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 811-07358
Duff & Phelps Utility and Corporate Bond Trust Inc.
(Exact name of registrant as specified in charter)
200 S. Wacker Dr., Suite 500, Chicago, Illinois | 60606 | |
(Address of principal executive offices) | (Zip code) |
Alan M. Meder | Lawrence R. Hamilton | |
Duff & Phelps Utility and Corporate Bond Trust Inc. | Mayer Brown LLP | |
200 S. Wacker Dr., Suite 500 | 71 South Wacker Drive | |
Chicago, Illinois 60606 | Chicago, Illinois 60606 | |
(Name and address of agents for service) |
Registrants telephone number, including area code: (800) 338-8214
Date of fiscal year end: December 31
Date of reporting period: September 30, 2009
Item 1 Schedule of Investments
DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.
PORTFOLIO OF INVESTMENTS
September 30, 2009
(Unaudited)
Principal Amount (000) |
Description |
Value | ||||||
LONG-TERM INVESTMENTS - 154.7% |
||||||||
U.S. Government and Agency Obligations - 10.0% |
||||||||
Federal National Mortgage Association, |
||||||||
$ | 10,000 | 7.25%, |
1/15/10 |
$ | 10,206,900 | |||
5,000 | 6.00%, |
5/15/11 |
5,415,750 | |||||
242 | 8.00%, |
10/01/30 |
274,561 | |||||
902 | 7.00%, |
12/01/31 |
996,651 | |||||
Government National Mortgage Association Pass-Through Certificates, |
||||||||
14 | 7.00%, |
3/15/26 |
15,351 | |||||
90 | 8.00%, |
11/15/30 |
102,720 | |||||
34 | 8.00%, |
2/15/31 |
38,596 | |||||
U.S. Treasury Note, |
||||||||
10,000 | 4.75%, |
2/15/10 |
10,173,050 | |||||
5,000 | 4.00%, |
3/15/10 |
5,088,090 | |||||
Total U.S. Government and Agency Obligations |
32,311,669 | |||||||
Corporate Bonds - 138.2% |
||||||||
Financial - 28.4% |
||||||||
Boeing Capital Corp., |
||||||||
7,000 | 6.50%, |
2/15/12 |
7,713,237 | |||||
Caterpillar Financial Services Corp., |
||||||||
7,000 | 7.15%, |
2/15/19 |
8,131,151 | |||||
CPG Partners L.P., |
||||||||
7,900 | 8.25%, |
2/01/11 |
8,364,520 | |||||
Daimler Finance NA LLC., |
||||||||
5,000 | 7.75%, |
1/18/11 |
5,301,130 | |||||
ERP Operating Limited Partnership, |
||||||||
5,000 | 6.625%, |
3/15/12 |
5,338,675 | |||||
Firstar Bank, N.A., |
||||||||
7,000 | 7.125%, |
12/01/09 |
7,072,779 | |||||
General Electric Capital Corp., |
||||||||
6,000 | 6.125%, |
2/22/11 |
6,333,012 | |||||
Household Finance Corp., |
||||||||
6,000 | 8.00%, |
7/15/10 |
6,274,452 | |||||
JPMorgan Chase & Co., |
||||||||
10,000 | 7.875%, |
6/15/10 |
10,456,550 | |||||
Keybank, N.A., |
||||||||
3,200 | 7.30%, |
5/01/11 |
3,332,442 | |||||
Mack-Cali Realty, L.P., |
||||||||
7,000 | 7.75%, |
2/15/11 |
7,342,230 | |||||
NationsBank Capital Trust IV, |
||||||||
10,000 | 8.25%, |
4/15/27 |
9,900,000 | |||||
PNC Funding Corp., |
||||||||
6,000 | 7.50%, |
11/01/09 |
6,023,544 | |||||
91,583,722 | ||||||||
DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.
