5.250%

 

3/15/13

 

390,000

 

421,542

 

Total Energy Equipment & Services

 

 

 

 

 

 

 

2,904,142

 

Oil, Gas & Consumable Fuels — 13.1%

 

 

 

 

 

 

 

 

 

Anadarko Petroleum Corp., Senior Notes

 

6.450%

 

9/15/36

 

800,000

 

841,444

 

Apache Corp., Senior Notes

 

6.000%

 

1/15/37

 

280,000

 

300,124

 

Belden & Blake Corp., Secured Notes

 

8.750%

 

7/15/12

 

1,405,000

 

1,299,625

 

Berry Petroleum Co., Senior Notes

 

10.250%

 

6/1/14

 

670,000

 

731,975

 

Chesapeake Energy Corp., Senior Notes

 

6.375%

 

6/15/15

 

1,350,000

 

1,312,875

 

Chesapeake Energy Corp., Senior Notes

 

6.625%

 

1/15/16

 

270,000

 

261,900

 

Chesapeake Energy Corp., Senior Notes

 

7.250%

 

12/15/18

 

2,535,000

 

2,509,650

 

Colorado Interstate Gas Co., Senior Notes

 

6.800%

 

11/15/15

 

160,000

 

181,309

 

Compagnie Generale de Geophysique SA,
Senior Notes

 

7.500%

 

5/15/15

 

245,000

 

241,325

 

Compagnie Generale de Geophysique SA,
Senior Notes

 

7.750%

 

5/15/17

 

255,000

 

251,175

 

Corral Petroleum Holdings AB,
Senior Secured Subordinated Bonds

 

5.251%

 

4/15/10

 

496,159

 

367,158

(a)(b)(d)(e)

Devon Energy Corp., Debentures

 

7.950%

 

4/15/32

 

230,000

 

290,653

 

Dolphin Energy Ltd., Senior Secured Bonds

 

5.888%

 

6/15/19

 

821,700

 

828,343

(a)

Ecopetrol SA, Senior Notes

 

7.625%

 

7/23/19

 

1,900,000

 

2,099,500

 

El Paso Corp., Medium-Term Notes

 

7.375%

 

12/15/12

 

2,050,000

 

2,170,595

 

El Paso Corp., Medium-Term Notes

 

7.750%

 

1/15/32

 

1,260,000

 

1,223,755

 

El Paso Corp., Notes

 

7.875%

 

6/15/12

 

125,000

 

132,540

 

El Paso Natural Gas Co., Bonds

 

8.375%

 

6/15/32

 

70,000

 

83,078

 

Energy Transfer Partners LP, Senior Notes

 

6.700%

 

7/1/18

 

480,000

 

527,609

 

Enterprise Products Operating LLP, Junior Subordinated Notes

 

8.375%

 

8/1/66

 

980,000

 

992,240

 

Enterprise Products Operating LLP, Senior Bonds

 

6.300%

 

9/15/17

 

550,000

 

610,168

 

Enterprise Products Operating LLP,
Subordinated Notes

 

7.034%

 

1/15/68

 

3,000,000

 

2,846,697

 

Infinis PLC, Senior Notes

 

9.125%

 

12/15/14

 

655,000

GBP

1,003,442

(a)

International Coal Group Inc., Senior Notes

 

10.250%

 

7/15/14

 

655,000

 

671,375

 

KazMunaiGaz Finance Sub B.V., Senior Notes

 

8.375%

 

7/2/13

 

2,990,000

 

3,277,787

(a)

Kinder Morgan Energy Partners LP,
Medium-Term Notes

 

6.950%

 

1/15/38

 

330,000

 

362,369

 

LUKOIL International Finance BV, Bonds

 

6.356%

 

6/7/17

 

1,850,000

 

1,868,500

(a)

LUKOIL International Finance BV, Bonds

 

6.656%

 

6/7/22

 

946,000

 

905,795

(a)

LUKOIL International Finance BV, Notes

 

6.356%

 

6/7/17

 

830,000

 

832,075

(a)

Mariner Energy Inc., Senior Notes

 

7.500%

 

4/15/13

 

2,020,000

 

2,030,100

 

Occidental Petroleum Corp., Senior Notes

 

7.000%

 

11/1/13

 

330,000

 

386,009

 

OPTI Canada Inc., Senior Secured Notes

 

7.875%

 

12/15/14

 

550,000

 

486,750

 

OPTI Canada Inc., Senior Secured Notes

 

8.250%

 

12/15/14

 

445,000

 

398,275

 

Pemex Project Funding Master Trust, Senior Bonds

 

6.625%

 

6/15/35

 

4,237,000

 

4,049,763

 

Petrobras International Finance Co., Senior Notes

 

6.875%

 

1/20/40

 

1,620,000

 

1,658,217

 

Petrohawk Energy Corp., Senior Notes

 

9.125%

 

7/15/13

 

510,000

 

532,950

 

Petroleos de Venezuela SA, Senior Notes

 

5.250%

 

4/12/17

 

2,210,000

 

1,348,100

 

Petroleos Mexicanos, Notes

 

8.000%

 

5/3/19

 

2,150,000

 

2,504,750

 

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

 

9.750%

 

8/14/19

 

870,000

 

991,800

(a)

Petronas Capital Ltd.

 

5.250%

 

8/12/19

 

6,260,000

 

6,373,582

(a)

Petroplus Finance Ltd., Senior Notes

 

7.000%

 

5/1/17

 

410,000

 

325,950

(a)

Plains Exploration & Production Co., Senior Notes

 

10.000%

 

3/1/16

 

585,000

 

639,113

 

Plains Exploration & Production Co., Senior Notes

 

8.625%

 

10/15/19

 

515,000

 

536,888

 

Quicksilver Resources Inc., Senior Notes

 

11.750%

 

1/1/16

 

1,335,000

 

1,521,900

 

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

 

6.750%

 

9/30/19

 

1,007,000

 

1,099,665

(a)

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

 

5.500%

 

9/30/14

 

1,150,000

 

1,219,000

(a)

SandRidge Energy Inc., Senior Notes

 

8.625%

 

4/1/15

 

1,000,000

 

985,000

(b)

SandRidge Energy Inc., Senior Notes

 

9.875%

 

5/15/16

 

675,000

 

700,313

(a)

 

See Notes to Schedule of Investments.

 

3


 

Schedule of investments (unaudited) (continued)

February 28, 2010

 

WESTERN ASSET GLOBAL HIGH INCOME FUND INC.

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT

 

VALUE

 

Oil, Gas & Consumable Fuels — continued

 

 

 

 

 

 

 

 

 

 

 

Teekay Corp., Senior Notes

 

8.500%

 

1/15/20

 

 

1,280,000

 

$

1,305,600

 

W&T Offshore Inc., Senior Notes

 

8.250%

 

6/15/14

 

355,000

 

335,475

(a)

Whiting Petroleum Corp.,
Senior Subordinated Notes

 

7.000%

 

2/1/14

 

630,000

 

639,450

 

Williams Cos. Inc., Senior Notes

 

8.750%

 

3/15/32

 

785,000

 

995,224

 

XTO Energy Inc., Senior Notes

 

5.500%

 

6/15/18

 

250,000

 

272,614

 

Total Oil, Gas & Consumable Fuels

 

 

 

 

 

 

 

60,361,569

 

TOTAL ENERGY

 

 

 

 

 

 

 

63,265,711

 

FINANCIALS — 14.6%

 

 

 

 

 

 

 

 

 

Capital Markets — 1.2%

 

 

 

 

 

 

 

 

 

Bear Stearns Cos. LLC, Senior Notes

 

7.250%

 

2/1/18

 

820,000

 

952,615

 

Goldman Sachs Group Inc., Senior Notes

 

6.150%

 

4/1/18

 

330,000

 

349,138

 

Goldman Sachs Group Inc., Senior Notes

 

7.500%

 

2/15/19

 

1,430,000

 

1,639,358

 

Merrill Lynch & Co. Inc., Notes

 

6.875%

 

4/25/18

 

390,000

 

411,565

 

Morgan Stanley, Medium-Term Notes

 

6.625%

 

4/1/18

 

470,000

 

500,856

 

UBS AG Stamford CT, Senior Notes

 

3.875%

 

1/15/15

 

1,520,000

 

1,522,029

 

Total Capital Markets

 

 

 

 

 

 

 

5,375,561

 

Commercial Banks — 3.6%

 

 

 

 

 

 

 

 

 

