PRHYX
PAHIX
High Yield Fund
High Yield Fund–
Advisor Class
SEMIANNuAl
REPORT
November 30, 2014
T. Rowe PRICe
The fund invests in below investment-grade corporate bonds for high current income.
REPORTS ON THE WEB
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• The high yield bond market experienced increased volatility due to sharply declining oil prices and posted losses during the six-month period ended November 30, 2014.
• The High Yield Fund outperformed its Lipper peer group average but underperformed the Credit Suisse High Yield Index in the first half of our fiscal year.
• Investor demand for high yield bonds is likely to persist in the current low interest rate environment, and a pullback, like the one we have recently endured, makes the asset class all the more attractive. • The default rate for our asset class remains low and the fundamentals
underpinning the companies in the high yield market appear solid.
The views and opinions in this report were current as of November 30, 2014. They are not guarantees of performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and the managers reserve the right to change their views about individual stocks, sectors, and the markets at any time. As a result, the views expressed should not be relied upon as a fore-cast of the fund’s future investment intent. The report is certified under the Sarbanes-Oxley Act, which requires mutual funds and other public companies to affirm that, to the best of their knowledge, the informa-tion in their financial reports is fairly and accurately stated in all material respects.
Manager’s Letter
Fellow Shareholders
U.S. high yield bonds posted losses for the six months ended November 30, 2014, and underperformed most other fixed income sectors. The most significant detractor for our market has been plunging oil prices and its negative impact on the energy industry—the largest segment of the high yield market. While the U.S. economy showed signs of steady, albeit modest, improvement, European economic growth has softened and yields trended lower, which benefited European high yield bonds.
PORTfOLIO PERfORmaNcE
The High Yield Fund posted modest losses in the six-month reporting period. Your fund’s results were generally in line with its benchmark, the Credit Suisse High Yield Index, and its Lipper peer group average
of similarly managed funds. (Results for the Advisor Class were slightly lower, reflecting its different fee structure.) Junk bonds significantly underperformed the broad investment-grade universe, especially long-maturity, high-quality bonds, which rallied. The fund’s performance versus the Credit Suisse High Yield Index benefited from credit selection, holdings in European high yield bonds, and our allocation to bank debt. Credit quality allocation decisions—specifically our underweight to bonds rated BB and higher—hurt our comparison with the benchmark.
From an industry perspective, performance across the high yield universe was mixed, with few standout contributors and several large detractors. Energy bonds, the fund’s largest industry allocation at 14% of assets, endured steep losses as the price of oil declined
Six-Month Period Ended 11/30/14 Total Return
High Yield Fund -1.08%
High Yield Fund–Advisor Class -1.21
Credit Suisse High Yield Index -0.98
Lipper High Yield Funds Average -1.19
After benefiting from a prolonged period of falling interest rates, many bond investors are con-cerned that a new era of rising rates is at hand. Whether this is so is far from certain—rates have defied the expectations of many by remaining very low even as the economy has improved, and they may stay below long-term averages for some time to come. Nevertheless, investors should be aware of the risks of investing in bonds, including the risk that interest rates will increase and weigh on bond prices.
Importantly, investors also need to understand that not all bonds or bond funds respond uni-formly in such an environment. In particular, the duration of a bond or bond fund, which is tied in part to its maturity, provides important clues about how the asset will perform when rates change. Also, some bond sectors and bonds of varying quality are better insulated from rate changes and may even perform well as rates rise.
A bond fund’s weighted average effective duration (shown in the Portfolio Characteristics table) is the most precise indicator of how the fund will respond to rising rates. If a bond fund has a duration of 5.3 years, for example, the fund’s net asset value (NAV) would be expected to fall about 5.3% in value for every 1% rise in rates. Even this is only part of the picture, however— rising rates will also generally mean higher dividends per share as the fund invests in new, higher-yielding bonds. As a result, the fund’s total return (change in NAV plus dividend income) is unlikely to fall as steeply as the duration indicates.
Generally, bond funds with a shorter weighted average maturity—in other words, those with holdings that come due sooner—have lower durations and should fare better than funds with longer average maturities when rates rise. This is because investors in the bonds will not be locked into lower yields, or coupon payments, for long. When shareholders are returned their principal, they can reinvest at a higher yield. Indeed, for investors in a bond fund with a low duration and weighted average maturity, higher rates can mean an increase in income potential. Some bond sectors offer an added degree of protection from rising rates. Floating rate bonds invest in bank loans where the interest rate on the loan is periodically reset, meaning that investors face very little interest rate risk. However, the bank debt usually has a credit profile that is below investment quality, which means these bonds have greater exposure to default risk. Mortgage-backed securities typically fare better than other bonds of similar maturity when rates rise modestly, as fewer homeowners will refinance and pay off their loans early. The government has lately taken steps to encourage refinancing, however, which may cause some borrowers to pay off their loans even as rates rise.
In addition, lower-quality bonds with a price that is highly sensitive to the issuer’s credit rating (shown in the Quality Diversification table) may perform better as rates increase. Rising rates often accompany a strengthening economy, which can lead to credit upgrades for lower-rated issuers. Also, the higher yields offered by lower-quality bonds provide an additional cushion to total return if bond prices fall as interest rates increase. However, lower-quality bonds are generally exposed to greater credit risk than other bonds because the securities carry a higher risk of default.
and the fund’s underweight allocation to energy bonds contributed positively to our performance comparison with the benchmark. Our
overweight allocation to media/telecom holdings and credit selection within our metals and mining holdings also provided positive relative results. Credit selection within the portfolio’s financial holdings hurt our comparison with the Credit Suisse benchmark, and our underweight allocation to health care, which generated a positive absolute return, also detracted.
The fund’s share price declined over the past six months from $7.30 at the end of May to $7.01 at the end of November. The portfolio generated $0.21 of dividend income per share for the reporting period, one penny less than in the prior six-month period. In the current low interest rate environment, we have aggressively attempted to boost the fund’s dividend income. The fund’s 30-day SEC yield at the end of November was 5.27%, compared with 4.32% at the end of May.
The High Yield Fund’s longer-term returns continued to compare favorably with those in its Lipper peer group. Lipper ranked the fund in the top quartile of its high yield funds universe for the 3-, 5-, and 10-year periods ended November 30, 2014. (Based on cumulative total return, Lipper ranked the High Yield Fund 176 of 618, 82 of 479, 85 of 418, and 54 of 281 funds in the high yield funds category for the 1-, 3-, 5-, and 10-year periods ended November 30, 2014, respectively.
Past performance cannot guarantee future results.)
Periods Ended 5/31/14 11/30/14
High Yield Fund Share Price $7.30 $7.01
Dividends Per Share
For 6 Months 0.22 0.21
For 12 Months 0.43 0.43
SEC Yield (30-day) 4.32% 5.27%
High Yield Fund–Advisor Class
Share Price $7.28 $6.99
Dividends Per Share
For 6 Months 0.21 0.20
For 12 Months 0.42 0.41
SEC Yield (30-day) 4.06% 5.03%
Weighted Average
Maturity (years) 6.5 6.1
Weighted Average
Modified Duration (years) 3.1 3.3
12-month dividends may not equal the combined 6-month figures due to rounding.
maRKET ENVIRONmENT
The high yield market has performed exceptionally well since the 2008 financial crisis. From the end of November 2008 to the end of our reporting period, the Credit Suisse High Yield Index has gained about
Source: J.P. Morgan
*Year-to-date data through November 30, 2014. 16 18 20% 14 12 10 8 6 4 2 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 YTD* Largest industry J.P. Morgan Domestic High Yield Index
Second-largest industry Retail 9% Cable/Satellite 9% Telecom 9% Cable/Satellite 8% Telecom 12% Cable/Satellite 9% Telecom 14% Gamin g/Leisur e 8% Telecom 18% Gamin g/Leisur e 8% Telecom 17% Gamin g/Leisur e 9% Gamin g/Leisur e 10% Telecom 9% Gamin g/Leisur e 11% En er gy 7% Telecom 9% Gamin g/Leisur e 9% Telecom 9% Utility 8% Energy 8% Gamin g/Leisur e 7% En er gy 8% Autom otive 7% En er gy 10% H ealth Car e 7% En er gy 11% H ealth Car e 9% Ener gy 11% Fin an ci als 10% En er gy 14% Fin an ci als 10% En er gy 15% H ealth Car e 9% En er gy 16% H ealth Car e 8% En er gy 16% H ealth Car e 9% En er gy 17% H ealth Car e 9%
In 2005, energy became the largest sector in the high yield market. As shown in the chart above, it has been growing steadily since then, and at the end of our reporting period, it was far and away the largest sector in our market. It has historically been thought of as a growth segment, but because of its stable stream of revenues, income, and cash flow, energy bonds have typi-cally been viewed as defensive and offered below-average yields.
In recent years, there has been a figurative gusher of new energy bond issuance. For the year to date, energy accounted for 18% of new high yield bonds. The companies from the oil patch that tapped our market for financing are, by definition, the riskiest—they are generally unseasoned small- and mid-cap companies. Now faced with lower revenues, profits, and cash flows, these typically single B and lower-rated companies were hit the hardest in the past three months. The prospects for these generally cash-strapped companies to make timely interest and principal payments have declined with oil prices, and their bonds have been punished.
We do not foresee a meltdown in the energy space in 2015, but if oil prices remain very low for an extended period of time, we would expect a rise in bankruptcies in 2016. With so many factors at play, forecasting the price of oil is difficult, but we believe that we are appropriately positioned in the sector given various outcomes.