PORTFOLIO OF INVESTMENTS-(Continued)
September 30, 2009
(Unaudited)
Principal Amount (000) |
Description |
Value | |||||||
Industrial - 30.8% |
|||||||||
Archer-Daniels-Midland Company, |
|||||||||
$ | 4,000 | 7.125%, |
3/01/13 |
$ | 4,538,556 | ||||
Coca-Cola Enterprises, Inc., |
|||||||||
5,000 | 8.50%, |
2/01/12 |
5,674,890 | ||||||
Devon Financing Corp., |
|||||||||
5,000 | 6.875%, |
9/30/11 |
5,442,210 | ||||||
Dow Chemical Company, |
|||||||||
6,000 | 9.00%, |
4/01/21 |
6,791,574 | ||||||
Kraft Foods, Inc., |
|||||||||
5,000 | 6.25%, |
6/01/12 |
5,440,550 | ||||||
Potash Corporation of Saskatchewan, Inc., |
|||||||||
8,578 | (a) | 7.75%, |
5/31/11 |
9,385,198 | |||||
Premcor Refining Group, Inc., |
|||||||||
5,000 | 6.125%, |
5/01/11 |
5,263,400 | ||||||
Sun Company, Inc., |
|||||||||
5,000 | 9.00%, |
11/01/24 |
5,522,860 | ||||||
Target Corp., |
|||||||||
5,000 | 6.00%, |
1/15/18 |
5,642,400 | ||||||
Tele-Communications, Inc., |
|||||||||
5,275 | 10.125%, |
4/15/22 |
6,673,445 | ||||||
3,200 | 9.875%, |
6/15/22 |
4,019,373 | ||||||
Time Warner Entertainment Company, L.P., |
|||||||||
5,000 | 8.875%, |
10/01/12 |
5,793,365 | ||||||
Time Warner, Inc., |
|||||||||
5,000 | 9.15%, |
2/01/23 |
6,295,190 | ||||||
USX Corporation, |
|||||||||
10,000 | (a) | 9.125%, |
1/15/13 |
11,251,430 | |||||
Wal-Mart Stores, Inc., |
|||||||||
5,000 | 6.75%, |
10/15/23 |
6,058,570 | ||||||
XTO Energy, Inc., |
|||||||||
5,000 | 6.50%, |
12/15/18 |
5,529,490 | ||||||
99,322,501 | |||||||||
Telephone - 17.6% |
|||||||||
British Telecommunications PLC, |
|||||||||
10,000 | (b) | 8.125%, |
12/15/10 |
10,769,860 | |||||
Deutsche Telekom International Finance, |
|||||||||
12,000 | (a)(b) | 8.00%, |
6/15/10 |
12,580,488 | |||||
France Telecom SA, |
|||||||||
7,625 | (b) | 7.75%, |
3/01/11 |
8,258,943 | |||||
New Cingular Wireless Services, Inc., |
|||||||||
10,000 | (a) | 8.125%, |
5/01/12 |
11,416,830 | |||||
New York Telephone Co., |
|||||||||
5,000 | 8.625%, |
11/15/10 |
5,368,660 | ||||||
Verizon Global Funding Corp., |
|||||||||
7,500 | 7.375%, |
9/01/12 |
8,527,335 | ||||||
56,922,116 | |||||||||
Utilities - 61.4% |
|||||||||
AGL Capital Corp., |
|||||||||
10,000 | 7.125%, |
1/14/11 |
10,522,360 | ||||||
Arizona Public Service Co., |
|||||||||
5,000 | 6.875%, |
8/01/36 |
5,061,410 | ||||||
CalEnergy Company, Inc., |
|||||||||
10,000 | 8.48%, |
9/15/28 |
13,161,300 | ||||||
CenterPoint Energy Resources Corp., |
|||||||||
10,000 | (a) | 7.75%, |
2/15/11 |
10,637,310 | |||||
Cleveland Electric Illumination Co., |
|||||||||
6,713 | 8.875%, |
11/15/18 |
8,521,690 | ||||||
Duke Energy Corporation, |
|||||||||
10,000 | (a) | 7.375%, |
3/01/10 |
10,260,430 | |||||
Entergy Texas, Inc., |
|||||||||
10,000 | (a) | 7.125%, |
2/01/19 |
11,222,330 | |||||
FirstEnergy Corp., |
|||||||||
5,000 | 7.375%, |
11/15/31 |
5,620,710 | ||||||
Hydro-Quebec, |
|||||||||
10,000 | 7.50%, |
4/01/16 |
11,787,730 |
DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.
PORTFOLIO OF INVESTMENTS-(Continued)
September 30, 2009
(Unaudited)
Principal Amount (000) |
Description |
Value | ||||||||
Utilities (Continued) |
||||||||||
KeySpan Gas East Corporation, | ||||||||||
$ | 10,088 | (a) | 7.875%, |
2/01/10 |
$ | 10,313,931 | ||||
Kinder Morgan Energy Partners, | ||||||||||
5,000 | 7.75%, |
3/15/32 |
5,639,430 | |||||||
NSTAR, | ||||||||||
7,020 | 8.00%, |
2/15/10 |
7,203,791 | |||||||
ONEOK Inc., | ||||||||||
4,060 | 7.125%, |
4/15/11 |
4,350,172 | |||||||
ONEOK Partners, | ||||||||||
6,040 | 8.875%, |
6/15/10 |
6,355,107 | |||||||
Progress Energy, Inc., | ||||||||||
6,000 | 7.10%, |
3/01/11 |
6,362,790 | |||||||
PSE&G Power, LLC., | ||||||||||
7,195 | 7.75%, |
4/15/11 |
7,776,334 | |||||||
Sempra Energy, | ||||||||||
10,000 | 7.95%, |
3/01/10 |
10,283,600 | |||||||
South Carolina Electric & Gas Co., | ||||||||||
5,685 | 6.50%, |
11/01/18 |
6,577,249 | |||||||
Southern California Edison Company, | ||||||||||
5,512 | 7.625%, |
1/15/10 |
5,615,934 | |||||||
Spectra Energy Capital LLC., | ||||||||||
10,000 | 7.50%, |
10/01/09 |
10,000,000 | |||||||
Trans-Canada Pipelines Limited, | ||||||||||
10,000 | 9.875%, |
1/01/21 |
13,904,160 | |||||||
Wisconsin Energy Corp., | ||||||||||
6,000 | 6.50%, |
4/01/11 |
6,381,780 | |||||||
Xcel Energy, Inc., | ||||||||||
10,131 | (a) | 7.00%, |
12/01/10 |
10,654,378 | ||||||
198,213,926 | ||||||||||
Total Corporate Bonds |
446,042,265 | |||||||||
Asset-Backed Securities - 1.8% | ||||||||||
Detroit Edison Securitization Funding LLC 2001-1 A6, | ||||||||||
5,000 | 6.62%, |