Banco Mercantil del Norte SA,
Subordinated Bonds

 

6.135%

 

10/13/16

 

1,050,000

 

1,040,401

(a)(e)

Credit Agricole SA, Subordinated Notes

 

8.375%

 

10/13/19

 

1,250,000

 

1,318,196

(a)(g)

ICICI Bank Ltd., Subordinated Bonds

 

6.375%

 

4/30/22

 

2,294,000

 

2,113,048

(a)(e)

Lloyds TSB Bank PLC, Notes

 

5.800%

 

1/13/20

 

1,530,000

 

1,483,243

(a)

Royal Bank of Scotland Group PLC, Senior Notes

 

6.400%

 

10/21/19

 

910,000

 

916,539

 

RSHB Capital, Loan Participation Notes,
Secured Notes

 

7.125%

 

1/14/14

 

3,580,000

 

3,794,800

(a)

RSHB Capital, Loan Participation Notes,
Senior Notes

 

6.299%

 

5/15/17

 

470,000

 

471,175

(a)

RSHB Capital, Loan Participation Notes,
Senior Secured Bonds

 

6.299%

 

5/15/17

 

1,529,000

 

1,532,823

(a)

RSHB Capital, Loan Participation Notes,
Senior Secured Notes

 

9.000%

 

6/11/14

 

2,230,000

 

2,547,775

(a)

Wachovia Corp., Senior Notes

 

5.750%

 

2/1/18

 

1,350,000

 

1,426,345

 

Total Commercial Banks

 

 

 

 

 

 

 

16,644,345

 

Consumer Finance — 3.2%

 

 

 

 

 

 

 

 

 

American Express Co., Notes

 

7.000%

 

3/19/18

 

260,000

 

292,113

 

FMG Finance Pty Ltd., Senior Secured Bonds

 

9.750%

 

9/1/13

 

2,000,000

EUR

2,861,355

(a)

Ford Motor Credit Co., LLC, Notes

 

7.000%

 

10/1/13

 

1,300,000

 

1,281,324

 

Ford Motor Credit Co., LLC, Senior Notes

 

9.875%

 

8/10/11

 

115,000

 

120,677

 

Ford Motor Credit Co., LLC, Senior Notes

 

7.500%

 

8/1/12

 

1,930,000

 

1,939,140

 

GMAC Inc., Senior Bonds, zero coupon bond to yield

 

8.278%

 

12/1/12

 

1,330,000

 

1,064,350

 

GMAC Inc., Senior Notes

 

6.875%

 

8/28/12

 

978,000

 

973,110

 

GMAC Inc., Senior Notes

 

7.500%

 

12/31/13

 

30,000

 

29,700

 

GMAC Inc., Senior Notes

 

8.000%

 

11/1/31

 

2,367,000

 

2,207,228

 

GMAC Inc., Subordinated Notes

 

8.000%

 

12/31/18

 

36,000

 

33,660

 

SLM Corp., Senior Notes

 

0.409%

 

7/26/10

 

4,350,000

 

4,289,552

(e)

Total Consumer Finance

 

 

 

 

 

 

 

15,092,209

 

Diversified Financial Services — 4.4%

 

 

 

 

 

 

 

 

 

AAC Group Holding Corp., Senior Discount Notes

 

10.250%

 

10/1/12

 

350,000

 

343,000

(a)

Bank of America Corp., Senior Notes

 

5.650%

 

5/1/18

 

490,000

 

489,561

 

Bank of America Corp., Senior Notes

 

7.625%

 

6/1/19

 

1,480,000

 

1,676,501

 

CCM Merger Inc., Notes

 

8.000%

 

8/1/13

 

550,000

 

459,250

(a)

Citigroup Inc., Senior Notes

 

6.125%

 

11/21/17

 

490,000

 

496,413

 

Citigroup Inc., Senior Notes

 

8.500%

 

5/22/19

 

2,000,000

 

2,311,710

 

Citigroup Inc., Senior Notes

 

6.875%

 

3/5/38

 

290,000

 

287,154

 

El Paso Performance-Linked Trust Certificates, Senior Notes

 

7.750%

 

7/15/11

 

290,000

 

303,839

(a)

General Electric Capital Corp., Senior Notes

 

5.625%

 

5/1/18

 

650,000

 

669,490

 

General Electric Capital Corp., Senior Notes

 

5.500%

 

1/8/20

 

2,090,000

 

2,105,707

 

ISS Financing PLC, Senior Secured Bonds

 

11.000%

 

6/15/14

 

2,000,000

EUR

2,936,295

(a)

John Deere Capital Corp., Senior Notes

 

4.900%

 

9/9/13

 

220,000

 

241,561

 

 

See Notes to Schedule of Investments.

 

4

 


 

Schedule of investments (unaudited) (continued)

February 28, 2010

 

WESTERN ASSET GLOBAL HIGH INCOME FUND INC.

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT †

 

VALUE

 

Diversified Financial Services — continued

 

 

 

 

 

 

 

 

 

 

 

Leucadia National Corp., Senior Notes

 

7.750%

 

8/15/13

 

 

340,000

 

$

355,300

 

Leucadia National Corp., Senior Notes

 

8.125%

 

9/15/15

 

540,000

 

550,800

 

TNK-BP Finance SA

 

6.625%

 

3/20/17

 

550,000

 

547,250

(a)

TNK-BP Finance SA, Senior Notes

 

7.500%

 

7/18/16

 

1,390,000

 

1,479,763

(a)

TNK-BP Finance SA, Senior Notes

 

7.875%

 

3/13/18

 

1,490,000

 

1,566,437

(a)

UPC Germany GmbH, Senior Secured Bonds

 

8.125%

 

12/1/17

 

1,000,000

EUR

1,389,801

(a)

UPC Germany GmbH, Senior Subordinated Notes

 

9.625%

 

12/1/19

 

913,000

EUR

1,262,668

(a)

Vanguard Health Holdings Co., II LLC, Senior Notes

 

8.000%

 

2/1/18

 

880,000

 

869,000

(a)

Total Diversified Financial Services

 

 

 

 

 

 

 

20,341,500

 

Insurance — 0.8%

 

 

 

 

 

 

 

 

 

American International Group Inc., Senior Notes

 

8.250%

 

8/15/18

 

4,000,000

 

3,675,952

 

Real Estate Investment Trusts (REITs) — 1.0%

 

 

 

 

 

 

 

 

 

Host Hotels & Resorts LP, Senior Notes

 

7.125%

 

11/1/13

 

2,275,000

 

2,311,969

 

Ventas Realty LP/Ventas Capital Corp., Senior Notes

 

6.500%

 

6/1/16

 

175,000

 

175,438

 

Ventas Realty LP/Ventas Capital Corp., Senior Notes

 

6.750%

 

4/1/17

 

690,000

 

693,450

 

WEA Finance LLC/WT Finance Aust Pty. Ltd.,
Senior Notes

 

6.750%

 

9/2/19

 

1,360,000

 

1,460,728

(a)

Total Real Estate Investment Trusts (REITs)

 

 

 

 

 

 

 

4,641,585

 

Real Estate Management & Development — 0.4%

 

 

 

 

 

 

 

 

 

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

 

23.322%

 

6/30/15

 

169,000

 

55,770

(a)(d)

Castle HoldCo 4 Ltd., Senior Secured Notes

 

10.000%

 

5/8/18

 

530,000

GBP

815,985

(a)

Realogy Corp., Senior Notes

 

10.500%

 

4/15/14

 

1,250,000

 

1,050,000

 

Total Real Estate Management & Development

 

 

 

 

 

 

 

1,921,755

 

TOTAL FINANCIALS

 

 

 

 

 

 

 

67,692,907

 

HEALTH CARE — 4.2%

 

 

 

 

 

 

 

 

 

Biotechnology — 0.1%

 

 

 

 

 

 

 

 

 

Talecris Biotherapeutics Holdings Corp., Senior Notes

 

7.750%

 

11/15/16

 

400,000

 

404,000

(a)

Health Care Providers & Services — 4.0%

 

 

 

 

 

 

 

 

 

Community Health Systems Inc., Senior Notes

 

8.875%

 

7/15/15

 

620,000

 

643,250

 

DaVita Inc., Senior Subordinated Notes

 

7.250%

 

3/15/15

 

1,300,000

 

1,311,375

 

HCA Inc., Notes

 

6.375%

 

1/15/15

 

1,360,000

 

1,285,200

 

HCA Inc., Senior Secured Notes

 

9.250%

 

