UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File No. 811-08777
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CREDIT SUISSE HIGH YIELD BOND FUND
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(Exact Name of Registrant as Specified in Charter)
466 Lexington Avenue, New York, New York 10017-3140
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(Address of Principal Executive Offices) (Zip Code)
J. Kevin Gao, Esq.
Credit Suisse High Yield Bond Fund
466 Lexington Avenue
New York, New York 10017-3140
Registrant's telephone number, including area code: (212) 875-3500
Date of fiscal year end: October 31st
Date of reporting period: November 1, 2004 to October 31, 2005
ITEM 1. REPORTS TO STOCKHOLDERS.
CREDIT SUISSE HIGH YIELD BOND FUND
466 LEXINGTON AVENUE
NEW YORK, NY 10017
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TRUSTEES
Enrique R. Arzac - Chairman of the Board
Lawrence J. Fox
James S. Pasman, Jr.
Steven Rappaport
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OFFICERS
Steven B. Plump
Chief Executive Officer and President
Martha B. Metcalf
Chief Investment Officer
Michael E. Gray
Investment Officer
J. Kevin Gao
Senior Vice President
Ajay Mehra
Chief Legal Officer
Emidio Morizio
Chief Compliance Officer
Michael A. Pignataro
Chief Financial Officer, Vice President and Secretary
Robert Rizza
Treasurer
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INVESTMENT ADVISER
Credit Suisse Asset Management, LLC
466 Lexington Avenue
New York, NY 10017
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ADMINISTRATOR
State Street Bank and Trust Co.
225 Franklin Street
Boston, MA 02110
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CUSTODIAN
Custodial Trust Company
101 Carnegie Center
Princeton, NJ 08540
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SHAREHOLDER SERVICING AGENT
EquiServe Trust Company, N.A.
c/o Computershare
P.O. Box 43010 Providence, RI 02940-3010
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LEGAL COUNSEL
Willkie Farr & Gallagher LLP
787 7th Avenue
New York, NY 10019
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INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
PricewaterhouseCoopers LLP
Two Commerce Square
Philadelphia, Pennsylvania 19103
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CREDIT SUISSE
HIGH YIELD BOND FUND
================================================================================
ANNUAL REPORT
October 31, 2005
CREDIT SUISSE HIGH YIELD BOND FUND
ANNUAL INVESTMENT ADVISER'S REPORT
October 31, 2005 (unaudited)
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November 28, 2005
Dear Shareholder:
PERFORMANCE SUMMARY
11/01/04 - 10/31/05
FUND & BENCHMARKS PERFORMANCE
Total Return (based on NAV)1 2.62%
Total Return (based on market value)1 2.71%
Citigroup High-Yield Market Index2 (CHYMI) 3.55%
MARKET OVERVIEW: CREDIT CYCLE TRANSITION
In the Fund's fiscal year, high yield outperformed the broad fixed income market
(as measured by the Lehman Brothers Aggregate Bond Index, which returned 1.13%),
although the magnitude of outperformance narrowed significantly from that of the
last several years and might be considered small given the strong fundamental
backdrop.
In our view, this was due to the natural progress of the credit and business
cycles. High Yield defaults (as measured by Moody's Investor Services) remained
below 2% through the entire fiscal year period, well below historical averages.
However, after intense focus on balance sheet repair prompted by strong earnings
growth and low interest rates in the last few years, there is simply less "room
for improvement" in credit fundamentals. In addition, corporations are
increasingly turning to other means to address their lackluster share prices
(through share repurchases, dividend increases and other measures) in an effort
to boost shareholder value.
From a technical perspective, the environment was mixed. High yield mutual funds
reported an $8.3 billion outflow through October 2005 compared to a $3.2 billion
outflow during the same period in 2004, although this indicator does not account
for the increasing role of hedge funds and other market participants. And while
the fiscal year saw a 35% decline in the number of high yield deals and a 32%
drop in new issue volume, this decrease in new supply was easily outweighed by
the entrance of Ford, GM and Delphi debt into the high yield arena.
In our view, this influx of fallen angel debt caused the greatest turbulence,
and provided the greatest drag, on the high yield market in the period. High
yield spreads remained below their historical averages for most of the period,
but widened dramatically with the downgrade of General Motors and Ford to junk
status. These fallen angels brought approximately $82 billion of debt (market
value prior to downgrade) and raised concerns about the high yield market's
ability to absorb that level of supply. Together they now account for about 12%
of the index.
In sum, all of these factors, along with the impact of the Gulf Coast
hurricanes, persistently high energy costs, and uncertainty with respect to
Federal Reserve policy weighed on the market, resulting in greater caution among
investors.
STRATEGIC REVIEW: SECTOR AND SECURITY SELECTION DRIVE PERFORMANCE
The Fund's performance was helped in the period under review by our significant
overweight to the Wireless sector, which was among the best performing
industries in high yield this year. Another sector decision that contributed
positively to performance was our underweight to Airlines; an industry that has
seen its margins squeezed by high energy costs and has suffered a number of high
profile bankruptcies in the past year. Our Technology holdings, while similar in
weighting to those of the Index, also boosted performance thanks to positive
issue selection.
On the negative side, while we had positive issue selection within the
Diversified Telecommunications industry, it was also our largest underweight
relative to the Index, and one of this year's better performing sectors. In
addition, despite an underweight to Automobile Manufacturing, the credits we did
hold underperformed those in the Index, detracting from performance further.
CREDIT SUISSE HIGH YIELD BOND FUND
ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
October 31, 2005 (unaudited)
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OUTLOOK: PEAKING FUNDAMENTALS AND RANGE BOUND SPREADS
Looking ahead, we expect the pace of growth to be more moderate in 2006. Credit
fundamentals are strong but default rates are expected to rise moderately from
current levels. Moody's now expects defaults to rise toward 3.2% by September
2006, still below its historical average. In addition, shareholder friendly
headlines and increased LBO activity are likely to contribute to higher issuer
specific risk. However, valuations have improved in high yield. Spreads have
widened from historical tights (the Merrill Lynch Master II High Yield Index was
yielding +368 basis points more than the ten year treasury as of October 31,
2005) and are supported by below average default rates. Furthermore, an end to
the Federal Reserve's monetary tightening may increase investors' appetite for
risk. While we expect spreads to be range bound in the intermediate term, we
expect issuer specific event risk to rise. We will actively use these
opportunities to generate excess return and continue to place special importance
on security selection, as it will be a critical driver of performance going
forward.
We appreciate your interest in the Fund and would be pleased to respond to your
questions or comments. Any questions regarding net asset value, performance,
dividends, portfolio management or allocations should be directed to Credit
Suisse Asset Management, LLC at (800) 293-1232. All other inquiries regarding
account information, requests for the latest financial information or other
reports should be directed to the Fund's Shareholder Servicing Agent at (800)
730-6001.
/s/ Martha Metcalf /s/ Steven B. Plump
Martha Metcalf Steven B. Plump
Chief Investment Officer* Chief Executive Officer and President**
High yield bonds are lower-quality bonds that are also known as "junk bonds."
Such bonds entail greater risks than those found in higher-rated securities.
In addition to historical information, this report contains forward-looking
statements, which may concern, among other things, domestic and foreign markets,
industry and economic trends and developments and government regulation and
their potential impact on the Fund's investment portfolio. These statements are
subject to risks and uncertainties and actual trends, developments and
regulations in the future and their impact on the Fund could be materially
different from those projected, anticipated or implied. The Fund has no
obligation to update or revise forward-looking statements.
We wish to remind shareholders whose shares are registered in their own name
that they automatically participate in the Fund's dividend reinvestment program
known as the InvestlinkSM Program (the "Program"). The Program can be of value
to shareholders in maintaining their proportional ownership interest in the Fund
in an easy and convenient way. A shareholder whose shares are held in the name
of a broker/dealer or nominee should contact the Fund's Transfer Agent for
details about participating in the Program.
* Martha B. Metcalf is a Managing Director of Credit Suisse Asset Management
("CSAM") and head of the U.S. High Yield Management Team. She has served in
these capacities since 2005. As of November 2005, she is primarily
responsible for the management of the Fund's assets. From 2000 until 2005,
she was a Managing Director and Portfolio Manager of Global High Yield
Bonds, and head of a global high yield business with responsibility for
total return, as well as structured portfolios at Invesco. Prior to her
tenure at Invesco, Ms. Metcalf served for over ten years at JP Morgan
Investment Management, where she was Vice President and Portfolio Manager
for High Yield Corporate Bonds.
** Steven B. Plump is a Managing Director of CSAM and CEO/President of the
Fund. He joined Warburg Pincus Asset Management ("WPAM") in 1995 and came
to CSAM in 1999 when it acquired WPAM.
-------------------------------
1 Assuming reinvestment of dividends of $0.5323 per share.
2 The Citigroup High-Yield Market Index is a broad-based, unmanaged index of
high yield securities that is compiled by Citigroup Global Markets Inc. It
does not reflect the impact of taxes. Investors cannot invest directly in
an index.
CREDIT SUISSE HIGH YIELD BOND FUND
ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
October 31, 2005 (unaudited)
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TOP TEN HOLDINGS
(% of net assets as of 10/31/05)
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Security Description
1. General Motors Acceptance Corp. 1.62%
6.750% 12/01/14
2. Allied Waste North America, Inc. 1.59%
7.375% 04/15/14
3. El Paso Production Holding Co. 1.28%
7.750% 06/01/13
4. CCO Holding LLC 1.21%
8.750% 11/15/13
5. BGF Industries, Inc. 1.15%
10.250% 01/15/09
6. Calpine Generating Company LLC 1.12%
9.610% 11/01/05
7. Chukchansi Economic Development
Authority 1.11%
14.500% 06/15/09
8. Mediacom LLC Capital Corp. 1.09%
9.500% 01/15/13
9. Hard Rock Hotel, Inc. 1.00%
8.875% 06/01/13
10. Ubiquitel Operating Co. 0.97%
9.875% 03/01/11
CREDIT QUALITY BREAKDOWN
(% of total investments as of 10/31/05)
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S&P RATINGS
A- 0.2%
BBB 0.5
BB 18.3
B 53.2
CCC 25.1
CC 0.6
C 0.1
NR 1.5
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Subtotal 99.5
Equities and other 0.5
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Total 100.0%
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1
CREDIT SUISSE HIGH YIELD BOND FUND
SCHEDULE OF INVESTMENTS
October 31, 2005
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PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
----- ------------- -------- ----- -----
U.S. CORPORATE BONDS (129.6%)
AEROSPACE (1.7%)
$ 1,000 BE Aerospace, Inc., Series B, Senior Subordinated Notes (B- , Caa2) 03/01/08 8.000 $1,002,500
2,000 L-3 Communications Corp., Global Senior Subordinated Notes
(Callable 01/15/10 @ $102.94) ss. (BB+ , Ba3) 01/15/15 5.875 1,910,000
850 Sequa Corp., Series B, Senior Notes (BB- , B1) 04/01/08 8.875 875,500
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3,788,000
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AIRLINES (0.5%)
1,200 American Airlines, Inc., Series 01-2, Pass Thru Certificates ss. (B , B1) 04/01/08 7.800 1,144,583
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AUTOMOBILE MANUFACTURING/VEHICLE PARTS (7.0%)
1,100 Accuride Corp., Global Company Guaranteed Notes
(Callable 02/01/10 @ $104.25) (B- , B3) 02/01/15 8.500 1,045,000
425 ArvinMeritor, Inc., Notes (BB , Ba2) 03/01/12 8.750 400,563
400 Cooper-Standard Automotive, Inc., Global Company Guaranteed Notes
(Callable 12/15/09 @ $104.19) ss. (B , B3) 12/15/14 8.375 302,000
125 Delphi Corp., Global Notes ss. (D , Ca) 06/15/06 6.550 87,188
405 Dura Operating Corp., Series D, Company Guaranteed Notes
(Callable 05/01/06 @ $101.50) ss. (CCC+ , Caa2) 05/01/09 9.000 255,150
1,750 Ford Motor Credit Co., Global Notes (BB+ , Baa3) 10/01/13 7.000 1,604,067
1,700 General Motors Acceptance Corp., Global Bonds (BB , Ba1) 11/01/31 8.000 1,759,855
3,810 General Motors Acceptance Corp., Global Notes ss. (BB , Ba1) 12/01/14 6.750 3,649,302
1,250 Goodyear Tire & Rubber Co., Rule 144A, Senior Notes
(Callable 07/01/10 @ $104.50) ++ (B- , B3) 07/01/15 9.000 1,212,500
1,200 Heafner Tire Group, Inc., Rule 144A, Senior Notes
(Callable 04/01/09 @ $105.38) ++ (CCC+ , Caa2) 04/01/13 10.750 1,092,000
500 Keystone Automotive Operations, Inc., Global Senior
Subordinated Notes (Callable 11/01/08 @ $104.88) (B- , B3) 11/01/13 9.750 488,750
925 Metaldyne Corp., Global Company Guaranteed Notes
(Callable 06/15/07 @ $105.50) ss. (CCC+ , Caa2) 06/15/12 11.000 675,250
900 Stanadyne Corp., Global Senior Subordinated Notes
(Callable 08/15/09 @ $105.00) (B- , Caa1) 08/15/14 10.000 882,000
600 Stoneridge, Inc., Global Company Guaranteed Notes
(Callable 05/01/07 @ $105.75) (B+ , B1) 05/01/12 11.500 621,000
800 Tenneco Automotive, Inc., Global Company Guaranteed Notes
(Callable 11/15/09 @ $104.31) ss. (B- , B3) 11/15/14 8.625 768,000
1,000 Visteon Corp., Global Senior Notes ss. (B- , B3) 08/01/10 8.250 928,750
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15,771,375
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BROADBAND (0.6%)
750 Level 3 Communications, Inc., Senior Notes
(Callable 05/01/06 @ $100.00) ss. (CC , Ca) 05/01/08 9.125 633,750
750 Level 3 Financing, Inc., Global Company Guaranteed Notes
(Callable 10/15/07 @ $105.38) ss. (CC , Caa1) 10/15/11 10.750 641,250
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1,275,000
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BROADCAST/OUTDOOR (3.1%)
600 Allbritton Communications Co., Global Senior Subordinated Notes
(Callable 12/15/07 @ $103.88) ss. (B- , B3) 12/15/12 7.750 595,500
750 Emmis Communications Corp., Global Senior Notes
(Callable 12/15/05 @ $100.00) # (B- , B3) 06/15/12 9.745 755,625
500 Emmis Operating Co., Global Senior Subordinated Notes
(Callable 05/15/08 @ $103.44) (B- , B2) 05/15/12 6.875 496,250
225 LIN Television Corp., Rule 144A, Senior Subordinated Notes
(Callable 05/15/08 @ $103.25) ++ (B- , B1) 05/15/13 6.500 214,313
2,000 Paxson Communications Corp., Global Company Guaranteed Notes
(Callable 01/15/06 @ $106.12) + (CCC- , Caa1) 01/15/09 0.000 1,965,000
350 Sinclair Broadcast Group, Inc., Global Company Guaranteed Notes
(Callable 12/15/06 @ $104.38) (B , B2) 12/15/11 8.750 369,250
1,000 Sirius Satellite Radio, Inc., Rule 144A, Senior Notes
(Callable 09/01/09 @ $104.81) ++ (CCC , Caa1) 08/01/13 9.625 951,250
975 WMG Holdings Corp., Global Senior Discount Notes
(Callable 12/15/09 @ $104.75) + (B- , Caa2) 12/15/14 0.000 675,187
990 Young Broadcasting, Inc., Global Company Guaranteed Notes
(Callable 03/01/06 @ $105.00) ss. (CCC , Caa1) 03/01/11 10.000 925,650
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6,948,025
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BUILDING PRODUCTS (4.3%)
250 Ahern Rentals, Inc., Rule 144A, Secured Notes
(Callable 08/15/09 @ 104.63) ++ (B- , B3) 08/15/13 9.250 255,000
1,300 Building Materials Corp., Global Secured Notes
(Callable 08/01/09 @ $103.88) ss. (B+ , B2) 08/01/14 7.750 1,248,000
750 Compression Polymers Holding Corp., Rule 144A, Senior Notes
(Callable 07/01/09 @ $105.25) ++ (B- , B2) 07/01/13 10.500 686,250
600 Dayton Superior Corp., Company Guaranteed Notes
(Callable 06/15/07 @ $102.17) ss. (CCC , Caa3) 06/15/09 13.000 418,500
500 Dayton Superior Corp., Global Secured Notes
(Callable 06/15/06 @ $105.62) (B- , Caa1) 09/15/08 10.750 487,500
1,500 Goodman Global Holdings Co., Inc., Rule 144A,
Senior Subordinated Notes
(Callable 12/15/08 @ $103.94) ++ss. (B- , Caa1) 12/15/12 7.875 1,417,500
1,100 Interface, Inc., Global Senior Subordinated Notes
(Callable 02/01/09 @ $104.75) (CCC , Caa3) 02/01/14 9.500 1,100,000
750 Norcraft Holdings LP, Global Senior Discount Notes
(Callable 09/01/08 @ $104.88) + (B- , Caa1) 09/01/12 0.000 528,750
1,000 NTK Holdings, Inc., Global Senior Discount Notes
(Callable 09/01/09 @ $105.38) +ss. (CCC+ , Caa2) 03/01/14 0.000 605,000
See Accompanying Notes to Financial Statements.
