WESTERN ASSET INVESTMENT GRADE INCOME FUND INC.

 

Schedule of investments (unaudited)    March 31, 2024
(Percentages shown based on Fund net assets)   

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT
     VALUE  
CORPORATE BONDS & NOTES - 93.1%           
COMMUNICATION SERVICES - 8.8%           

Diversified Telecommunication Services - 2.0%

          

AT&T Inc., Senior Notes

     4.300     2/15/30      $ 80,000      $ 76,905  

AT&T Inc., Senior Notes

     4.500     5/15/35        360,000        336,415  

AT&T Inc., Senior Notes

     6.350     3/15/40        50,000        50,865  

AT&T Inc., Senior Notes

     4.900     6/15/42        150,000        134,709  

AT&T Inc., Senior Notes

     4.800     6/15/44        210,000        189,197  

AT&T Inc., Senior Notes

     4.550     3/9/49        310,000        265,947  

AT&T Inc., Senior Notes

     3.300     2/1/52        120,000        83,139  

AT&T Inc., Senior Notes

     3.500     9/15/53        130,000        91,791  

AT&T Inc., Senior Notes

     3.800     12/1/57        130,000        94,199  

AT&T Inc., Senior Notes

     3.500     2/1/61        70,000        47,898  

British Telecommunications PLC, Senior Notes

     9.625     12/15/30        70,000        85,895  

Telefonica Emisiones SA, Senior Notes

     7.045     6/20/36        60,000        67,211  

Telefonica Europe BV, Senior Notes

     8.250     9/15/30        230,000        262,998  

Verizon Communications Inc., Senior Notes

     5.500     3/16/47        630,000        647,807  
          

 

 

 

Total Diversified Telecommunication Services

             2,434,976  
          

 

 

 

Entertainment - 1.9%

          

Walt Disney Co., Senior Notes

     6.550     3/15/33        545,000        613,146  

Walt Disney Co., Senior Notes

     7.750     12/1/45        130,000        170,021  

Warnermedia Holdings Inc., Senior Notes

     5.141     3/15/52        1,820,000        1,511,775  
          

 

 

 

Total Entertainment

             2,294,942  
          

 

 

 

Media - 3.6%

          

CCO Holdings LLC/CCO Holdings Capital Corp., Senior Notes

     4.500     5/1/32        580,000        466,465  

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

     6.384     10/23/35        110,000        108,777  

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

     3.500     3/1/42        80,000        53,432  

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

     6.484     10/23/45        260,000        241,166  

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

     5.375     5/1/47        350,000        282,249  

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

     5.750     4/1/48        70,000        58,992  

 

See Notes to Schedule of Investments.

 

 

Western Asset Investment Grade Income Fund Inc. 2024 Quarterly Report 

 

 

 

1


WESTERN ASSET INVESTMENT GRADE INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    March 31, 2024
(Percentages shown based on Fund net assets)   

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT
     VALUE  

Media - (continued)

          

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

     5.250     4/1/53      $ 160,000      $ 126,855  

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

     3.950     6/30/62        80,000        48,326  

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

     5.500     4/1/63        210,000        164,887  

Comcast Corp., Senior Notes

     6.450     3/15/37        220,000        243,493  

Comcast Corp., Senior Notes

     6.950     8/15/37        160,000        184,703  

Comcast Corp., Senior Notes

     6.400     5/15/38        950,000        1,029,387  

DISH DBS Corp., Senior Secured Notes

     5.750     12/1/28        160,000        110,261 (a) 

Fox Corp., Senior Notes

     5.476     1/25/39        510,000        485,702  

Time Warner Cable Enterprises LLC, Senior Secured Notes

     8.375     7/15/33        410,000        457,957  

Time Warner Cable LLC, Senior Secured Notes

     6.550     5/1/37        180,000        170,272  

Time Warner Cable LLC, Senior Secured Notes

     7.300     7/1/38        200,000        202,174  

Time Warner Cable LLC, Senior Secured Notes

     6.750     6/15/39        10,000        9,532  

Time Warner Cable LLC, Senior Secured Notes

     5.500     9/1/41        50,000        41,664  
          

 

 

 

Total Media

             4,486,294  
          

 

 

 

Wireless Telecommunication Services - 1.3%

          

America Movil SAB de CV, Senior Notes

     6.125     3/30/40        850,000        900,157  

Sprint LLC, Senior Notes

     7.125     6/15/24        150,000        150,351  

T-Mobile USA Inc., Senior Notes

     4.375     4/15/40        60,000        53,468  

T-Mobile USA Inc., Senior Notes

     4.500     4/15/50        210,000        182,159  

T-Mobile USA Inc., Senior Notes

     3.400     10/15/52        230,000        163,282  

Vodafone Group PLC, Senior Notes

     5.250     5/30/48        210,000        200,714  

Vodafone Group PLC, Senior Notes

     4.250     9/17/50        10,000        8,079  
          

 