11/15/16

 

2,550,000

 

2,712,562

 

HCA Inc., Senior Secured Notes

 

9.625%

 

11/15/16

 

11,000

 

11,798

(b)

Humana Inc., Senior Notes

 

7.200%

 

6/15/18

 

2,000,000

 

2,179,806

 

IASIS Healthcare LLC/IASIS Capital Corp., Senior Subordinated Notes

 

8.750%

 

6/15/14

 

2,680,000

 

2,720,200

 

Tenet Healthcare Corp., Senior Notes

 

7.375%

 

2/1/13

 

1,030,000

 

1,030,000

 

Tenet Healthcare Corp., Senior Notes

 

9.000%

 

5/1/15

 

209,000

 

219,972

(a)

Tenet Healthcare Corp., Senior Notes

 

10.000%

 

5/1/18

 

215,000

 

237,575

(a)

Tenet Healthcare Corp., Senior Secured Notes

 

8.875%

 

7/1/19

 

1,968,000

 

2,086,080

(a)

Universal Hospital Services Inc., Senior Secured Notes

 

3.859%

 

6/1/15

 

720,000

 

612,000

(e)

Universal Hospital Services Inc., Senior Secured Notes

 

8.500%

 

6/1/15

 

135,000

 

131,625

(b)

US Oncology Holdings Inc., Senior Notes

 

7.178%

 

3/15/12

 

3,507,000

 

3,314,115

(b)(e)

WellPoint Inc., Notes

 

5.875%

 

6/15/17

 

240,000

 

261,315

 

Total Health Care Providers & Services

 

 

 

 

 

 

 

18,756,873

 

Pharmaceuticals — 0.1%

 

 

 

 

 

 

 

 

 

Wyeth, Notes

 

5.950%

 

4/1/37

 

260,000

 

275,414

 

TOTAL HEALTH CARE

 

 

 

 

 

 

 

19,436,287

 

INDUSTRIALS — 6.1%

 

 

 

 

 

 

 

 

 

Aerospace & Defense — 0.4%

 

 

 

 

 

 

 

 

 

L-3 Communications Corp., Senior Subordinated Notes

 

6.375%

 

10/15/15

 

325,000

 

331,906

 

 

See Notes to Schedule of Investments.

 

5


 

Schedule of investments (unaudited) (continued)

February 28, 2010

 

WESTERN ASSET GLOBAL HIGH INCOME FUND INC.

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT †

 

VALUE

 

Aerospace & Defense — (continued)

 

 

 

 

 

 

 

 

 

 

 

TransDigm Inc., Senior Subordinated Notes

 

7.750%

 

7/15/14

 

 

1,730,000

 

$

1,738,650

(a)

Total Aerospace & Defense

 

 

 

 

 

 

 

2,070,556

 

Airlines — 0.8%

 

 

 

 

 

 

 

 

 

Continental Airlines Inc., Pass-Through Certificates

 

8.312%

 

4/2/11

 

278,302

 

268,562

 

Continental Airlines Inc., Pass-Through Certificates

 

7.339%

 

4/19/14

 

290,000

 

272,600

 

DAE Aviation Holdings Inc., Senior Notes

 

11.250%

 

8/1/15

 

2,290,000

 

2,101,075

(a)

Delta Air Lines Inc., Secured Notes

 

8.021%

 

8/10/22

 

848,941

 

774,659

 

Delta Air Lines Inc., Senior Secured Notes

 

9.500%

 

9/15/14

 

320,000

 

327,200

(a)

Total Airlines

 

 

 

 

 

 

 

3,744,096

 

Building Products — 0.2%

 

 

 

 

 

 

 

 

 

GTL Trade Finance Inc., Senior Notes

 

7.250%

 

10/20/17

 

836,000

 

875,710

(a)

Commercial Services & Supplies — 1.4%

 

 

 

 

 

 

 

 

 

ACCO Brands Corp., Senior Secured Notes

 

10.625%

 

3/15/15

 

890,000

 

971,880

(a)

Altegrity Inc., Senior Subordinated Notes

 

10.500%

 

11/1/15

 

2,510,000

 

2,349,987

(a)

DynCorp International LLC/DIV Capital Corp.,
Senior Subordinated Notes

 

9.500%

 

2/15/13

 

1,289,000

 

1,305,113

 

RSC Equipment Rental Inc., Senior Notes

 

9.500%

 

12/1/14

 

1,295,000

 

1,259,388

 

RSC Equipment Rental Inc., Senior Secured Notes

 

10.000%

 

7/15/17

 

735,000

 

790,125

(a)

Total Commercial Services & Supplies

 

 

 

 

 

 

 

6,676,493

 

Construction & Engineering — 1.6%

 

 

 

 

 

 

 

 

 

Odebrecht Finance Ltd.

 

7.500%

 

10/18/17

 

6,577,000

 

6,922,292

(a)

Odebrecht Finance Ltd., Senior Notes

 

7.000%

 

4/21/20

 

600,000

 

609,000

(a)

Total Construction & Engineering

 

 

 

 

 

 

 

7,531,292

 

Marine — 0.2%

 

 

 

 

 

 

 

 

 

Trico Shipping AS, Senior Secured Notes

 

11.875%

 

11/1/14

 

840,000

 

817,950

(a)

Road & Rail — 0.9%

 

 

 

 

 

 

 

 

 

Kansas City Southern de Mexico, Senior Notes

 

9.375%

 

5/1/12

 

248,000

 

256,680

 

Kansas City Southern de Mexico, Senior Notes

 

7.625%

 

12/1/13

 

2,080,000

 

2,085,200

 

Kansas City Southern de Mexico, Senior Notes

 

12.500%

 

4/1/16

 

615,000

 

705,712

 

RailAmerica Inc., Senior Secured Notes

 

9.250%

 

7/1/17

 

1,017,000

 

1,071,664

 

Total Road & Rail

 

 

 

 

 

 

 

4,119,256

 

Trading Companies & Distributors — 0.6%

 

 

 

 

 

 

 

 

 

Ashtead Capital Inc., Notes

 

9.000%

 

8/15/16

 

595,000

 

600,950

(a)

H&E Equipment Services Inc., Senior Notes

 

8.375%

 

7/15/16

 

1,020,000

 

1,020,000

 

Penhall International Corp., Senior Secured Notes

 

12.000%

 

8/1/14

 

1,275,000

 

962,625

(a)(d)

Total Trading Companies & Distributors

 

 

 

 

 

 

 

2,583,575

 

TOTAL INDUSTRIALS

 

 

 

 

 

 

 

28,418,928

 

INFORMATION TECHNOLOGY — 1.5%

 

 

 

 

 

 

 

 

 

IT Services — 1.4%

 

 

 

 

 

 

 

 

 

Ceridian Corp., Senior Notes

 

12.250%

 

11/15/15

 

553,800

 

531,648

(b)

First Data Corp., Senior Notes

 

9.875%

 

9/24/15

 

1,240,000

 

1,078,800

 

GXS Worldwide Inc., Senior Secured Notes

 

9.750%

 

6/15/15

 

4,860,000

 

4,641,300

(a)

Total IT Services

 

 

 

 

 

 

 

6,251,748

 

Semiconductors & Semiconductor Equipment — 0.1%

 

 

 

 

 

 

 

Advanced Micro Devices Inc., Senior Notes

 

8.125%

 

12/15/17

 

195,000

 

198,412

(a)

Freescale Semiconductor Inc., Senior Notes

 

8.875%

 

12/15/14

 

70,000

 

62,475

 

Freescale Semiconductor Inc.,
Senior Subordinated Notes

 

10.125%

 

12/15/16

 

325,000

 

255,125

 

Total Semiconductors & Semiconductor Equipment

 

 

 

 

 

 

 

516,012

 

TOTAL INFORMATION TECHNOLOGY

 

 

 

 

 

 

 

6,767,760

 

MATERIALS — 8.4%

 

 

 

 

 

 

 

 

 

Chemicals — 0.6%

 

 

 

 

 

 

 

 

 

Cognis Deutschland GmbH & Co. KG, Senior Notes

 

9.500%

 

5/15/14

 

710,000

EUR

996,433

(a)

Kerling PLC, Senior Secured Notes

 

10.625%

 

1/28/17

 

792,000

EUR

1,096,676

(a)

Terra Capital Inc., Senior Notes

 

7.750%

 

11/1/19

 

370,000

 

414,400

(a)

Westlake Chemical Corp., Senior Notes

 

6.625%

 

1/15/16

 

220,000

 

211,750

 

Total Chemicals

 

 

 

 

 

 

 

2,719,259

 

 

See Notes to Schedule of Investments.