2
CREDIT SUISSE HIGH YIELD BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2005
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PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
----- ------------- -------- ----- -----
U.S. CORPORATE BONDS
BUILDING PRODUCTS
$ 1,000 Ply Gem Industries, Inc., Global Senior Subordinated Notes
(Callable 02/15/08 @ $104.50) (B- , B3) 02/15/12 9.000 $ 815,000
1,250 RMCC Acquisition Co., Rule 144A, Senior Subordinated Notes
(Callable 11/01/08 @ $104.75) ++ (CCC+ , Caa1) 11/01/12 9.500 1,275,000
250 Texas Industries, Inc., Rule 144A, Senior Notes
(Callable 07/15/09 @ $103.63) ++ (BB- , Ba3) 07/15/13 7.250 261,250
1,350 Werner Holding Co., Inc., Series A, Company Guaranteed Notes
(Callable 11/15/05 @ $100) ss. (CCC- , Caa3) 11/15/07 10.000 648,000
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9,745,750
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CABLE (7.1%)
1,450 Atlantic Broadband Finance LLC, Global Company Guaranteed Notes
(Callable 01/15/09 @ $104.69) ss. (CCC+ , Caa1) 01/15/14 9.375 1,319,500
600 Cablevision Systems Corp., Series B, Global Senior Notes (B+ , B3) 04/15/12 8.000 576,000
1,446 CCH I LLC, Series AI, Secured Notes
(Callable 10/1/10 @ $105.50) (CCC- , Caa3) 10/01/15 11.000 1,315,860
2,820 CCO Holdings LLC, Global Senior Notes
(Callable 11/15/08 @ $104.38) ss. (CCC- , B3) 11/15/13 8.750 2,728,350
355 CCO Holdings LLC, Rule 144A, Senior Notes
(Callable 11/15/08 @ 104.38) ++ (CCC- , B3) 11/15/13 8.750 343,462
1,798 Charter Communications Holdings LLC, Senior Discount Notes
(Callable 04/01/06 @ $101.44) #+ss. (CCC- , Ca) 04/01/11 9.920 1,132,740
400 Charter Communications Holdings LLC, Senior Notes
(Callable 04/01/06 @ $101.44) ss. (CCC- , Ca) 04/01/09 8.625 330,000
2,100 CSC Holdings, Inc., Rule 144A, Senior Notes ++# (BB- , B1) 04/15/12 7.000 2,037,000
750 CSC Holdings, Inc., Series B, Senior Notes ss. (BB- , B1) 04/01/11 7.625 755,625
1,750 DIVA Systems Corp., Series B, Senior Discount Notes
(Callable 03/01/06 @ $100.00) ^0 (NR , NR) 03/01/08 12.625 43,750
2,000 Insight Communications Company, Inc., Senior Discount Notes
(Callable 02/15/06 @ $106.12) + (CCC+ , Caa1) 02/15/11 0.000 2,065,000
200 Insight Midwest/Insight Capital Corp., Senior Notes
(Callable 10/01/06 @ $101.63) (B , B2) 10/01/09 9.750 206,500
500 Insight Midwest/Insight Capital Corp., Global Senior Notes
(Callable 11/01/05 @ $105.25) (B , B2) 11/01/10 10.500 527,500
200 Mediacom Broadband LLC, Rule 144A, Senior Notes
(Callable 10/15/10 @ $104.25) ++ (B , B2) 10/15/15 8.500 185,000
2,500 Mediacom LLC Capital Corp., Senior Notes
(Callable 01/15/06 @ $104.75) ss. (B , B3) 01/15/13 9.500 2,456,250
-------------
16,022,537
-------------
CAPITAL GOODS (1.8%)
1,000 Blount, Inc., Senior Subordinated Notes
(Callable 08/01/08 @ $104.44) (B , B3) 08/01/12 8.875 1,057,500
850 Case New Holland, Inc., Global Company Guaranteed Notes
(Callable 08/01/07 @ $104.62) ss. (BB- , Ba3) 08/01/11 9.250 898,875
1,753 JII Holdings LLC, Global Secured Notes
(Callable 01/01/06 @ $103.25) (CCC- , Caa2) 04/01/07 13.000 1,550,962
650 Terex Corp., Global Company Guaranteed Notes
(Callable 01/15/09 @ $103.69) (B , Caa1) 01/15/14 7.375 650,000
-------------
4,157,337
-------------
CHEMICALS (6.5%)
650 BCP Crystal Holdings Corp., Global Senior Subordinated Notes
(Callable 06/15/09 @ $104.81) (B- , B3) 06/15/14 9.625 718,250
750 Crompton Corp., Global Senior Notes
(Callable 08/01/08 @ $104.94) (BB+ , Ba1) 08/01/12 9.875 843,750
876 Crystal US Holdings, Series B, Global Senior Discount Notes
(Callable 10/01/09 @ $105.25) + (B- , Caa2) 10/01/14 0.000 611,010
1,000 Equistar Chemicals LP/ Equistar Funding Corp.,
Global Company Guaranteed Notes (BB- , B2) 09/01/08 10.125 1,082,500
227 Huntsman Company LLC, Global Company Guaranteed Notes
(Callable 10/15/07 @ $105.81) (BB- , Ba3) 10/15/10 11.625 258,213
773 Huntsman LLC, Global Company Guaranteed Notes
(Callable 07/15/08 @ $105.75) # (B , B2) 07/15/12 11.500 878,321
1,100 IMC Global, Inc., Global Senior Notes
(Callable 08/01/08 @ $105.44) (BB , Ba3) 08/01/13 10.875 1,281,500
1,450 IMC Global, Inc., Series B, Global Company Guaranteed Notes
(Callable 06/01/06 @ $105.63) (BB , Ba3) 06/01/11 11.250 1,580,500
1,200 KI Holdings, Inc., Global Senior Discount Notes
(Callable 11/15/09 @ $104.94) + (B- , Caa2) 11/15/14 0.000 811,500
1,000 Lyondell Chemical Co., Global Company Guaranteed Notes
(Callable 06/01/08 @ $105.25) (BB- , B1) 06/01/13 10.500 1,138,750
1,850 Millennium America, Inc., Global Company Guaranteed Notes (BB- , B1) 06/15/08 9.250 1,993,375
750 Nalco Co., Global Senior Notes (Callable 11/15/07 @ $103.88) (B- , B2) 11/15/11 7.750 769,687
750 PolyOne Corp., Global Company Guaranteed Notes
(Callable 05/15/07 @ $105.31) (B+ , B3) 05/15/10 10.625 738,750
1,000 Resolution Performance Products LLC, Global Senior
Subordinated Notes (Callable 11/15/05 @ $106.75) (B- , Caa2) 11/15/10 13.500 1,058,750
832 Terra Capital, Inc., Global Secured Notes
(Callable 06/01/07 @ $105.75) (B- , B2) 06/01/10 11.500 956,800
-------------
14,721,656
-------------
COMPETITIVE LOCAL EXCHANGE CARRIER (1.0%)
250 GCI, Inc., Global Senior Notes (Callable 02/15/09 @ $103.62) (B+ , B2) 02/15/14 7.250 243,750
1,848 Madison River Capital LLC, Senior Notes
(Callable 03/01/06 @ $104.42) ss. (B- , B3) 03/01/10 13.250 1,977,360
-------------
2,221,110
-------------
See Accompanying Notes to Financial Statements.
3
CREDIT SUISSE HIGH YIELD BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2005
------------------------------------------------------------------------------------------------------------------------------------
PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
----- ------------- -------- ----- -----
U.S. CORPORATE BONDS
CONSUMER PRODUCTS/TOBACCO (4.6%)
$ 850 AAC Group Holding Corp., Global Senior Discount Notes
(Callable 10/01/08 @ $105.13) + (B- , Caa1) 10/01/12 0.000 $ 624,750
500 Ames True Temper, Global Company Guaranteed Notes
(Callable 01/15/07 @ $103.00) # (CCC+ , Caa1) 01/15/12 8.150 472,500
1,400 Ames True Temper, Global Senior Subordinated Notes
(Callable 07/15/08 @ $105.00) ss. (CCC- , Caa2) 07/15/12 10.000 1,057,000
1,050 Amscan Holdings, Inc., Global Senior Subordinated Notes
(Callable 05/01/09 @ $104.38) (B- , B3) 05/01/14 8.750 845,250
1,000 Associated Materials, Inc., Global Senior Discount Notes
(Callable 03/01/09 @ $105.62) + (CCC+ , Caa2) 03/01/14 0.000 475,000
1,000 Del Laboratories, Inc., Global Company Guaranteed Notes
(Callable 02/01/08 @ $104.00) ss. (CCC+ , Caa2) 02/01/12 8.000 755,000
3,097 Diamond Brands Operating Corp., Company Guaranteed Notes
(Callable 04/15/06 @ $100.00) ^0 (NR , NR) 04/15/08 10.125 0
1,500 Johnsondiversey Holdings, Inc., Global Discount Notes
(Callable 05/15/07 @ $105.34) + (B- , Caa1) 05/15/13 0.000 1,087,500
1,000 PCA LLC/PCA Finance Corp., Global Senior Notes ss. (C , Ca) 08/01/09 11.875 260,000
1,300 Playtex Products, Inc., Global Company Guaranteed Notes
(Callable 06/01/06 @ $104.69) ss. (CCC+ , Caa2) 06/01/11 9.375 1,352,000
600 Prestige Brands, Inc., Global Senior Subordinated Notes
(Callable 04/15/08 @ $104.63) (B- , B3) 04/15/12 9.250 609,000
500 Rayovac Corp., Global Senior Subordinated Notes
(Callable 10/01/08 @ $104.25) (B- , B3) 10/01/13 8.500 455,000
750 Remington Arms Company, Inc., Global Company Guaranteed Notes
(Callable 02/01/07 @ $105.25) ss. (CCC+ , B3) 02/01/11 10.500 652,500
500 Revlon Consumer Products Corp., Global Senior Notes
(Callable 04/01/08 @ $104.75) (CCC , Caa2) 04/01/11 9.500 471,250
1,250 Sealy Mattress Co., Global Senior Subordinated Notes
(Callable 06/15/09 @ $104.13) ss. (B- , B3) 06/15/14 8.250 1,275,000
-------------
10,391,750
-------------
CONTAINERS (3.3%)
1,100 Berry Plastics Corp., Global Company Guaranteed Notes
(Callable 07/15/07 @ $105.38) (B- , B3) 07/15/12 10.750 1,138,500
1,200 Constar International, Inc., Senior Subordinated Notes
(Callable 12/01/07 @ $105.50) ss. (CCC , Caa3) 12/01/12 11.000 690,000
650 Graham Packaging Company, Inc., Global Subordinated Notes
(Callable 10/15/09 @ $104.94) ss. (CCC+ , Caa2) 10/15/14 9.875 611,000
750 Graphic Packaging International Corp., Global Senior
Subordinated Notes (Callable 08/15/08 @ 104.75) (B- , B3) 08/15/13 9.500 676,875
1,000 Intertape Polymer US, Inc., Global Senior Subordinated Notes
(Callable 08/01/09 @ $104.25) (B- , B3) 08/01/14 8.500 965,114
1,000 Owens-Brockway Glass Containers, Global Company Guaranteed Notes
(Callable 02/15/06 @ $104.44) (BB- , B1) 02/15/09 8.875 1,050,000
750 Owens-Brockway Glass Containers, Global Company Guaranteed Notes
(Callable 05/15/08 @ $104.12) (B , B2) 05/15/13 8.250 768,750
500 Pliant Corp., Company Guaranteed Notes
(Callable 06/01/06 @ $104.33) (CCC- , Ca) 06/01/10 13.000 75,000
425 Pliant Corp., Global Secured Notes
(Callable 06/15/07 @ $111.62) (CCC , Caa1) 06/15/09 11.625 461,658
1,000 U.S. Can Corp., Global Company Guaranteed Notes
(Callable 07/15/07 @ $105.44) ss. (CCC+ , Caa2) 07/15/10 10.875 1,035,000
-------------
7,471,897
-------------
DIVERSIFIED TELECOMMUNICATIONS (2.6%)
565 Hawaiian Telcom Communications, Inc., Rule 144A, Notes
(Callable 05/01/09 @ $104.88) ++ss. (B- , B3) 05/01/13 9.750 565,000
900 Qwest Corp., Global Senior Notes (BB , Ba3) 09/01/11 7.875 947,250
900 Qwest Corp., Notes (BB , Ba3) 11/15/08 5.625 895,500
1,339 Qwest Corp., Rule 144A, Senior Notes ++ (BB , Ba3) 06/15/15 7.625 1,379,170
550 Qwest Services Corp., Global Secured Notes
(Callable 12/15/06 @ $106.75) # (B , B3) 12/15/10 13.500 631,125
250 Syniverse Technologies, Inc., Rule 144A, Senior Subordinated Notes
(Callable 08/15/09 @ $103.88) ++ (B , B2) 08/15/13 7.750 253,125
1,250 Time Warner Telecom Holdings, Inc., Global Company Guaranteed
Notes ss. (CCC+ , B3) 02/15/14 9.250 1,256,250
-------------
5,927,420
-------------
ENERGY - OTHER (4.7%)
1,800 Dynegy Holdings, Inc., Rule 144A, Secured Notes
(Callable 07/15/08 @ $105.06) ++ (B- , B3) 07/15/13 10.125 1,989,000
250 Dynegy Holdings, Inc., Senior Notes ss. (CCC+ , Caa2) 04/01/11 6.875 240,625
750 El Paso Corp., Senior Notes (B- , Caa1) 05/15/11 7.000 742,500
1,000 El Paso Natural Gas, Series A, Global Senior Notes
(Callable 08/01/07 @ $103.81) (B , B1) 08/01/10 7.625 1,054,426
2,800 El Paso Production Holding Co., Global Company Guaranteed Notes
(Callable 06/01/08 @ $103.88) (B , B3) 06/01/13 7.750 2,898,000
450 Giant Industries, Inc., Company Guaranteed Notes
(Callable 05/15/09 @ $104.00) (B- , B3) 05/15/14 8.000 468,000
743 Giant Industries, Inc., Global Company Guaranteed Notes
(Callable 05/15/07 @ $105.50) (B- , B3) 05/15/12 11.000 830,302
500 Reliant Energy, Inc., Secured Notes (Callable 12/15/09 @ $103.38) (B+ , B1) 12/15/14 6.750 467,500
1,050 Reliant Resources, Inc., Global Secured Notes
(Callable 07/15/08 @ $104.75) ss. (B+ , B1) 07/15/13 9.500 1,123,500
825 Williams Companies, Inc., Global Senior Unsecured Notes ss. (B+ , B1) 03/15/12 8.125 895,125
-------------
10,708,978
-------------
ENVIRONMENTAL SERVICES (2.0%)
3,800 Allied Waste North America, Inc., Series B, Global Senior Notes
(Callable 04/15/09 @ $103.69) ss. (B+ , Caa1) 04/15/14 7.375 3,581,500
1,000 Waste Services, Inc., Global Senior Subordinated Notes
(Callable 04/15/09 @ $104.75) ss. (CCC , Caa2) 04/15/14 9.500 995,000
-------------
4,576,500
-------------
See Accompanying Notes to Financial Statements.
4
CREDIT SUISSE HIGH YIELD BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2005
------------------------------------------------------------------------------------------------------------------------------------
PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
----- ------------- -------- ----- -----
U.S. CORPORATE BONDS
FINANCE - OTHER (2.0%)
$ 500 Corrections Corporation of America, Senior Notes,
(Callable 05/01/07 @ $103.75) (BB- , Ba3) 05/01/11 7.500 $ 519,375
1,150 E*TRADE Financial Corp., Global Senior Notes
(Callable 06/15/08 @ $104.00) (B+ , B1) 06/15/11 8.000 1,173,000
800 Insurance Auto Auctions, Inc., Global Company Guaranteed Notes
(Callable 04/01/09 @ $105.50) (CCC+ , Caa1) 04/01/13 11.000 838,378
800 Senior Housing Properties Trust, Senior Notes (BB+ , Ba2) 01/15/12 8.625 884,000
1,000 Trustreet Properties, Inc., Global Senior Notes
(Callable 04/01/10 @ $103.75) (B+ , B1) 04/01/15 7.500 1,017,500
-------------
4,432,253
-------------
FOOD PROCESSORS/BEVERAGE/BOTTLING (1.6%)
900 Bear Creek Corp., Rule 144A, Senior Notes
(Callable 03/01/09 @ $104.50) ++ (B- , B3) 03/01/13 9.000 927,000
177 Birds Eye Foods, Inc., Company Guaranteed Notes
(Callable 11/01/05 @ $101.98) (B- , B3) 11/01/08 11.875 181,867
500 Land O' Lakes, Inc., Global Senior Notes
(Callable 11/15/06 @ $104.38) ss. (B , B3) 11/15/11 8.750 526,250
600 Le-Natures, Inc., Rule 144A, Senior Subordinated Notes
(Callable 06/15/08 @ $104.50) ++# (CCC+ , Caa1) 06/15/13 10.000 645,000
500 Pinnacle Foods Holding Corp., Global Senior Subordinated Notes
(Callable 12/01/08 @ $104.13) ss. (B- , B3) 12/01/13 8.250 465,000
850 Swift & Co., Global Senior Subordinated Notes
(Callable 10/01/06 @ $106.25) (B , B3) 01/01/10 12.500 907,375
-------------
3,652,492
-------------
GAMING (9.7%)
1,000 155 East Tropicana LLC, Global Secured Notes
(Callable 04/01/09 @ $104.38) ss. (B- , B3) 04/01/12 8.750 962,500
1,350 Ameristar Casinos, Inc., Global Company Guaranteed Notes
(Callable 02/15/06 @ $105.38) (B+ , B2) 02/15/09 10.750 1,444,500
1,350 Aztar Corp., Global Senior Subordinated Notes
(Callable 08/15/06 @ $104.50) (B+ , Ba3) 08/15/11 9.000
1,434,375
2,050 Chukchansi Economic Development Authority, Rule 144A, Senior Notes
(Callable 10/01/06 @ $113.00) ++ (NR , NR) 06/15/09 14.500 2,511,250
1,350 Circus Circus & Eldorado, Global First Mortgage
(Callable 03/01/07 @ $105.06) (B , B1) 03/01/12 10.125 1,417,500
2,100 Hard Rock Hotel, Inc., Global Notes (Callable 06/01/08 @ $104.44) (B , B3) 06/01/13 8.875 2,247,000
1,000 Herbst Gaming, Inc., Global Senior Subordinated Notes
(Callable 06/01/08 @ $104.06) ss. (B- , B3) 06/01/12 8.125 1,037,500
1,250 Inn of The Mountain Gods, Global Senior Notes
(Callable 11/15/07 @ $106.00) (B , B3) 11/15/10 12.000 1,343,750
900 Isle of Capri Casinos, Inc., Global Senior Subordinated Notes
(Callable 03/01/09 @ $103.50) (B , B2) 03/01/14 7.000 855,000
1,500 Majestic Star Casino LLC, Company Guaranteed Notes
(Callable 10/15/07 @ $104.75) (B , B2) 10/15/10 9.500 1,475,625
300 MGM Mirage, Company Guaranteed Notes (BB , Ba2) 10/01/09 6.000 296,250
450 MGM Mirage, Company Guaranteed Notes (BB , Ba2) 09/15/10 8.500 484,875
450 MGM Mirage, Company Guaranteed Notes ss. (B+ , Ba3) 02/01/11 8.375 478,125
1,000 MGM Mirage, Global Senior Notes ss. (BB , Ba2) 09/01/12 6.750 1,000,000
250 MTR Gaming Group, Inc., Series B, Global Company Guaranteed Notes
(Callable 04/01/07 @ $104.88) (B+ , B2) 04/01/10 9.750 264,375
1,000 OED Corp., Global Company Guaranteed Notes
(Callable 4/15/08 @ $104.38) (B , B2) 04/15/12 8.750 975,000
400 Resorts International Hotel & Casino, Inc., Global Company
Guaranteed Notes (Callable 03/15/07 @ $106.00) (B , B2) 03/15/09 11.500 447,500
750 Riviera Holdings Corp., Global Company Guaranteed Notes
(Callable 06/15/06 @ $105.50) (B , B2) 06/15/10 11.000 819,375
225 San Pasqual Casino, Rule 144A, Notes
(Callable 09/15/09 @ $104.00) ++ss. (B+ , B2) 09/15/13 8.000 225,000
450 Station Casinos, Inc., Global Senior Subordinated Notes
(Callable 03/01/09 @ $102.58) ss. (B+ , Ba3) 03/01/16 6.875 455,625
335 Waterford Gaming LLC, Rule 144A, Senior Notes
(Callable 09/15/08 @ $103.55) ++ (B+ , B1) 09/15/12 8.625 361,800
250 Wheeling Island Gaming, Inc., Global Company Guaranteed Notes
(Callable 12/15/05 @ $105.06) (B+ , B3) 12/15/09 10.125 263,125
452 Windsor Woodmont Black Hawk, Series B, First Mortgage Notes ^0 (NR , NR) 03/15/05 13.000 61,400
1,000 Wynn Las Vegas LLC, Global First Mortgage Notes
(Callable 12/01/09 @ $103.31) ss. (B+ , B2) 12/01/14 6.625 957,500
-------------
21,818,950
-------------
HEALTHCARE FACILITIES/SUPPLIES (6.4%)
500 AMR/EmCare Holding Co., Rule 144A, Senior Subordinated Notes
(Callable 02/15/10 @ $105.00) ++ (B- , Caa1) 02/15/15 10.000 547,500
1,800 CDRV Investors, Inc., Global Senior Discount Notes
(Callable 01/01/10 @ $104.81) + (B- , Caa2) 01/01/15 0.000 1,008,000
1,000 Concentra Operating Corp., Global Company Guaranteed Notes
(Callable 08/15/07 @ $104.75) (B- , B3) 08/15/10 9.500 1,035,000
250 DaVita, Inc., Global Company Guaranteed Notes
(Callable 03/15/10 @ $103.63) ss. (B , B3) 03/15/15 7.250 253,750
1,000 Extendicare Health Services, Inc., Senior Subordinated Notes
(Callable 05/01/09 @ $103.44) (B- , B2) 05/01/14 6.875 980,000
500 Fisher Scientific International, Inc., Rule 144A,
Senior Subordinated Notes (Callable 07/01/10 @ $103.06) ++ss. (BB+ , Ba2) 07/01/15 6.125 498,750
500 Hanger Orthopedic Group, Inc., Company Guaranteed Global Notes
(Callable 02/15/06 @ $105.19) ss. (CCC+ , B3) 02/15/09 10.375 496,250
1,150 HCA, Inc., Notes (BB+ , Ba2) 10/01/12 6.300 1,137,450
717 Magellan Health Services, Inc., Series A, Senior Notes
(Callable 11/15/05 @ $104.69) (B+ , B3) 11/15/08 9.375 755,830
1,000 Medquest, Inc., Series B, Global Company Guaranteed Notes
(Callable 08/15/07 @ $105.94) (CCC+ , Caa1) 08/15/12 11.875 992,500
See Accompanying Notes to Financial Statements.
