DUC Duff and Phelps Utilities and Cap Bond Trust

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number 811-07358

 

 

 

 

 

 

 

Duff & Phelps Utility and Corporate Bond Trust Inc.

(Exact name of registrant as specified in charter)

 

 

55 East Monroe Street, Suite 3600, Chicago, Illinois		60603
(Address of principal executive offices)		(Zip code)

 

 

 

Alan M. Meder Duff & Phelps Utility and Corporate Bond Trust Inc. 55 East Monroe Street, Suite 3600 Chicago, Illinois 60603		Lawrence Hamilton Mayer Brown LLP 71 South Wacker Drive Chicago, Illinois 60606

(Name and address of agents for service)

 

Registrant’s telephone number, including area code: (312) 263-2610

 

Date of fiscal year end: December 31

 

Date of reporting period: March 31, 2008

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Item 1 – Schedule of Investments

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DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.

PORTFOLIO OF INVESTMENTS

March 31, 2008

(Unaudited)

 

Principal Amount (000)			Description				Value
			LONG-TERM INVESTMENTS - 150.6%
			U.S. Government and Agency Obligations - 8.8%
			Federal Home Loan Bank,
$	10,000		7.125%,		1/15/10		$	10,391,020
			Federal National Mortgage Association,
	10,000		7.25%,		1/15/10			10,870,910
	5,000		6.00%,		5/15/11			5,470,290
	293		8.00%,		10/01/30			317,547
	1,051		7.00%,		12/01/31			1,118,187
			Government National Mortgage Association Pass-Through Certificates,
	15		7.00%,		3/15/26			15,969
	104		7.50%,		5/15/26			112,024
	93		8.00%,		11/15/30			102,365
	35		8.00%,		2/15/31			38,093
			Total U.S. Government and Agency Obligations (cost $27,948,029)					28,436,405
			Corporate Bonds - 135.3%
			Financial - 32.4%
			Bank United,
	4,910		8.00%,		3/15/09			4,645,931
			Bear Stearns & Co. Inc.,
	7,000		7.625%,		12/07/09			6,937,714
			Boeing Capital Corp.,
	5,000		6.50%,		2/15/12			5,430,930
			Duke Realty Corp, L.P.,
	6,000		6.80%,		2/12/09			6,072,480
			ERP Operating Limited Partnership,
	5,000		6.625%,		3/15/12			5,084,935
			Firstar Bank, N.A.,
	7,000		7.125%,		12/01/09			7,472,829
			Household Finance Corp.,
	10,000		8.00%,		7/15/10			10,558,390
			JPMorgan Chase & Co.,
	10,000		7.875%,		6/15/10			10,772,720
			Keybank, N.A.,
	3,200		7.30%,		5/01/11			3,492,704
			Mack-Cali Realty, L.P.,
	7,000		7.75%,		2/15/11			7,340,774
			Merrill Lynch & Co.,
	5,000		6.50%,		7/15/18			4,855,540
	5,000		6.875%,		11/15/18			5,018,150
			NationsBank Capital Trust IV,
	10,000		8.25%,		4/15/27			10,274,900
			PNC Funding Corp.,
	6,000		7.50%,		11/01/09			6,304,656
			Simon Property Group, L.P.,
	5,000		7.125%,		2/09/09			5,068,235
	5,000		7.00%,		7/15/09			5,132,640
								104,463,528

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DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.

PORTFOLIO OF INVESTMENTS-(Continued)

March 31, 2008

(Unaudited)

 