 

6


 

Schedule of investments (unaudited) (continued)

February 28, 2010

 

WESTERN ASSET GLOBAL HIGH INCOME FUND INC.

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT †

 

VALUE

 

Construction Materials — 0.3%

 

 

 

 

 

 

 

 

 

Headwaters Inc., Senior Secured Notes

 

11.375%

 

11/1/14

 

 

495,000

 

$

502,425

(a)

HeidelbergCement AG, Senior Notes

 

8.500%

 

10/31/19

 

720,000

EUR

1,003,119

 

Total Construction Materials

 

 

 

 

 

 

 

1,505,544

 

Containers & Packaging — 0.8%

 

 

 

 

 

 

 

 

 

Ardagh Glass Finance PLC, Senior Secured Notes

 

9.250%

 

7/1/16

 

650,000

EUR

956,510

(a)

Radnor Holdings Inc., Senior Notes

 

11.000%

 

3/15/10

 

575,000

 

0

(c)(d)(f)

Reynolds Group Issuer Inc., Senior Subordinated Notes

 

9.500%

 

6/15/17

 

2,000,000

EUR

2,765,977

(a)

Total Containers & Packaging

 

 

 

 

 

 

 

3,722,487

 

Metals & Mining — 4.7%

 

 

 

 

 

 

 

 

 

Codelco Inc., Notes

 

5.500%

 

10/15/13

 

1,050,000

 

1,151,286

(a)

Evraz Group SA, Notes

 

8.875%

 

4/24/13

 

1,610,000

 

1,671,477

(a)

Freeport-McMoRan Copper & Gold Inc., Senior Notes

 

8.375%

 

4/1/17

 

1,950,000

 

2,118,593

 

Gerdau Holdings Inc., Senior Notes

 

7.000%

 

1/20/20

 

440,000

 

446,600

(a)

Metals USA Inc., Senior Secured Notes

 

11.125%

 

12/1/15

 

2,000,000

 

2,030,000

 

Novelis Inc., Senior Notes

 

7.250%

 

2/15/15

 

950,000

 

885,875

 

Ryerson Inc., Senior Secured Notes

 

12.000%

 

11/1/15

 

745,000

 

769,213

 

Steel Dynamics Inc., Senior Notes

 

7.375%

 

11/1/12

 

250,000

 

255,625

 

Teck Resources Ltd., Senior Secured Notes

 

9.750%

 

5/15/14

 

490,000

 

580,650

 

Teck Resources Ltd., Senior Secured Notes

 

10.250%

 

5/15/16

 

410,000

 

490,975

 

Teck Resources Ltd., Senior Secured Notes

 

10.750%

 

5/15/19

 

810,000

 

1,000,350

 

Vale Overseas Ltd., Notes

 

8.250%

 

1/17/34

 

2,368,000

 

2,757,259

 

Vale Overseas Ltd., Notes

 

6.875%

 

11/21/36

 

4,110,000

 

4,182,891

 

Vedanta Resources PLC, Senior Notes

 

8.750%

 

1/15/14

 

2,980,000

 

3,158,800

(a)

Total Metals & Mining

 

 

 

 

 

 

 

21,499,594

 

Paper & Forest Products — 2.0%

 

 

 

 

 

 

 

 

 

Abitibi-Consolidated Co. of Canada,
Senior Secured Notes

 

13.750%

 

4/1/11

 

894,859

 

923,941

(a)

Appleton Papers Inc., Senior Secured Notes

 

11.250%

 

12/15/15

 

914,000

 

781,470

(a)

Celulosa Arauco y Constitucion SA, Senior Notes

 

7.250%

 

7/29/19

 

967,000

 

1,071,695

 

NewPage Corp., Senior Secured Notes

 

11.375%

 

12/31/14

 

2,430,000

 

2,332,800

 

PE Paper Escrow GmbH, Senior Secured Notes

 

11.750%

 

8/1/14

 

2,000,000

EUR

2,949,921

(a)

PE Paper Escrow GmbH, Senior Secured Notes

 

12.000%

 

8/1/14

 

270,000

 

293,453

(a)

Smurfit Kappa Acquisitions, Senior Secured Notes

 

7.750%

 

11/15/19

 

769,000

EUR

1,053,040

(a)

Total Paper & Forest Products

 

 

 

 

 

 

 

9,406,320

 

TOTAL MATERIALS

 

 

 

 

 

 

 

38,853,204

 

TELECOMMUNICATION SERVICES — 10.9%

 

 

 

 

 

 

 

 

 

Diversified Telecommunication Services — 6.9%

 

 

 

 

 

 

 

 

 

AT&T Inc., Global Notes

 

5.600%

 

5/15/18

 

630,000

 

673,117

 

AT&T Inc., Senior Notes

 

6.400%

 

5/15/38

 

720,000

 

742,409

 

Axtel SAB de CV, Senior Notes

 

7.625%

 

2/1/17

 

3,710,000

 

3,668,615

(a)

British Telecommunications PLC, Bonds

 

9.625%

 

12/15/30

 

240,000

 

305,376

 

CC Holdings GS V LLC, Senior Secured Notes

 

7.750%

 

5/1/17

 

479,000

 

520,913

(a)

Cincinnati Bell Inc., Senior Notes

 

8.250%

 

10/15/17

 

1,945,000

 

1,954,725

 

Cincinnati Bell Telephone Co., Senior Debentures

 

6.300%

 

12/1/28

 

120,000

 

93,600

 

GCI Inc., Senior Notes

 

8.625%

 

11/15/19

 

1,900,000

 

1,940,375

(a)

Hawaiian Telcom Communications Inc.,
Senior Subordinated Notes

 

12.500%

 

5/1/15

 

535,000

 

54

(c)(d)

Intelsat Intermediate Holding Co., Ltd.,
Senior Discount Notes

 

9.500%

 

2/1/15

 

900,000

 

933,750

 

Intelsat Jackson Holdings Ltd., Senior Notes

 

9.500%

 

6/15/16

 

210,000

 

221,550

 

Intelsat Jackson Holdings Ltd., Senior Notes

 

11.250%

 

6/15/16

 

3,505,000

 

3,759,112

 

Intelsat Jackson Holdings Ltd., Senior Notes

 

8.500%

 

11/1/19

 

1,920,000

 

1,953,600

(a)

Koninklijke KPN NV, Senior Notes

 

8.375%

 

10/1/30

 

350,000

 

437,563

 

Level 3 Financing Inc., Senior Notes

 

9.250%

 

11/1/14

 

1,105,000

 

1,052,512

 

Nordic Telephone Co. Holdings, Senior Secured Bonds

 

8.875%

 

5/1/16

 

1,895,000

 

2,037,125

(a)

Qwest Communications International Inc., Senior Notes

 

7.500%

 

2/15/14

 

1,520,000

 

1,542,800

 

Telefonica Emisones SAU, Senior Notes

 

6.221%

 

7/3/17

 

450,000

 

497,353

 

 

See Notes to Schedule of Investments.

 

7


 

Schedule of investments (unaudited) (continued)

February 28, 2010

 

WESTERN ASSET GLOBAL HIGH INCOME FUND INC.