5
CREDIT SUISSE HIGH YIELD BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2005
------------------------------------------------------------------------------------------------------------------------------------
PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
----- ------------- -------- ----- -----
U.S. CORPORATE BONDS
HEALTHCARE FACILITIES/SUPPLIES
$ 1,500 MQ Associates, Inc., Global Senior Discount Notes
(Callable 08/15/08 @ $109.00) + (CCC+ , Caa2) 08/15/12 0.000 $ 892,500
750 Tenet Healthcare Corp., Global Senior Notes (B , B3) 07/01/14 9.875 729,375
500 Tenet Healthcare Corp., Rule 144A, Senior Notes ++ss. (B , B3) 02/01/15 9.250 476,250
1,740 Triad Hospitals, Inc., Senior Notes (Callable 05/15/08 @ $103.50) (BB- , B2) 05/15/12 7.000 1,774,800
1,000 Triad Hospitals, Inc., Senior Subordinated Notes
(Callable 11/15/08 @ $103.50) (B+ , B3) 11/15/13 7.000 1,005,000
750 Universal Hospital Services, Inc., Global Senior Notes
(Callable 11/01/07 @ $105.06) (B- , B3) 11/01/11 10.125 755,625
1,000 Vanguard Health Holding Company LLC, Global Senior Subordinated Notes
(Callable 10/01/09 @ $104.50) (CCC+ , Caa1) 10/01/14 9.000 1,047,500
-------------
14,386,080
-------------
HOME BUILDERS (3.4%)
650 D. R. Horton, Inc., Company Guaranteed Notes (BB+ , Ba1) 01/15/16 5.625 608,541
450 K Hovnanian Enterprises, Inc., Global Company Guaranteed Notes (BB , Ba1) 01/15/16 6.250 403,764
900 KB Home, Senior Notes (BB+ , Ba1) 06/15/15 6.250 851,212
1,775 KB Home, Senior Subordinated Notes (BB- , Ba2) 12/15/08 8.625 1,879,407
500 Standard Pacific Corp., Global Senior Notes (BB , Ba2) 08/15/15 7.000 452,500
500 Stanley Martin Communities, Rule 144A, Company Guaranteed Notes
(Callable 08/15/10 @ $104.88) ++ (B- , B3) 08/15/15 9.750 462,500
350 Technical Olympic USA, Inc., Global Senior Subordinated Notes (B- , B2) 01/15/15 7.500 292,250
700 Toll Corp., Senior Subordinated Notes
(Callable 12/01/06 @ $104.12) (BB+ , Ba2) 12/01/11 8.250 743,750
1,000 WCI Communities, Inc., Global Company Guaranteed Notes
(Callable 05/01/07 @ $104.56) (B+ , Ba3) 05/01/12 9.125 1,010,000
1,000 William Lyon Homes, Inc., Company Guaranteed Notes
(Callable 04/01/08 @ $105.38) (B , B2) 04/01/13 10.750 1,052,500
-------------
7,756,424
-------------
INDUSTRIAL (1.6%)
1,000 Altra Industrial Motion, Inc., Rule 144A, Secured Notes
(Callable 12/01/08 @ $104.50) ++# (CCC+ , B3) 12/01/11 9.500 975,000
1,000 Amsted Industries, Inc., Rule 144A, Senior Notes
(Callable 10/15/07 @ $105.12) ++ (B , B3) 10/15/11 10.250 1,075,000
450 Amtrol, Inc., Senior Subordinated Notes ss. (CCC- , Caa3) 12/31/06 10.625 414,000
200 Coleman Cable, Inc., Global Company Guaranteed Notes
(Callable 10/01/08 @ $104.94) (B- , B3) 10/01/12 9.875 181,000
1,000 Polypore, Inc., Global Senior Subordinated Notes
(Callable 05/15/08 @ $104.38) (CCC+ , Caa1) 05/15/12 8.750 885,000
-------------
3,530,000
-------------
LEISURE (3.3%)
1,355 Affinity Group, Inc., Global Senior Subordinated Notes
(Callable 02/15/08 @ $105.44) (B- , Caa1) 02/15/12 10.875 1,253,718
2,000 AMC Entertainment, Inc., Global Senior Subordinated Notes
(Callable 03/01/09 @ $104.00) ss. (CCC+ , B3) 03/01/14 8.000 1,740,000
250 Bally Total Fitness Holding Corp., Global Senior Notes
(Callable 07/15/07 @ $105.25) (CCC- , Caa1) 07/15/11 10.500 255,313
500 Bluegreen Corp., Series B, Company Guaranteed Notes
(Callable 04/01/06 @ $100.00) (B- , B3) 04/01/08 10.500 507,500
1,150 Cinemark, Inc., Global Senior Discount Notes
(Callable 03/15/09 @ $104.88) + (B- , Caa1) 03/15/14 0.000 819,375
1,000 Icon Health & Fitness, Inc., Global Company Guaranteed Notes
(Callable 04/01/07 @ $105.62) ss. (CCC- , Caa3) 04/01/12 11.250 805,000
950 Six Flags, Inc., Global Senior Notes
(Callable 02/01/06 @ $104.44) ss. (CCC , Caa1) 02/01/10 8.875 947,625
1,050 Six Flags, Inc., Global Senior Notes
(Callable 06/01/09 @ $104.81) (CCC , Caa1) 06/01/14 9.625 1,044,750
-------------
7,373,281
-------------
LODGING (0.4%)
500 Host Marriott LP, Global Senior Notes
(Callable 11/01/08 @ 103.56) ss. (BB- , Ba2) 11/01/13 7.125 509,375
525 Host Marriott LP, Series O, Global Company Guaranteed Notes
(Callable 03/15/10 @ $103.19) (B+ , Ba2) 03/15/15 6.375 511,875
-------------
1,021,250
-------------
METALS & MINING (3.8%)
1,000 AK Steel Corp., Global Company Guaranteed Notes
(Callable 06/15/07 @ $103.88) ss. (B+ , B1) 06/15/12 7.750 905,000
1,000 Aleris International, Inc., Global Company Guaranteed Notes
(Callable 11/15/09 @ $104.50) (B- , NR) 11/15/14 9.000 1,025,000
1,600 Alpha Natural Resources LLC, Global Company Guaranteed Notes
(Callable 06/01/08 @ $105.00) # (B- , B3) 06/01/12 10.000 1,768,000
1,000 Edgen Acquisition Corp., Global Secured Notes (B- , B3) 02/01/11 9.875 1,005,000
1,100 International Steel Group, Inc., Global Senior Notes ss. (BB , Ba2) 04/15/14 6.500 1,086,250
725 Southern Peru Copper Corp., Rule 144A, Notes ++ (BBB- , Ba1) 07/27/35 7.500 695,951
1,000 UCAR Finance, Inc., Global Company Guaranteed Notes
(Callable 02/15/07 @ $105.12) (B- , B2) 02/15/12 10.250 1,060,000
See Accompanying Notes to Financial Statements.
6
CREDIT SUISSE HIGH YIELD BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2005
------------------------------------------------------------------------------------------------------------------------------------
PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
----- ------------- -------- ----- -----
U.S. CORPORATE BONDS
METALS & MINING
$ 750 WCI Steel, Inc., Series B, Senior Secured Notes 0 (NR , NR) 12/01/49 10.000 $ 408,750
1,000 Wise Metals Group LLC, Global Secured Notes
(Callable 05/15/08 @ $105.13) ss. (CCC+ , Caa1) 05/15/12 10.250 730,000
-------------
8,683,951
-------------
PAPER & FOREST PRODUCTS (3.7%)
1,000 Appleton Papers, Inc., Series B, Senior Subordinated Notes
(Callable 06/15/09 @ $104.88) (B+ , B3) 06/15/14 9.750 945,000
1,000 Caraustar Industries, Inc., Global Company Guaranteed Notes
(Callable 04/01/06 @ $105.25) ss. (B- , Caa1) 04/01/11 9.875 985,000
1,000 Cellu Tissue Holdings, Secured Notes
(Callable 03/15/07 @ $107.31) (B , B2) 03/15/10 9.750 975,000
1,200 Georgia-Pacific Corp., Global Company Guaranteed Notes (BB+ , Ba1) 02/01/10 8.875 1,320,000
1,300 Georgia-Pacific Corp., Global Company Guaranteed Notes
(Callable 02/01/08 @ $104.69) (BB+ , Ba1) 02/01/13 9.375 1,439,750
750 Georgia-Pacific Corp., Global Senior Notes (BB+ , Ba2) 01/15/24 8.000 802,500
2,300 Newark Group, Inc., Global Senior Subordinated Notes
(Callable 03/15/09 @ $104.88) (B- , Caa1) 03/15/14 9.750 1,989,500
-------------
8,456,750
-------------
PHARMACEUTICALS (0.3%)
700 Athena Neurosciences Finance LLC, Company Guaranteed Notes ss. (B , B3) 02/21/08 7.250 679,000
-------------
PUBLISHING (4.4%)
1,250 CBD Media Holdings, Global Senior Notes
(Callable 07/15/08 @ $104.63) ss. (CCC+ , Caa2) 07/15/12 9.250 1,243,750
800 Dex Media West LLC, Global Senior Notes
(Callable 11/15/08 @ $102.94) (B , B1) 11/15/11 5.875 806,000
500 Dex Media, Inc., Global Discount Notes
(Callable 11/15/08 @ $104.50) + (B , B3) 11/15/13 0.000 390,000
1,500 Dex Media, Inc., Global Discount Notes
(Callable 11/15/08 @ $104.50) + (B , B3) 11/15/13 0.000 1,170,000
400 Dex Media, Inc., Global Notes (Callable 11/15/08 @ $104.00) (B , B3) 11/15/13 8.000 409,000
1,200 Haights Cross Operating Co., Global Company Guaranteed Notes
(Callable 08/15/08 @ $105.88) (CCC , Caa1) 08/15/11 11.750 1,308,000
1,000 Houghton Mifflin Co., Global Senior Discount Notes
(Callable 10/15/08 @ $105.75) +ss. (B- , Caa2) 10/15/13 0.000 730,000
350 Houghton Mifflin Co., Global Senior Notes
(Callable 02/01/07 @ $104.12) (B- , B3) 02/01/11 8.250 359,625
500 Morris Publishing Group LLC, Global Company Guaranteed Notes
(Callable 08/01/08 @ $103.50) (B+ , B1) 08/01/13 7.000 493,750
500 Primedia, Inc., Global Senior Notes
(Callable 05/15/08 @ $104.00) (B , B2) 05/15/13 8.000 458,750
1,000 Sheridan Acquisition Corp., Global Secured Notes
(Callable 08/15/07 @ $105.12) (B , B1) 08/15/11 10.250 1,045,000
1,650 WDAC Subsidiary Corp., Rule 144A, Senior Notes
(Callable 12/01/09 @ $104.19) ++ss. (CCC+ , Caa1) 12/01/14 8.375 1,563,375
-------------
9,977,250
-------------
RESTAURANTS (2.6%)
600 Buffets, Inc., Global Senior Subordinated Notes
(Callable 07/15/06 @ $105.62) ss. (CCC , B3) 07/15/10 11.250 603,000
1,350 Denny's Corp., Global Company Guaranteed Notes
(Callable 10/01/08 @ $105.00) ss. (CCC+ , Caa1) 10/01/12 10.000 1,326,375
750 El Pollo Loco, Inc., Global Secured Notes
(Callable 12/15/06 @ $104.63) (B- , B2) 12/15/09 9.250 821,625
250 Friendly Ice Cream Corp., Global Senior Notes
(Callable 06/15/08 @ $104.19) (B- , B2) 06/15/12 8.375 231,250
1,000 O'Charleys, Inc., Global Senior Subordinated Notes
(Callable 11/01/08 @ $104.50) (B , Ba3) 11/01/13 9.000 1,042,500
1,083 Romacorp. Inc., Senior Notes (NR , NR) 12/31/08 10.500 324,972
550 Sbarro, Inc., Company Guaranteed Notes
(Callable 09/15/06 @ $101.83) (CCC+ , Caa2) 09/15/09 11.000 539,000
1,000 Uno Restaurant Corp., Rule 144A, Senior Notes
(Callable 02/15/08 @ $110.00) ++ (B- , B3) 02/15/11 10.000 895,000
-------------
5,783,722
-------------
RETAIL-FOOD & DRUG (2.8%)
625 Delhaize America, Inc., Global Company Guaranteed Notes (BB+ , Ba1) 04/15/11 8.125 670,601
1,750 Duane Reade, Inc., Global Senior Subordinated Notes
(Callable 08/01/08 @ $104.88) ss. (CCC+ , Caa3) 08/01/11 9.750 1,295,000
600 General Nutrition Center, Global Company Guaranteed Notes
(Callable 01/15/08 @ $104.31) (B- , B3) 01/15/11 8.625 571,500
1,000 Gregg Appliances, Inc., Rule 144A, Senior Notes
(Callable 02/01/09 @ $104.50) ++ (B , B2) 02/01/13 9.000 905,000
1,000 Pathmark Stores, Inc., Global Company Guaranteed Notes
(Callable 02/01/07 @ $104.38) (CCC+ , Caa1) 02/01/12 8.750 945,000
1,000 Rite Aid Corp., Global Company Guaranteed Notes
(Callable 01/15/10 @ $103.75) (B+ , B2) 01/15/15 7.500 930,000
500 Roundy's, Inc., Series B, Global Company Guaranteed Notes
(Callable 06/15/07 @ $104.44) ss. (NR , NR) 06/15/12 8.875 551,190
450 Stater Brothers Holdings, Inc., Global Senior Notes
(Callable 06/15/08 @ $104.06) ss. (BB- , B1) 06/15/12 8.125 442,125
-------------
6,310,416
-------------
See Accompanying Notes to Financial Statements.
7
CREDIT SUISSE HIGH YIELD BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2005
------------------------------------------------------------------------------------------------------------------------------------
PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
----- ------------- -------- ----- -----
U.S. CORPORATE BONDS
RETAIL STORES (3.9%)
$ 700 Asbury Automotive Group, Inc., Global Company Guaranteed Notes
(Callable 06/15/07 @ $104.50) (B , B3) 06/15/12 9.000 $ 694,750
500 Brookstone Company, Inc., Rule 144A, Secured Notes
(Callable 10/15/09 @ $106.00) ++ (B , B3) 10/15/12 12.000 482,500
1,000 CSK Auto, Inc., Global Company Guaranteed Notes
(Callable 01/15/09 @ $103.50) (B- , B2) 01/15/14 7.000 940,000
500 Finlay Fine Jewelry Corp., Global Senior Notes
(Callable 06/01/08 @ $104.19) ss. (B , B2) 06/01/12 8.375 427,500
675 GSC Holdings Corp., Rule 144A, Global Company Guaranteed Notes
(Callable 10/01/09 @ $104.00) ++ss. (B+ , Ba3) 10/01/12 8.000 659,813
500 Intcomex, Inc., Rule 144A, Secured Notes
(Callable 01/15/07 @ $106.00) ++ (B- , Caa1) 01/15/11 11.750 500,000
950 JC Penney Company, Inc., Series MTNA, Notes (BB+ , Ba1) 10/15/15 6.875 994,707
1,045 Movie Gallery, Inc., Global Senior Unsecured Notes
(Callable 05/01/08 @ $105.50) (CCC+ , B3) 05/01/12 11.000 841,225
500 Nebraska Book Company, Inc., Global Senior Subordinated Notes
(Callable 03/15/08 @ $104.31) (CCC+ , Caa1) 03/15/12 8.625 470,000
565 Neiman Marcus Group, Inc., Rule 144A, Senior Subordinated Notes
(Callable 10/15/10 @ $105.19) ++ (B- , B3) 10/15/15 10.375 548,050
1,400 Southern States Cooperative, Inc., Rule 144A, Senior Notes
(Callable 11/01/07 @ $108.00) ++ (B , B3) 11/01/10 10.500 1,480,500
750 United Auto Group, Inc., Global Company Guaranteed Notes
(Callable 03/15/07 @ $104.81) ss. (B , B3) 03/15/12 9.625 782,812
-------------
8,821,857
-------------
SATELLITE (0.9%)
1,000 EchoStar DBS Corp., Global Company Guaranteed Notes (BB- , Ba3) 10/01/14 6.625 975,000
1,000 PanAmSat Corp., Global Company Guaranteed Notes
(Callable 08/15/09 @ $104.50) ss. (B+ , B1) 08/15/14 9.000 1,057,500
-------------
2,032,500
-------------
SECONDARY OIL & GAS PRODUCERS (1.4%)
700 Chesapeake Energy Corp., Global Company Guaranteed Notes
(Callable 07/15/10 @ $103.13) ss. (BB , Ba2) 01/15/18 6.250 682,500
1,093 Chesapeake Energy Corp., Senior Notes
(Callable 01/15/09 @ $103.44) (BB , Ba2) 01/15/16 6.875 1,112,128
423 Magnum Hunter Resources, Inc., Global Company Guaranteed Notes
(Callable 03/15/07 @ $104.80) (B+ , Ba3) 03/15/12 9.600 458,955
200 Range Resources Corp., Global Company Guaranteed Notes
(Callable 03/15/10 @ $103.19) (B , B3) 03/15/15 6.375 199,000
600 Whiting Petroleum Corp., Global Senior Subordinated Notes
(Callable 05/01/08 @ $103.63) (B- , B2) 05/01/12 7.250 607,500
-------------
3,060,083
-------------
SERVICES-OTHER (6.0%)
400 Advanstar Communications, Inc., Global Secured Notes
(Callable 02/15/08 @ $105.38) (B , B3) 08/15/10 10.750 445,000
1,250 Allied Security Escrow Corp., Global Senior Subordinated Notes
(Callable 07/15/08 @ $105.69) (B- , Caa1) 07/15/11 11.375 1,199,160
1,150 American Color Graphics, Global Notes
(Callable 06/15/07 @ $105.00) ss. (CCC , Caa3) 06/15/10 10.000 767,625
250 Cardtronics, Inc., Rule 144A, Senior Subordinated Notes
(Callable 08/15/09 @ 104.63) ++ (B- , Caa1) 08/15/13 9.250 253,750
1,000 DynCorp International, Rule 144A, Senior Subordinated Notes
(Callable 02/15/09 @ $104.75) ++ (B- , Caa1) 02/15/13 9.500 1,042,500
1,000 HydroChem Industrial Services, Inc., Rule 144A,
Senior Subordinated Notes (Callable 02/15/09 @ $104.63) ++ (CCC+ , Caa1) 02/15/13 9.250 920,000
1,000 Integrated Alarm Services Group, Inc., Rule 144A, Secured Notes
(Callable 11/15/08 @ $106.00) ++# (B- , B3) 11/15/11 12.750 1,005,000
750 Iron Mountain, Inc., Company Guaranteed Notes
(Callable 04/01/06 @ $104.31) (B , Caa1) 04/01/13 8.625 785,625
250 Iron Mountain, Inc., Company Guaranteed Notes
(Callable 07/01/08 @ $103.31) (B , Caa1) 01/01/16 6.625 231,250
980 La Petite Academy, Inc., Series B, Company Guaranteed Notes
(Callable 05/15/06 @ $100.00) ss. (CC , Ca) 05/15/08 10.000 764,400
750 Language Line, Inc., Global Senior Notes
(Callable 06/15/08 @ 105.56) (CCC+ , Caa1) 06/15/12 11.125 641,250
250 Mac-Gray Corp., Rule 144A, Senior Notes
(Callable 08/15/10 @ $103.81) ++ (BB- , B1) 08/15/15 7.625 253,750
1,000 Mortons Restaurant Group, Inc., Global Secured Notes
(Callable 07/01/07 @ $105.30) ss. (B- , B2) 07/01/10 7.500 987,500
1,000 Muzak LLC/Muzak Finance Corp., Global Senior Notes
(Callable 02/15/06 @ $105.00) (CCC- , Caa2) 02/15/09 10.000 860,000
1,000 National Beef Packing Company LLC, Global Senior Notes
(Callable 08/01/07 @ $105.25) (B- , B3) 08/01/11 10.500 1,037,500
500 Rent-A-Center, Inc., Series B, Global Company Guaranteed Notes
(Callable 05/01/06 @ $103.75) ss. (BB- , B1) 05/01/10 7.500 478,750
440 United Rentals North America, Inc., Global Company Guaranteed Notes
(Callable 02/15/08 @ $103.25) (BB- , B3) 02/15/12 6.500 424,050
500 United Rentals North America, Inc., Global Senior Subordinated Notes
(Callable 02/15/09 @ $103.50) ss. (B+ , Caa1) 02/15/14 7.000 462,500
900 Williams Scotsman, Inc., Rule 144A, Senior Notes
(Callable 10/01/10 @ $104.25) ++ (B , B3) 10/01/15 8.500 918,000
-------------
13,477,610
-------------
TECHNOLOGY (3.5%)
1,000 Advanced Micro Devices, Inc., Global Senior Notes
(Callable 11/01/08 @ $103.88) (B- , B3) 11/01/12 7.750 1,005,000
1,400 Amkor Technology, Inc., Global Senior Notes
(Callable 05/15/08 @ $103.88) ss. (B- , Caa1) 05/15/13 7.750 1,200,500
170 Ampex Corp., Secured Notes ^ (NR , NR) 08/15/08 12.000 170,129
1,000 Itron, Inc., Global Senior Subordinated Notes
(Callable 05/15/08 @ $103.88) (B , B2) 05/15/12 7.750 1,025,000
See Accompanying Notes to Financial Statements.