In our last shareholder report, we noted that high yield bond prices were above par, on average, and valuations were stretched, and we expressed caution. In fact, losses over the past six months highlight the peril of running so far, so fast.
The high yield market has been volatile over the past six months amid suggestions that improving economic conditions and better employment figures would prompt the Fed to raise the federal funds target rate sooner than the widely held mid-2015 forecast. The asset class also saw a pronounced wave of redemptions. Moreover, the yield on the 10-year Treasury note declined over our reporting period, resulting in solid gains for long-term, high-quality bonds. High yield was one of the few fixed income asset classes to post losses since the end of May, but that was almost entirely due to the falling price of oil and other commodities. Despite the recent weakness, there are a number of positives for the high yield market, including moderate U.S. economic growth, low interest rates that could rekindle investor demand for above-average yield, the historically low default rate, and generally solid fundamentals underpinning most of the companies in the asset class. faLLING OIL PRIcES SacK THE HIGH YIELD maRKET
Oil prices have plunged since June. Stemming from a glut of supply and tepid demand, Brent crude oil prices plumbed five-year lows near $70 per barrel at the end of November, off almost 40% from highs above $115 in June. Very few saw the steep decline coming. At the start of 2014, forecasters generally thought that oil prices would remain in the $90 to $110 range for the year.
High yield energy bond issuance has expanded with the growth in energy production in the U.S. There have been revolutionary advances in the technology for oil extraction, including horizontal drilling, fracking, and improved seismic data. Oil exploration and production companies have been able to unlock U.S. and North American reserves, allowing for less dependence on foreign oil producers such as Russia and Middle Eastern countries. Falling oil and gas prices have been a godsend for consumers who are benefiting from lower prices at the pump, as well as airlines, refiners, chemical companies, and other industries that are heavy oil users. However, the drop in oil prices is a nightmare for oil exploration and production, services, and other related businesses that will struggle to turn a profit with oil at less than $70 per barrel.
RISK maNaGEmENT: a KEY cOmPONENT Of OUR STRaTEGY
Before discussing portfolio activity for the period under review, we would like to remind shareholders about some fundamental changes that have occurred in the fixed income markets in recent years. The markets have been particularly volatile over the past year as investors began to consider the ramifications of a potential rise in interest rates. The volatility has highlighted the importance of sound risk management.
Credit rating agencies assign letter ratings to bonds after analyzing the issuer’s financial situation, although some issuers choose not to be rated. The chart below shows the range of ratings used by Moody’s, Standard & Poor’s, and Fitch Ratings. Bonds within the four highest rating categories are considered to be investment grade; those with lower ratings are considered noninvestment grade and are often called high yield or junk bonds. There are also intermediate gradations called split ratings; these occur when the two rating agen-cies do not agree on a rating. For example, one agency may rate a bond BB and the other B, creating a BB/B split rating.
moody’s and Standard & Poor’s/fitch Rating codes
Investment-Grade Bonds
Moody’s S&P/Fitch Meaning
Aaa AAA Highest-quality bonds. Issuers are considered extremely stable and dependable.
Aa AA High-quality bonds.
The long-term investment risk is slightly higher than on AAA bonds.
A A Bonds with many favorable attributes.
Baa BBB Medium-grade bonds.
Quality is adequate at present but less certain for the long term.
Noninvestment-Grade Bonds
Ba BB Bonds with a speculative element.
Security of payments is not well safeguarded.
B B
Caa CCC
Bonds are extremely speculative. The danger of a default is high.
Ca CC
C C
with much of the growth taking place since the end of 2008. This has been beneficial in many ways, but like all positive events, it has side effects as well. The prospect of rising interest rates triggers concerns that some investors could change course and redeploy their assets into other financial markets. Net outflows during periods of rising rates are not new; indeed, such was the case in 1994 and 2000 when rates turned up. The market was considerably smaller than it is today, however.
Because of this evolving environment, T. Rowe Price is taking steps to ensure that our funds function smoothly during transitional periods as the Fed implements policy changes that are likely to affect the direction of interest rates. These measures include assessing the liquidity of our portfolios, conducting stress tests that take various market scenarios under consideration, evaluating risk management strategies to determine appropriate actions, and taking other steps
to ensure successful implementation of our investment strategy. We do not believe that your fund will be adversely affected by the conditions we have just mentioned, but we want to inform our shareholders that we are aware of the changing market environment and are monitoring it closely. PORTfOLIO REVIEW The majority of our companies are in good financial shape, and we believe that the economic expansion is stable and durable. As shown in the Quality Diversification table, the fund remains focused on the upper
Percent of Net Assets 5/31/14 11/30/14
BBB/BB Rated and Above 1.5% 1.1%
BB Rated 18.7 16.9
BB/B Rated 14.4 13.5
B Rated 34.5 36.5
B/CCC Rated 9.7 11.1
CCC Rated and Below 13.3 11.8
Not Rated 1.3 2.5
Equities 3.3 2.3
Default 0.5 0.1
Credit Default Swaps -0.1 0.0
Short-Term Holdings 2.9 4.2
Sources: Moody’s Investors Service and Standard & Poor’s (S&P); split ratings (e.g., BB/B and B/CCC) are assigned when the Moody’s and S&P ratings differ. T. Rowe Price does not evaluate these ratings but simply assigns them to the appropriate credit quality category as determined by the rating agency. Short-term holdings are not rated.
We were underweight to BB rated bonds and modestly overweight to CCC and lower-rated bonds, and these allocations hurt the fund’s relative performance.
We do not believe that the market will experience a material rise in the default rate in 2015. Including the highly publicized TXU bankruptcy, the high yield market default rate stands at 1.92% (excluding TXU, it’s a trifling 0.61%). We believe that defaults will remain low in the 2% to 3% range, well below the market’s long-term average of 3.8%. However, we have maintained our bank loan allocation at about 8% of the fund to dampen potential portfolio volatility. Bank loans, also known as leveraged loans, provide compelling characteristics. They yield roughly the same as BB bonds but are senior to high yield bonds in the capital structure—they receive payment priority in the event of a bankruptcy—and have a floating rate feature designed to boost income should rates move higher. Our loan holdings outperformed the broad high yield bond market for the past six months.
EUROPEaN HIGH YIELD HOLDINGS GENERaTED POSITIVE RESULTS
At the end of the reporting period, the portfolio’s holdings in European high yield bonds totaled 13.5% of assets and emerging markets credits accounted for 7.4%. Overall, non-U.S. holdings posted a small loss. The fund’s European holdings generated positive results for the past six months. Our London-based analysts have been doing an excellent job of finding solid-performing bonds, and the energy industry in the European high yield market is much smaller than in the U.S. In addition, interest rates declined in most European markets, and low rates acted as a tailwind for many of our holdings. Our focus in the rapidly expanding European high yield market is on B rated credits. We favor holdings that have less than seven-year maturities and yield more than comparable-quality U.S. issues. As in the U.S., credit selection was a solid positive relative performance contributor for our non-U.S. holdings. Our emerging markets bond holdings, in aggregate, generated modest losses, and several were significant disappointments. Emerging markets bonds produced weak results over the past
As noted in the sidebar on page 4, energy is the largest industry in the high yield market. Although our relative performance benefited from credit selection and an underweight allocation, energy was the market’s poorest-performing industry, and those holdings significantly hurt our absolute returns. Energy is the portfolio’s largest allocation, at 14% of assets. We cannot altogether avoid the energy segment, given its size in the high yield market, but we continue to manage our energy holdings very carefully.
The fund has been underweight the oil-related names versus the benchmark for more than two years. Of the benchmark’s 40 poorest-performing energy bonds (many declined 40% or more), we held only a handful. This is a testament to our strong research, which incorporates our own independent credit ratings, fundamental analysis, and skilled trading.
We are focused on investing in higher-quality companies, including those we expect to be upgraded and involved in merger and acquisition activity, and initial public offerings. Nevertheless, too much money has been chasing increasingly marginal opportunities, and our bond holdings were not immune when oil prices collapsed. Over the past six months, 11 of our 20 largest absolute performance detractors were energy names, including Penn Virginia,
Samson Investment, and American Energy Partners. However, six of our 20 best absolute contributors were also energy companies, including Targa Resources Partners, Athlon, and Kinder Morgan. In general, our winners were less exposed to oil prices and benefited from upgrades or consolidation in the space. We view several of our companies in the energy space as likely takeover candidates and believe that distressed merger activity could pick up. Indeed, the sharp decline in the energy sector prompted us to increase our exposure during the period as many higher-quality names came to market with attractive pricing. (Please refer to the fund’s portfolio of investments for a complete list of holdings and the amount each represents in the portfolio.)
WE ARE FOCuSED ON INVESTING IN HIGHER-QuALITY COMPANIES…
companies, and our holdings in American Airlines and UAL rallied. Similarly, refiners, such as Philadelphia Energy, and chemical companies should benefit from lower costs. Consumers should benefit from savings at the pump and added disposable income.
Overall, we remain comfortable with the fundamentals of the vast majority of our holdings. Companies in the high yield market, including energy producers, have improved their balance sheets and increased their cash reserves over the past five years. Because issuer maturities have been pushed out, there is significantly less debt coming due over the next few years, supporting our belief that defaults will remain low. However, we are mindful that defaults in the energy segment of the market could rise if oil prices continue to decline or remain low for an extended period.
Our out-of-benchmark positions, aside from bank loans, represent small allocations. We reduced our equity and equity-linked holdings, which posted losses in the reporting period. In today’s low-coupon environment, our high yield analysts remain on the lookout for ways to generate additional return from securities issued by companies in the high yield universe.