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT †

 

VALUE

 

Diversified Telecommunication Services — (continued)

 

 

 

 

 

 

 

UBS Luxembourg SA for OJSC Vimpel Communications, Loan Participation Notes

 

8.250%

 

5/23/16

 

828,000

 

$

871,470

(a)

Verizon Communications Inc., Senior Notes

 

5.500%

 

2/15/18

 

510,000

 

540,330

 

Verizon Communications Inc., Senior Notes

 

6.400%

 

2/15/38

 

560,000

 

588,198

 

Vimpel Communications, Loan Participation Notes

 

8.375%

 

4/30/13

 

430,000

 

462,250

(a)

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

 

8.375%

 

4/30/13

 

1,535,000

 

1,655,818

(a)

Wind Acquisition Holdings Finance SpA, Senior Notes

 

12.250%

 

7/15/17

 

2,000,000

EUR

2,466,216

(a)(b)

Wind Acquisition Holdings Finance SpA, Senior Notes

 

12.250%

 

7/15/17

 

1,000,000

 

930,000

(a)

Windstream Corp., Senior Notes

 

8.625%

 

8/1/16

 

1,925,000

 

1,968,312

 

Total Diversified Telecommunication Services

 

 

 

 

 

 

 

31,817,143

 

Wireless Telecommunication Services — 4.0%

 

 

 

 

 

 

 

 

 

ALLTEL Communications Inc., Senior Notes

 

10.375%

 

12/1/17

 

630,000

 

748,987

(a)(b)(d)

America Movil SAB de CV, Senior Notes

 

5.625%

 

11/15/17

 

844,000

 

890,154

 

Cricket Communications Inc., Senior Secured Notes

 

7.750%

 

5/15/16

 

2,800,000

 

2,859,500

 

Sprint Capital Corp., Senior Notes

 

8.375%

 

3/15/12

 

320,000

 

328,400

 

Sprint Capital Corp., Senior Notes

 

6.875%

 

11/15/28

 

500,000

 

381,250

 

Sprint Capital Corp., Senior Notes

 

8.750%

 

3/15/32

 

7,500,000

 

6,656,250

 

True Move Co., Ltd., Notes

 

10.750%

 

12/16/13

 

6,510,000

 

6,607,650

(a)

Total Wireless Telecommunication Services

 

 

 

 

 

 

 

18,472,191

 

TOTAL TELECOMMUNICATION SERVICES

 

 

 

 

 

 

 

50,289,334

 

UTILITIES — 6.2%

 

 

 

 

 

 

 

 

 

Electric Utilities — 2.6%

 

 

 

 

 

 

 

 

 

Centrais Eletricas Brasileiras SA, Senior Notes

 

6.875%

 

7/30/19

 

1,557,000

 

1,658,205

(a)

FirstEnergy Corp., Notes

 

7.375%

 

11/15/31

 

270,000

 

292,769

 

Orion Power Holdings Inc., Senior Notes

 

12.000%

 

5/1/10

 

550,000

 

556,188

 

Pacific Gas & Electric Co., First Mortgage Bonds

 

6.050%

 

3/1/34

 

290,000

 

302,988

 

Reliant Energy Mid-Atlantic Power Holdings LLC, Senior Notes

 

9.681%

 

7/2/26

 

1,040,000

 

1,106,300

 

Texas Competitive Electric Holdings Co. LLC,
Senior Notes

 

10.250%

 

11/1/15

 

11,000,000

 

8,277,500

 

Total Electric Utilities

 

 

 

 

 

 

 

12,193,950

 

Energy Equipment & Services — 0.5%

 

 

 

 

 

 

 

 

 

EEB International Ltd., Senior Bonds

 

8.750%

 

10/31/14

 

2,050,000

 

2,247,312

(a)

Gas Utilities — 0.3%

 

 

 

 

 

 

 

 

 

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

 

6.875%

 

12/15/13

 

1,480,000

 

1,502,200

 

Independent Power Producers & Energy Traders — 2.7%

 

 

 

 

 

 

 

AES Corp., Senior Notes

 

8.875%

 

2/15/11

 

350,000

 

364,000

 

AES Corp., Senior Notes

 

7.750%

 

3/1/14

 

2,940,000

 

2,958,375

 

AES Corp., Senior Notes

 

7.750%

 

10/15/15

 

1,500,000

 

1,496,250

 

Colbun SA, Senior Notes

 

6.000%

 

1/21/20

 

750,000

 

758,128

(a)

Dynegy Holdings Inc., Senior Notes

 

7.750%

 

6/1/19

 

1,150,000

 

908,500

 

Edison Mission Energy, Senior Notes

 

7.750%

 

6/15/16

 

1,890,000

 

1,521,450

 

Edison Mission Energy, Senior Notes

 

7.625%

 

5/15/27

 

765,000

 

501,075

 

Mirant Americas Generation LLC, Senior Notes

 

9.125%

 

5/1/31

 

400,000

 

361,000

 

Mirant North America LLC, Senior Notes

 

7.375%

 

12/31/13

 

845,000

 

846,056

 

NRG Energy Inc., Senior Notes

 

7.250%

 

2/1/14

 

2,195,000

 

2,216,950

 

NRG Energy Inc., Senior Notes

 

7.375%

 

2/1/16

 

605,000

 

598,194

 

Total Independent Power Producers & Energy Traders

 

 

 

 

 

12,529,978

 

Multi-Utilities — 0.1%

 

 

 

 

 

 

 

 

 

Empresas Publicas de Medellin ESP, Senior Notes

 

7.625%

 

7/29/19

 

410,000

 

446,900

(a)

TOTAL UTILITIES

 

 

 

 

 

 

 

28,920,340

 

TOTAL CORPORATE BONDS & NOTES (Cost — $364,904,096)

 

 

 

 

 

372,273,679

 

 

See Notes to Schedule of Investments.

 

8

 


 

Schedule of investments (unaudited) (continued)

February 28, 2010

 

WESTERN ASSET GLOBAL HIGH INCOME FUND INC.

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT

 

VALUE

 

ASSET-BACKED SECURITIES — 0.0%

 

 

 

 

 

 

 

 

 

FINANCIALS — 0.0%

 

 

 

 

 

 

 

 

 

Home Equity — 0.0%

 

 

 

 

 

 

 

 

 

Finance America Net Interest Margin Trust, 2004-1 A

 

5.250%

 

6/27/34

 

 

110,125

 

$

53

(a)(d)(f)

Sail Net Interest Margin Notes 2003-6 A

 

7.000%

 

7/27/33

 

14,101

 

7

(a)(d)(f)

Sail Net Interest Margin Notes, 2003-7 A

 

7.000%

 

7/27/33

 

42,974

 

20

(a)(d)(f)

TOTAL ASSET-BACKED SECURITIES (Cost - $166,868)

 

 

 

 

 

80

 

COLLATERALIZED MORTGAGE OBLIGATION — 0.3%

 

 

 

 

 

 

 

Federal National Mortgage Association (FNMA) STRIPS, IO (Cost - $2,332,295)

 

5.500%

 

6/1/33

 

6,655,161

 

1,364,588

(d)

COLLATERALIZED SENIOR LOANS — 1.0%

 

 

 

 

 

 

 

 

 

CONSUMER DISCRETIONARY — 0.5%

 

 

 

 

 

 

 

 

 

Media — 0.5%

 

 

 

 

 

 

 

 

 

Newsday LLC, Term Loan

 

10.500%

 

7/15/10

 

2,000,000

 

2,147,500

(h)(i)

FINANCIALS — 0.5%

 

 

 

 

 

 

 

 

 

Real Estate Management & Development — 0.5%

 

 

 

 

 

 

 

 

 

Realogy Corp., Term Loan

 

13.500%

 

4/15/10

 

2,000,000

 

2,189,000

(h)(i)

TOTAL COLLATERALIZED SENIOR LOANS (Cost — $4,067,500)

 

 

 

4,336,500

 

SOVEREIGN BONDS — 13.0%

 

 

 

 

 

 

 

 

 

Argentina — 0.6%

 

 

 

 

 

 

 

 

 

Republic of Argentina

 

9.000%

 

6/20/03

 

1,074,000

EUR

599,985

(c)

Republic of Argentina

 

10.250%

 

1/26/07

 

1,100,000

EUR

640,739

(c)

Republic of Argentina

 

8.000%

 

2/26/08

 

1,729,117

EUR

977,743

(c)

Republic of Argentina

 

11.750%

 

11/13/26

 

1,550,000

EUR

418,432

(c)

Republic of Argentina, Medium-Term Notes

 

10.000%

 

2/22/07

 

522,000

EUR

300,504

(c)

Total Argentina

 

 

 

 

 

 

 

2,937,403

 

Brazil — 1.9%

 

 

 

 

 

 

 

 

 

Brazil Nota do Tesouro Nacional, Notes

 

10.000%

 

7/1/10

 

1,422,000

BRL

788,120

 

Brazil Nota do Tesouro Nacional, Notes

 

10.000%

 

1/1/12

 

12,410,000

BRL

6,687,115

 

Brazil Nota do Tesouro Nacional, Notes

 

10.000%

 

1/1/17

 

786,000

BRL

382,430

 

Federative Republic of Brazil

 

7.125%

 

1/20/37

 

775,000

 

879,625

 

Total Brazil

 

 

 

 

 

 

 

8,737,290

 

Colombia — 1.0%

 

 

 

 

 

 

 

 

 

Republic of Colombia

 

11.750%

 

2/25/20

 

544,000

 

794,240

 

Republic of Colombia

 

7.375%

 

9/18/37

 

2,852,000

 

3,115,810

 