8
CREDIT SUISSE HIGH YIELD BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2005
------------------------------------------------------------------------------------------------------------------------------------
PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
----- ------------- -------- ----- -----
U.S. CORPORATE BONDS
TECHNOLOGY
$ 1,000 Sanmina-SCI Corp., Global Company Guaranteed Notes
(Callable 01/15/07 @ $105.19) (BB- , Ba2) 01/15/10 10.375 $1,100,000
1,000 SunGard Data Systems, Inc., Rule 144A, Senior Subordinated Notes
(Callable 08/15/10 @ $105.13) ++ss. (B- , Caa1) 08/15/15 10.250 996,250
1,000 Viasystems, Inc., Global Senior Subordinated Notes
(Callable 01/15/08 @ $105.25) (CCC+ , Caa2) 01/15/11 10.500 960,000
1,350 Xerox Corp., Senior Notes (Callable 06/15/08 @ $103.81) (BB- , Ba2) 06/15/13 7.625 1,424,250
-------------
7,881,129
-------------
TEXTILE/APPAREL/SHOE MANUFACTURING (2.7%)
2,797 BGF Industries, Inc., Series B, Senior Subordinated Notes
(Callable 01/15/06 @ $101.75) (CCC- , Ca) 01/15/09 10.250 2,587,225
1,000 Levi Strauss & Co., Global Senior Notes
(Callable 01/15/10 @ $104.88) (B- , Caa2) 01/15/15 9.750 1,015,000
1,200 Levi Strauss & Co., Global Senior Notes
(Callable 12/15/07 @ $106.12) (B- , Caa2) 12/15/12 12.250 1,323,000
400 Phillips-Van Heusen Corp., Global Senior Notes
(Callable 02/15/08 @ $103.62) (BB , B1) 02/15/11 7.250 406,000
950 Propex Fabrics, Inc., Global Company Guaranteed Notes
(Callable 12/01/08 @ $105.00) (B- , Caa1) 12/01/12 10.000 830,062
-------------
6,161,287
-------------
TOWER (0.9%)
1,000 American Tower Corp., Class A, Global Senior Notes
(Callable 10/15/08 @ $103.56) ss. (BB- , B1) 10/15/12 7.125 1,036,250
1,018 SBA Telecommunications, Inc., Global Senior Discount Notes
(Callable 12/15/07 @ $104.88) + (B- , B3) 12/15/11 0.000 923,835
-------------
1,960,085
-------------
TRANSPORTATION/OTHER (0.4%)
1,000 H-Lines Finance Holding Corp., Global Senior Discount Notes
(Callable 04/01/08 @ $105.50) + (CCC+ , Caa2) 04/01/13 0.000 827,500
-------------
UTILITIES (6.5%)
1,000 AES Corp., Rule 144A, Secured Notes
(Callable 05/15/08 @ $104.50) ++ (B+ , Ba3) 05/15/15 9.000 1,090,000
1,000 Allegheny Energy Supply Company LLC, Global Notes (B , Ba3) 03/15/11 7.800 1,080,000
1,100 Aquila, Inc., Senior Notes (B- , B2) 11/15/09 7.625 1,133,000
2,250 Calpine Corp., Rule 144A, Secured Notes
(Callable 07/15/08 @ $104.38) ++ss. (B- , NR) 07/15/13 8.750 1,569,375
1,000 Calpine Corp., Senior Notes ss. (CCC , Caa3) 02/15/11 8.500 475,000
2,500 Calpine Generating Company LLC, Global Secured Notes
(Callable 04/01/08 @ $103.50) # (B- , B3) 04/01/10 9.610 2,537,500
1,000 CMS Energy Corp., Global Senior Notes (B+ , B1) 07/15/08 8.900 1,075,000
800 CMS Energy Corp., Global Senior Notes (B+ , B1) 08/01/10 7.750 848,000
350 Edison Mission Energy, Global Senior Notes (B+ , B1) 08/15/08 10.000 385,875
1,300 Edison Mission Energy, Senior Notes (B+ , B1) 06/15/09 7.730 1,355,250
1,000 Midwest Generation LLC, Global Secured Notes
(Callable 05/01/09 @ $104.38) (B , B1) 05/01/34 8.750 1,100,000
1,100 Mirant Corp., Rule 144A, Senior Notes ++0 (NR , NR) 07/15/04 7.400 1,281,500
186 NRG Energy, Inc., Global Company Guaranteed Notes
(Callable 12/15/08 @ $104.00) (B , B1) 12/15/13 8.000 203,670
500 Sierra Pacific Resources, Global Senior Notes
(Callable 03/15/09 @ $104.31) (B- , B1) 03/15/14 8.625 547,500
-------------
14,681,670
-------------
WIRELESS (6.6%)
450 AirGate PCS, Inc., Rule 144A, Secured Notes
(Callable 01/01/06 @ $104.69) ++ss. (CCC , Caa1) 09/01/09 9.375 472,395
600 AirGate PCS, Inc., Secured Note
(Callable 01/01/06 @ $104.69) ss. (CCC , Caa1) 09/01/09 9.375 630,000
525 American Cellular Corp., Series B, Global Senior Notes
(Callable 08/01/07 @ $105.00) (B- , B3) 08/01/11 10.000 569,625
650 Centennial Communications Corp., Global Company Guaranteed Notes
(Callable 06/15/08 @ $105.06) (CCC , B3) 06/15/13 10.125 729,625
1,950 Centennial Communications Corp., Global Senior Notes
(Callable 02/01/09 @ $104.06) # (CCC , B3) 02/01/14 8.125 2,028,000
495 Dobson Cellular Systems, Global Secured Notes
(Callable 11/01/08 @ $104.94) (CCC , B2) 11/01/12 9.875 537,075
1,150 Dobson Communications Corp., Global Senior Notes
(Callable 10/01/08 @ $104.44) (CCC , Caa2) 10/01/13 8.875 1,129,875
750 Horizon PCS, Inc., Global Company Guaranteed Notes
(Callable 07/15/08 @ $105.69) (CCC , B3) 07/15/12 11.375 847,500
850 iPCS, Inc., Global Senior Notes (Callable 05/01/08 @ $105.75) (CCC , B3) 05/01/12 11.500 956,250
500 Nextel Communications, Inc., Series D, Senior Notes
(Callable 08/01/08 @ $103.69) ss. (A- , Baa2) 08/01/15 7.375 529,660
1,100 Nextel Partners, Inc., Global Senior Notes
(Callable 07/01/07 @ $104.06) ss. (BB- , Ba3) 07/01/11 8.125 1,179,750
1,250 Rural Cellular Corp., Global Senior Subordinated Notes
(Callable 01/15/06 @ $104.88) ss. (CCC , Caa2) 01/15/10 9.750 1,250,000
2,000 Triton PCS, Inc., Global Company Guaranteed Notes
(Callable 06/01/08 @ $104.25) ss. (CCC- , Caa1) 06/01/13 8.500 1,880,000
2,000 Ubiquitel Operating Co., Global Senior Notes
(Callable 03/01/07 @ $107.41) (CCC , Caa1) 03/01/11 9.875 2,195,000
-------------
14,934,755
-------------
TOTAL U.S. CORPORATE BONDS (Cost $298,301,115) 292,572,213
-------------
See Accompanying Notes to Financial Statements.
9
CREDIT SUISSE HIGH YIELD BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2005
------------------------------------------------------------------------------------------------------------------------------------
PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
----- ------------- -------- ----- -----
FOREIGN CORPORATE BONDS (10.0%)
AUTOMOBILE MANUFACTURING/VEHICLE PARTS (0.4%)
$ 800 Bombardier Recreational Products, Global Senior Subordinated Notes
(Callable 12/15/08 @ $104.19) (Canada) (B- , B3) 12/15/13 8.375 $ 820,000
-------------
BROADBAND (0.3%)
650 Global Crossing UK Finance, Company Guaranteed Notes
(Callable 12/15/09 @ $105.38) (United Kingdom) (B- , Caa1) 12/15/14 10.750 578,500
-------------
BUILDING PRODUCTS (0.2%)
1,250 Maax Holdings, Inc., Global Senior Discount Notes
(Callable 12/15/08 @ $105.62) (Canada) + (CCC+ , Caa1) 12/01/12 0.000 500,000
-------------
CABLE (1.0%)
1,050 Kabel Deutschland GmbH, Rule 144A, Senior Notes
(Callable 07/01/09 @ $105.31) (Germany) ++ (B- , B2) 07/01/14 10.625 1,135,313
1,350 Telenet Group Holding NV, Rule 144A, Discount Notes
(Callable 12/15/08 @ $105.75) (Belgium) +++ (CCC+ , Caa2) 06/15/14 0.000 1,080,000
-------------
2,215,313
-------------
CHEMICALS (0.6%)
1,350 Rhodia SA, Global Senior Notes (France) (CCC+ , B3) 06/01/10 10.250 1,444,500
-------------
CONTAINERS (0.6%)
1,250 Crown European Holdings SA, Global Secured Notes
(Callable 03/01/07 @ $104.75) (France) (B+ , B1) 03/01/11 9.500 1,375,000
-------------
GAMING (0.1%)
175 Kerzner International, Ltd., Rule 144A, Global Senior Subordinated Notes
(Callable 10/01/10 @ $103.38) (Bahamas) ++ (B , B2) 10/01/15 6.750 167,125
-------------
INDUSTRIAL (0.0%)
1,021 International Utility Structures, Inc., Yankee Senior Subordinated Notes
(Callable 02/01/06 @ $100.00) (Canada) ^0 (NR , NR) 02/01/08 10.750 0
-------------
LEISURE (0.5%)
1,000 NCL Corporation, Ltd., Rule 144A, Senior Notes
(Callable 07/15/09 @ $105.31) (Bermuda) ++# (B+ , B2) 07/15/14 11.625 1,032,500
-------------
METALS & MINING (0.8%)
1,000 Gerdau Ameristeel Corp., Global Senior Notes
(Callable 07/15/07 @ $105.38) (Canada) (BB- , Ba3) 07/15/11 10.375 1,097,500
650 Ispat Inland ULC, Global Secured Notes
(Callable 04/01/09 @ $104.88) (Canada) (BBB+ , Ba1) 04/01/14 9.750 737,750
-------------
1,835,250
-------------
PAPER & FOREST PRODUCTS (1.8%)
500 Abitibi-Consolidated, Inc., Global Notes (Canada) ss. (BB- , Ba3) 06/15/11 7.750 466,250
650 Abitibi-Consolidated, Inc., Yankee Senior Notes (Canada) ss. (BB- , Ba3) 04/01/15 8.375 601,250
750 Fraser Papers, Inc., Rule 144A, Senior Notes
(Callable 03/15/10 @ $104.38) (Canada) ++ (B , B3) 03/15/15 8.750 656,250
750 JSG Funding PLC, Global Senior Notes
(Callable 10/01/07 @ $104.81) (Ireland) (B- , B3) 10/01/12 9.625 723,750
1,000 JSG Funding PLC, Global Senior Subordinated Notes
(Callable 01/31/10 @ $103.88) (Ireland) ss. (B- , Caa1) 04/01/15 7.750 805,000
1,200 Tembec Industries, Inc., Yankee Company Guaranteed Notes
(Callable 06/30/06 @ $101.44) (Canada) ss. (CCC+ , B3) 06/30/09 8.625 816,000
-------------
4,068,500
-------------
PHARMACEUTICALS (0.2%)
500 Biovail Corp., Yankee Senior Subordinated Notes
(Callable 04/01/06 @ 103.94) (Canada) (BB- , B2) 04/01/10 7.875 518,125
-------------
RETAIL-FOOD & DRUG (0.4%)
1,000 Jean Coutu Group (PJC), Inc., Global Senior Subordinated Notes
(Callable 08/01/09 @ $104.25) (Canada) (B- , Caa1) 08/01/14 8.500 932,500
-------------
SATELLITE (1.0%)
1,000 Intelsat Bermuda, Ltd., Rule 144A, Senior Notes
(Callable 07/15/06 @ $101.00) (Bermuda) ++# (B+ , B2) 01/15/12 8.695 1,017,500
1,700 New Asat, Ltd., Global Company Guaranteed Notes
(Callable 02/01/08 @ $104.63) (Cayman Islands) (B- , B3) 02/01/11 9.250 1,139,000
-------------
2,156,500
-------------
See Accompanying Notes to Financial Statements.
10
CREDIT SUISSE HIGH YIELD BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2005
------------------------------------------------------------------------------------------------------------------------------------
PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
----- ------------- -------- ----- -----
FOREIGN CORPORATE BONDS
TECHNOLOGY (0.4%)
$ 550 Celestica, Inc., Senior Subordinated Notes
(Callable 07/01/08 @ $103.94) (Canada) (B , B2) 07/01/11 7.875 $ 547,250
450 Flextronics International, Ltd., Global Senior Subordinated Notes
(Callable 11/15/09 @ $103.13) (Singapore) ss. (BB- , Ba2) 11/15/14 6.250 438,750
-------------
986,000
-------------
TRANSPORTATION/OTHER (1.1%)
445 Sea Containers, Ltd., Series B, Yankee Senior Notes (Bermuda) ss. (B , B3) 02/15/08 7.875 427,200
1,750 Ship Finance International, Ltd., Global Senior Notes
(Callable 12/15/08 @ $104.25) (Bermuda) (B , B1) 12/15/13 8.500 1,677,812
500 Titan Petrochemicals Group, Ltd., Rule 144A,
Company Guaranteed Notes (Bermuda) ++ (B+ , B1) 03/18/12 8.500 475,000
-------------
2,580,012
-------------
WIRELESS (0.6%)
750 Millicom International Cellular SA, Global Senior Notes
(Callable 12/01/08 @ $105.00) (Luxembourg) # (B- , B3) 12/01/13 10.000 776,250
500 Rogers Wireless Communications, Inc., Global
Secured Notes (Canada) (BB , Ba3) 03/15/15 7.500 538,750
-------------
1,315,000
-------------
TOTAL FOREIGN CORPORATE BONDS (Cost $24,215,034) 22,524,825
-------------
NUMBER
OF SHARES
------------
COMMON STOCKS (0.8%)
AUTOMOBILE MANUFACTURING/VEHICLE PARTS (0.0%)
774,557 Cambridge Industries Liquidating Trust ^* 0
-------------
CHEMICALS (0.1%)
4,893 Huntsman Corp. * 97,273
-------------
FOOD PROCESSORS/BEVERAGE/BOTTLING (0.4%)
845 Crunch Equity Holdings, Class A * 908,341
-------------
HEALTHCARE FACILITIES/SUPPLIES (0.0%)
464 Magellan Health Services, Inc. * 13,795
-------------
WIRELESS (0.3%)
99,764 Dobson Communications Corp., Class A * 727,279
-------------
TOTAL COMMON STOCKS (Cost $2,097,651) 1,746,688
-------------
WARRANTS (0.0%)
BROADBAND (0.0%)
6,750 GT Group Telecom, Inc., Rule 144A, strike price $0.00
expires 02/01/10 ++^* 0
5,980 Ono Finance PLC, expires 05/31/09 * 60
-------------
60
-------------
DIVERSIFIED TELECOMMUNICATIONS (0.0%)
3,000 Versatel Telecom International NV, strike price $2.81, expires 05/15/08 * 2,426
-------------
GAMING (0.0%)
106 Windsor Woodmont Black Hawk, strike price $0.01, expires 03/15/10 ^* 0
-------------
RESTAURANTS (0.0%)
336 New World Restaurant Group, Inc., strike price $13.00, expires 06/20/06 * 0
-------------
See Accompanying Notes to Financial Statements.
11
CREDIT SUISSE HIGH YIELD BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2005
------------------------------------------------------------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
----------- -----
WARRANTS
TECHNOLOGY (0.0%)
5,000 Asat Finance LLC, Rule 144A, strike price $18.60, expires 11/01/06 ++* $ 625
204,293 Viasystems, Inc., strike price $25.31, expires 01/31/10 ^* 2,043
-------------
2,668
-------------
TOTAL WARRANTS (Cost $3,938,143) 5,154
-------------
SHORT-TERM INVESTMENTS (13.3%)
15,000,000 American Beacon Money Market Fund ss.ss. 15,000,000
15,000,000 Reserve Funds Primary Fund Class 8 ss.ss. 15,000,000
-------------
TOTAL SHORT-TERM INVESTMENTS (Cost $30,000,000) 30,000,000
-------------
PAR
(000)
-------
REPURCHASE AGREEMENTS (24.4%)
$ 400 Bear Stearns & Co., 3.05%, Dated 10/31/05, due 11/01/05,
proceeds at maturity $400,282,
(fully collateralized by U.S. Treasury Strips, due 02/15/16,
Market Value of collateral is $412,466)ss.ss. 400,248
10,416 Bear Stearns & Co., 3.94%, Dated 10/31/05, due 11/01/05,
proceeds at maturity $10,416,983,
(fully collateralized by U.S. Treasury Strips, due 02/15/16,
Market Value of collateral is $10,717,920)ss.ss. 10,415,843
693 Bear Stearns & Co., 4.06%, Dated 10/31/05, due 11/01/05,
proceeds at maturity $692,928,
(fully collateralized by U.S. Treasury Strips, due 02/15/16,
Market Value of collateral is $713,288)ss.ss. 692,850
43,697 Bear Stearns & Co., 4.06%, Dated 10/31/05, due 11/01/05,
proceeds at maturity $43,702,049,
(fully collateralized by U.S. Treasury Strips, due 02/15/16,
U.S. Treasury Strips, due 02/15/20,
U.S. Treasury Bonds, due 02/15/20, Market Value of
collateral is $44,966,040)ss.ss. 43,697,118
-------------
TOTAL REPURCHASE AGREEMENTS (Cost $55,206,059) 55,206,059
-------------
TOTAL INVESTMENTS AT VALUE (178.1%) (Cost $413,758,002) 402,054,939
LIABILITIES IN EXCESS OF OTHER ASSETS (-78.1%) (176,295,010)
-------------
NET ASSETS (100.0%) $225,759,929
=============
INVESTMENT ABBREVIATIONS
MTNA = Medium Term Note, Series A
NR = Not Rated
--------------------------------------------------------------------------------
+ Credit ratings given by the Standard & Poor's Division of The McGraw-Hill
Companies, Inc. ("S&P") and Moody's Investors Service, Inc. ("Moody's")
are unaudited.
++ Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At October 31,
2005, these securities amounted to $45,918,891 or 20.34% of net assets.
+ Step Bond -- The interest stated is as of October 31, 2005 and will reset
at a future date.
0 Bond in default.
* Non-income producing security.
^ Not readily marketable; security is valued at fair value as determined in
good faith by, or under the direction of, the Board of Trustees.
ss. Security or portion thereof is out on loan.
ss.ss. Represents security purchased with cash collateral received for
securities on loan.
# Variable rate obligations - The interest rate shown is the rate as of
October 31, 2005.
See Accompanying Notes to Financial Statements.
12
CREDIT SUISSE HIGH YIELD BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
October 31, 2005
--------------------------------------------------------------------------------
ASSETS
Investments in securities at value, including collateral for
securities on loan of $85,206,059 (Cost $413,758,002) (Note 2) .............................. $ 402,054,9391
Cash ........................................................................................... 9,802,142
Interest receivable ............................................................................ 7,790,472
Receivable for investments sold ................................................................ 2,098,558
Prepaid expenses and other assets .............................................................. 61,678
--------------
Total Assets ................................................................................ 421,807,789
--------------
LIABILITIES
Investment advisory fees (Note 3) .............................................................. 268,468
Administrative fees (Note 3) ................................................................... 12,450
Loan payable (Note 4) .......................................................................... 110,000,000
Payable upon return of securities loaned (Note 2) .............................................. 85,206,059
Interest payable ............................................................................... 404,208
Trustees' fees (Note 3) ........................................................................ 17,407
Other accrued expenses payable ................................................................. 139,268
--------------
Total Liabilities ........................................................................... 196,047,860
==============
NET ASSETS
Applicable to 54,839,475 shares outstanding .................................................... $ 225,759,929
==============
NET ASSETS CONSIST OF
Capital stock, $0.001 par value (Note 6) ....................................................... $ 54,839
Paid-in capital (Note 6) ....................................................................... 486,589,342
Distributions in excess of net investment income ............................................... (4,620,587)
Accumulated net realized loss on investments and foreign currency transactions ................. (244,560,602)
Net unrealized depreciation from investments ................................................... (11,703,063)
--------------
Net Assets .................................................................................. $ 225,759,929
==============
NET ASSET VALUE PER SHARE ($225,759,929 / 54,839,475) ............................................. $4.12
=====
MARKET PRICE PER SHARE ............................................................................ $4.77
=====
1 Including $70,045,447 of securities on loan.
See Accompanying Notes to Financial Statements.
13
CREDIT SUISSE HIGH YIELD BOND FUND
STATEMENT OF OPERATIONS
For the Year Ended October 31, 2005
--------------------------------------------------------------------------------
INVESTMENT INCOME (Note 2)
Interest ....................................................................................... $ 32,902,945
Securities lending ............................................................................. 642,620
--------------
Total investment income ..................................................................... 33,545,565
--------------
EXPENSES
Investment advisory fees (Note 3) .............................................................. 3,348,548
Administrative fees (Note 3) ................................................................... 217,328
Interest expense (Note 4) ...................................................................... 3,816,994
Printing fees (Note 3) ......................................................................... 175,128
Trustees' fees (Note 3) ........................................................................ 60,769
Registration fees .............................................................................. 54,909
Legal fees ..................................................................................... 45,309
Audit and tax fees ............................................................................. 42,260
Custodian fees ................................................................................. 34,813
Transfer agent fees ............................................................................ 24,482
Insurance expense .............................................................................. 8,329
Miscellaneous expense .......................................................................... 4,704
--------------
Total expenses .............................................................................. 7,833,573
--------------
Net investment income ..................................................................... 25,711,992
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS AND FOREIGN CURRENCY RELATED ITEMS
Net realized loss from investments ............................................................. (1,005,669)
Net realized loss on foreign currency transactions ............................................. (1,678)
Net change in unrealized appreciation (depreciation) from investments .......................... (18,312,612)
--------------
Net realized and unrealized loss from investments and foreign currency related items ........... (19,319,959)
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS .............................................. $ 6,392,033
==============
See Accompanying Notes to Financial Statements.
14
CREDIT SUISSE HIGH YIELD BOND FUND
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
FOR THE YEAR FOR THE YEAR
ENDED ENDED
OCTOBER 31, 2005 OCTOBER 31, 2004
---------------- ----------------
FROM OPERATIONS
Net investment income .................................................... $ 25,711,992 $ 28,246,566
Net realized loss on investments and foreign currency transactions ....... (1,007,347) (4,053,958)
Net change in unrealized appreciation (depreciation) on investments ...... (18,312,612) 17,042,720
--------------- --------------
Net increase in net assets resulting from operations ..................... 6,392,033 41,235,328
--------------- --------------
FROM DIVIDENDS
Dividends from net investment income ..................................... (28,945,089) (30,957,053)
--------------- --------------
Net decrease in net assets resulting from dividends ...................... (28,945,089) (30,957,053)
--------------- --------------
FROM CAPITAL SHARE TRANSACTIONS (Note 6)
Reinvestment of dividends ................................................ 3,789,959 4,990,024
--------------- --------------
Net increase in net assets from capital share transactions ............... 3,789,959 4,990,024
--------------- --------------
Net increase (decrease) in net assets .................................... (18,763,097) 15,268,299
NET ASSETS
Beginning of year ........................................................ 244,523,026 229,254,727
--------------- --------------
End of year .............................................................. $ 225,759,929 $ 244,523,026
=============== ==============
Distributions in excess of net investment income ......................... $ (4,620,587) $ (3,067,445)
=============== ==============
See Accompanying Notes to Financial Statements.
15
CREDIT SUISSE HIGH YIELD BOND FUND
STATEMENT OF CASH FLOWS
For the Year Ended October 31, 2005
--------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Interest and securities lending income received .......................... $ 31,237,754
Operating expenses paid .................................................. (7,699,696)
Purchases of long-term securities ........................................ (117,620,519)
Proceeds from sales of long-term securities .............................. 124,523,593
---------------
Net cash provided by operating activities ................................... $ 30,441,132
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings ................................................. 110,000,000
Repayment of borrowings .................................................. (109,183,006)
Cash dividends paid ...................................................... (25,155,130)
---------------
Net cash used in financing activities ....................................... (24,338,136)
--------------
Net increase in cash ........................................................ 6,102,996
Cash -- beginning of year ................................................... 3,699,146
--------------
Cash -- end of year ......................................................... $ 9,802,142
==============
RECONCILIATION OF NET DECREASE IN NET ASSETS
FROM OPERATION TO NET CASH USED IN
OPERATING ACTIVITIES
Net increase in net assets resulting from operations ..................... $ 6,392,033
ADJUSTMENTS TO RECONCILE NET DECREASE IN NET ASSETS FROM
OPERATIONS TO NET CASH PROVIDED BY OPERATING ACTIVITIES
Decrease in interest receivable .......................................... $ 651,102
Increase in accrued expenses ............................................. 10,658
Increase in interest payable ............................................. 189,027
Decrease in prepaid expenses and other assets ............................ (35,997)
Decrease in advisory fees payable ........................................ (29,811)
Net amortization of discount on investments .............................. (2,957,235)
Purchases of long-term securities ........................................ (117,620,519)
Proceeds from sales of long-term securities .............................. 124,523,593
Net change in unrealized appreciation on investments ..................... 18,312,612
Net realized loss on investments ......................................... 1,005,669
---------------
Total adjustments ................................................... 24,049,099
--------------
Net cash provided by operating activities .............................. $ 30,441,132
==============
NON-CASH ACTIVITY:
Dividend reinvestments ................................................... $ 3,789,959
==============
See Accompanying Notes to Financial Statements.
16
CREDIT SUISSE HIGH YIELD BOND FUND
FINANCIAL HIGHLIGHTS
------------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED PERIOD
PER SHARE --------------------------------------------------------------------------------------- ENDED
OPERATING PERFORMANCE 10/31/05 10/31/04 10/31/03 10/31/02 10/31/01 10/31/00 10/31/99 10/31/981
-------- -------- -------- -------- -------- -------- -------- --------
Net asset value,
beginning of period ...... $ 4.53 $ 4.34 $ 3.53 $ 4.49 $ 6.16 $ 7.98 $ 8.36 $ 10.00
-------- -------- -------- -------- -------- -------- -------- --------
INVESTMENT ACTIVITIES
Net investment income ..... 0.47 0.53 0.55 0.652 0.84 0.962 0.98 0.24
Net realized and
unrealized gain (loss)
on investments ........... (0.35) 0.24 0.87 (0.80) (1.63) (1.80) (0.38) (1.62)
-------- -------- -------- -------- -------- -------- -------- --------
Total from investment
activities .......... 0.12 0.77 1.42 (0.15) (0.79) (0.84) 0.60 (1.38)
-------- -------- -------- -------- -------- -------- -------- --------
DISTRIBUTIONS
Net investment income .... (0.51) (0.58) (0.61) (0.71) (0.86) (0.98) (0.98) (0.24)
Return of capital ........ (0.02) -- -- (0.10) (0.02) -- -- --
-------- -------- -------- -------- -------- -------- -------- --------
Total distributions ... (0.53) (0.58) (0.61) (0.81) (0.88) (0.98) (0.98) (0.24)
-------- -------- -------- -------- -------- -------- -------- --------
Offering costs charged to
paid-in-capital .......... -- -- -- -- -- -- 0.003 (0.02)
-------- -------- -------- -------- -------- -------- -------- --------
NET ASSET VALUE,
END OF PERIOD ............ $ 4.12 $ 4.53 $ 4.34 $ 3.53 $ 4.49 $ 6.16 $ 7.98 $ 8.36
======== ======== ======== ======== ======== ======== ======== ========
PER SHARE MARKET VALUE,
END OF PERIOD ............ $ 4.77 $ 5.24 $ 4.76 $ 4.10 $ 5.07 $ 6.19 $ 8.06 $ 9.56
======== ======== ======== ======== ======== ======== ======== ========
Total return
(market value)4 .......... 2.71% 25.49% 35.07% (2.15)% (3.21)% (12.15)% (5.71)% (1.74)%
RATIOS AND
SUPPLEMENTAL DATA
Net assets, end of period
(000s omitted) ........ $225,760 $244,523 $229,255 $180,889 $219,440 $286,838 $358,679 $359,956
Average debt per share ... $ 2.05 $ 2.05 $ 1.81 $ 1.99 $ 2.49 $ 3.47 $ 3.18 $ 1.02
Ratio of expenses to
average net assets .. 3.27% 2.51% 2.57% 2.91% 4.29% 4.81% 3.62% 1.81%5
Ratio of expenses to
average net assets,
excluding interest
expenses ............ 1.68% 1.70% 1.73% 1.78% 1.73% 1.61% 1.53% 1.16%5
Ratio of net investment
income to average
net assets .......... 10.72% 11.99% 13.85% 15.17% 15.22% 12.90% 11.24% 10.48%5
Portfolio turnover rate .. 31.05% 12.10% 15.96% 33.22% 46.11% 31.29% 60.23% 15.26%
1 The fund commenced operations on July 28, 1998.
2 Based on average shares outstanding.
3 Amount rounds to less than $0.01.
4 Total return is based on the change in market price of a share during the
period and assumes reinvestment of dividends and distributions at actual
prices pursuant to the Fund's Dividend Reinvestment Plan. Total return
based on market value, which can be significantly greater or lesser than
the net asset value, may result in substantially different returns. Total
returns for periods less than one year are not annualized.
5 Annualized.
See Accompanying Notes to Financial Statements.
17
CREDIT SUISSE HIGH YIELD BOND FUND
NOTES TO FINANCIAL STATEMENTS
October 31, 2005
--------------------------------------------------------------------------------
NOTE 1. ORGANIZATION
Credit Suisse High Yield Bond Fund (the "Fund") is a business trust organized
under the laws of the State of Delaware on April 30, 1998. The Fund is
registered with the Securities and Exchange Commission under the Investment
Company Act of 1940, as amended ("Investment Company Act"), as a
non-diversified, closed-end management investment company. The Fund's shares
trade on the New York Stock Exchange under the ticker symbol DHY. The Fund's
primary objective is to seek high current income.
The following is a summary of significant accounting policies consistently
followed by the Fund in its operations and in connection with the preparation of
its financial statements.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
A) PORTFOLIO VALUATION -- Fixed-income securities (other than short-term
obligations, but including listed issues) are valued at market value based on
prices obtained by one or more independent pricing services approved by the
Board of Trustees. Pricing services use a matrix, formula or other objective
method that takes into consideration market indices, yield curves and other
specific adjustments.
Securities (other than fixed-income securities) for which the principal
market is one or more securities exchanges are valued at market value, which is
generally determined using the closing price on the exchange or market on which
the security is primarily traded. If a securities exchange is not the principal
market for a security, such security will, if market quotations are readily
available, be valued at the closing bid price in the over-the-counter market (or
the last sale price in the case of securities reported on the NASDAQ national
market system for which any sales occurred during the day). Securities and other
assets for which market quotations are not readily available are valued at fair
value as determined in good faith by, or under the direction of, the Board of
Trustees under procedures established by the Board of Trustees. Debt obligations
that will mature in 60 days or less are valued on the basis of amortized cost,
which approximates market value, unless it is determined that using this method
would not reflect an investment's fair value.
B) FOREIGN CURRENCY TRANSACTIONS -- The books and records of the Fund are
maintained in U.S. dollars. Transactions denominated in foreign currencies are
recorded at the current prevailing exchange rates. All assets and liabilities
denominated in foreign currencies are translated into U.S. dollar amounts at the
current exchange rate at the end of the period. Translation gains or losses
resulting from changes in the exchange rate during the reporting period and
realized gains and losses on the settlement of foreign currency transactions are
reported in the results of operations for the current period. The Fund does not
isolate that portion of realized gains and losses on investments in equity
securities which is due to changes in the foreign exchange rate from that which
is due to changes in market prices of equity securities. The Fund isolates that
portion of realized gains and losses on investments in debt securities which is
due to changes in the foreign exchange rate from that which is due to changes in
market prices of debt securities.
C) SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are
accounted for on a trade date basis. Interest income is recorded on the accrual
basis. Dividends are recorded on the ex-dividend date. The cost of investments
sold is determined by use of the specific identification method for both
financial reporting and income tax purposes. Accretion of discount and
amortization of premium is recognized using the effective interest method.
18
CREDIT SUISSE HIGH YIELD BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
October 31, 2005
--------------------------------------------------------------------------------
D) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- The Fund declares and pays
dividends on a monthly basis. Capital gains, if any, net of capital losses, are
distributed annually. Income dividends and capital gain distributions are
determined in accordance with income tax regulations, which may differ from
accounting principles generally accepted in the United States of America
("GAAP"). These differences are primarily due to differing treatments of income
and gains on various investment securities held by the Fund, timing differences
and differing characterization of distributions made by the Fund.
The Fund's dividend policy is to distribute substantially all of its net
investment income to its shareholders on a monthly basis. However, in order to
provide shareholders with a more consistent yield to the current trading price
of shares of beneficial interest of the Fund, the Fund may at times pay out less
than the entire amount of net investment income earned in any particular month
and may at times in any month pay out such accumulated but undistributed income
in addition to net investment income earned in that month. As a result, the
dividends paid by the Fund for any particular month may be more or less than the
amount of net investment income earned by the Fund during such month.
E) FEDERAL INCOME TAXES -- No provision is made for federal taxes as it is
the Fund's intention to continue to qualify for and elect the tax treatment
applicable to regulated investment companies under the Internal Revenue Code of
1986, as amended, and to make the requisite distributions to its shareholders
which will be sufficient to relieve it from federal income and excise taxes.
F) CASH FLOW INFORMATION -- Cash, as used in the Statement of Cash Flows, is
the amount reported in the Statement of Assets and Liabilities. The Fund invests
in securities and distributes dividends from net investment income and net
realized gains, if any (which are either paid in cash or reinvested at the
discretion of shareholders). These activities are reported in the Statement of
Changes in Net Assets. Information on cash payments is presented in the
Statement of Cash Flows. Accounting practices that do not affect reporting
activities on a cash basis include unrealized gain or loss on investment
securities and accretion or amortization income recognized on investment
securities.
G) USE OF ESTIMATES -- The preparation of financial statements in conformity
with GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts
of income and expenses during the reporting period. Actual results could differ
from those estimates.
H) SECURITIES LENDING -- Loans of securities are required at all times to be
secured by collateral at least equal to 100% of the market value of domestic
securities on loan (including any accrued interest thereon). Cash collateral
received by the Fund in connection with securities lending activity is
reinvested into either fully collateralized repurchase agreements with Bear,
Stearns & Co., Inc. (an affiliate of the custodian, Custodial Trust Company, and
the borrower, Bear, Stearns Securities Corp. (the "Borrower")), registered money
market mutual funds (subject to regulatory limitations) or some combination
thereof. In the event of default or bankruptcy by the Borrower or its affiliates
to the agreement, realization and/or retention of the Fund's collateral may be
subject to legal proceedings.
The Fund's securities lending arrangement provides that the Fund and the
Borrower will share the net income earned from the securities lending
activities. During the year ended October 31, 2005, total earnings from the
Fund's investment in cash collateral received in connection with the securities
lending arrangement was $2,477,605 of which $1,834,985 was rebated to the
Borrower. The Fund retained $642,620 in income from the cash collateral
investment. The Fund is entitled to a certain minimum amount of income from its
securities lending activities. Securities lending income is accrued as earned.
19
CREDIT SUISSE HIGH YIELD BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
October 31, 2005
--------------------------------------------------------------------------------
NOTE 3. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
The Fund has entered into an Investment Advisory Agreement (the "Advisory
Agreement") with Credit Suisse Asset Management, LLC ("CSAM"). The Advisory
Agreement provides for a fee at the annual rate of 1.00% of the first $250
million of the average weekly value of the Fund's total assets minus the sum of
liabilities (other than aggregate indebtedness constituting leverage) and 0.75%
of the average weekly value of the Fund's total assets minus the sum of
liabilities (other than aggregate indebtedness constituting leverage) greater
than $250 million. Under the Advisory Agreement with the Fund, CSAM provides
investment advisory services and order placement facilities for the Fund and
pays all compensation of Trustees of the Fund who are affiliated persons of
CSAM. For the year ended October 31, 2005, investment advisory fees earned were
$3,348,548.
State Street Bank and Trust Company ("SSB") serves as Accounting and
Administrative Agent for the Fund. For its administrative services, SSB receives
a fee, exclusive of out-of-pocket expenses, calculated in total for all the
Credit Suisse funds/portfolios co-administered by SSB and allocated based upon
relative average net assets of each fund/portfolio, subject to an annual minimum
fee. For the year ended October 31, 2005, administrative services fees earned by
SSB (including out-of-pocket expenses) were $217,328.
The Fund pays each Trustee not affiliated with CSAM $1,000 per regular
quarterly board meeting attended and an annual retainer fee of $12,500. In
addition, the Fund reimburses each Trustee for travel and out-of-pocket expenses
relating to his attendance at such meetings.
Merrill Corporation ("Merrill"), an affiliate of CSAM, has been engaged by
the Fund to provide certain financial printing and fulfillment services. For the
year ended October 31, 2005, Merrill was paid $22,678 for its services to the
Fund.