Principal Amount (000)			Description				Value
			Industrial - 29.1%
			Archer-Daniels-Midland Company,
$	4,000		7.125%,		3/01/13		$	4,499,992
			DaimlerChrysler NA Holdings,
	10,000		7.20%,		9/01/09			10,347,250
			Dow Chemical Company,
	7,000		9.00%,		4/01/21			9,149,686
			General Electric Capital Corporation,
	7,565		8.625%,		6/15/08			7,638,305
			Potash Corporation of Saskatchewan Inc.,
	6,578		7.75%,		5/31/11			7,320,525
			Sun Company, Inc.,
	5,000		9.00%,		11/01/24			6,166,195
			Tele-Communications, Inc.,
	5,275		10.125%,		4/15/22			6,620,790
	3,200		9.875%,		6/15/22			3,967,523
			Time Warner Entertainment Company, L.P.,
	5,000		8.875%,		10/01/12			5,581,240
			Time Warner, Inc.,
	5,000		9.15%,		2/01/23			5,799,700
			Union Pacific Corp.,
	9,258		7.375%,		9/15/09			9,722,742
			USX Corporation,
	10,000		9.125%,		1/15/13			11,727,440
			Wal-Mart Stores, Inc.,
	5,000		6.875%,		8/10/09			5,279,760
								93,821,148
			Telephone - 19.8%
			British Telecommunications PLC,
	7,000		8.625%,		12/15/10			7,703,017
			Deutsche Telekom International Finance,
	12,000		8.00%,		6/15/10			12,842,916
			France Telecom SA,
	5,000		7.75%,		3/01/11			5,425,250
			Koninklijke (Royal) KPN NV,
	5,000		8.00%,		10/01/10			5,371,810
			New Cingular Wireless Services Inc.,
	9,000		8.125%,		5/01/12			10,080,648
			New York Telephone Co.,
	5,000		8.625%,		11/15/10			5,522,755
			Sprint Corp.,
	10,125		9.25%,		4/15/22			8,621,792
			Verizon Global Funding Corp.,
	7,500		7.375%,		9/01/12			8,245,688
								63,813,876
			Utilities - 54.0%
			AGL Capital Corp.,
	10,000		7.125%,		1/14/11			10,758,790
			CalEnergy Company, Inc.,
	10,000		8.48%,		9/15/28			12,018,940
			CenterPoint Energy Resources Corp.,
	10,000		7.75%,		2/15/11			10,810,200
			Duke Energy Corporation,
	10,000		7.375%,		3/01/10			10,690,520
			FPL Group Capital Inc.,
	5,050		7.375%,		6/01/09			5,275,073

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DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.

PORTFOLIO OF INVESTMENTS-(Continued)

March 31, 2008

(Unaudited)

 

Principal Amount (000)			Description				Value
			Utilities (Continued)
			Hydro-Quebec,
$	10,000		7.50%,		4/01/16		$	12,255,630
			Illinois Power Co.,
	8,485		7.50%,		6/15/09			8,808,474
			KeySpan Gas East Corporation,
	10,088		7.875%,		2/01/10			10,778,584
			NSTAR,
	7,020		8.00%,		2/15/10			7,598,701
			ONEOK Partners, L.P.,
	6,040		8.875%,		6/15/10			6,646,772
			Progress Energy, Inc.,
	6,000		7.10%,		3/01/11			6,462,786
			PSE&G Power, LLC.,
	7,195		7.75%,		4/15/11			7,757,289
			Sempra Energy,
	10,000		7.95%,		3/01/10			10,747,760
			South Carolina Electric & Gas Co.,
	6,000		6.125%,		3/01/09			6,147,912
			Southern California Edison Company,
	5,512		7.625%,		1/15/10			5,862,811
			Spectra Energy Capital LLC.,
	10,000		7.50%,		10/01/09			10,450,060
			Trans-Canada Pipelines Limited,
	10,000		9.875%,		1/01/21			13,518,960
			Wisconsin Energy Corp.,
	6,000		6.50%,		4/01/11			6,394,416
			Xcel Energy, Inc.,
	10,131		7.00%,		12/01/10			10,916,578
								173,900,256
			Total Corporate Bonds (cost $430,522,026)					435,998,808
			Asset-Backed Securities - 1.7%
			Detroit Edison Securitization Funding LLC 2001-1 A6,
	5,000		6.62%,		3/01/16			5,500,610
			Total Asset-Backed Securities (cost $5,925,000)					5,500,610
Shares
			Non-Convertible Preferred Stock - 4.8%
			Financial - 4.8%
			Duke Realty Corp., Series M,
	100,000		6.95%					2,247,000
			Duke Realty Corp., Series N,
	100,000		7.25%					2,321,000
			Kimco Realty Corp., Series G,
	100,000		7.75%					2,390,000
			Public Storage, Inc., Series I,
	120,000		7.25%					2,869,200
			Realty Income Corp., Series D,
	100,000		7.375%					2,376,000
			UDR, Inc., Series G,
	100,000		6.75%					2,349,000
			Vornado Realty Trust, Series I,
	50,000		6.625%					1,062,500
			Total Non-Convertible Preferred Stock (cost $16,713,000)					15,614,700
			Total Long-Term Investments (cost $481,108,055)					485,550,523

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DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.