Republic of Colombia, Senior Notes

 

7.375%

 

3/18/19

 

498,000

 

572,700

 

Total Colombia

 

 

 

 

 

 

 

4,482,750

 

Hungary — 0.2%

 

 

 

 

 

 

 

 

 

Republic of Hungary, Senior Notes

 

6.250%

 

1/29/20

 

950,000

 

975,110

 

Indonesia — 1.5%

 

 

 

 

 

 

 

 

 

Republic of Indonesia

 

10.250%

 

7/15/22

 

15,399,000,000

IDR

1,683,359

 

Republic of Indonesia

 

11.000%

 

9/15/25

 

25,206,000,000

IDR

2,838,004

 

Republic of Indonesia, Bonds

 

9.750%

 

5/15/37

 

11,646,000,000

IDR

1,148,258

 

Republic of Indonesia, Senior Bonds

 

6.875%

 

1/17/18

 

970,000

 

1,079,125

(a)

Total Indonesia

 

 

 

 

 

 

 

6,748,746

 

Mexico — 0.3%

 

 

 

 

 

 

 

 

 

United Mexican States

 

11.375%

 

9/15/16

 

148,000

 

207,200

 

United Mexican States, Medium-Term Notes

 

5.625%

 

1/15/17

 

4,000

 

4,260

 

United Mexican States, Medium-Term Notes

 

6.750%

 

9/27/34

 

1,046,000

 

1,127,065

 

Total Mexico

 

 

 

 

 

 

 

1,338,525

 

Panama — 1.1%

 

 

 

 

 

 

 

 

 

Republic of Panama

 

7.250%

 

3/15/15

 

621,000

 

715,703

 

Republic of Panama

 

9.375%

 

4/1/29

 

1,275,000

 

1,714,875

 

Republic of Panama

 

6.700%

 

1/26/36

 

2,430,000

 

2,594,025

 

Total Panama

 

 

 

 

 

 

 

5,024,603

 

 

See Notes to Schedule of Investments.

 

9


 

Schedule of investments (unaudited) (continued)

February 28, 2010

 

WESTERN ASSET GLOBAL HIGH INCOME FUND INC.

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT

 

VALUE

 

Peru — 0.7%

 

 

 

 

 

 

 

 

 

Republic of Peru

 

8.750%

 

11/21/33

 

 

278,000

 

$

364,180

 

Republic of Peru, Bonds

 

6.550%

 

3/14/37

 

1,774,000

 

1,871,570

 

Republic of Peru, Global Senior Bonds

 

8.375%

 

5/3/16

 

895,000

 

1,094,138

 

Republic of Peru, Global Senior Bonds

 

7.350%

 

7/21/25

 

50,000

 

58,500

 

Total Peru

 

 

 

 

 

 

 

3,388,388

 

Qatar — 0.1%

 

 

 

 

 

 

 

 

 

State of Qatar, Senior Notes

 

4.000%

 

1/20/15

 

470,000

 

477,050

(a)

Russia — 1.4%

 

 

 

 

 

 

 

 

 

Russian Foreign Bond-Eurobond, Senior Bonds

 

7.500%

 

3/31/30

 

5,807,790

 

6,595,326

(a)

Turkey — 1.5%

 

 

 

 

 

 

 

 

 

Republic of Turkey, Notes

 

6.750%

 

5/30/40

 

3,760,000

 

3,689,500

 

Republic of Turkey, Senior Notes

 

7.500%

 

7/14/17

 

3,000,000

 

3,393,750

 

Total Turkey

 

 

 

 

 

 

 

7,083,250

 

United Arab Emirates — 0.2%

 

 

 

 

 

 

 

 

 

MDC-GMTN B.V., Senior Notes

 

5.750%

 

5/6/14

 

750,000

 

793,514

(a)

Venezuela — 2.5%

 

 

 

 

 

 

 

 

 

Bolivarian Republic of Venezuela

 

8.500%

 

10/8/14

 

365,000

 

308,425

 

Bolivarian Republic of Venezuela

 

5.750%

 

2/26/16

 

12,367,000

 

8,564,148

(a)

Bolivarian Republic of Venezuela

 

7.650%

 

4/21/25

 

475,000

 

301,150

 

Bolivarian Republic of Venezuela, Collective Action Securities

 

9.375%

 

1/13/34

 

1,608,000

 

1,145,700

 

Bolivarian Republic of Venezuela, Collective Action Securities, Notes

 

10.750%

 

9/19/13

 

875,000

 

824,250

 

Bolivarian Republic of Venezuela, Senior Bonds

 

9.250%

 

9/15/27

 

240,000

 

180,600

 

Total Venezuela

 

 

 

 

 

 

 

11,324,273

 

TOTAL SOVEREIGN BONDS (Cost — $60,391,405)

 

 

 

 

 

 

 

59,906,228

 

U.S. GOVERNMENT & AGENCY OBLIGATIONS — 0.1%

 

 

 

 

 

 

 

U.S. Government Obligations — 0.1%

 

 

 

 

 

 

 

 

 

U.S. Treasury Bonds

 

4.500%

 

8/15/39

 

50,000

 

49,789

 

U.S. Treasury Notes

 

3.375%

 

11/15/19

 

490,000

 

481,617

 

TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS (Cost — $524,121)

 

 

 

531,406

 

U.S. TREASURY INFLATION PROTECTED SECURITIES — 1.1%

 

 

 

 

 

U.S. Treasury Bonds, Inflation Indexed

 

2.000%

 

1/15/26

 

3,166,371

 

3,164,886

 

U.S. Treasury Bonds, Inflation Indexed

 

2.375%

 

1/15/27

 

985,228

 

1,031,410

 

U.S. Treasury Notes, Inflation Indexed

 

2.625%

 

7/15/17

 

937,809

 

1,039,869

 

TOTAL U.S. TREASURY INFLATION PROTECTED SECURITIES (Cost — $4,943,222)

 

5,236,165

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHARES

 

 

 

COMMON STOCKS — 0.3%

 

 

 

 

 

 

 

 

 

CONSUMER DISCRETIONARY — 0.2%

 

 

 

 

 

 

 

 

 

Media — 0.2%

 

 

 

 

 

 

 

 

 

Charter Communications Inc., Class A Shares

 

 

 

 

 

17,345

 

516,014

*

Dex One Corp.

 

 

 

 

 

2,411

 

71,848

*

SuperMedia Inc.

 

 

 

 

 

2,490

 

104,561

*

TOTAL CONSUMER DISCRETIONARY

 

 

 

 

 

 

 

692,423

 

ENERGY — 0.0%

 

 

 

 

 

 

 

 

 

Oil, Gas & Consumable Fuels — 0.0%

 

 

 

 

 

 

 

 

 

SemGroup Corp., Class A Shares

 

 

 

 

 

3,221

 

76,509

*

INDUSTRIALS — 0.0%

 

 

 

 

 

 

 

 

 

Building Products — 0.0%

 

 

 

 

 

 

 

 

 

Nortek Inc.

 

 

 

 

 

4,011

 

150,402

*

MATERIALS — 0.1%

 

 

 

 

 

 

 

 

 

Chemicals — 0.1%

 

 

 

 

 

 

 

 

 

Georgia Gulf Corp.

 

 

 

 

 

39,529

 

564,079

*

TOTAL COMMON STOCKS (Cost — $5,509,849)

 

 

 

 

 

 

 

1,483,413

 

 

See Notes to Schedule of Investments.

 

10


 

Schedule of investments (unaudited) (continued)

February 28, 2010

 

WESTERN ASSET GLOBAL HIGH INCOME FUND INC.

 

SECURITY

 

RATE

 

MATURITY
DATE

 

SHARES

 

VALUE

 

CONVERTIBLE PREFERRED STOCK — 0.2%

 

 

 

 

 

 

 

 

 

FINANCIALS — 0.2%

 

 

 

 

 

 

 

 

 

Diversified Financial Services — 0.2%

 

 

 

 

 

 

 

 

 

Citigroup Inc. (Cost - $890,000)

 

7.500%

 

12/15/12

 

8,900

 

$

954,614

*

PREFERRED STOCKS — 0.4%

 

 

 

 

 

 

 

 

 

CONSUMER DISCRETIONARY — 0.2%

 

 

 

 

 

 

 

 

 

Automobiles — 0.2%

 

 

 

 

 

 

 

 

 

Corts-Ford Motor Co.

 

7.400%

 

 

 

30,500

 

667,950

 

Corts -Ford Motor Co.