3/01/16 |
5,763,758 | |||||||
Total Asset-Backed Securities |
5,763,758 | |||||||||
Shares |
||||||||||
Non-Convertible Preferred Stock - 4.7% | ||||||||||
Financial - 4.7% | ||||||||||
Duke Realty Corp., Series M, | ||||||||||
100,000 | 6.95% | 1,981,000 | ||||||||
Duke Realty Corp., Series N, | ||||||||||
100,000 | 7.25% | 2,101,000 | ||||||||
Kimco Realty Corp., Series G, | ||||||||||
100,000 | 7.75% | 2,435,000 | ||||||||
Public Storage, Inc., Series I, | ||||||||||
120,000 | 7.25% | 3,025,200 | ||||||||
Realty Income Corp., Series D, | ||||||||||
100,000 | 7.375% | 2,494,000 | ||||||||
UDR, Inc., Series G, | ||||||||||
100,000 | 6.75% | 2,090,000 | ||||||||
Vornado Realty Trust, Series I, | ||||||||||
50,000 | 6.625% | 1,062,500 | ||||||||
Total Non-Convertible Preferred Stock |
15,188,700 | |||||||||
Total Investments - 154.7% |
499,306,392 | |||||||||
Liabilities in Excess of Other Assets - (25.3)% |
(81,638,124 | ) | ||||||||
Liquidation Value of Preferred Shares - (29.4)% |
(95,000,000 | ) | ||||||||
Net Assets Applicable to Common Stock - 100% |
$ | 322,668,268 | ||||||||
(a) | A portion of this security has been loaned. |
(b) | Securitys original coupon rate is shown. Coupon rate subject to change if securitys rating is upgraded or downgraded by Standard & Poors Ratings Services or Moodys Investors Service, Inc. |
The United States federal income tax basis of the Funds investments and the net unrealized depreciation as of September 30, 2009 was as follows:
Tax Basis of Investments |
Appreciation |
Depreciation |
Net Unrealized | |||
$499,883,430 | $14,218,054 | $14,795,092 | $577,038 |
Notes
The Funds investments are carried at fair value which is defined as the price that the Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. The three-tier hierarchy of inputs established to classify fair value measurements for disclosure purposes is summarized in the three broad levels listed below.
Level 1 quoted prices in active markets for identical securities
Level 2 other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.)
Level 3 significant unobservable inputs (including the Funds own assumptions in determining fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. The following is a summary of the inputs used to value each of the Funds investments as of September 30, 2009:
Level 1 | Level 2 | Level 3 | Total | |||||||||
Asset-backed securities |
$ | | $ | 5,763,758 | $ | | $ | 5,763,758 | ||||
Corporate bonds - Financial |
| 91,583,722 | | 91,583,722 | ||||||||
Corporate bonds - Industrial |
| 99,322,501 | | 99,322,501 | ||||||||
Corporate bonds - Telephone |
| 56,922,116 | | 56,922,116 | ||||||||
Corporate bonds - Utilities |
| 198,213,926 | | 198,213,926 | ||||||||
Mortgage-backed securities |
| 17,050,529 | | 17,050,529 | ||||||||
Non-convertible preferred stock |
15,188,700 | | | 15,188,700 | ||||||||
U.S. Government obligations |
| 15,261,140 | | 15,261,140 | ||||||||
Total |
$ | 15,188,700 | $ | 484,117,692 | $ | | $ | 499,306,392 |
Other information regarding the Fund is available in the Funds most recent Report to Shareholders. This information is available on the Securities and Exchange Commissions website (www.SEC.gov).
Item 2 Controls and Procedures
(a) The registrants principal executive officer and principal financial officer have concluded that the registrants disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the 1940 Act)) are effective, based on an evaluation of those controls and procedures made as of a date within 90 days of the filing date of this report as required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934.
(b) There has been no change in the registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrants last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting.
Item 3 Exhibits
Exhibit 99.CERT- Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 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.
(Registrant) Duff & Phelps Utility and Corporate Bond Trust Inc.
By (Signature and Title) | /S/ ALAN M. MEDER |
|||
Alan M. Meder | ||||
Treasurer | ||||
(Principal Financial and Accounting Officer) | ||||
Date November 12, 2009 |
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 (Signature and Title) | /S/ NATHAN I. PARTAIN |
|||
Nathan I. Partain | ||||
President and Chief Executive Officer | ||||
Date November 12, 2009 | ||||
By (Signature and Title) | /S/ ALAN M. MEDER |
|||
Alan M. Meder | ||||
Treasurer | ||||
(Principal Financial and Accounting Officer) | ||||
Date November 12, 2009 |