OUTLOOK
In our May 2014 letter, we wrapped up our outlook by saying, “After a long period of especially strong performance, we’re expressing caution.” We added that investors should not expect the same outsized returns that we had generated over the past five years. We are reiterating
that cautious outlook for the high yield market. We do not recommend aggressive additions to high yield bond holdings until the energy market shows signs of stabilizing.
Although the asset class offers investors above-average current income—the fund’s 30-day SEC yield was 5.27% at the end of the reporting period—relative to other fixed income investments, the yield is historically very low for the high yield market. Aside from the
…THE FuNDAMEN-TALS uNDERPINNING
THE COMPANIES IN OuR MARkET APPEAR GOOD.
pinning the companies in our market appear good. Many companies have issued debt that has lowered their financing costs and, at the same time, extended the maturity dates on those obligations. The default rate remains well below the long-term average. Looking ahead, it seems unlikely that the market’s default rate will spike in 2015, unless, as noted above, oil prices remain depressed.
Investor demand for high yield bonds is likely to persist in the current low interest rate environment, and the pullback we have endured makes the asset class all the more attractive. However, corrections can take time to sort themselves out. Diversifying sectors, including bank loans, which offers a hedge against rising interest rates, and European high yield, where interest rates are unlikely to rise for several years, should buttress the portfolio if volatility intensifies in the U.S. high yield market.
As always, our goal is to deliver high current income and attractive total returns over time while seeking to cushion the volatility inherent in this market. We will continue our commitment to research and diversification, which we believe is prudent for a fund that invests in a riskier area of the bond market.
Thank you for investing with T. Rowe Price. Respectfully submitted,
Mark J. Vaselkiv
Chairman of the fund’s Investment Advisory Committee
December 12, 2014
The committee chairman has day-to-day responsibility for managing the portfolio and works with committee members in developing and executing the fund’s investment program.
Risks of Bond Investing
Bonds are subject to interest rate risk, the decline in bond prices that usually accom-panies a rise in interest rates, and credit risk, the chance that any fund holding could have its credit rating downgraded or that a bond issuer will default (fail to make timely payments of interest or principal), potentially reducing the fund’s income level and share price. High yield corporate bonds could have greater price declines than funds that invest primarily in high-quality bonds. Companies issuing high yield bonds are not as strong financially as those with higher credit ratings, so the bonds are usually considered speculative investments.
Glossary
credit Suisse High Yield Index: An index that tracks the performance of domestic
noninvestment-grade corporate bonds.
Duration: The average time (expressed in years) needed for an investor to receive the
present value of the future cash flows on a fixed income investment. It is used to measure a bond’s or bond fund’s sensitivity to interest rate changes. For example, a fund with a three-year duration would fall about 3% in price in response to a one-percentage-point
increase in interest rates, and vice versa. modified duration provides a more accurate
estimate of the fund’s price sensitivity based solely on changes in real interest rates.
Lipper averages: The averages of available mutual fund performance returns for specified
time periods in categories defined by Lipper Inc.
SEc yield (30-day): A method of calculating a fund’s yield that assumes all portfolio
securities are held until maturity. Yield will vary and is not guaranteed.
Weighted average maturity: A measure of a fund’s interest rate sensitivity. In general,
the longer the average maturity, the greater the fund’s sensitivity to interest rate changes. The weighted average maturity may take into account the interest rate readjustment dates for certain securities.
INDUSTRY DIVERSIfIcaTION
Percent of Net Assets
5/31/14 11/30/14 Energy 12% 14% Cable Operators 8 7 Wireless Communications 7 7 Services 6 6 Financials 7 6 Health Care 6 6
Metals and Mining 4 5
Broadcasting 4 5 Automotives 4 4 Gaming 4 3 Information Technology 3 3 utilities 3 3 Chemicals 2 3 Other Telecommunications 2 2 Retail 2 2
Building and Real Estate 2 2
Building Products 3 2
Container 2 2
Airlines 2 2
Entertainment and Leisure 1 2
Satellites 2 2 Manufacturing 2 2 Food/Tobacco 2 2 All Other 7 4 Short-Term Holdings 3 4 Total 100% 100%
Historical weightings reflect current industry/sector classifications.
TWENTY-fIVE LaRGEST ISSUERS Percent of Net Assets 11/30/14 Liberty Global 2.0% First Data 1.5 univision Communications 1.4 Intelsat 1.3 Chrysler 1.3 Softbank 1.3 T-Mobile uSA 1.1 NRG Energy 1.1 Charter Communications 1.0 Reynolds 0.9
Community Health Systems 0.9
Wind Acquisition 0.9 SM Energy 0.9 uAL 0.8 Altice Finco 0.8 J.C. Penney 0.8 American Airlines 0.8 Tervita 0.7
Sirius Satellite Radio 0.7
Equinix 0.7
Valeant Pharmaceuticals 0.7
Targa Resources Partners 0.6
Concho Resources 0.6
Arqiva Broadcasting 0.6
Cequel Communications 0.6
Total 24.0%
Note: The information shown does not reflect any exchange-traded funds (ETFs), cash reserves, or collateral for securities lending that may be held in the portfolio. Holdings of the issuers are combined and may be shown in the Portfolio of Investments under their subsidiaries.
Performance and Expenses Growth of $10,000
This chart shows the value of a hypothetical $10,000 investment in the fund over the past 10 fiscal year periods or since inception (for funds lacking 10-year records). The result is compared with benchmarks, which may include a broad-based market index and a peer group average or index. Market indexes do not include expenses, which are deducted from fund returns as well as mutual fund averages and indexes.
Periods Ended 11/30/14 1 Year 5 Years 10 Years
High Yield Fund 4.23% 9.65% 7.43%
High Yield Fund–Advisor Class 3.99 9.37 7.20
This table shows how the fund would have performed each year if its actual (or cumula-tive) returns for the periods shown had been earned at a constant rate. Returns do not reflect taxes that the shareholder may pay on fund distributions or the redemption of fund shares. Past performance cannot guarantee future results.
Average Annual Compound Total Return
As of 11/30/14
11/04 11/05 11/06 11/07 11/08 11/09 11/10 11/11 11/14
HIGH YIELD FUND
High Yield Fund $20,477
Credit Suisse High Yield Index $20,945 Lipper High Yield Funds Average $19,123
10,000 13,500 17,000 20,500 24,000 $27,500
Note: Performance for the Advisor Class will vary due to its differing fee structure. See returns table below.
Fund Expense Example
As a mutual fund shareholder, you may incur two types of costs: (1) transaction costs, such as redemption fees or sales loads, and (2) ongoing costs, including management fees, distri-bution and service (12b-1) fees, and other fund expenses. The following example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to com-pare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the most recent six-month period and held for the entire period.
Please note that the fund has two share classes: The original share class (Investor Class) charges no distribution and service (12b-1) fee, and the Advisor Class shares are offered only through unaffiliated brokers and other financial intermediaries and charge a 0.25% 12b-1 fee. Each share class is presented separately in the table.
actual Expenses
The first line of the following table (Actual) provides information about actual account values and expenses based on the fund’s actual returns. You may use the information on this line, together with your account balance, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for comparison Purposes
The information on the second line of the table (Hypothetical) is based on hypothetical account values and expenses derived from the fund’s actual expense ratio and an assumed 5% per year rate of return before expenses (not the fund’s actual return). You may compare the ongoing costs of investing in the fund with other funds by contrasting this 5% hypothetical example and the 5% hypothetical examples that appear in the shareholder reports of the other funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
Note: T. Rowe Price charges an annual account service fee of $20, generally for accounts with
less than $10,000. The fee is waived for any investor whose T. Rowe Price mutual fund accounts total $50,000 or more; accounts electing to receive electronic delivery of account statements, transaction confirmations, prospectuses, and shareholder reports; or accounts of an investor who is a T. Rowe Price Preferred Services, Personal Services, or Enhanced Personal Services client (enrollment in these programs generally requires T. Rowe Price assets of at least $100,000). This fee is not included in the accompanying table. If you are subject to the fee, keep it in mind when you are estimating the ongoing expenses of investing in the fund and when comparing the expenses of this fund with other funds. You should also be aware that the expenses shown in the table highlight only your ongoing costs and do not reflect any transaction costs, such as redemption fees or sales loads. Therefore, the second line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. To the extent a fund charges transaction costs, however, the total cost of owning that fund is higher.
Beginning Ending Expenses Paid
Account Value Account Value During Period*
6/1/14 11/30/14 6/1/14 to 11/30/14
Investor class
Actual $1,000.00 $989.20 $3.69
Hypothetical (assumes 5%
return before expenses) 1,000.00 1,021.36 3.75
advisor class
Actual 1,000.00 987.90 4.93
Hypothetical (assumes 5%
return before expenses) 1,000.00 1,020.10 5.01
* Expenses are equal to the fund’s annualized expense ratio for the 6-month period, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year (183), and divided by the days in the year (365) to reflect the half-year period. The annualized expense ratio of the Investor Class was 0.74%, and the annualized expense ratio of the Advisor Class was 0.99%.
High Yield Fund
High Yield Fund 0.75%
High Yield Fund–Advisor Class 1.00
The expense ratio shown is as of the fund’s fiscal year ended 5/31/14. This number may vary from the expense ratio shown elsewhere in this report because it is based on a different time period and, if applicable, includes acquired fund fees and expenses but does not include fee or expense waivers.