PORTFOLIO OF INVESTMENTS-(Continued)

March 31, 2008

(Unaudited)

 

Principal Amount (000)			Description				Value
			SHORT-TERM INVESTMENTS - 1.7%
			U.S. Treasury Bills,
$	1,800		2.220%,		4/24/08		$	1,797,554
	1,800		1.250%,		5/29/08			1,796,013
	1,800		1.415%,		6/26/08			1,794,517
			Total Short-Term Investments (cost $5,387,844)					5,388,084
			Total Investments - 152.3% (Cost $486,495,899).					490,938,607
			Other Assets in Excess of Liabilities - 6.6%					21,388,801
			Liquidation Value of Preferred Shares - (58.9)%					(190,000,000	)
			Net Assets Applicable to Common Stock - 100%				$	322,327,408

The United States federal income tax basis of the Fund’s investments and the net unrealized depreciation as of March 31, 2008 was as follows:

 

Tax Basis of Investments			Appreciation			Depreciation			Net Unrealized Depreciation
$	504,538,097		$	4,900,524		$	18,500,014		$	13,599,490

Notes

Securities Valuation:

Equity securities traded on a national or foreign securities exchange or traded over-the-counter and quoted on the NASDAQ System are valued at the last reported sale price or, if there was no sale on the pricing date, then the security is valued at the mean of the bid and ask prices as obtained on that day from one or more dealers regularly making a market in that security. Fixed income securities are valued at the mean of bid and ask prices provided by an independent pricing service when such prices are believed to reflect the fair market value of such securities. Such bid and ask prices are determined taking into account securities prices, yields, maturities, call features, ratings, and institutional size trading in similar securities and developments related to specific securities. Any securities for which it is determined that market prices are unavailable or inappropriate are valued at a fair value using a procedure determined in good faith by the Board of Directors. Short-term investments having a maturity of 60 days or less at date of purchase are valued on an amortized cost basis, which approximates market value.

The Fund implemented Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“FAS 157”), effective January 1, 2008. In accordance with FAS 157, fair value is defined as the price that the Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. FAS 157 establishes a three-tier hierarchy to classify fair value measurements for disclosure purposes. The three tier hierarchy of inputs is summarized in the three broad levels listed below.

Level 1 – quoted prices in active markets for identical securities

Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.)

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

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. The following is a summary of the inputs used to value each of the Fund’s investments as of March 31, 2008.

Level 1 – $15,614,700

Level 2 – $475,323,907

Total –     $490,938,607

The Fund has not held any Level 3 securities (valued using unobservable inputs) or other financial instruments at any time during the three month period ended March 31, 2008.

Other information regarding the Fund is available in the Fund’s most recent Report to Shareholders. This information is available on the Securities and Exchange Commission’s website (www.SEC.gov)

 

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Item 2 – Controls and Procedures

(a) The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) are effective, based on an evaluation of those controls and procedures made as of a date within 90 days of the filing date of this report as required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Exchange Act.

(b) There has been no change in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the most recent fiscal quarter covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3 – Exhibits

 

Exhibit 99.CERT-		Certifications pursuant to Section 302 of the Sarbanes-Oxley Act – Attached hereto

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant)            Duff & Phelps Utility and Corporate Bond Trust Inc.

By (Signature and Title)		/s/ A LAN M. M EDER
		Alan M. Meder Treasurer (Principal Financial and Accounting Officer)
Date May 29, 2008

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By (Signature and Title)		/s/ N ATHAN I. P ARTAIN
		Nathan I. Partain President and Chief Executive Officer
Date May 29, 2008
By (Signature and Title)		/s/ A LAN M. M EDER
		Alan M. Meder Treasurer (Principal Financial and Accounting Officer)
Date May 29, 2008