 

 

Total Wireless Telecommunication Services

             1,658,210  
          

 

 

 

TOTAL COMMUNICATION SERVICES

             10,874,422  
          

 

 

 
CONSUMER DISCRETIONARY - 6.4%           

Automobile Components - 0.3%

          

ZF North America Capital Inc., Senior Notes

     4.750     4/29/25        400,000        395,316 (a) 
          

 

 

 

Automobiles - 1.9%

          

Ford Motor Co., Senior Notes

     3.250     2/12/32        290,000        241,387  

Ford Motor Credit Co. LLC, Senior Notes

     2.700     8/10/26        400,000        372,986  

General Motors Co., Senior Notes

     6.125     10/1/25        190,000        191,679  

General Motors Co., Senior Notes

     6.600     4/1/36        170,000        180,872  

General Motors Co., Senior Notes

     6.750     4/1/46        270,000        291,974  

 

See Notes to Schedule of Investments.

 

 

 

2

 

 Western Asset Investment Grade Income Fund Inc. 2024 Quarterly Report

 


WESTERN ASSET INVESTMENT GRADE INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    March 31, 2024
(Percentages shown based on Fund net assets)   

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT
     VALUE  

Automobiles - (continued)

          

Hyundai Capital America, Senior Notes

     5.250     1/8/27      $ 200,000      $ 199,876 (a) 

Nissan Motor Co. Ltd., Senior Notes

     4.810     9/17/30        200,000        186,891 (a) 

Volkswagen Group of America Finance LLC, Senior Notes

     5.250     3/22/29        620,000        620,725 (a) 
          

 

 

 

Total Automobiles

             2,286,390  
          

 

 

 

Broadline Retail - 0.6%

          

Amazon.com Inc., Senior Notes

     3.950     4/13/52        330,000        277,259  

MercadoLibre Inc., Senior Notes

     2.375     1/14/26        470,000        440,815  
          

 

 

 

Total Broadline Retail

             718,074  
          

 

 

 

Diversified Consumer Services - 0.2%

          

California Institute of Technology, Senior Notes

     3.650     9/1/2119        110,000        76,553  

Washington University, Senior Notes

     3.524     4/15/54        90,000        70,365  

Washington University, Senior Notes

     4.349     4/15/2122        110,000        92,714  
          

 

 

 

Total Diversified Consumer Services

             239,632  
          

 

 

 

Hotels, Restaurants & Leisure - 2.4%

          

Genting New York LLC/GENNY Capital Inc., Senior Notes

     3.300     2/15/26        550,000        527,929 (a) 

Marriott International Inc., Senior Notes

     3.600     4/15/24        200,000        199,812  

McDonald’s Corp., Senior Notes

     4.700     12/9/35        150,000        146,012  

McDonald’s Corp., Senior Notes

     4.875     12/9/45        230,000        214,808  

McDonald’s Corp., Senior Notes

     4.450     9/1/48        10,000        8,779  

Melco Resorts Finance Ltd., Senior Notes

     5.375     12/4/29        380,000        348,327 (a) 

Royal Caribbean Cruises Ltd., Senior Notes

     3.700     3/15/28        270,000        251,490  

Sands China Ltd., Senior Notes

     5.125     8/8/25        450,000        444,203  

Sands China Ltd., Senior Notes

     5.400     8/8/28        200,000        196,268  

Sands China Ltd., Senior Notes

     4.625     6/18/30        200,000        183,562  

Sands China Ltd., Senior Notes

     3.250     8/8/31        330,000        276,530  

Wynn Macau Ltd., Senior Notes

     5.500     10/1/27        240,000        229,921 (a) 
          

 

 

 

Total Hotels, Restaurants & Leisure

             3,027,641  
          

 

 

 

Household Durables - 0.4%

          

Lennar Corp., Senior Notes

     5.000     6/15/27        190,000        189,059  

MDC Holdings Inc., Senior Notes

     2.500     1/15/31        100,000        86,193  

MDC Holdings Inc., Senior Notes

     6.000     1/15/43        200,000        203,429  
          

 

 

 

Total Household Durables

             478,681  
          

 

 

 

Specialty Retail - 0.6%

          

Home Depot Inc., Senior Notes

     3.625     4/15/52        270,000        206,430  

Lithia Motors Inc., Senior Notes

     4.625     12/15/27        110,000        105,729 (a) 

Lithia Motors Inc., Senior Notes

     3.875     6/1/29        190,000        171,410 (a) 

 

See Notes to Schedule of Investments.