Expense Ratio
Periods Ended 9/30/14 1 Year 5 Years 10 Years
High Yield Fund 7.40% 10.21% 7.79%
High Yield Fund–Advisor Class 7.16 9.93 7.56
Current performance may be higher or lower than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will vary, and you may have a gain or loss when you sell your shares. For the most recent month-end performance, please contact a T. Rowe Price representative at 1-800-225-5132 or, for Advisor Class shares, 1-800-638-8790. The performance information shown does not reflect the deduction of a 2% redemption fee on shares held for 90 days or less. If it did, the performance would be lower.
This table provides returns through the most recent calendar quarter-end rather than through the end of the fund’s fiscal period. It shows how the fund would have performed each year if its actual (or cumulative) returns for the periods shown had been earned at a constant rate. Average annual total return figures include changes in principal value, reinvested dividends, and capital gain distributions. Returns do not reflect taxes that the shareholder may pay on fund distributions or the redemption of fund shares. When assessing performance, investors should consider both short- and long-term returns.
Unaudited
Financial Highlights For a share outstanding throughout each period Investor Class 6 Months Ended 11/30/14 Year Ended 5/31/14 5/31/13 5/31/12 5/31/11 5/31/10 NET ASSET VALUE
Beginning of period $ 7.30 $ 7.19 $ 6.61 $ 6.97 $ 6.39 $ 5.45 Investment activities
Net investment income(1) 0.21(2) 0.43(2) 0.44(2) 0.49(2) 0.52 0.53 Net realized and unrealized
gain / loss (0.28) 0.12 0.60 (0.35) 0.59 0.91 Total from investment
activities (0.07) 0.55 1.04 0.14 1.11 1.44
Distributions
Net investment income (0.21) (0.43) (0.46) (0.50) (0.52) (0.50) Net realized gain (0.01) (0.01) – – (0.01) – Total distributions (0.22) (0.44) (0.46) (0.50) (0.53) (0.50) NET ASSET VALUE
End of period $ 7.01 $ 7.30 $ 7.19 $ 6.61 $ 6.97 $ 6.39
Ratios/Supplemental Data
Total return(3) (1.08)% (2) 8.02%(2) 16.14%(2) 2.24%(2) 17.97% 26.88% Ratio of total expenses to
Unaudited
Financial Highlights For a share outstanding throughout each period
The accompanying notes are an integral part of these financial statements. Investor Class 6 Months Ended 11/30/14 Year Ended 5/31/14 5/31/13 5/31/12 5/31/11 5/31/10
Ratios/Supplemental Data (continued)
Ratio of net investment income to average
net assets 5.70%(2)(4) 5.96%(2) 6.40%(2) 7.40%(2) 7.70% 8.59% Portfolio turnover rate 27.8% 55.9% 79.9% 63.0% 75.4% 81.8% Net assets, end of period
(in millions) $ 8,601 $ 9,144 $ 8,211 $ 7,617 $ 6,954 $ 5,487
(1) Per share amounts calculated using average shares outstanding method.
(2) See Note 6. Excludes expenses permanently waived of 0.00%, 0.00%, 0.00%, and 0.00% of
average net assets for the six months ended 11/30/14 and the years ended 5/31/14, 5/31/13 and 5/31/12, respectively, related to investments in T. Rowe Price mutual funds.
(3) Total return reflects the rate that an investor would have earned on an investment in the fund
during each period, assuming reinvestment of all distributions and payment of no redemption or account fees. Total return is not annualized for periods less than one year.
Unaudited
Financial Highlights For a share outstanding throughout each period Advisor Class 6 Months Ended 11/30/14 Year Ended 5/31/14 5/31/13 5/31/12 5/31/11 5/31/10 NET ASSET VALUE
Beginning of period $ 7.28 $ 7.17 $ 6.59 $ 6.95 $ 6.38 $ 5.45 Investment activities
Net investment income(1) 0.19(2) 0.41(2) 0.43(2) 0.47(2) 0.50 0.52 Net realized and unrealized
gain / loss (0.27) 0.13 0.59 (0.35) 0.59 0.89 Total from investment
activities (0.08) 0.54 1.02 0.12 1.09 1.41
Distributions
Net investment income (0.20) (0.42) (0.44) (0.48) (0.51) (0.48) Net realized gain (0.01) (0.01) – – (0.01) – Total distributions (0.21) (0.43) (0.44) (0.48) (0.52) (0.48) NET ASSET VALUE
End of period $ 6.99 $ 7.28 $ 7.17 $ 6.59 $ 6.95 $ 6.38
Ratios/Supplemental Data
Total return(3) (1.21)%(2) 7.78%(2) 15.87%(2) 2.00%(2) 17.56% 26.40% Ratio of total expenses to
Unaudited
Financial Highlights For a share outstanding throughout each period
The accompanying notes are an integral part of these financial statements. Advisor Class 6 Months Ended 11/30/14 Year Ended 5/31/14 5/31/13 5/31/12 5/31/11 5/31/10
Ratios/Supplemental Data (continued)
Ratio of net investment income to average
net assets 5.45%(2)(4) 5.75%(2) 6.22%(2) 7.17%(2) 7.42% 8.40% Portfolio turnover rate 27.8% 55.9% 79.9% 63.0% 75.4% 81.8% Net assets, end of period
(in millions) $ 1,033 $ 1,001 $ 1,023 $ 1,557 $ 1,590 $ 1,748
(1) Per share amounts calculated using average shares outstanding method.
(2) See Note 6. Excludes expenses permanently waived of 0.00%, 0.00%, 0.00%, and 0.00% of
average net assets for the six months ended 11/30/14 and the years ended 5/31/14, 5/31/13 and 5/31/12, respectively, related to investments in T. Rowe Price mutual funds.
(3) Total return reflects the rate that an investor would have earned on an investment in the fund
during each period, assuming reinvestment of all distributions and payment of no redemption or account fees. Total return is not annualized for periods less than one year.
Unaudited November 30, 2014
Portfolio of Investments ‡ Par/Shares $ Value
(Amounts in 000s)
CORPORATEBONDS83.7%
Aerospace & Defense 0.3%
Ducommun, 9.75%, 7/15/18 10,000 10,837
Kratos Defense & Security Solutions, 7.00%, 5/15/19 6,450 5,676
Transdigm, 6.50%, 7/15/24 9,775 9,983 26,496 Airlines 1.7% Air Canada, 7.75%, 4/15/21 (1) 13,487 14,279 Allegiant Travel, 5.50%, 7/15/19 10,000 10,200 American Airlines, 5.50%, 10/1/19 (1) 22,425 22,509 American Airlines, PTC, 5.625%, 1/15/21 (1) 3,694 3,786 American Airlines, PTC, 6.125%, 7/15/18 (1) 9,125 9,399 Continental Airlines, 6.125%, 4/29/18 16,700 17,660
United Airlines Pass-Through Trust, Series 2014-2, Class B
4.625%, 3/3/24 3,720 3,655
United Continental Holdings, 6.00%, 12/1/20 18,725 19,100 United Continental Holdings, 6.00%, 7/15/26 17,375 16,593 United Continental Holdings, 6.00%, 7/15/28 4,725 4,489 United Continental Holdings, 6.375%, 6/1/18 15,375 16,086
US Airways, 6.125%, 6/1/18 20,705 21,507
159,263 Automotive 3.4%
Affinia Group, 7.75%, 5/1/21 3,525 3,622
Allison Transmission, 7.125%, 5/15/19 (1) 10,300 10,789