NOTE 4. LINE OF CREDIT
The Fund has a $150 million line of credit provided by Citibank North
America, Inc., under a Revolving Credit and Security Agreement (the "Agreement")
dated April 12, 2002, as amended from time to time, primarily to leverage its
investment portfolio. Under this Agreement, the Fund may borrow the lesser of
$150 million or 331/3% of its gross assets. Interest is payable at the Bank's
Base Rate plus a commission of 0.05%. The Fund pays a program fee of 0.20% of
the average daily amount leveraged, an administration fee of 0.02% of the
average daily amount leveraged and a liquidity fee of 0.15% of the maximum
borrowing limit (currently $150 million). The Agreement requires, among other
provisions, that the percentage obtained by dividing total indebtedness for
money borrowed by total assets of the Fund shall not exceed 331/3%. At October
31, 2005 the Fund had loans outstanding under the Agreement of $110,000,000.
During the year ended October 31, 2005, the Fund had borrowings under the
Agreement as follows:
AVERAGE DAILY WEIGHTED AVERAGE MAXIMUM DAILY
LOAN BALANCE INTEREST RATE LOAN OUTSTANDING
------------ ------------- ----------------
$112,353,425 2.931% $117,000,000
NOTE 5. PURCHASES AND SALES OF SECURITIES
For the year ended October 31, 2005, purchases and sales of investment
securities (excluding short-term investments) were $115,739,019 and
$105,136,276, respectively.
20
CREDIT SUISSE HIGH YIELD BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
October 31, 2005
--------------------------------------------------------------------------------
NOTE 6. FUND SHARES
The Fund has one class of shares of beneficial interest, par value $0.001 per
share; an unlimited number of shares are authorized. Transactions in shares of
beneficial interest were as follows:
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2005 OCTOBER 31, 2004
Shares issued through
reinvestment of dividends ...... 861,846 1,132,804
======= =========
NOTE 7. CONCENTRATION OF RISK
The Fund invests in securities offering high current income, which generally
will be in the lower rating categories of recognized ratings agencies (commonly
known as "junk bonds").
These securities generally involve more credit risk than securities in the
higher rating categories. In addition, the trading market for high yield
securities may be relatively less liquid than the market for higher-rated
securities. The Fund's use of leverage also increases exposure to capital risk.
NOTE 8. FEDERAL INCOME TAXES
Income and capital gain distributions are determined in accordance with
federal income tax regulations, which may differ from GAAP.
The tax characteristics of dividends and distributions paid during the years
ended October 31, 2005 and 2004 by the Fund were as follows:
ORDINARY INCOME LONG-TERM CAPITAL DISTRIBUTIONS RETURN OF CAPITAL
--------------- ------------------------------- ----------------------
2005 2004 2005 2004 2005 2004
---- ---- ---- ---- ---- ----
$27,812,807 $30,957,053 $-- $-- $1,132,282 $--
The tax basis of components of distributable earnings differ from the amounts
reflected in the Statement of Assets and Liabilities by temporary book/tax
differences. These differences are primarily due to losses deferred on wash
sales and income from defaulted bonds. At October 31, 2005, the components of
distributable earnings on a tax basis for the Fund were as follows:
Undistributed loss - other $ (1)
Accumulated net realized loss (244,552,219)
Unrealized depreciation (16,332,032)
--------------
$ (260,884,252)
--------------
At October 31, 2005, the Fund had capital loss carryforwards of $244,552,219
available to offset possible future capital gains as follows:
EXPIRES OCTOBER 31,
----------------------------------------------------------------------------------------------
2006 2007 2008 2009 2010 2011 2012 2013
---- ---- ---- ---- ---- ---- ---- ----
$13,855,150 $30,606,551 $37,573,747 $68,628,620 $77,916,490 $8,291,239 $6,096,544 $1,583,878
It is unlikely that the Fund will realize the full benefit of these losses
prior to expiration.
21
CREDIT SUISSE HIGH YIELD BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
October 31, 2005
--------------------------------------------------------------------------------
At October 31, 2005, the identified cost for federal income tax purposes, as
well as the gross unrealized appreciation from investments for those securities
having an excess of value over cost, gross unrealized depreciation from
investments for those securities having an excess of cost over value and the net
unrealized depreciation from investments were $418,386,971, $9,947,780,
$(26,279,812) and $(16,332,032), respectively.
At October 31, 2005, the Fund reclassified $1,132,282 from paid in capital
and $547,673 from accumulated net realized loss from investments to net
investment loss, to adjust for current period permanent book/tax differences
which arose principally from differing book/tax treatments on sales of defaulted
bonds, foreign currency gain/(loss), and Return of Capital Distributions. Net
assets were not affected by these reclassifications.
NOTE 9. CONTINGENCIES
In the normal course of business, the Fund may provide general
indemnifications pursuant to certain contracts and organizational documents. The
Fund's maximum exposure under these arrangements is dependent on future claims
that may be made against the Fund and, therefore, cannot be estimated; however,
based on experience, the risk of loss from such claims is considered remote.
22
CREDIT SUISSE HIGH YIELD BOND FUND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
--------------------------------------------------------------------------------
To the Board of Trustees and Shareholders of
Credit Suisse High Yield Bond Fund:
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments, and the related statements of operations,
of changes in net assets and of cash flows and the financial highlights present
fairly, in all material respects, the financial position of Credit Suisse High
Yield Bond Fund (the "Fund") at October 31, 2005, the results of its operations
and its cash flows for the year then ended, the changes in its net assets for
each of the two years in the period then ended and the financial highlights for
each of five years in the period then ended, in conformity with accounting
principles generally accepted in the United States of America. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Fund's management; our responsibility
is to express an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with the
standards of the Public Company Accounting Oversight Board (United States).
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at October 31, 2005 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion. The financial highlights of the fund for each of the periods
presented in the period ended October 31, 2000 were audited by other independent
auditors, whose report dated December 20, 2000 expressed an unqualified opinion
on these financial statements containing those financial highlights.
PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
December 22, 2005
23
CREDIT SUISSE HIGH YIELD BOND FUND
ADDITIONAL INFORMATION (UNAUDITED)
--------------------------------------------------------------------------------
DIVIDEND REINVESTMENT PLAN
Referenced below are policies related to the Fund's Automatic Dividend
Reinvestment Plan (the "Plan"). These policies apply to shareholders whose
shares are registered directly with the Fund in their own name. Shareholders
whose shares are purchased through a broker-dealer or nominee should contact
such broker-dealer or nominee regarding questions related to the reinvestment of
the Fund's dividends.
Pursuant to the Fund's Plan, unless a shareholder otherwise elects, all
dividends and capital gain distributions will be automatically reinvested by
Computershare Shareholder Services, Inc. ("Computershare") as agent for
Shareholders in administering the Plan (the "Plan Agent"), in additional shares
of the Fund. Shareholders who elect not to participate in the Plan will receive
all dividends and other distributions in cash paid by check mailed directly to
the shareholder of record (or, if the shares are held in street or other nominee
name, then to such nominee) by Computershare as the Dividend Disbursing Agent.
Such participants may elect not to participate in the Plan and to receive all
dividends and capital gain distributions in cash by sending written instructions
to Computershare as the Dividend Disbursing Agent, at the address set forth
below. Participation in the Plan is completely voluntary and may be terminated
or resumed at any time without penalty by written notice if received by the Plan
Agent not less than ten days prior to any dividend record date; otherwise such
termination will be effective with respect to any subsequently declared dividend
or other distribution.
Whenever the Fund declares an income dividend or a capital gain distribution
(collectively referred to as "dividends") payable either in shares or in cash,
non-participants in the Plan will receive cash and participants in the Plan will
receive the equivalent in shares. The shares will be acquired by the Plan Agent
for the participants' accounts, depending upon the circumstances described
below, either (i) through receipt of additional unissued but authorized shares
from the Fund ("newly issued shares") or (ii) by purchase of outstanding shares
on the open market ("open-market purchases") on the NYSE or elsewhere. If on the
record date for the dividend, the net asset value per share is equal to or less
than the market price per share plus estimated brokerage commissions (such
condition being referred to herein as "market premium"), the Plan Agent will
invest the dividend amount in newly issued shares on behalf of the participants.
The number of newly issued shares to be credited to each participant's account
will be determined by dividing the dollar amount of the dividend by the net
asset value per share on the date the shares are issued. If on the dividend
record date the net asset value per share is greater than the market value (such
condition being referred to herein as "market-discount"), the Plan Agent will
invest the dividend amount in shares acquired on behalf of the participants in
open-market purchases.
In the event of a market discount on the dividend record date, the Plan Agent
will have until the last business day before the next date on which the shares
trade on an "ex-dividend" basis or in no event more than 30 days after the
dividend record date (the "last purchase date") to invest the dividend amount in
shares acquired in open-market purchases. It is contemplated that the Fund will
pay monthly income dividends. Therefore, the period during which open-market
purchases can be made will exist only from the record date of the dividend
through the date before the next "ex-dividend" date. If, before the Plan Agent
has completed its open-market purchases, the market price of a share exceeds the
net asset value per share, the average per share purchase price paid by the Plan
Agent may exceed the net asset value of the shares, resulting in the acquisition
of fewer shares than if the dividend had been paid in newly issued shares on the
dividend record date. Because of the foregoing difficulty with respect to open
market purchases, the Plan provides that if the Plan Agent in unable to invest
the full dividend amount in open market purchases during the purchase period or
if the market discount shifts to a market premium during the purchase period,
the Plan Agent may cease making open-market purchases and may invest the
uninvested portion of the dividend amount in newly issued shares at the net
24
CREDIT SUISSE HIGH YIELD BOND FUND
ADDITIONAL INFORMATION (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
asset value per share at the close of business on the last purchase date.
The Plan Agent maintains all shareholders' accounts in the Plan and furnishes
written confirmation of all transactions in the accounts, including information
needed by shareholders for tax records. Shares in the account of each Plan
participant will be held by the Plan Agent on behalf of the Plan participant,
and each shareholder proxy will include those shares purchased or received
pursuant to the Plan. The Plan Agent will forward all proxy solicitation
materials to participants and vote proxies for shares held pursuant to the Plan
in accordance with the instructions of the participants. In the case of
shareholders such as banks, brokers or nominees that hold shares for others who
are the beneficial owners, the Plan Agent will administer the Plan on the basis
of the number of shares certified from time to time by the record shareholder
and held for the account of beneficial owners who participate in the Plan.
There will be no brokerage charges with respect to shares issued directly by
the Fund as a result of dividends or capital gains distributions payable either
in shares or in cash. However, each participant will pay a pro rata share of
brokerage commissions incurred with respect to the Plan Agent's open-market
purchases in connection with the reinvestment of dividends.
The automatic reinvestment of dividends will not relieve participants of any
Federal, state or local income tax that may be payable (or required to be
withheld) on such dividends.
Shareholders participating in the Plan may receive benefits not available to
shareholders not participating in the Plan. If the market price (plus
commissions) of the shares is above their net asset value, participants in the
Plan will receive shares of the Fund at less than they could otherwise purchase
them and will have shares with a cash value greater than the value of any cash
distribution they would have received on their shares. If the market price plus
commissions is below the net asset value, participants will receive
distributions in shares with a net asset value greater than the value of any
cash distribution they would have received on their shares. However, there may
be insufficient shares available in the market to make distributions in shares
at prices below the net asset value. Also, since the Fund does not redeem
shares, the price on resale may be more or less than the net asset value.
Experience under the Plan may indicate that changes are desirable.
Accordingly, the Fund reserves the right to amend or terminate the Plan. There
is no direct service charge to participants in the Plan; however, the Fund
reserves the right to amend the Plan to include a service charge payable by the
participants.
All correspondence concerning the Plan should be directed to the Plan Agent
at P.O. Box 43010, Providence, RI 02940-3010, or call the plan agent at
1-800-730-6001.
LEVERAGE--BENEFITS AND RISKS
The use of leverage by the Fund creates an opportunity for increased net
income and capital appreciation for the Fund, but, at the same time, creates
special risks, and there can be no assurance that a leveraging strategy will be
successful during any period in which it is employed. The Fund intends to
utilize leverage to provide the Shareholders with a potentially higher return.
Leverage creates risks for Shareholders, including the likelihood of greater
volatility of net asset value and market price of the Fund's shares and the risk
that fluctuations in interest rates on borrowings and short-term debt may affect
the return to Shareholders. To the extent the income or capital appreciation
derived from securities purchased with funds received from leverage exceeds the
cost of leverage, the Fund's return will be greater than if leverage had not
been used. Conversely, if the income or capital appreciation from the securities
purchased with such funds is not sufficient to cover the cost of leverage, the
return to the Fund will be less than if leverage had not been used, and
therefore the amount available for distribution to Shareholders as dividends and
other distributions will be reduced. In the latter case, CSAM in its best
judgment nevertheless may determine to maintain the Fund's leveraged position if
it deems such action to be appropriate under the
25
CREDIT SUISSE HIGH YIELD BOND FUND
ADDITIONAL INFORMATION (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
circumstances. During periods in which the Fund is utilizing leverage, the
Fund's investment advisory fee will be higher than if the Fund did not utilize a
leveraged capital structure, because the fee is calculated as a percentage of
the Managed Assets including those purchased with leverage. Certain types of
borrowings by the Fund may result in the Fund's being subject to covenants in
credit agreements, including those relating to asset coverage and portfolio
composition requirements. The Fund's lenders may establish guidelines for
borrowing which may impose asset coverage or portfolio composition requirements
that are more stringent than those imposed by the Investment Company Act. It is
not anticipated that these covenants or guidelines will impede CSAM in managing
the Fund's portfolio in accordance with the Fund's investment objectives and
policies.
26
CREDIT SUISSE HIGH YIELD BOND FUND
INFORMATION CONCERNING TRUSTEES AND OFFICERS (unaudited)
--------------------------------------------------------------------------------
TERM NUMBER OF
OF OFFICE PORTFOLIOS IN
AND FUND
LENGTH PRINCIPAL COMPLEX OTHER
NAME, ADDRESS POSITION(S) OF TIME OCCUPATION(S) DURING OVERSEEN BY DIRECTORSHIPS
AND DATE OF BIRTH HELD WITH FUND SERVED PAST FIVE YEARS TRUSTEE HELD BY TRUSTEE
----------------- ------------- -------- -------------- ------- ---------------------
INDEPENDENT TRUSTEES
Enrique R. Arzac Chairman Chairman Professor of Finance and Economics, 47 Director of The Adams
c/o Credit Suisse Asset of the Board, since Graduate School of Business, Express Company
Management, LLC. Trustee, 2005 and Columbia University since 1971 (a closed-end
Attn: General Counsel Nominating Trustee since investment company);
466 Lexington Avenue Committee 2001; current Director of Petroleum
New York, New York Chairman and term ends at and Resources
10017-3140 Audit Committee the 2008 Corporation (a
Member annual closed-end investment
Date of Birth: 02/10/41 meeting. company)
Lawrence J. Fox Trustee, Since Partner of Drinker Biddle & Reath 3 Director, Winthrop
One Logan Square Audit Committee 2001; current (law firm) since 1972 Trust Company
18th & Cherry Streets Chairman and term ends at
Philadelphia, Pennsylvania Nominating the 2007
19103 Committee annual meeting.
Member
Date of Birth: 07/17/43
James S. Pasman, Jr Trustee, Audit Since Currently retired 42 Director of
c/o Credit Suisse Asset and Nominating 2001; current Education Management
Management, LLC Committee term ends at Corp.
Attn:General Counsel Member the 2006
466 Lexington Avenue annual meeting.
New York, New York
10017-3140
Date of Birth: 12/20/30
Steven N. Rappaport Trustee, Audit Since Partner of Lehigh Court, LLC and RZ 46 Director of Presstek,
Lehigh Court, LLC and Nominating 2005; current Capital (private investment firms) from Inc. (digital imaging
40 East 52nd Street Committee term ends July 2002 to present; Transition Adviser technologies
New York, New York Member at the to SunGard Securities Finance, Inc. from company); Director of
10022 2006 annual February 2002 to July 2002; President of Wood Resources, LLC.
meeting. SunGard Securities Finance, Inc. from (plywood
Date of Birth: 07/10/48 2001 to February 2002; President of manufacturing
Loanet, Inc. (on-line accounting service) company)
from 1997 to 2001
27
CREDIT SUISSE HIGH YIELD BOND FUND
INFORMATION CONCERNING TRUSTEES AND OFFICERS (unaudited) (continued)
--------------------------------------------------------------------------------
TERM
OF OFFICE
AND
LENGTH
NAME, ADDRESS POSITION(S) OF TIME
AND DATE OF BIRTH HELD WITH FUND SERVED PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS
--------------- ------------- -------- -------------------------------------------
OFFICERS*
Martha B. Metcalf Chief Since 2005 Managing Director; Associated with CSAM since 2005;
Credit Suisse Asset Investment Managing Director and Portfolio Manager of Invesco
Management, LLC Officer from 2000 to 2005; Officer of other Credit
466 Lexington Avenue Suisse Funds
New York, New York
10017-3140
Date of Birth: 04/09/65
Steven B. Plump Chief Executive Since 2005 Managing Director; Associated with CSAM or its
Credit Suisse Asset Officer and President predecessor since 1995; Officer of other Credit
Management, LLC Suisse Funds
466 Lexington Avenue
New York, New York
10017-3140
Date of Birth: 02/08/59
Michael E. Gray Investment Officer Since 2005 Managing Director; Associated with CSAM since 2004;
Credit Suisse Asset Managing Director of Deutsche Asset Management
Management, LLC from 2002 until 2004; Executive Director of UBS
466 Lexington Avenue (London) from 1999 until 2002; Officer of other
New York, New York Credit Suisse Funds
10017-3140
Date of Birth: 07/08/68
Michael A. Pignataro Chief Financial Officer, Since 2000 Director and Director of Fund Administration of
Credit Suisse Asset Vice President CSAM; Associated with CSAM or its predecessor since
Management, LLC and Secretary 1984; Officer of other Credit Suisse Funds
466 Lexington Avenue
New York, New York
10017-3140
Date of Birth: 11/15/59
Emidio Morizio Chief Compliance Officer Since 2004 Director and Global Head of Compliance of CSAM;
Credit Suisse Asset Associated with CSAM since July 2000; Vice President
Management, LLC and Director of Compliance of Forstmann-Leff
466 Lexington Avenue Associates from 1998 to June 2000; Officer of other
New York, New York Credit Suisse Funds
10017-3140
Date of Birth: 09/21/66
28
CREDIT SUISSE HIGH YIELD BOND FUND
INFORMATION CONCERNING TRUSTEES AND OFFICERS (unaudited) (continued)
--------------------------------------------------------------------------------
TERM
OF OFFICE
AND
LENGTH
NAME, ADDRESS POSITION(S) OF TIME
AND DATE OF BIRTH HELD WITH FUND SERVED PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS
--------------- ------------- -------- -------------------------------------------
OFFICERS*
Ajay Mehra Chief Legal Officer Since 2004 Director and General Counsel (Americas) of CSAM
Credit Suisse Asset since September 2004; Senior Associate of Shearman &
Management, LLC Sterling LLP from September 2000 to September 2004;
466 Lexington Avenue Senior Counsel of the SEC Division of Investment
New York, New York Management from June 1997 to September 2000; Officer
10017-3140 of other Credit Suisse Funds
Date of Birth: 08/14/70
J. Kevin Gao Senior Vice Since 2004 Vice President and Associate General Counsel of
Credit Suisse Asset President CSAM; Associated with CSAM since July 2003;
Management, LLC Associated with the law firm of Willkie Farr &
466 Lexington Avenue Gallagher LLP from 1998 to 2003; Officer of other
New York, New York Credit Suisse Funds
10017-3140
Date of Birth: 10/13/67
Robert Rizza Treasurer Since 2001 Assistant Vice President of CSAM; Associated with
Credit Suisse Asset CSAM since 1998; Officer of other Credit Suisse
Management, LLC Funds.
466 Lexington Avenue
New York, New York
10017-3140
Date of Birth: 12/09/65
* The officers of the Fund shown are officers that make policy decisions.