 

 

Western Asset Investment Grade Income Fund Inc. 2024 Quarterly Report 

 

 

 

3


WESTERN ASSET INVESTMENT GRADE INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    March 31, 2024
(Percentages shown based on Fund net assets)   

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT
     VALUE  

Specialty Retail - (continued)

          

Lowe’s Cos. Inc., Senior Notes

     3.750     4/1/32      $ 80,000      $ 73,515  

Lowe’s Cos. Inc., Senior Notes

     4.250     4/1/52        280,000        229,648  
          

 

 

 

Total Specialty Retail

             786,732  
          

 

 

 

TOTAL CONSUMER DISCRETIONARY

             7,932,466  
          

 

 

 
CONSUMER STAPLES - 3.7%           

Beverages - 1.4%

          

Anheuser-Busch Cos. LLC/Anheuser-Busch InBev Worldwide Inc., Senior Notes

     4.900     2/1/46        840,000        798,782  

Anheuser-Busch InBev Worldwide Inc., Senior Notes

     4.600     4/15/48        70,000        64,041  

Coca-Cola Co., Senior Notes

     4.125     3/25/40        180,000        157,878  

Coca-Cola Co., Senior Notes

     4.200     3/25/50        110,000        97,737  

Pernod Ricard SA, Senior Notes

     5.500     1/15/42        670,000        682,676 (a) 
          

 

 

 

Total Beverages

             1,801,114  
          

 

 

 

Food Products - 0.3%

          

J M Smucker Co., Senior Notes

     6.200     11/15/33        230,000        245,475  

Kraft Heinz Foods Co., Senior Notes

     5.000     6/4/42        110,000        103,331  
          

 

 

 

Total Food Products

             348,806  
          

 

 

 

Tobacco - 2.0%

          

Altria Group Inc., Senior Notes

     4.400     2/14/26        410,000        404,137  

Altria Group Inc., Senior Notes

     4.800     2/14/29        870,000        861,945  

Imperial Brands Finance PLC, Senior Notes

     6.125     7/27/27        330,000        336,797 (a) 

Philip Morris International Inc., Senior Notes

     4.500     3/20/42        100,000        87,484  

Reynolds American Inc., Senior Notes

     8.125     5/1/40        270,000        313,120  

Reynolds American Inc., Senior Notes

     7.000     8/4/41        320,000        334,986  

Reynolds American Inc., Senior Notes

     5.850     8/15/45        90,000        83,568  
          

 

 

 

Total Tobacco

             2,422,037  
          

 

 

 

TOTAL CONSUMER STAPLES

             4,571,957  
          

 

 

 
ENERGY - 14.5%           

Energy Equipment & Services - 0.1%

          

Halliburton Co., Senior Notes

     5.000     11/15/45        200,000        187,930  
          

 

 

 

Oil, Gas & Consumable Fuels - 14.4%

          

Apache Corp., Senior Notes

     6.000     1/15/37        106,000        105,504  

Apache Corp., Senior Notes

     5.100     9/1/40        20,000        17,177  

Apache Corp., Senior Notes

     5.250     2/1/42        90,000        76,003  

Cameron LNG LLC, Senior Secured Notes

     3.302     1/15/35        20,000        16,656 (a) 

Cameron LNG LLC, Senior Secured Notes

     3.701     1/15/39        40,000        33,318 (a) 

Cheniere Energy Partners LP, Senior Notes

     3.250     1/31/32        220,000        187,577  

Chesapeake Energy Corp., Senior Notes

     6.750     4/15/29        170,000        171,959 (a) 

 

See Notes to Schedule of Investments.

 

 

 

4

 

 Western Asset Investment Grade Income Fund Inc. 2024 Quarterly Report

 


WESTERN ASSET INVESTMENT GRADE INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    March 31, 2024
(Percentages shown based on Fund net assets)   

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT
     VALUE  

Oil, Gas & Consumable Fuels - (continued)

          

Columbia Pipelines Operating Co. LLC, Senior Notes

     6.036     11/15/33      $ 290,000      $ 300,617 (a) 

Columbia Pipelines Operating Co. LLC, Senior Notes

     6.544     11/15/53        240,000        260,240 (a) 

ConocoPhillips, Senior Notes

     6.500     2/1/39        810,000        919,461  

Continental Resources Inc., Senior Notes

     2.268     11/15/26        80,000        73,667 (a) 

Continental Resources Inc., Senior Notes

     4.375     1/15/28        140,000        135,341  

Continental Resources Inc., Senior Notes

     2.875     4/1/32        120,000        97,844 (a) 

Continental Resources Inc., Senior Notes

     4.900     6/1/44        90,000        74,882  

Devon Energy Corp., Senior Notes

     5.850     12/15/25        350,000        352,053  

Devon Energy Corp., Senior Notes

     5.600     7/15/41        320,000        308,751  

Diamondback Energy Inc., Senior Notes

     6.250     3/15/53        230,000        248,403  

Ecopetrol SA, Senior Notes

     5.375     6/26/26        540,000        531,350  

Ecopetrol SA, Senior Notes

     5.875     11/2/51        260,000        187,331  

Energy Transfer LP, Junior Subordinated Notes (6.750% to 5/15/25 then 5 year Treasury Constant Maturity Rate + 5.134%)