American Axle & Manufacturing, 5.125%, 2/15/19 5,075 5,151 American Axle & Manufacturing, 6.25%, 3/15/21 9,525 9,977 American Axle & Manufacturing, 6.625%, 10/15/22 10,050 10,779
Chrysler, 8.00%, 6/15/19 16,250 17,266
Par/Shares $ Value (Amounts in 000s)
Dana Holding, 5.375%, 9/15/21 18,325 19,104
Gestamp Funding Luxembourg, 5.625%, 5/31/20 (1) 14,875 15,024
Goodyear Tire & Rubber, 6.50%, 3/1/21 18,475 19,630 Goodyear Tire & Rubber, 8.75%, 8/15/20 3,592 4,239 Group 1 Automotive, 5.00%, 6/1/22 (1) 10,450 10,346 Jaguar Land Rover, 5.625%, 2/1/23 (1) 21,900 23,199
Metaldyne, 7.375%, 10/15/22 (1) 19,225 19,898
Navistar International, 8.25%, 11/1/21 10,175 10,518 Nexteer Auto Group, 5.875%, 11/15/21 (1) 7,975 8,154 Penske Automotive Group, 5.75%, 10/1/22 11,675 12,127
Pittsburgh Glass, 8.00%, 11/15/18 (1) 7,605 8,090
Schaeffler Holding Finance, PIK, 6.25%, 11/15/19 (1) 7,525 7,807
Schaeffler Holding Finance, PIK, 6.875%, 8/15/18 (1) 12,225 12,790 331,508 Broadcasting 4.1%
AMC Networks, 4.75%, 12/15/22 10,763 10,628
CBS Outdoor, 5.25%, 2/15/22 (1) 13,600 13,940
Clear Channel Communications, 9.00%, 12/15/19 22,164 21,776 Clear Channel Communications, PIK, 14.00%, 2/1/21 9,921 8,070 Clear Channel Worldwide, 6.50%, 11/15/22 24,750 25,802 Clear Channel Worldwide, 6.50%, 11/15/22 2,635 2,737 Clear Channel Worldwide, 7.625%, 3/15/20 2,415 2,512
Gannett, 5.125%, 10/15/19 9,400 9,706
Gannett, 6.375%, 10/15/23 6,975 7,507
Lamar Media, 5.875%, 2/1/22 8,700 9,157
MDC Partners, 6.75%, 4/1/20 (1) 25,961 26,805
Polish Television Holding, PIK, 11.00%, 1/15/21 (EUR)(1) 20,800 30,462
Par/Shares $ Value (Amounts in 000s) Sirius XM Radio, 5.75%, 8/1/21 (1) 62,535 65,193 Starz, 5.00%, 9/15/19 13,315 13,714 Townsquare Radio, 9.00%, 4/1/19 (1) 10,000 10,812 Univision Communications, 5.125%, 5/15/23 (1) 38,762 40,652 Univision Communications, 6.75%, 9/15/22 (1) 25,143 27,657 Univision Communications, 8.50%, 5/15/21 (1) 47,212 50,812 395,159 Building & Real Estate 2.2%
CCRE, 7.75%, 2/15/18 (1) 13,900 14,664
Greystar Real Estate Partners, 8.25%, 12/1/22 (1) 10,075 10,302
Howard Hughes, 6.875%, 10/1/21 (1) 33,150 34,973
Hunt, 9.625%, 3/1/21 (1) 15,000 15,412
Jeffries Loancore, 6.875%, 6/1/20 (1) 19,630 18,845
KB Home, 7.00%, 12/15/21 18,250 19,391
Ladder Capital Finance, 5.875%, 8/1/21 (1) 9,825 9,727
Ladder Capital Finance, 7.375%, 10/1/17 11,475 12,135
Realogy, 9.00%, 1/15/20 (1) 3,587 3,955
Realogy Group, 5.25%, 12/1/21 (1) 12,700 12,636
RPG Byty, 6.75%, 5/1/20 (EUR)(1) 10,600 13,817
William Lyon Homes, 7.00%, 8/15/22 (1) 19,525 20,111
William Lyon Homes, 8.50%, 11/15/20 20,400 22,236
208,204 Building Products 1.9%
Associated Materials, 9.125%, 11/1/17 10,898 9,454
Builders FirstSource, 7.625%, 6/1/21 (1) 11,825 12,298 Building Material Holding, 9.00%, 9/15/18 (1) 17,125 17,767 Masonite International, 8.25%, 4/15/21 (1) 5,750 6,167
Par/Shares $ Value (Amounts in 000s)
Reliance Intermediate, 9.50%, 12/15/19 (1) 19,640 20,585 RSI Home Products, 6.875%, 3/1/18 (1) 10,275 10,763
Spring Industries, 6.25%, 6/1/21 9,875 9,628 Summit Materials, 10.50%, 1/31/20 21,900 24,309 USG, 5.875%, 11/1/21 (1) 4,525 4,661 USG, STEP, 9.75%, 1/15/18 28,550 32,975 Vulcan Materials, 7.50%, 6/15/21 17,875 20,958 187,768 Cable Operators 6.7%
Adria Bidco, 7.875%, 11/15/20 (EUR)(1) 11,350 15,012
Altice Financing, 7.75%, 5/15/22 (1) 21,450 22,174
Altice Financing, 9.00%, 6/15/23 (EUR)(1) 19,465 27,187 Altice Financing, 9.875%, 12/15/20 (1) 18,205 20,071
B Communications, 7.375%, 2/15/21 (1) 17,375 18,652 Cable Communications, 7.50%, 11/1/20 (EUR)(1) 3,127 4,008
CCOH Safari, 5.50%, 12/1/22 14,950 15,155 Cequel Communications, 5.125%, 12/15/21 (1) 15,913 15,356 Cequel Communications, 5.125%, 12/15/21 (1) 17,950 17,322 Cequel Communications, 6.375%, 9/15/20 (1) 23,225 23,980 Charter Communications, 5.125%, 2/15/23 31,850 31,213 Charter Communications, 5.25%, 3/15/21 2,950 2,965 Charter Communications, 5.25%, 9/30/22 10,850 10,796 Charter Communications, 5.75%, 9/1/23 9,550 9,633 Charter Communications, 6.625%, 1/31/22 27,425 29,139 Dish DBS, 5.125%, 5/1/20 17,675 17,896 Dish DBS, 5.875%, 7/15/22 19,290 19,941 Dish DBS, 6.75%, 6/1/21 6,825 7,422 Lynx II, 7.00%, 4/15/23 (GBP)(1) 13,950 23,553
Par/Shares $ Value (Amounts in 000s) Mediacom Broadband, 6.375%, 4/1/23 15,140 15,973 Netflix, 5.375%, 2/1/21 30,825 32,251 Netflix, 5.75%, 3/1/24 (1) 3,740 3,885 Numericable Group, 4.875%, 5/15/19 (1) 25,350 25,167 Numericable Group, 6.25%, 5/15/24 (1) 24,475 24,964 UnityMedia, 9.50%, 3/15/21 (EUR)(1) 17,550 24,535 UnityMedia KabelBW, 6.125%, 1/15/25 (1) 19,475 20,303 UPC Holdings, 6.75%, 3/15/23 (CHF)(1) 17,275 19,623
UPC Holdings, 6.75%, 3/15/23 (EUR)(1) 9,300 12,742
UPCB Finance, 6.875%, 1/15/22 (1) 13,200 14,339
UPCB Finance, 7.25%, 11/15/21 (1) 14,125 15,485
Virgin Media Finance, 6.00%, 10/15/24 (1) 9,975 10,424
VTR Finance, 6.875%, 1/15/24 (1) 23,850 25,162
WaveDivision, 8.125%, 9/1/20 (1) 5,250 5,703
WideOpenWest Finance, 10.25%, 7/15/19 15,651 17,060
WideOpenWest Finance, 13.375%, 10/15/19 21,700 24,250
Ziggo Bond, 7.125%, 5/15/24 (EUR)(1) 16,775 23,001
646,342 Chemicals 2.5%
Ciech Group Financing, 9.50%, 11/30/19 (EUR)(1) 12,525 17,513
Consolidated Energy Finance, 6.75%, 10/15/19 (1) 16,750 16,834
DuPont Coatings, 7.375%, 5/1/21 (1) 7,800 8,434
Hexion U.S. Finance/Nova Scotia, 6.625%, 4/15/20 29,050 28,179 Hexion U.S. Finance/Nova Scotia, 8.875%, 2/1/18 28,875 27,359
INEOS Finance, 8.375%, 2/15/19 (1) 16,950 18,052
INEOS Group Holdings, 6.125%, 8/15/18 (1) 12,425 12,239
Kerling, 10.625%, 2/1/17 (EUR)(1) 9,900 12,659
Par/Shares $ Value (Amounts in 000s)
Momentive Performance, EC, 8.875%, 10/15/20 (2) 27,416 —
PQ, 8.75%, 5/1/18 (1) 28,020 29,491
Rayonier, 5.50%, 6/1/24 (1) 12,650 11,765
Trinseo Materials Operating, 8.75%, 2/1/19 37,453 38,670 245,321 Consumer Products 0.7%
24 Hour Fitness Worldwide, 8.00%, 6/1/22 (1) 15,100 13,647 Activision Blizzard, 6.125%, 9/15/23 (1) 8,875 9,651 Levi Strauss, 6.875%, 5/1/22 11,050 11,962 Quiksilver, 10.00%, 8/1/20 14,755 8,447 Spectrum Brands, 6.375%, 11/15/20 5,925 6,266 Spectrum Brands, 6.625%, 11/15/22 5,525 5,884 The Pantry, 8.375%, 8/1/20 9,375 9,891
Wolverine World Wide, 6.125%, 10/15/20 5,750 6,023
71,771 Container 1.8%