ANNUAL CERTIFICATIONS (UNAUDITED)
--------------------------------------------------------------------------------
The Fund's Chief Executive Officer has filed an annual certification with the
NYSE that, as of the date of the certification, he was unaware of any violation
by the Fund of the NYSE's corporate governance listing standards. The Fund's
Chief Executive Officer and Chief Financial Officer have also filed
certifications with the SEC as part of the Fund's Form N-CSR filings that cover
certain public disclosure documents of the Fund, including its annual and
semi-annual reports to stockholders.
29
CREDIT SUISSE HIGH YIELD BOND FUND
TAX INFORMATION LETTER
October 31, 2005 (UNAUDITED)
--------------------------------------------------------------------------------
IMPORTANT TAX INFORMATION FOR CORPORATE SHAREHOLDERS
For the fiscal year ended October 31, 2005 certain dividends paid by the Fund
may be subject to a maximum tax rate of 15%, as provided for by the Jobs and
Growth Tax Relief Reconciliation Act of 2003. Complete information will be
reported in conjunction with your 2005 Form 1099-DIV.
30
CREDIT SUISSE HIGH YIELD BOND FUND
PROXY VOTING AND PORTFOLIO HOLDINGS INFORMATION (UNAUDITED)
--------------------------------------------------------------------------------
Information regarding how the Fund voted proxies related to its portfolio
securities during the 12-month period ended June 30 of each year, as well as the
policies and procedures that the Fund uses to determine how to vote proxies
relating to its portfolio securities are available:
o By calling 1-800-293-1232
o On the Fund's website, www.csam.com/us
o On the website of the Securities and Exchange Commission, http://www.sec.gov.
The Fund files a complete schedule of its portfolio holdings for the first
and third quarters of its fiscal year with the SEC on Form N-Q. The Fund's Forms
N-Q are available on the SEC's website at http://www.sec.gov and may be reviewed
and copied at the SEC's Public Reference Room in Washington, DC. Information on
the operation of the SEC's Public Reference Room may be obtained by calling
1-800-SEC-0330.
31
CREDIT SUISSE HIGH YIELD BOND FUND
OTHER FUNDS MANAGED BY CREDIT SUISSE ASSET MANAGEMENT, LLC
--------------------------------------------------------------------------------
Credit Suisse Capital Appreciation Fund Credit Suisse Japan Equity Fund
Credit Suisse Cash Reserve Fund Credit Suisse Large Cap Blend Fund
Credit Suisse Commodity Return Strategy Fund Credit Suisse Large Cap Value Fund
Credit Suisse Emerging Markets Fund Credit Suisse Mid-Cap Growth Fund
Credit Suisse Fixed Income Fund Credit Suisse New York Municipal Fund
Credit Suisse Global Fixed Income Fund Credit Suisse Short Duration Bond Fund
Credit Suisse Global Small Cap Fund Credit Suisse Small Cap Growth Fund
Credit Suisse High Income Fund Credit Suisse Small Cap Value Fund
Credit Suisse International Focus Fund Credit Suisse Strategic Allocation Fund
Fund shares are not deposits or other obligations of Credit Suisse Asset
Management, LLC or any affiliate, are not FDIC-insured and are not guaranteed by
Credit Suisse Asset Management, LLC or any affiliate. Fund investments are
subject to investment risks, including loss of your investment. There are
special risk considerations associated with international, global,
emerging-market, small-company, private equity, high-yield debt,
single-industry, single-country and other special, aggressive or concentrated
investment strategies. Past performance cannot guarantee future results.
More complete information about a fund, including charges and expenses, is
provided in the Prospectus, which should be read carefully before investing. You
may obtain copies by calling Credit Suisse Funds at 800-927-2874. For up-to-date
performance, please look in the mutual fund section of your newspaper under
Credit Suisse.
Credit Suisse Asset Management Securities, Inc., Distributor.
32
CREDIT SUISSE HIGH YIELD BOND FUND
SUMMARY OF GENERAL INFORMATION (UNAUDITED)
--------------------------------------------------------------------------------
Credit Suisse High Yield Bond Fund is a closed-end, non-diversified
management investment company whose shares trade on the New York Stock Exchange,
Inc. Its investment objective is to seek high current income. Credit Suisse
Asset Management, LLC, the Fund's investment adviser, is part of Credit Suisse
Asset Management ("CSAM"), the institutional and mutual-fund asset-management
arm of Credit Suisse First Boston. As of September 30, 2005, CSAM managed over
$23 billion in the U.S. and, together with its global affiliated, managed assets
of over $337 billion in 17 countries.
SHAREHOLDER INFORMATION
The market price is published in: The New York Times (daily) under the
designation "CrSuiHiY" and The Wall Street Journal (daily), and Barron's (each
Monday) under the designation "CrSuisHighYld". The Fund's New York Stock
Exchange, Inc. trading symbol is DHY. Weekly comparative net asset value (NAV)
and market price information about Credit Suisse High Yield Bond Fund's shares
are published each Sunday in The New York Times and each Monday in The Wall
Street Journal and Barron's, as well as other newspapers, in a table called
"Closed-End Funds"
THE CSAM GROUP OF FUNDS
LITERATURE REQUEST - Call today for free descriptive information on the
closed-end funds listed below at 1-800-293-1232 or visit our website on the
Internet: http://www.csam.com/us.
CLOSED-END FUNDS
SINGLE COUNTRY
The Chile Fund, Inc. (CH)
The First Israel Fund, Inc. (ISL)
The Indonesia Fund, Inc. (IF)
MULTIPLE COUNTRY
The Emerging Markets Telecommunications Fund, Inc. (ETF)
The Latin America Equity Fund, Inc. (LAQ)
FIXED INCOME
Credit Suisse Asset Management Income Fund, Inc. (CIK)
33
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34
CREDIT | ASSET
800-293-1232 o www.csam.com/us SUISSE | MANAGEMENT
DHY-AR-1005
ITEM 2. CODE OF ETHICS.
The registrant has adopted a code of ethics applicable to its Chief Executive
Officer, President, Chief Financial Officer and Chief Accounting Officer, or
persons performing similar functions. A copy of the code is filed as Exhibit
12(a)(1) to this Form. There were no amendments to the code during the fiscal
year ended October 31, 2005. There were no waivers or implicit waivers from the
code granted by the registrant during the fiscal year ended October 31, 2005.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's governing board has determined that it has three audit
committee financial experts serving on its audit committee: Enrique R. Arzac,
James S. Pasman, Jr. and Steven N. Rappaport. Each audit committee financial
expert is "independent" for purposes of this item.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) through (d). The information in the table below is provided for services
rendered to the registrant by its independent registered public accounting firm,
PricewaterhouseCoopers LLP ("PwC"), for its fiscal years ended October 31, 2004
and October 31, 2005.
---------------------------------------- -------------------------------------- --------------------------------------
2004 2005
---------------------------------------- -------------------------------------- --------------------------------------
Audit Fees $29,580 $31,060
---------------------------------------- -------------------------------------- --------------------------------------
Audit-Related Fees1 $4,500 $12,050
---------------------------------------- -------------------------------------- --------------------------------------
Tax Fees2 $2,284 $2,400
---------------------------------------- -------------------------------------- --------------------------------------
All Other Fees -- --
---------------------------------------- -------------------------------------- --------------------------------------
Total $36,364 $45,510
---------------------------------------- -------------------------------------- --------------------------------------
1 Services include agreed-upon procedures in connection with the registrant's
semi-annual financial statements ($3,000 in 2004 and $3,150 in 2005), the
registrant's third quarter 2004 Form N-Q filing ($1,500) in 2004 and agreed
upon procedures relating to the Fund's loan facility ($8,900 in 2005).
2 Tax services in connection with the registrant's excise tax calculations
and review of the registrant's applicable tax returns.
The information in the table below is provided with respect to non-audit
services that directly relate to the registrant's operations and financial
reporting and that were rendered by PwC to the registrant's investment adviser,
Credit Suisse Asset Management, LLC ("CSAM"), and any service provider to the
registrant controlling, controlled by or under common control with CSAM that
provided ongoing services to the registrant ("Covered Services Provider"), for
the registrant's fiscal years ended October 31, 2004 and October 31, 2005.
---------------------------------------- -------------------------------------- --------------------------------------
2004 2005
---------------------------------------- -------------------------------------- --------------------------------------
Audit-Related Fees N/A N/A
---------------------------------------- -------------------------------------- --------------------------------------
2
---------------------------------------- -------------------------------------- --------------------------------------
Tax Fees N/A N/A
---------------------------------------- -------------------------------------- --------------------------------------
All Other Fees N/A $394,000
---------------------------------------- -------------------------------------- --------------------------------------
Total N/A $394,000
---------------------------------------- -------------------------------------- --------------------------------------
(e)(1) Pre-Approval Policies and Procedures. The Audit Committee ("Committee")
of the registrant is responsible for pre-approving (i) all audit and permissible
non-audit services to be provided by the independent registered public
accounting firm to the registrant and (ii) all permissible non-audit services to
be provided by the independent registered public accounting firm to CSAM and any
Covered Services Provider if the engagement relates directly to the operations
and financial reporting of the registrant. The Committee may delegate its
responsibility to pre-approve any such audit and permissible non-audit services
to the Chairperson of the Committee, and the Chairperson shall report to the
Committee, at its next regularly scheduled meeting after the Chairperson's
pre-approval of such services, his or her decision(s). The Committee may also
establish detailed pre-approval policies and procedures for pre-approval of such
services in accordance with applicable laws, including the delegation of some or
all of the Committee's pre-approval responsibilities to other persons (other
than CSAM or the registrant's officers). Pre-approval by the Committee of any
permissible non-audit services shall not be required so long as: (i) the
aggregate amount of all such permissible non-audit services provided to the
registrant, CSAM and any Covered Services Provider constitutes not more than 5%
of the total amount of revenues paid by the registrant to its independent
registered public accounting firm during the fiscal year in which the
permissible non-audit services are provided; (ii) the permissible non-audit
services were not recognized by the registrant at the time of the engagement to
be non-audit services; and (iii) such services are promptly brought to the
attention of the Committee and approved by the Committee (or its delegate(s))
prior to the completion of the audit.
(e)(2) The information in the table below sets forth the percentages of fees for
services (other than audit, review or attest services) rendered by PwC to the
registrant for which the pre-approval requirement was waived pursuant to Rule
2-01(c)(7)(i)(C) of Regulation S-X:
---------------------------------------- -------------------------------------- --------------------------------------
2004 2005
---------------------------------------- -------------------------------------- --------------------------------------
Audit-Related Fees N/A N/A
---------------------------------------- -------------------------------------- --------------------------------------
Tax Fees N/A N/A
---------------------------------------- -------------------------------------- --------------------------------------
All Other Fees N/A N/A
---------------------------------------- -------------------------------------- --------------------------------------
Total N/A N/A
---------------------------------------- -------------------------------------- --------------------------------------
3
The information in the table below sets forth the percentages of fees for
services (other than audit, review or attest services) rendered by PwC to CSAM
and any Covered Services Provider required to be approved pursuant to Rule
2-01(c)(7)(ii)of Regulation S-X, for the registrant's fiscal years ended October
31, 2004 and October 31, 2005:
---------------------------------------- -------------------------------------- --------------------------------------
2004 2005
---------------------------------------- -------------------------------------- --------------------------------------
Audit-Related Fees N/A N/A
---------------------------------------- -------------------------------------- --------------------------------------
Tax Fees N/A N/A
---------------------------------------- -------------------------------------- --------------------------------------
All Other Fees N/A N/A
---------------------------------------- -------------------------------------- --------------------------------------
Total N/A N/A
---------------------------------------- -------------------------------------- --------------------------------------
(f) Not Applicable.
(g) The aggregate fees billed by PwC for non-audit services rendered to the
registrant, CSAM and Covered Service Providers for the fiscal years ended
October 31, 2004 and October 31, 2005 were $6,784 and $14,450, respectively.
(h) Not Applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant has a separately designated standing audit committee established
in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934,
as amended. The members of the committee are Enrique R. Arzac, Lawrence Fox,
James S. Pasman, Jr. and Steven N. Rappaport.
ITEM 6. SCHEDULE OF INVESTMENTS.
Included as part of the report to shareholders filed under Item 1 of this Form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
4
CREDIT SUISSE ASSET MANAGEMENT, LLC
CREDIT SUISSE FUNDS
CREDIT SUISSE INSTITUTIONAL FUNDS
CSAM CLOSED-END FUNDS
PROXY VOTING POLICY AND PROCEDURES
Introduction
Credit Suisse Asset Management, LLC ("CSAM") is a fiduciary that owes each
of its clients duties of care and loyalty with respect to proxy voting. The
duty of care requires CSAM to monitor corporate events and to vote proxies.
To satisfy its duty of loyalty, CSAM must cast proxy votes in the best
interests of each of its clients.
The Credit Suisse Funds, Credit Suisse Institutional Funds, and CSAM
Closed-End Funds (the "Funds"), which have engaged Credit Suisse Asset
Management, LLC as their investment adviser, are of the belief that the
proxy voting process is a means of addressing corporate governance issues
and encouraging corporate actions both of which can enhance shareholder
value.
Policy
The Proxy Voting Policy (the "Policy") set forth below is designed to
ensure that proxies are voted in the best interests of CSAM's clients. The
Policy addresses particular issues and gives a general indication of how
CSAM will vote proxies. The Policy is not exhaustive and does not include
all potential issues.
Proxy Voting Committee
The Proxy Voting Committee will consist of a member of the Portfolio
Management Department, a member of the Legal and Compliance Department, and
a member of the Operations Department (or their designees). The purpose of
the Proxy Voting Committee is to administer the voting of all clients'
proxies in accordance with the Policy. The Proxy Voting Committee will
review the Policy annually to ensure that it is designed to promote the
best interests of CSAM's clients.
For the reasons disclosed below under "Conflicts," the Proxy Voting
Committee has engaged the services of an independent third party
(initially, Institutional Shareholder Services ("ISS")) to assist in issue
analysis and vote recommendation for proxy proposals. Proxy proposals
addressed by the Policy will be voted in accordance with the Policy. Proxy
proposals addressed by the Policy that require a case-by-case analysis will
be voted in accordance with the vote recommendation of ISS. Proxy proposals
not addressed by the Policy will also be voted in accordance with the vote
5
recommendation of ISS. To the extent that the Proxy Voting Committee
proposes to deviate from the Policy or the ISS vote recommendation, the
Committee shall obtain client consent as described below.
CSAM investment professionals may submit a written recommendation to the
Proxy Voting Committee to vote in a manner inconsistent with the Policy
and/or the recommendation of ISS. Such recommendation will set forth its
basis and rationale. In addition, the investment professional must confirm
in writing that he/she is not aware of any conflicts of interest concerning
the proxy matter or provide a full and complete description of the
conflict.
Conflicts
CSAM is the institutional and mutual fund asset management arm of Credit
Suisse First Boston, which is part of Credit Suisse Group, one of the
world's largest financial organizations. As part of a global, full service
investment-bank, broker-dealer, and asset-management organization, CSAM and
its affiliates and personnel may have multiple advisory, transactional,
financial, and other interests in securities, instruments, and companies
that may be purchased or sold by CSAM for its clients' accounts. The
interests of CSAM and/or its affiliates and personnel may conflict with the
interests of CSAM's clients in connection with any proxy issue. In
addition, CSAM may not be able to identify all of the conflicts of interest
relating to any proxy matter.
Consent
In each and every instance in which the Proxy Voting Committee favors
voting in a manner that is inconsistent with the Policy or the vote
recommendation of ISS (including proxy proposals addressed and not
addressed by the Policy), it shall disclose to the client conflicts of
interest information and obtain client consent to vote. Where the client is
a Fund, disclosure shall be made to any one director who is not an
"interested person," as that term is defined under the Investment Company
Act of 1940, as amended, of the Fund.
Recordkeeping
CSAM is required to maintain in an easily accessible place for five years all
records relating to proxy voting.
These records include the following:
o a copy of the Policy;
o a copy of each proxy statement received on behalf of CSAM clients;
6
o a record of each vote cast on behalf of CSAM clients;
o a copy of all documents created by CSAM personnel that were material
to making a decision on a vote or that memorializes the basis for the
decision; and
o a copy of each written request by a client for information on how CSAM
voted proxies, as well as a copy of any written response.
CSAM reserves the right to maintain certain required proxy records with ISS
in accordance with all applicable regulations.
Disclosure
CSAM will describe the Policy to each client. Upon request, CSAM will
provide any client with a copy of the Policy. CSAM will also disclose to
its clients how they can obtain information on their proxy votes.
ISS will capture data necessary for Funds to file Form N-PX on an annual
basis concerning their proxy voting record in accordance with applicable
law.
Procedures
The Proxy Voting Committee will administer the voting of all client
proxies. CSAM has engaged ISS as an independent third party proxy voting
service to assist in the voting of client proxies. ISS will coordinate with
each client's custodian to ensure that proxy materials reviewed by the
custodians are processed in a timely fashion. ISS will provide CSAM with an
analysis of proxy issues and a vote recommendation for proxy proposals. ISS
will refer proxies to the Proxy Voting Committee for instructions when the
application of the Policy is not clear. The Proxy Voting Committee will
notify ISS of any changes to the Policy or deviating thereof.
PROXY VOTING POLICY
Operational Items
Adjourn Meeting
Proposals to provide management with the authority to adjourn an annual
or special meeting will be determined on a case-by-case basis.
Amend Quorum Requirements
Proposals to reduce quorum requirements for shareholder meetings below
a majority of the shares outstanding will be determined on a
case-by-case basis.
7
Amend Minor Bylaws
Generally vote for bylaw or charter changes that are of a housekeeping
nature.
Change Date, Time, or Location of Annual Meeting
Generally vote for management proposals to change the
date/time/location of the annual meeting unless the proposed change is
unreasonable. Generally vote against shareholder proposals to change
the date/time/location of the annual meeting unless the current
scheduling or location is unreasonable.
Ratify Auditors
Generally vote for proposals to ratify auditors unless: (1) an auditor
has a financial interest in or association with the company, and is
therefore not independent; (2) fees for non-audit services are
excessive, or (3) there is reason to believe that the independent
auditor has rendered an opinion, which is neither accurate nor
indicative of the company's financial position. Generally vote on a
case-by-case basis on shareholder proposals asking companies to
prohibit their auditors from engaging in non-audit services (or capping
the level of non-audit services). Generally vote on a case-by-case
basis on auditor rotation proposals taking into consideration: (1)
tenure of audit firm; (2) establishment and disclosure of a renewal
process whereby the auditor is regularly evaluated for both audit
quality and competitive price; (3) length of the rotation period
advocated in the proposal, and (4) significant audit related issues.
Board of Directors
Voting on Director Nominees in Uncontested Elections
Generally votes on director nominees on a case-by-case basis. Votes may
be withheld: (1) from directors who attended less than 75% of the board
and committee meetings without a valid reason for the absences; (2)
implemented or renewed a dead-hand poison pill; (3) ignored a
shareholder proposal that was approved by a majority of the votes cast
for two consecutive years; (4) ignored a shareholder proposal approved
by a majority of the shares outstanding; (5) have failed to act on
takeover offers where the majority of the shareholders have tendered
their shares; (6) are inside directors or affiliated outside directors
and sit on the audit, compensation, or nominating committee; (7) are
inside directors or affiliated outside directors and the full board
serves as the audit, compensation, or nominating committee or the
company does not have one of these committees; or (8) are audit
committee members and the non-audit fees paid to the auditor are
excessive
Cumulative Voting
8
Proposals to eliminate cumulative voting will be determined on a
case-by-case basis. Proposals to restore or provide for cumulative
voting in the absence of sufficient good governance provisions and/or
poor relative shareholder returns will be determined on a case-by-case
basis.