 

8.000%

 

 

 

1,900

 

43,377

 

Total Automobiles

 

 

 

 

 

 

 

711,327

 

Media — 0.0%

 

 

 

 

 

 

 

 

 

CMP Susquehanna Radio Holdings Corp.

 

0.000%

 

 

 

10,727

 

11

*(a)(d)(e)

TOTAL CONSUMER DISCRETIONARY

 

 

 

 

 

 

 

711,338

 

FINANCIALS — 0.2%

 

 

 

 

 

 

 

 

 

Consumer Finance — 0.1%

 

 

 

 

 

 

 

 

 

GMAC Inc.

 

7.000%

 

 

 

1,176

 

832,424

(a)

Diversified Financial Services — 0.1%

 

 

 

 

 

 

 

 

 

Preferred Plus, Trust, Series FRD-1

 

7.400%

 

 

 

2,600

 

55,926

 

Saturns, Series F, 2003-5

 

8.125%

 

 

 

9,700

 

224,167

 

Total Diversified Financial Services

 

 

 

 

 

 

 

280,093

 

TOTAL FINANCIALS

 

 

 

 

 

 

 

1,112,517

 

TOTAL PREFERRED STOCKS (Cost — $1,085,657)

 

 

 

 

1,823,855

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXPIRATION
DATE

 

WARRANTS

 

 

 

WARRANTS — 0.0%

 

 

 

 

 

 

 

 

 

Bolivarian Republic of Venezuela, Oil-linked payment obligations

 

4/15/20

 

2,675

 

73,563

*

Buffets Restaurant Holdings

 

 

 

4/28/14

 

570

 

6

*(d)(f)

Charter Communications Inc.

 

 

 

11/30/14

 

754

 

5,295

*

CNB Capital Trust

 

 

 

3/23/19

 

12,259

 

12

*(a)(d)(f)

Nortek Inc.

 

 

 

12/7/14

 

1,302

 

16,598

*(f)

SemGroup Corp.

 

 

 

11/30/14

 

3,391

 

17,803

*(d)

TOTAL WARRANTS (Cost — $101,368)

 

 

 

 

 

 

 

113,277

 

TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENT (Cost — $444,916,381)

 

448,023,805

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MATURITY
DATE

 

FACE
AMOUNT

 

 

 

SHORT-TERM INVESTMENT — 3.2%

 

 

 

 

 

 

 

 

 

Repurchase Agreement — 3.2%

 

 

 

 

 

 

 

 

 

Morgan Stanley tri-party repurchase agreement dated 2/26/10; Proceeds at maturity - $14,899,124; (Fully collateralized by U.S. government agency obligation, 3.500% due 10/3/11; Market value - $15,400,968) (Cost - $14,899,000)

 

0.100%

 

3/1/10

 

$

14,899,000

 

14,899,000

 

TOTAL INVESTMENTS — 100.0% (Cost — $459,815,381#)

 

 

 

$

462,922,805

 

 

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

*

 

Non-income producing security.

(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)

 

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

(c)

 

The coupon payment on these securities is currently in default as of February 28, 2010.

(d)

 

Illiquid security.

(e)

 

Variable rate security.  Interest rate disclosed is that which is in effect at February 28, 2010.

(f)

 

Security is valued in good faith at fair value by or under the direction of the Board of Directors (See Note 1).

(g)

 

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

(h)

 

The date shown represents the last in range of interest reset dates.

 

See Notes to Schedule of Investments.

 

11


 

Schedule of investments (unaudited) (continued)

February 28, 2010

 

WESTERN ASSET GLOBAL HIGH INCOME FUND INC.

 

(i)

 

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

#

 

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

 

 

 

 

 

Abbreviations used in this schedule:

 

 

BRL

 

- Brazilian Real

 

 

EUR

 

- Euro

 

 

GBP

 

- British Pound

 

 

IDR

 

- Indonesian Rupiah

 

 

IO

 

- Interest Only

 

 

OJSC

 

- Open Joint Stock Company

 

 

STRIPS

 

- Separate Trading of Registered Interest and Principal Securities

 

See Notes to Schedule of Investments.

 

12

 


 

Notes to Schedule of Investments (unaudited)

 

1. Organization and Significant Accounting Policies

 

Western Asset Global High Income Fund Inc. (the “Fund”) was incorporated in Maryland 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’s primary investment objective is high current income. The Fund’s secondary objective is total return.

 

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.  Debt securities are valued at the mean between the last quoted bid and asked prices provided by an independent pricing service, which are based on transactions in debt obligations, quotations from bond dealers, market transactions in comparable securities and various other relationships between securities. Publicly traded foreign government debt securities are typically traded internationally in the over-the-counter market, and are valued at the mean between the last quoted bid and asked prices as of the close of business of that market. 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.  When prices are not readily available, or are determined not to reflect fair value, 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 at fair value as determined in accordance with procedures approved by the Fund’s Board of Directors. Short-term obligations with maturities of 60 days or less are valued at amortized cost, which approximates fair value.

 

The Fund has adopted Financial Accounting Standards Board Codification Topic 820 (formerly, Statement of Financial Accounting Standards No. 157) (“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 the 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 convert future amounts to a single present amount.

 

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

 

 

 

QUOTED
PRICES

 

OTHER
SIGNIFICANT
OBSERVABLE
INPUTS

 

SIGNIFICANT
UNOBSERVABLE
INPUTS

 

 

 

DESCRIPTION

 

(LEVEL 1)

 

(LEVEL 2)

 

(LEVEL 3)

 

TOTAL

 

Long-term investments†:

 

 

 

 

 

 

 

 

 

Corporate bonds & notes

 

 

$

372,273,679

 

$

0

 

$

372,273,679

 

Asset-backed securities

 

 

73

 

 

7

 

80

 

Collateralized mortgage obligation

 

 

1,364,588

 

 

1,364,588

 

Collateralized senior loans

 

 

4,336,500

 

 

4,336,500

 

Sovereign bonds

 

 

59,906,228

 

 

59,906,228

 

U.S. government & agency obligations

 

 

531,406

 

 

531,406

 

U.S. treasury inflation protected securities

 

 

5,236,165

 

 

5,236,165

 

Common stocks:

 

 

 

 

 

 

 

 

 

Energy

 

 

76,509

 

 

76,509

 

Other common stocks

 

$

1,406,904

 

 

 

1,406,904

 

Convertible preferred stock

 

954,614

 

 

 

954,614

 

Preferred stocks:

 

 

 

 

 

 

 

 

 

Consumer discretionary

 

711,327

 

11

 

 

711,338

 

Financials

 

280,093

 

832,424

 

 

1,112,517

 

Warrants

 

 

96,661

 

16,616

 

113,277

 

Total long-term investments

 

$

3,352,938

 

$

444,654,244

 

$

16,623

 

$

448,023,805

 

Short-term investments†

 

 

14,899,000

 

 

14,899,000

 

Total investments

 

$

3,352,938

 

$

459,553,244

 

$

16,623

 

$

462,922,805

 

Other financial instruments:

 

 

 

 

 

 

 

 

 

Forward foreign currency contracts

 

 

$

793,747

 

 

793,747

 

Interest rate swaps‡

 

 

(26,124

)

 

(26,124

)

Total other financial instruments

 

 

$

767,623

 

 

$

767,623

 

Total

 

$

3,352,938

 

$

460,320,867

 

$

16,623

 

$

463,690,428

 

 

13


 

Notes to Schedule of Investments (unaudited) (continued)

 

†See Schedule of Investments for additional detailed categorizations.

‡Values include any premiums paid or received with respect to swap contracts.

 

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

 

 

 

CORPORATE

 

ASSET-

 

COMMON STOCKS

 

PREFERRED
STOCKS

 

 

 

 

 

 

 

BONDS &

 

BACKED

 

CONSUMER

 

CONSUMER

 

 

 

 

 

INVESTMENTS IN SECURITIES

 

NOTES

 

SECURITIES

 

DISCRETIONARY

 

DISCRETIONARY

 

WARRANTS

 

TOTAL

 

Balance as of May 31, 2009

 

$

1,206,667

 

 

$

0

 

$

4,559

 

$

337

 

$

1,211,563

 

Accrued premiums/discounts

 

43,688

 

 

 

 

 

43,688

 

Realized gain/(loss)(1)

 

44

 

 

 

(694,145

)

0

 

 

(694,101

)

Change in unrealized appreciation (depreciation)(2)

 

(31,843

)

 

695,435

 

(4,548

)

(319

)

658,725

 

Net purchases (sales)

 

 

 

(1,290

)

 

16,598

 

15,308

 

Net transfers in and/or out of Level 3

 

(1,218,556

)

$

7

 

 

(11

)

 

(1,218,560

)

Balance as of February 28, 2010

 

$

0

 

$

7

 

 

 

$

16,616

 

$

16,623

 

Net change in unrealized appreciation (depreciation) for investments in securities still held at February 28, 2010(2)

 

$

(17,895

)

$

0

 

 

 

$

(319

)

$

(18,214

)

 

(1) This amount is included in net realized gain (loss) from investment transactions.