Ardagh Finance, PIK, 8.625%, 6/15/19 (1) 9,675 9,576 Ardagh Packing Finance, 6.25%, 1/31/19 (1) 2,000 2,005 Ardagh Packing Finance, 7.00%, 11/15/20 (1) 16,414 16,660 Beverage Packaging Holdings, 5.625%, 12/15/16 (1) 11,125 11,097 Beverage Packaging Holdings, 6.00%, 6/15/17 (1) 18,600 18,507
Bormioli Rocco Holdings, 10.00%, 8/1/18 (EUR)(1) 17,525 21,370 Consolidated Container, 10.125%, 7/15/20 (1) 20,125 18,314
Exopack, 10.00%, 6/1/18 (1) 9,990 10,739
Frigoglass Finance, 8.25%, 5/15/18 (EUR)(1) 4,875 5,487 Reynolds Group Holdings, 5.75%, 10/15/20 5,887 6,034 Reynolds Group Holdings, 7.125%, 4/15/19 3,500 3,623 Reynolds Group Holdings, VR, 9.00%, 4/15/19 22,724 23,690
Par/Shares $ Value (Amounts in 000s) Reynolds Group, 9.875%, 8/15/19 21,163 22,750 Tekni-Plex, 9.75%, 6/1/19 (1) 7,274 7,956 177,808 Energy 11.9%
American Energy Partners, 7.125%, 11/1/20 (1) 4,300 3,456
American Energy Partners, 7.375%, 11/1/21 (1) 2,075 1,663 American Energy Partners, VR, 6.732%, 8/1/19 (1) 22,775 18,533
AmeriGas Finance, 7.00%, 5/20/22 12,092 12,818
Antero Resources Finance, 6.00%, 12/1/20 44,300 44,411
Atlas Pipeline, 5.875%, 8/1/23 29,275 30,592
Bill Barrett, 7.00%, 10/15/22 4,969 4,416
Bill Barrett, 7.625%, 10/1/19 32,718 31,123
Bonanza Creek Energy, 5.75%, 2/1/23 25,325 22,286
Canbriam Energy, 9.75%, 11/15/19 (1) 8,800 8,536 CGG, 6.875%, 1/15/22 39,391 37,224 CGG Veritas, 6.50%, 6/1/21 1,310 1,225 Chesapeake Energy, 5.375%, 6/15/21 8,775 8,951 Compressco Partners, 7.25%, 8/15/22 (1) 12,225 11,736 Concho Resources, 5.50%, 4/1/23 43,686 43,140 Concho Resources, 7.00%, 1/15/21 15,750 16,262 Denbury Resources, 5.50%, 5/1/22 19,500 17,916 Exterran Partners, 6.00%, 4/1/21 5,675 5,370 Exterran Partners, 6.00%, 10/1/22 (1) 18,550 17,437 Ferellgas Finance, 6.50%, 5/1/21 9,729 9,680 Ferrellgas Finance, 6.75%, 1/15/22 14,525 14,525 Infinis, 7.00%, 2/15/19 (GBP)(1) 12,175 20,184 Jupiter Resources, 8.50%, 10/1/22 (1) 19,225 16,533 Laredo Petroleum, 7.375%, 5/1/22 31,250 31,562
Par/Shares $ Value (Amounts in 000s)
Markwest Energy Partners, 4.50%, 7/15/23 29,625 28,921 McDermott International, 8.00%, 5/1/21 (1) 9,025 7,615
Memorial Production Partners, 6.875%, 8/1/22 (1) 15,900 13,416 Memorial Resource Development, 5.875%, 7/1/22 (1) 19,342 18,254
Newfield Exploration, 5.75%, 1/30/22 11,375d 12,129
Newfield Exploration, 6.875%, 2/1/20 5,190 5,333
NGL Energy, 5.125%, 7/15/19 (1) 5,100 5,075
Niska Gas Storage Canada, 6.50%, 4/1/19 (1) 41,275 33,858
NuStar Logistics, 6.75%, 2/1/21 12,795 13,675
Pacific Rubiales Energy, 5.125%, 3/28/23 (1) 1,650 1,530 Pacific Rubiales Energy, 5.625%, 1/19/25 (1) 18,000 16,650
Parker Drilling, 6.75%, 7/15/22 13,950 11,770
Parsley Energy, 7.50%, 2/15/22 (1) 31,550 30,603
PDC Energy, 7.75%, 10/15/22 39,830 39,830
Penn Virginia, 7.25%, 4/15/19 17,940 15,496
Penn Virginia, 8.50%, 5/1/20 21,100 18,726
Penn Virginia Resource, 8.375%, 6/1/20 13,011 14,182 Petroleos de Venezuela, 8.50%, 11/2/17 (1) 25,200 17,703 PVR Partners/Penn Virginia, 6.50%, 5/15/21 1,879 1,952
Range Resources, 5.00%, 8/15/22 7,200 7,200
Range Resources, 5.00%, 3/15/23 14,325 14,325
Regency Energy Partners, 5.875%, 3/1/22 12,950 13,338
Rosetta Resources, 5.875%, 6/1/24 39,250 35,619
Sabine Pass, 6.50%, 11/1/20 8,550 8,871
Sabine Pass Liquefaction, 6.25%, 3/15/22 7,375 7,670 Sabine Pass Liquefaction, VR, 5.625%, 4/15/23 8,900 9,078
Samson Investment, VR, 9.75%, 2/15/20 14,648 8,569
Seven Generations Energy, 8.25%, 5/15/20 (1) 28,968 30,127 Seventy Seven Energy, 6.50%, 7/15/22 (1) 25,411 19,566
Par/Shares $ Value (Amounts in 000s) SM Energy, 5.00%, 1/15/24 24,700 21,612 SM Energy, 6.125%, 11/15/22 (1) 24,400 23,546 SM Energy, 6.50%, 11/15/21 8,440 8,398 SM Energy, 6.50%, 1/1/23 18,039 17,949 SM Energy, 6.625%, 2/15/19 9,800 9,629 Targa Resources, 4.25%, 11/15/23 41,405 39,852
Targa Resources Partners, 4.125%, 11/15/19 (1) 18,325 18,371
Targa Resources Partners, 5.25%, 5/1/23 2,800 2,891
Tervita, 8.00%, 11/15/18 (1) 43,325 40,305 Tervita, 10.875%, 2/15/18 (1) 18,829 16,052 Western Refining, 6.25%, 4/1/21 7,625 7,434 WPX Energy, 5.25%, 9/15/24 5,200 4,986 WPX Energy, 6.00%, 1/15/22 41,035 41,548 1,143,233 Entertainment & Leisure 1.4%
Cedar Fair/Canada’s Wonderland, 5.25%, 3/15/21 13,875 13,962 DreamWorks Animation, 6.875%, 8/15/20 (1) 13,325 13,891 National Cinemedia, 6.00%, 4/15/22 21,287 21,394 NCL, 5.25%, 11/15/19 (1) 14,650 14,778 Regal Entertainment, 5.75%, 3/15/22 16,375 15,720 Six Flags, 5.25%, 1/15/21 (1) 18,475 18,544 WMG Acquisition, 6.00%, 1/15/21 (1) 18,510 18,880 WMG Acquisition, 6.75%, 4/15/22 (1) 15,025 14,537 131,706 Financial 4.5%
A-S Co-Issuer Subsidiary, 7.875%, 12/15/20 (1) 7,100 7,340
Aircastle, 6.25%, 12/1/19 16,500 17,676
Par/Shares $ Value (Amounts in 000s) Compass Investors, 7.75%, 1/15/21 (1) 31,059 31,447 E*TRADE Financial, 5.375%, 11/15/22 14,700 14,810 Harbinger Group, 7.75%, 1/15/22 10,750 10,938 Harbinger Group, 7.875%, 7/15/19 21,425 23,112 Icahn Enterprises, 6.00%, 8/1/20 33,800 35,321 iStar Financial, 5.00%, 7/1/19 16,450 16,162 iStar Financial, 7.125%, 2/15/18 7,125 7,570 MSCI, 5.25%, 11/15/24 (1) 12,325 12,772 Nationstar Mortgage, 6.50%, 7/1/21 28,225 25,967 Navient, 5.00%, 10/26/20 13,850 13,768
Neuberger Berman Group, 5.625%, 3/15/20 (1) 11,371 11,883 Neuberger Berman Group, 5.875%, 3/15/22 (1) 11,800 12,479
Patriot Merger, 9.00%, 7/15/21 (1) 13,450 14,223
Provident Funding Association, 6.75%, 6/15/21 (1) 16,075 15,934 Provident Funding Association, 10.125%, 2/15/19 (1) 11,685 12,357
Sberbank of Russia, 5.125%, 10/29/22 (1) 9,645 7,981 Sberbank of Russia, 6.125%, 2/7/22 (1) 5,450 5,218 Sberbank of Russia, VR, 5.50%, 2/26/24 (1) 10,400 8,736 Springleaf Finance, 5.25%, 12/15/19 14,150 14,226 Synovus Financial, 5.125%, 6/15/17 28,905 29,628 Synovus Financial, 7.875%, 2/15/19 9,990 11,264
Thornburg Mortgage, PIK, 12.00%, 3/31/15
Acquistion Date: 9/30/08, Cost $625(1)(2)(3)(6)(11) 625 — Thornburg Mortgage, VR, 12.00%, 3/31/15
Acquistion Date: 9/30/08 – 2/9/11, Cost $5,601(1)(2)(3)(6)(11) 6,867 — Towergate Finance, 8.50%, 2/15/18 (GBP)(1) 5,600 7,620
Towergate Finance, 10.50%, 2/15/19 (GBP)(1) 14,025 6,142 Walter Investment Management, 7.875%, 12/15/21 44,985 40,486 432,415
Par/Shares $ Value (Amounts in 000s)
Food/Tobacco 1.6%
Big Heart Pet Brands, 7.625%, 2/15/19 14,725 14,467
Bumble Bee Foods Acquisition, 9.00%, 12/15/17 (1) 8,625 8,992
CEDC Finance, STEP, 9.00%, 4/30/18 10,249 9,634