Director and Officer Indemnification and Liability Protection
Proposals on director and officer indemnification and liability
protection generally evaluated on a case-by-case basis. Generally vote
against proposals that would: (1) eliminate entirely directors' and
officers' liability for monetary damages for violating the duty of
care; or (2) expand coverage beyond just legal expenses to acts, such
as negligence, that are more serious violations of fiduciary obligation
than mere carelessness. Generally vote for only those proposals
providing such expanded coverage in cases when a director's or
officer's legal defense was unsuccessful if: (1) the director was found
to have acted in good faith and in a manner that he reasonably believed
was in the best interests of the company, and (2) only if the
director's legal expenses would be covered.
Filling Vacancies/Removal of Directors
Generally vote against proposals that provide that directors may be
removed only for cause. Generally vote for proposals to restore
shareholder ability to remove directors with or without cause.
Proposals that provide that only continuing directors may elect
replacements to fill board vacancies will be determined on a
case-by-case basis. Generally vote for proposals that permit
shareholders to elect directors to fill board vacancies.
Independent Chairman (Separate Chairman/CEO)
Generally vote for shareholder proposals requiring the position of
chairman be filled by an independent director unless there are
compelling reasons to recommend against the proposal, including: (1)
designated lead director, elected by and from the independent board
members with clearly delineated duties; (2) 2/3 independent board; (3)
all independent key committees; or (4) established governance
guidelines.
Majority of Independent Directors
Generally vote for shareholder proposals requiring that the board
consist of a majority or substantial majority (two-thirds) of
independent directors unless the board composition already meets the
adequate threshold. Generally vote for shareholder proposals requiring
the board audit, compensation, and/or nominating committees be composed
exclusively of independent directors if they currently do not meet that
standard. Generally withhold votes from insiders and affiliated
outsiders sitting on the audit, compensation, or nominating committees.
Generally withhold votes from insiders and affiliated outsiders on
boards that are
9
lacking any of these three panels. Generally withhold votes from
insiders and affiliated outsiders on boards that are not at least
majority independent.
Term Limits
Generally vote against shareholder proposals to limit the tenure of
outside directors.
Proxy Contests
Voting on Director Nominees in Contested Elections
Votes in a contested election of directors should be decided on a
case-by-case basis, with shareholders determining which directors are
best suited to add value for shareholders. The major decision factors
are: (1) company performance relative to its peers; (2) strategy of the
incumbents versus the dissidents; (3) independence of
directors/nominees; (4) experience and skills of board candidates; (5)
governance profile of the company; (6) evidence of management
entrenchment; (7) responsiveness to shareholders; or (8) whether
takeover offer has been rebuffed.
Amend Bylaws without Shareholder Consent
Proposals giving the board exclusive authority to amend the bylaws will
be determined on a case-by-case basis. Proposals giving the board the
ability to amend the bylaws in addition to shareholders will be
determined on a case-by-case basis.
Confidential Voting
Generally vote for shareholder proposals requesting that corporations
adopt confidential voting, use independent vote tabulators and use
independent inspectors of election, as long as the proposal includes a
provision for proxy contests as follows: In the case of a contested
election, management should be permitted to request that the dissident
group honor its confidential voting policy. If the dissidents agree,
the policy may remain in place. If the dissidents will not agree, the
confidential voting policy may be waived. Generally vote for management
proposals to adopt confidential voting.
Cumulative Voting
Proposals to eliminate cumulative voting will be determined on a
case-by-case basis. Proposals to restore or provide for cumulative
voting in the absence of sufficient good governance provisions and/or
poor relative shareholder returns will be determined on a case-by-case
basis.
10
Antitakeover Defenses and Voting Related Issues
Advance Notice Requirements for Shareholder Proposals/Nominations
Votes on advance notice proposals are determined on a case-by-case
basis.
Amend Bylaws without Shareholder Consent
Proposals giving the board exclusive authority to amend the bylaws will
be determined on a case-by-case basis. Generally vote for proposals
giving the board the ability to amend the bylaws in addition to
shareholders.
Poison Pills (Shareholder Rights Plans)
Generally vote for shareholder proposals requesting that the company
submit its poison pill to a shareholder vote or redeem it. Votes
regarding management proposals to ratify a poison pill should be
determined on a case-by-case basis. Plans should embody the following
attributes: (1) 20% or higher flip-in or flip-over; (2) two to three
year sunset provision; (3) no dead-hand or no-hand features; or (4)
shareholder redemption feature
Shareholders' Ability to Act by Written Consent
Generally vote against proposals to restrict or prohibit shareholders'
ability to take action by written consent. Generally vote for proposals
to allow or make easier shareholder action by written consent.
Shareholders' Ability to Call Special Meetings
Proposals to restrict or prohibit shareholders' ability to call special
meetings or that remove restrictions on the right of shareholders to
act independently of management will be determined on a case-by-case
basis.
Supermajority Vote Requirements
Proposals to require a supermajority shareholder vote will be
determined on a case-by-case basis Proposals to lower supermajority
vote requirements will be determined on a case-by-case basis.
Merger and Corporate Restructuring
Appraisal Rights
Generally vote for proposals to restore, or provide shareholders with,
rights of appraisal.
11
Asset Purchases
Generally vote case-by-case on asset purchase proposals, taking into
account: (1) purchase price, including earnout and contingent payments;
(2) fairness opinion; (3) financial and strategic benefits; (4) how the
deal was negotiated; (5) conflicts of interest; (6) other alternatives
for the business; or (7) noncompletion risk (company's going concern
prospects, possible bankruptcy).
Asset Sales
Votes on asset sales should be determined on a case-by-case basis after
considering: (1) impact on the balance sheet/working capital; (2)
potential elimination of diseconomies; (3) anticipated financial and
operating benefits; (4) anticipated use of funds; (5) value received
for the asset; fairness opinion (if any); (6) how the deal was
negotiated; or (6) Conflicts of interest
Conversion of Securities
Votes on proposals regarding conversion of securities are determined on
a case-by-case basis. When evaluating these proposals, should review
(1) dilution to existing shareholders' position; (2) conversion price
relative to market value; (3) financial issues: company's financial
situation and degree of need for capital; effect of the transaction on
the company's cost of capital; (4) control issues: change in
management; change in control; standstill provisions and voting
agreements; guaranteed contractual board and committee seats for
investor; veto power over certain corporate actions; (5) termination
penalties; (6) conflict of interest: arm's length transactions,
managerial incentives. Generally vote for the conversion if it is
expected that the company will be subject to onerous penalties or will
be forced to file for bankruptcy if the transaction is not approved.
Corporate Reorganization
Votes on proposals to increase common and/or preferred shares and to
issue shares as part of a debt restructuring plan are determined on a
case-by-case basis, after evaluating: (1) dilution to existing
shareholders' position; (2) terms of the offer; (3) financial issues;
(4) management's efforts to pursue other alternatives; (5) control
issues; (6) conflict of interest. Generally vote for the debt
restructuring if it is expected that the company will file for
bankruptcy if the transaction is not approved.
Reverse Leveraged Buyouts
Votes on proposals to increase common and/or preferred shares and to
issue shares as part of a debt restructuring plan are determined on a
case-by-case basis, after evaluating: (1) dilution to existing
shareholders' position; (2) terms of the offer; (3) financial issues;
(4) management's efforts to pursue other alternatives; (5) control
issues; (6) conflict of interest. Generally vote
12
for the debt restructuring if it is expected that the company will
file for bankruptcy if the transaction is not approved.
Formation of Holding Company
Votes on proposals regarding the formation of a holding company should
be determined on a case-by-case basis taking into consideration: (1)
the reasons for the change; (2) any financial or tax benefits; (3)
regulatory benefits; (4) increases in capital structure; (5) changes to
the articles of incorporation or bylaws of the company. Absent
compelling financial reasons to recommend the transaction, generally
vote against the formation of a holding company if the transaction
would include either of the following: (1) increases in common or
preferred stock in excess of the allowable maximum as calculated a
model capital structure; (2) adverse changes in shareholder rights; (3)
going private transactions; (4) votes going private transactions on a
case-by-case basis, taking into account: (a) offer price/premium; (b)
fairness opinion; (c) how the deal was negotiated; (d) conflicts of
interest; (e) other alternatives/offers considered; (f) noncompletion
risk.
Joint Ventures
Vote on a case-by-case basis on proposals to form joint ventures,
taking into account: (1) percentage of assets/business contributed; (2)
percentage ownership; (3) financial and strategic benefits; (4)
governance structure; (5) conflicts of interest; (6) other
alternatives; (7) noncompletion risk; (8) liquidations. Votes on
liquidations should be determined on a case-by-case basis after
reviewing: (1) management's efforts to pursue other alternatives such
as mergers; (2) appraisal value of the assets (including any fairness
opinions); (3) compensation plan for executives managing the
liquidation. Generally vote for the liquidation if the company will
file for bankruptcy if the proposal is not approved.
Mergers and Acquisitions
Votes on mergers and acquisitions should be considered on a
case-by-case basis, determining whether the transaction enhances
shareholder value by giving consideration to: (1) prospects of the
combined companies; (2) anticipated financial and operating benefits;
(3) offer price; (4) fairness opinion; (5) how the deal was negotiated;
(6) changes in corporate governance and their impact on shareholder
rights; (7) change in the capital structure; (8) conflicts of interest.
Private Placements
Votes on proposals regarding private placements should be determined on
a case-by-case basis. When evaluating these proposals, should review:
(1) dilution to existing shareholders' position; (2) terms of the
offer; (3) financial issues; (4) management's efforts to pursue
alternatives such as mergers; (5) control issues; (6) conflict of
interest. Generally vote for the
13
private placement if it is expected that the company will file for
bankruptcy if the transaction is not approved.
Prepackaged Bankruptcy Plans
Votes on proposals to increase common and/or preferred shares and to
issue shares as part of a debt restructuring plan are determined on a
case-by-case basis, after evaluating: (1) dilution to existing
shareholders' position; (2) terms of the offer; (3) financial issues;
(4) management's efforts to pursue other alternatives; (5) control
issues; (6) conflict of interest. Generally vote for the debt
restructuring if it is expected that the company will file for
bankruptcy if the transaction is not approved.
Recapitalization
Votes case-by-case on recapitalizations (reclassifications of
securities), taking into account: (1) more simplified capital
structure; (2) enhanced liquidity; (3) fairness of conversion terms,
including fairness opinion; (4) impact on voting power and dividends;
(5) reasons for the reclassification; (6) conflicts of interest; (7)
other alternatives considered.
Reverse Stock Splits
Generally vote for management proposals to implement a reverse stock
split when the number of authorized shares will be proportionately
reduced. Generally vote for management proposals to implement a reverse
stock split to avoid delisting. Votes on proposals to implement a
reverse stock split that do not proportionately reduce the number of
shares authorized for issue should be determined on a case-by-case
basis.
Spinoffs
Votes on spinoffs should be considered on a case-by-case basis
depending on: (1) tax and regulatory advantages; (2) planned use of the
sale proceeds; (3) valuation of spinoff; fairness opinion; (3) benefits
that the spinoff may have on the parent company including improved
market focus; (4) conflicts of interest; managerial incentives; (5) any
changes in corporate governance and their impact on shareholder rights;
(6) change in the capital structure
Value Maximization Proposals
Vote case-by-case on shareholder proposals seeking to maximize
shareholder value.
Capital Structure
Adjustments to Par Value of Common Stock
14
Generally vote for management proposals to reduce the par value of
common stock unless the action is being taken to facilitate an
antitakeover device or some other negative corporate governance action.
Generally vote for management proposals to eliminate par value.
Common Stock Authorization
Votes on proposals to increase the number of shares of common stock
authorized for issuance are determined on a case-by-case basis.
Generally vote against proposals at companies with dual-class capital
structures to increase the number of authorized shares of the class of
stock that has superior voting rights. Generally vote for proposals to
approve increases beyond the allowable increase when a company's shares
are in danger of being delisted or if a company's ability to continue
to operate as a going concern is uncertain.
Dual-class Stock
Generally vote against proposals to create a new class of common stock
with superior voting rights. Generally vote for proposals to create a
new class of nonvoting or subvoting common stock if: (1) it is intended
for financing purposes with minimal or no dilution to current
shareholders; (2) it is not designed to preserve the voting power of an
insider or significant shareholder.
Issue Stock for Use with Rights Plan
Generally vote against proposals that increase authorized common stock
for the explicit purpose of implementing a shareholder rights plan.
Preemptive Rights
Votes regarding shareholder proposals seeking preemptive rights should
be determined on a case-by-case basis after evaluating: (1) the size of
the company; (2) the shareholder base; (3) the liquidity of the stock
Preferred Stock
Generally vote against proposals authorizing the creation of new
classes of preferred stock with unspecified voting, conversion,
dividend distribution, and other rights ("blank check" preferred
stock). Generally vote for proposals to create "declawed" blank check
preferred stock (stock that cannot be used as a takeover defense).
Generally vote for proposals to authorize preferred stock in cases
where the company specifies the voting, dividend, conversion, and other
rights of such stock and the terms of the preferred stock appear
reasonable. Generally vote against proposals to increase the number of
blank check preferred stock authorized for issuance when no shares have
been issued or reserved for a specific purpose. Generally vote
case-by-case on proposals to increase the number of blank check
15
preferred shares after analyzing the number of preferred shares
available for issue given a company's industry and performance in terms
of shareholder returns.
Recapitalization
Vote case-by-case on recapitalizations (reclassifications of
securities), taking into account: (1) more simplified capital
structure; (2) enhanced liquidity; (3) fairness of conversion terms,
including fairness opinion; (4) impact on voting power and dividends;
(5) reasons for the reclassification; (6) conflicts of interest; (7)
other alternatives considered.
Reverse Stock Splits
Generally vote for management proposals to implement a reverse stock
split when the number of authorized shares will be proportionately
reduced. Generally vote for management proposals to implement a reverse
stock split to avoid delisting. Votes on proposals to implement a
reverse stock split that do not proportionately reduce the number of
shares authorized for issue should be determined on a case-by-case
basis.
Share Repurchase Programs
Generally vote for management proposals to institute open-market share
repurchase plans in which all shareholders may participate on equal
terms.
Stock Distributions: Splits and Dividends
Generally vote for management proposals to increase the common share
authorization for a stock split or share dividend, provided that the
increase in authorized shares would not result in an excessive number
of shares available for issuance.
Tracking Stock
Votes on the creation of tracking stock are determined on a
case-by-case basis, weighing the strategic value of the transaction
against such factors as: (1) adverse governance changes; (2) excessive
increases in authorized capital stock; (3) unfair method of
distribution; (4) diminution of voting rights; (5) adverse conversion
features; (6) negative impact on stock option plans; (7) other
alternatives such as a spinoff.
Executive and Director Compensation
Executive and Director Compensation
Votes on compensation plans for directors are determined on a
case-by-case basis.
16
Stock Plans in Lieu of Cash
Votes for plans which provide participants with the option of taking
all or a portion of their cash compensation in the form of stock are
determined on a case-by-case basis. Generally vote for plans which
provide a dollar-for-dollar cash for stock exchange. Votes for plans
which do not provide a dollar-for-dollar cash for stock exchange should
be determined on a case-by-case basis.
Director Retirement Plans
Generally vote against retirement plans for nonemployee directors.
Generally vote for shareholder proposals to eliminate retirement plans
for nonemployee directors.
Management Proposals Seeking Approval to Reprice Options
Votes on management proposals seeking approval to reprice options are
evaluated on a case-by-case basis giving consideration to the
following: (1) historic trading patterns; (2) rationale for the
repricing; (3) value-for-value exchange; (4) option vesting; (5) term
of the option; (6) exercise price; (7) participants; (8) employee stock
purchase plans. Votes on employee stock purchase plans should be
determined on a case-by-case basis. Generally vote for employee stock
purchase plans where: (1) purchase price is at least 85 percent of fair
market value; (2) offering period is 27 months or less, and (3)
potential voting power dilution (VPD) is ten percent or less. Generally
vote against employee stock purchase plans where either: (1) purchase
price is less than 85 percent of fair market value; (2) Offering period
is greater than 27 months, or (3) VPD is greater than ten percent
Incentive Bonus Plans and Tax Deductibility Proposals
Generally vote for proposals that simply amend shareholder-approved
compensation plans to include administrative features or place a cap on
the annual grants any one participant may receive. Generally vote for
proposals to add performance goals to existing compensation plans.
Votes to amend existing plans to increase shares reserved and to
qualify for favorable tax treatment considered on a case-by-case basis.
Generally vote for cash or cash and stock bonus plans that are
submitted to shareholders for the purpose of exempting compensation
from taxes if no increase in shares is requested.
Employee Stock Ownership Plans (ESOPs)
Generally vote for proposals to implement an ESOP or increase
authorized shares for existing ESOPs, unless the number of shares
allocated to the ESOP is excessive (more than five percent of
outstanding shares.)
401(k) Employee Benefit Plans
17
Generally vote for proposals to implement a 401(k) savings plan for
employees.
Shareholder Proposals Regarding Executive and Director Pay
Generally vote for shareholder proposals seeking additional disclosure
of executive and director pay information, provided the information
requested is relevant to shareholders' needs, would not put the company
at a competitive disadvantage relative to its industry, and is not
unduly burdensome to the company. Generally vote against shareholder
proposals seeking to set absolute levels on compensation or otherwise
dictate the amount or form of compensation. Generally vote against
shareholder proposals requiring director fees be paid in stock only.
Generally vote for shareholder proposals to put option repricings to a
shareholder vote. Vote for shareholders proposals to exclude pension
fund income in the calculation of earnings used in determining
executive bonuses/compensation. Vote on a case-by-case basis for all
other shareholder proposals regarding executive and director pay,
taking into account company performance, pay level versus peers, pay
level versus industry, and long term corporate outlook.
Performance-Based Option Proposals
Generally vote for shareholder proposals advocating the use of
performance-based equity awards (indexed, premium-priced, and
performance-vested options), unless: (1) the proposal is overly
restrictive; or (2) the company demonstrates that it is using a
substantial portion of performance-based awards for its top executives.
Stock Option Expensing
Generally vote for shareholder proposals asking the company to expense
stock options unless the company has already publicly committed to
start expensing by a specific date.
Golden and Tin Parachutes
Generally vote for shareholder proposals to require golden and tin
parachutes to be submitted for shareholder ratification, unless the
proposal requires shareholder approval prior to entering into
employment contracts. Vote on a case-by-case basis on proposals to
ratify or cancel golden or tin parachutes.
May 17, 2005
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Form N-CSR disclosure requirement is not yet effective with respect to the
registrant.
18
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
None.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's board of directors since the registrant
last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(g)
of Schedule 14A in its definitive proxy statement dated January 11, 2005.
ITEM 11. CONTROLS AND PROCEDURES.
(a) As of a date within 90 days from the filing date of this report, the
principal executive officer and principal financial officer concluded that the
registrant's disclosure controls and procedures (as defined in Rule 30a-3(c)
under the Investment Company Act of 1940 (the "Act")) were effective based on
their evaluation of the disclosure controls and procedures required by Rule
30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934.
(b) There were no changes in registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the
second fiscal quarter of the period covered by this report that have materially
affected, or are reasonably likely to materially affect, the registrant's
internal control over financial reporting.
ITEM 12. EXHIBITS.
(a)(1) Registrant's Code of Ethics is an exhibit to this report.
(a)(2) The certifications of the registrant as required by Rule 30a-2(a) under
the Act are exhibits to this report.
(a)(3) Not applicable.
(b) The certifications of the registrant as required by Rule 30a-2(b) under
the Act are an exhibit to this report.
19
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.
CREDIT SUISSE HIGH YIELD BOND FUND.
/s/ Steven B. Plump
-------------------
Name: Steven B. Plump
Title: Chief Executive Officer
Date: January 9, 2006
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.
/s/ Steven B. Plump
-------------------
Name: Steven B. Plump
Title: Chief Executive Officer
Date: January 9, 2006
/s/ Michael A. Pignataro
------------------------
Name: Michael A. Pignataro
Title: Chief Financial Officer
Date: January 9, 2006