(2) 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.

 

(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, a fund takes possession of an underlying debt obligation subject to an obligation of the seller to repurchase, and of the fund to resell, the obligation at an agreed-upon price and time, thereby determining the yield during a 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 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) Forward Foreign Currency Contracts. The Fund may enter 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

 

14


 

Notes to Schedule of Investments (unaudited) (continued)

 

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.

 

(d) Swap Agreements. The Fund may invest 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 held 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 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 a sovereign 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 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.

 

15


 

Notes to Schedule of Investments (unaudited) (continued)

 

Interest Rate Swaps.

 

The Fund may enter into interest rate swap contracts.  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. The net interest received or paid on interest rate swap agreements is accrued daily as interest income. Interest rate swaps are marked to market daily based upon quotations from market makers. When a swap contract is terminated early, the Fund records a realized gain or loss equal to the difference between the original cost and the settlement amount of the closing transaction.

 

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.

 

(e) Stripped Securities. The Fund may invest in ‘‘Stripped Securities,’’ a term used collectively for components, or strips, fixed income securities. Stripped securities can be principal only securities (“PO”), which are debt obligations that have been stripped of unmatured interest coupons or, interest only securities (“IO”), which are unmatured interest coupons that have been stripped from debt obligations. The market value of Stripped Securities will fluctuate in response to changes in economic conditions, rates of pre-payment, interest rates and the market’s perception of the securities. However, fluctuations in response to interest rates may be greater in Stripped Securities than for debt obligations of comparable maturities that pay interest currently. The amount of fluctuation may increase with a longer period of maturity.

 

The yield to maturity on IO’s is sensitive to the rate of principal repayments (including prepayments) on the related underlying debt obligation and principal payments may have a material effect on yield to maturity. If the underlying debt obligation experiences greater than anticipated prepayments of principal, the Fund may not fully recoup its initial investment in IO’s.

 

(f) 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.

 

(g) Inflation-Indexed Bonds. Inflation-indexed bonds are fixed-income securities whose principal value or interest rate is periodically adjusted according to the rate of inflation. As the index measuring inflation changes, the principal value or interest rate of inflation-indexed bonds will be adjusted accordingly. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury inflation-indexed bonds. For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal.

 

(h) 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.

 

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

 

16


 

Notes to Schedule of Investments (unaudited) (continued)

 

2.  Investments

 

At February 28, 2010, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:

 

Gross unrealized appreciation

 

$24,075,879

 

Gross unrealized depreciation

 

(20,968,455

)

Net unrealized appreciation

 

$3,107,424

 

 

At February 28, 2010, the Fund had the following open forward foreign currency contracts:

 

Foreign Currency

 

Local
Currency

 

Market
Value

 

Settlement
Date

 

Unrealized
Gain(Loss)

 

Contracts to Buy:

 

 

 

 

 

 

 

 

 

Brazilian Real

 

1,388,352

 

$

768,319

 

3/2/2010

 

$

1,909

 

Brazilian Real

 

1,388,352

 

763,145

 

4/5/2010

 

5,518

 

British Pound

 

1,680,000

 

2,559,598

 

5/18/2010

 

(133,585

)

Euro

 

483,148

 

658,244

 

5/18/2010

 

6,403

 

 

 

 

 

 

 

 

 

(119,755

)

Contracts to Sell:

 

 

 

 

 

 

 

 

 

Brazilian Real

 

1,388,352

 

768,319

 

3/2/2010

 

(5,781

)

British Pound

 

1,190,050

 

1,813,126

 

5/18/2010

 

77,281

 

British Pound

 

1,683,000

 

2,564,169

 

5/18/2010

 

100,020

 

Euro

 

3,675,787

 

5,007,911

 

5/18/2010

 

97,794

 

Euro

 

10,330,357

 

14,074,130

 

5/18/2010

 

234,602

 

Euro

 

11,734,324

 

15,986,902

 

5/18/2010

 

409,586

 

 

 

 

 

 

 

 

 

913,502

 

Net Unrealized Gain on Open Forward Foreign Currency Contracts

 

$

793,747

 

 

At February 28, 2010, the Fund had the following open swap contracts:

 

SWAP COUNTERPARTY

 

NOTIONAL
AMOUNT†

 

TERMINATION
DATE

 

PERIODIC
PAYMENTS
MADE BY
THE FUND ‡

 

PERIODIC
PAYMENTS
RECEIVED
BY THE
FUND ‡

 

UPFRONT
PREMIUMS
PAID/
(RECEIVED)

 

UNREALIZED
DEPRECIATION

 

 

Interest Rate Swaps:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit Suisse

 

$

4,271,536

 

1/2/12

 

BRL-CDI

 

10.510%

 

 

$

(17,323

)*

 

Credit Suisse

 

2,653,585

 

1/2/12

 

BRL-CDI

 

10.560%

 

 

(8,801

)*

 

Total

 

$

6,925,121

 

 

 

 

 

 

 

 

$

(26,124

)

 

 

† Notional amount denominated in U.S. dollars, unless otherwise noted.

‡  Percentage shown is an annual percentage rate.

* Security is valued in good faith at fair value by or under the direction of the Board of Directors (See Note 1).

 

3. Derivative Instruments and Hedging Activities

 

Financial Accounting Standards Board Codification Topic 815 (formerly, Statement of Financial Accounting Standards No. 161) (“ASC Topic 815”) requires enhanced disclosure about an entity’s derivative and hedging activities.

 

17


 

Notes to Schedule of Investments (unaudited) (continued)

 

The following is a summary of the Fund’s derivative instruments categorized by risk exposure at February 28, 2010.

 

 

 

 

Forward Foreign Currency Contracts

 

 

 

 

 

 

 

Primary Underlying
Risk Disclosure

 

 

Unrealized
Appreciation

 

 

Unrealized
Depreciation

 

 

Swap
Contracts,
at value

 

 

Total

 

Interest Rate Contracts

 

 

 

 

 

 

$(26,124

)

 

$(26,124

)

Foreign Exchange Contracts

 

 

$933,113

 

 

$(139,366

)

 

 

 

793,747

 

Total

 

 

$933,113

 

 

$(139,366

)

 

$(26,124

)

 

$767,623

 

 

For the nine months ended February 28, 2010, the Fund had average market value of $6,141,909 and $24,713,549 in forward foreign currency contracts (to buy) and forward foreign currency contracts (to sell), respectively, and average notional balances in interest rate swap contracts of $6,232,609.

 

At February 28, 2010, the Fund did not have any open futures contracts (to buy), futures contracts (to sell) or credit default swap contracts (to sell protection).  During the nine months ended February 28, 2010, the Fund had average market values of $13,900,625 and $10,117,440 in futures contracts (to buy) and futures contracts (to sell), respectively, and an average notional balance of $33,055,000 in credit default swap contracts (to sell protection)

 

The Fund has several credit related contingent features that if triggered would allow its derivatives counterparties to close out and demand payment or additional collateral to cover their exposure from the Fund.  Credit related contingent features are established between the Fund and its derivatives counterparties to reduce the risk that the Fund will not fulfill its payment obligations to its counterparties.  These triggering features include, but are not limited to, a percentage decrease in the Fund’s net assets and or percentage decrease in the Fund’s Net Asset Value or NAV.  The contingent features are established within the Fund’s International Swap and Derivatives Association, Inc. master agreements which govern positions in swaps, over-the-counter options, and forward currency exchange contracts for each individual counterparty.

 

18

 


 

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 High Income Fund Inc.

 

 

 

By

/s/ R. Jay Gerken

 

R. Jay Gerken

 

Chief Executive Officer

 

 

 

Date:

April 23, 2010

 

 

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:

April 23, 2010

 

 

By

/s/ Kaprel Ozsolak

 

Kaprel Ozsolak

 

Chief Financial Officer

 

 

 

Date:

April 23, 2010