Cott Beverages, 5.375%, 7/1/22 (1) 22,125 21,019 Darling International, 5.375%, 1/15/22 6,865 6,934 Diamond Foods, 7.00%, 3/15/19 (1) 5,975 6,154 ESAL, 6.25%, 2/5/23 (1) 19,225 19,393 JBS Investments, 5.875%, 7/15/24 (1) 14,800 15,096 JBS Investments, 7.75%, 10/28/20 (1) 6,720 7,325 MHP, 8.25%, 4/2/20 (1) 8,930 7,190 Minerva Luxembourg, 12.25%, 2/10/22 (1) 5,900 6,820 Post Holdings, 6.00%, 12/15/22 (1) 9,050 8,530 Post Holdings, 6.75%, 12/1/21 (1) 4,085 3,993 Post Holdings, 7.375%, 2/15/22 11,190 11,274 Premier Foods, 6.50%, 3/15/21 (GBP)(1) 6,075 8,429 155,250 Forest Products 0.3% Mercer International, 7.00%, 12/1/19 (1) 17,400 17,618 Mercer International, 7.75%, 12/1/22 (1) 9,200 9,361 Sappi Papier Holding, 6.625%, 4/15/21 (1) 5,270 5,454 32,433 Gaming 2.6%
Ameristar Casinos, 7.50%, 4/15/21 28,455 30,091
Boyd Acquisition, 8.375%, 2/15/18 (1) 10,850 11,447
Boyd Gaming, 9.00%, 7/1/20 2,189 2,331
Chester Downs & Marina, 9.25%, 2/1/20 (1) 16,113 14,099 Cirsa Finance Luxembourg, 8.75%, 5/15/18 (EUR)(1) 17,575 22,743
Par/Shares $ Value (Amounts in 000s)
Downstream Development, 10.50%, 7/1/19 (1) 16,303 16,710 Graton Economic Dev. Auth., 9.625%, 9/1/19 (1) 25,671 28,495
Great Canadian Gaming, 6.625%, 7/25/22 (CAD)(1) 8,550 7,888
MGM Mirage, 6.625%, 12/15/21 20,025 21,427
MGM Mirage, 6.75%, 10/1/20 15,033 16,236
New Cotai Capital, PIK, 10.625%, 5/1/19 (1)(2) 21,920 24,704 Scientific Games International, 7.00%, 1/1/22 (1) 14,287 14,394
Station Casinos, 7.50%, 3/1/21 22,715 24,078
Studio City Finance, 8.50%, 12/1/20 (1) 15,625 16,797 251,440 Health Care 5.3%
Capella Healthcare, 9.25%, 7/1/17 12,055 12,582
Capsugel, PIK, 7.00%, 5/15/19 (1) 21,500 21,769
Community Health Systems, 6.875%, 2/1/22 44,750 47,435 Community Health Systems, 7.125%, 7/15/20 20,400 21,624 Community Health Systems, 8.00%, 11/15/19 13,375 14,345
Crimson Merger, 6.625%, 5/15/22 (1) 20,875 19,362
Fresenius Medical Care, 5.625%, 7/31/19 (1) 14,675 15,739 Fresenius Medical Care, 5.875%, 1/31/22 (1) 6,025 6,522
HCA Holdings, 6.25%, 2/15/21 14,150 14,999
Holding-Medi Partenaires, 7.00%, 5/15/20 (EUR)(1) 14,100 18,660
Iasis Healthcare, 8.375%, 5/15/19 22,990 24,254
Jaguar Holding, 9.50%, 12/1/19 (1) 19,475 20,960
Jaguar Holding I, PIK, 9.375%, 10/15/17 (1) 11,950 12,204 JLL/Delta Dutch Newco, 7.50%, 2/1/22 (1) 7,400 7,622 Kindred Healthcare, 6.375%, 4/15/22 (1) 11,600 11,266
Kinetics Concept, 10.50%, 11/1/18 14,295 15,832
Par/Shares $ Value (Amounts in 000s)
MPT Operating Partnership, 6.375%, 2/15/22 7,050 7,543 MPT Operating Partnership, 6.875%, 5/1/21 14,700 15,729 Omega Healthcare Investors, 5.875%, 3/15/24 18,145 19,506 Opal Acquisition, 8.875%, 12/15/21 (1) 17,675 18,515
Par Pharmaceuticals, 7.375%, 10/15/20 6,325 6,673
PRA Holdings, 9.50%, 10/1/23 (1) 3,300 3,622
Select Medical, 6.375%, 6/1/21 15,975 16,294
Tenet Healthcare, 6.00%, 10/1/20 13,750 14,609
Truven Health Analytics, 10.625%, 6/1/20 6,575 6,723 Truven Health Analytics, 10.625%, 6/1/20 (1) 6,625 6,774
Universal Hospital, 7.625%, 8/15/20 24,575 22,670
Valeant Pharmaceuticals, 6.375%, 10/15/20 (1) 49,950 51,948
VPII Escrow, 6.75%, 8/15/18 (1) 10,815 11,545
WellCare Health Plans, 5.75%, 11/15/20 14,425 14,858 510,186 Information Technology 2.5% Alcatel-Lucent, 6.75%, 11/15/20 (1) 9,290 9,685 Alcatel-Lucent, 8.875%, 1/1/20 (1) 11,611 12,671 Ancestry.com, 11.00%, 12/15/20 5,850 6,581 Ancestry.com, PIK, 9.625%, 10/15/18 (1) 27,525 27,456
BCP Singapore VI Cayman Financing, 8.00%, 4/15/21 (1) 8,950 9,196
BMC Software, 8.125%, 7/15/21 (1) 17,000 15,937
Dell, 4.625%, 4/1/21 3,297 3,198
Eagle Midco, PIK, 9.00%, 6/15/18 (1) 20,975 21,447
Epicor Software, 8.625%, 5/1/19 14,035 14,807
Freescale Semiconductor, 6.00%, 1/15/22 (1) 19,100 19,721
Goodman Networks, 12.125%, 7/1/18 19,700 20,956
Par/Shares $ Value (Amounts in 000s) Infor, 9.375%, 4/1/19 17,850 19,323 NXP, 5.75%, 2/15/21 (1) 8,950 9,509 NXP, 5.75%, 3/15/23 (1) 10,900 11,636 Zebra Technologies, 7.25%, 10/15/22 (1) 8,250 8,817 240,215 Lodging 0.1% Playa Resorts, 8.00%, 8/15/20 (1) 10,175 10,557 10,557 Manufacturing 1.5% BC Mountain, 7.00%, 2/1/21 (1) 19,615 17,752 Gardner Denver, 6.875%, 8/15/21 (1) 21,500 21,285 Hamilton Sunstrand, 7.75%, 12/15/20 (1) 23,975 24,174 Kraussmaffei, 8.75%, 12/15/20 (EUR)(1) 12,875 17,418 Manitowoc, 5.875%, 10/15/22 11,025 11,328 Mcron Finance, 7.75%, 2/15/21 (1) 16,350 17,045 Terex, 6.00%, 5/15/21 27,550 27,963 Terex, 6.50%, 4/1/20 4,350 4,578 141,543 Metals & Mining 4.8%
AK Steel, 7.625%, 10/1/21 26,150 24,679
AK Steel, 8.375%, 4/1/22 12,350 11,871
Aleris International, 7.625%, 2/15/18 8,775 9,093
Aleris International, 7.875%, 11/1/20 17,025 17,855
Alpha Natural Resources, 7.50%, 8/1/20 (1) 17,000 13,600
ArcelorMittal, VR, 6.00%, 3/1/21 16,000 16,840
ArcelorMittal, VR, 6.75%, 2/25/22 17,600 19,040
Par/Shares $ Value (Amounts in 000s) Bluescope Steel, 7.125%, 5/1/18 (1) 16,925 17,581 CONSOL Energy, 5.875%, 4/15/22 (1) 31,425 31,386 CONSOL Energy, 8.25%, 4/1/20 2,675 2,819 Eldorado Gold, 6.125%, 12/15/20 (1) 19,250 19,154
First Quantum Minerals, 7.25%, 5/15/22 (1) 21,700 20,995 Foresight Energy, 7.875%, 8/15/21 (1) 17,250 17,854 JMC Steel, 8.25%, 3/15/18 (1) 19,575 19,722 Lundin Mining, 7.50%, 11/1/20 (1) 19,125 19,746 Magnetation, 11.00%, 5/15/18 (1) 21,400 13,830 Murray Energy, 8.625%, 6/15/21 (1) 10,200 10,327 Murray Energy, 9.50%, 12/5/20 (1) 10,100 10,655 Novelis, 8.75%, 12/15/20 12,045 13,084
Nyrstar Netherlands Holding, 8.50%, 9/15/19 (EUR)(1) 19,150 24,372
Ryerson, 9.00%, 10/15/17 20,800 21,658
Ryerson, 11.25%, 10/15/18 20,401 22,161
Suncoke Energy Partners, 7.375%, 2/1/20 (1) 7,800 8,200
U.S. Steel, 6.875%, 4/1/21 13,800 14,645 Vedanta Resources, 6.00%, 1/31/19 (1) 14,550 14,077 Vedanta Resources, 8.25%, 6/7/21 (1) 18,175 18,436 Westmoreland Coal, 10.75%, 2/1/18 11,650 12,232 463,062 Other Telecommunications 2.3% Banglalink Digital, 8.625%, 5/6/19 (1) 10,000 10,500 CenturyLink, 5.625%, 4/1/20 34,975 36,959
DuPont Fabros Technology, 5.875%, 9/15/21 17,380 17,945
EarthLink, 7.375%, 6/1/20 6,787 7,067
Equinix, 5.375%, 1/1/22 13,325 13,458
Par/Shares $ Value (Amounts in 000s) Equinix, 5.75%, 1/1/25 7,300 7,373 Equinix, 7.00%, 7/15/21 20,940 23,610 Level 3 Communications, 8.875%, 6/1/19 5,775 6,179 Level 3 Financing, 7.00%, 6/1/20 10,895 11,630 Level 3 Financing, 8.625%, 7/15/20 21,575 23,544
Play Topco, PIK, 7.75%, 2/28/20 (EUR)(1) 11,225 14,282
Telecom Italia, 6.375%, 6/24/19 (GBP) 17,800 30,449
222,038 Publishing 0.5%
Dex Media, PIK, 14.00%, 1/29/17 19,130 9,342
Harland Clarke, 6.875%, 3/1/20 (1) 6,800 6,910
Time, 5.75%, 4/15/22 (1) 15,000 14,400
Trader Corporation, 9.875%, 8/15/18 (1) 13,200 14,210 44,862 Real Estate Investment Trust Securities 0.3%
CB Richards, REIT, 5.00%, 3/15/23 29,850 30,596
30,596 Restaurants 0.4%
Burger King, 6.00%, 4/1/22 (1) 18,200 18,519
PF Chang's China Bistro, 10.25%, 6/30/20 (1) 16,450 16,573 35,092 Retail 1.7%
99 Cents Only Stores, 11.00%, 12/15/19 11,569 12,494
Academy, 9.25%, 8/1/19 (1) 7,109 7,536
David's Bridal, 7.75%, 10/15/20 (1) 7,575 6,685
Guitar Center Management, 6.50%, 4/15/19 (1) 20,175 17,552
Par/Shares $ Value (Amounts in 000s)
Linens N Things, 8.338%, 1/15/15 (2)(6)(11) 9,800 — Maisons du Monde, 9.00%, 8/1/20 (EUR)(1) 7,850 9,183
Matalan Finance, 6.875%, 6/1/19 (GBP)(1) 18,450 27,485
Men's Wearhouse, 7.00%, 7/1/22 (1) 10,000 10,250
Michaels Stores, 5.875%, 12/15/20 (1) 11,525 11,640
New Look Bondco I, 8.375%, 5/14/18 (1) 8,875 9,385
PC Nextco Holdings, PIK, 8.75%, 8/15/19 17,175 17,433 161,317 Satellites 1.7%
Hughes Satellite Systems, 6.50%, 6/15/19 21,250 23,003 Hughes Satellite Systems, 7.625%, 6/15/21 21,275 23,456 Intelsat Jackson Holdings, 5.50%, 8/1/23 33,100 32,521 Intelsat Jackson Holdings, 6.625%, 12/15/22 38,550 40,188
Intelsat Luxembourg, 7.75%, 6/1/21 33,130 34,372
Intelsat Luxembourg, 8.125%, 6/1/23 13,475 14,149
167,689 Services 5.7%
Alliance Data Systems, 5.375%, 8/1/22 (1)(2) 15,800 15,840 Alliance Data Systems, 6.375%, 4/1/20 (1) 16,250 16,920
Aramark, 5.75%, 3/15/20 9,200 9,545
Ashtead Capital, 6.50%, 7/15/22 (1) 13,725 14,754
Ashton Escrow, 9.50%, 8/15/21 (1) 14,500 13,539
Blueline Rental Finance, 7.00%, 2/1/19 (1) 11,775 12,231 Brakes Capital, 7.125%, 12/15/18 (GBP)(1) 5,975 9,267
CDW, 6.00%, 8/15/22 21,975 22,964
Ceridian, 8.875%, 7/15/19 (1) 7,825 8,696
Clean Harbors, 5.125%, 6/1/21 8,850 8,839
Par/Shares $ Value (Amounts in 000s)
Europcar Groupe, 11.50%, 5/15/17 (EUR)(1) 14,350 20,152
First Data, 6.75%, 11/1/20 (1) 31,704 33,765
First Data, 12.625%, 1/15/21 83,050 98,830
First Data, PIK, 14.50%, 9/24/19 (1) 2,958 2,987
FTI Consulting, 6.00%, 11/15/22 8,575 8,886
FTI Consulting, 6.75%, 10/1/20 7,575 7,982
H&E Equipment Services, 7.00%, 9/1/22 8,400 8,946
HD Supply, 5.25%, 12/15/21 (1) 20,075 20,477
Igloo Holdings, PIK, 8.25%, 12/15/17 (1) 10,725 10,805
Interline Brands, PIK, 10.00%, 11/15/18 7,550 7,899
Iron Mountain, 6.125%, 9/15/22 (GBP)(1) 11,875 19,223 Laureate Education, VR, 9.75%, 9/1/19 (1) 30,770 31,962 Lender Process Services, 5.75%, 4/15/23 11,325 12,033
Loxam SAS, 7.00%, 7/23/22 (EUR)(1) 12,350 14,338
Monitronics International, 9.125%, 4/1/20 9,875 9,789
Outerwall, 6.00%, 3/15/19 23,399 23,077
Safway Group, 7.00%, 5/15/18 (1) 13,894 13,998
TransUnion, PIK, 8.125%, 6/15/18 7,250 7,531
United Rentals North America, 6.125%, 6/15/23 17,875 19,037 Verisure Holding, 8.75%, 9/1/18 (EUR)(1) 14,850 19,679
545,469 Supermarkets 0.7%
Agrokor, 8.875%, 2/1/20 (1) 2,600 2,828
Agrokor, 9.125%, 2/1/20 (EUR)(1) 7,925 10,842
BI-LO Holding Finance, 9.25%, 2/15/19 (1) 15,184 14,045
Rite Aid, 6.75%, 6/15/21 34,775 36,470
Rite Aid, 7.70%, 2/15/27 7,400 8,177
Par/Shares $ Value (Amounts in 000s) Transportation 0.3% Aguila 3, 7.875%, 1/31/18 (CHF)(1) 10,882 11,057 Aguila 3, 7.875%, 1/31/18 (1) 10,650 10,437 Watco, 6.375%, 4/1/23 (1) 9,025 9,183 30,677 Utilities 2.2% AES, 5.50%, 3/15/24 21,850 22,506 Calpine, 5.375%, 1/15/23 14,975 15,143 Dynegy Finance, 6.75%, 11/1/19 (1) 19,075 19,910
Energy Future International Holdings, EC, 10.00%, 12/1/20 46,600 4,485 Energy Future International Holdings, VR, 12.25%, 3/1/22 (1)(4) 41,125 45,791
GenOn Energy, 9.50%, 10/15/18 25,111 26,241 NRG Energy, 5.375%, 8/15/24 (1) 17,025 17,408 NRG Energy, 6.25%, 7/15/22 16,325 16,774 NRG Energy, 6.25%, 5/1/24 (1) 10,050 10,276 NRG Energy, 6.625%, 3/15/23 29,475 30,875 209,409 Wireless Communications 6.1% Arqiva Broadcasting, 9.50%, 3/31/20 (GBP)(1) 33,675 57,727 Crown Castle International, 5.25%, 1/15/23 17,025 17,217
Digicel Group, 6.00%, 4/15/21 (1) 12,925 12,699
Digicel Group, 7.125%, 4/1/22 (1) 12,925 12,666
Digicel Group, 8.25%, 9/30/20 (1) 14,300 14,729
Eileme 2, 11.625%, 1/31/20 (1) 7,675 8,769
Matterhorn Finance, PIK, 9.00%, 4/15/19 (EUR)(1) 15,950 20,033 Matterhorn Midco, 7.75%, 2/15/20 (EUR)(1) 18,191 23,654
Par/Shares $ Value (Amounts in 000s)
Mobile Challenger International Group, PIK
8.75%, 3/15/19 (CHF)(1) 31,950 33,602
NII International Telecom, 11.375%, 8/15/19 (1)(11) 12,025 8,898 Sable International Finance, 8.75%, 2/1/20 (1) 16,818 18,247
Sprint, 7.125%, 6/15/24 58,350 57,766 Sprint Nextel, 11.50%, 11/15/21 47,328 58,805 Syniverse Holdings, 9.125%, 1/15/19 19,055 19,936 T-Mobile USA, 6.00%, 3/1/23 45,750 46,551 T-Mobile USA, 6.25%, 4/1/21 22,700 23,296 T-Mobile USA, 6.633%, 4/28/21 22,125 22,733 Vimpel Communications, 7.748%, 2/2/21 (1) 14,275 13,790 VimpelCom Holdings, 5.20%, 2/13/19 (1) 7,855 7,148 VimpelCom Holdings, 7.504%, 3/1/22 (1) 20,100 18,618 Wind Acquisition, 4.75%, 7/15/20 (1) 20,375 19,560 Wind Acquisition, 6.50%, 4/30/20 (1) 10,125 10,479 Wind Acquisition, 7.375%, 4/23/21 (1) 53,900 51,879 584,490
Total Corporate Bonds (Cost $8,077,273) 8,065,681
BANKLOANS7.4% (5) Automotive 0.1%
Goodyear Tire & Rubber, VR, 4.75%, 4/30/19 3,575 3,585
Navistar, VR, 5.75%, 8/17/17 6,725 6,776
10,361 Broadcasting 0.2%
Univision Communications, VR, 4.00%, 3/1/20 20,124 19,916 19,916
Par/Shares $ Value (Amounts in 000s)
Building & Real Estate 0.0%
William Lyons Homes, VR, 7.75%, 8/12/22 1,313 1,313
1,313 Building Products 0.1%
NCI Building Systems, VR, 4.25%, 6/24/19 8,284 8,202
Summit Materials, VR, 5.00%, 1/30/19 6,132 6,139 14,341 Cable Operators 0.3% Altice Financing, VR, 5.50%, 7/2/19 29,021 29,093 29,093 Chemicals 0.1% Oxea Sarl, VR, 4.25%, 1/15/20 4,727 4,627 Oxea Sarl, VR, 8.25%, 7/15/20 5,525 5,359 9,986 Consumer Products 0.2% Fitness International, VR, 5.50%, 7/1/20 15,137 14,948 14,948 Container 0.1% Exopack, VR, 5.25%, 5/8/19 7,096 7,112 7,112 Energy 1.0%
American Energy - Marcellus, VR, 5.25%, 8/4/20 4,400 4,162 American Energy - Marcellus, VR, 8.50%, 8/4/21 19,910 18,168
Azure Midstream, VR, 6.50%, 11/15/18 13,475 13,003