     6.750     5/15/25        210,000        207,150 (b)(c) 

Energy Transfer LP, Junior Subordinated Notes (7.125% to 5/15/30 then 5 year Treasury Constant Maturity Rate + 5.306%)

     7.125     5/15/30        560,000        548,120 (b)(c) 

Energy Transfer LP, Senior Notes

     8.000     4/1/29        350,000        363,863 (a) 

Energy Transfer LP, Senior Notes

     5.250     4/15/29        30,000        30,043  

Energy Transfer LP, Senior Notes

     8.250     11/15/29        160,000        182,129  

Energy Transfer LP, Senior Notes

     6.625     10/15/36        20,000        21,189  

Energy Transfer LP, Senior Notes

     5.800     6/15/38        40,000        39,926  

Enterprise Products Operating LLC, Senior Notes

     6.125     10/15/39        320,000        343,510  

Enterprise Products Operating LLC, Senior Notes

     3.300     2/15/53        150,000        106,582  

Enterprise Products Operating LLC, Senior Notes

     3.950     1/31/60        100,000        77,833  

Enterprise Products Operating LLC, Senior Notes (5.375% to 2/15/28 then 3 mo. Term SOFR + 2.832%)

     5.375     2/15/78        430,000        401,822 (c) 

EOG Resources Inc., Senior Notes

     4.375     4/15/30        240,000        234,959  

Exxon Mobil Corp., Senior Notes

     4.227     3/19/40        140,000        127,617  

KazMunayGas National Co. JSC, Senior Notes

     3.500     4/14/33        200,000        166,875 (a) 

Kinder Morgan Inc., Senior Notes

     7.800     8/1/31        2,000,000        2,269,485  

MPLX LP, Senior Notes

     4.800     2/15/29        60,000        59,293  

MPLX LP, Senior Notes

     4.500     4/15/38        380,000        337,624  

Occidental Petroleum Corp., Senior Notes

     7.500     5/1/31        465,000        517,897  

Occidental Petroleum Corp., Senior Notes

     7.875     9/15/31        190,000        215,516  

ONEOK Inc., Senior Notes

     6.050     9/1/33        460,000        479,981  

 

See Notes to Schedule of Investments.

 

 

Western Asset Investment Grade Income Fund Inc. 2024 Quarterly Report 

 

 

 

5


WESTERN ASSET INVESTMENT GRADE INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    March 31, 2024
(Percentages shown based on Fund net assets)   

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT
     VALUE  

Oil, Gas & Consumable Fuels - (continued)

          

ONEOK Inc., Senior Notes

     6.625     9/1/53      $ 460,000      $ 507,310  

Parsley Energy LLC/Parsley Finance Corp., Senior Notes

     4.125     2/15/28        200,000        191,006 (a) 

Petrobras Global Finance BV, Senior Notes

     7.375     1/17/27        190,000        197,645  

Petrobras Global Finance BV, Senior Notes

     6.900     3/19/49        280,000        271,807  

Petrobras Global Finance BV, Senior Notes

     5.500     6/10/51        100,000        81,387  

Petrobras Global Finance BV, Senior Notes

     6.850     6/5/2115        300,000        278,569  

Phillips 66, Senior Notes

     5.875     5/1/42        160,000        168,227  

QatarEnergy, Senior Notes

     3.300     7/12/51        490,000        347,008 (a) 

Reliance Industries Ltd., Senior Notes

     3.625     1/12/52        300,000        216,898 (a) 

Shell International Finance BV, Senior Notes

     6.375     12/15/38        250,000        283,048  

Targa Resources Corp., Senior Notes

     4.950     4/15/52        160,000        140,317  

Targa Resources Partners LP/Targa Resources Partners Finance Corp., Senior Notes

     6.875     1/15/29        490,000        504,484  

Transcontinental Gas Pipe Line Co. LLC, Senior Notes

     7.850     2/1/26        470,000        487,787  

Transcontinental Gas Pipe Line Co. LLC, Senior Notes

     7.250     12/1/26        230,000        239,385  

Transcontinental Gas Pipe Line Co. LLC, Senior Notes

     3.250     5/15/30        130,000        117,719  

Transcontinental Gas Pipe Line Co. LLC, Senior Notes

     5.400     8/15/41        310,000        310,636  

Transcontinental Gas Pipe Line Co. LLC, Senior Notes

     3.950     5/15/50        30,000        23,747  

Western Midstream Operating LP, Senior Notes

     4.650     7/1/26        660,000        647,980  

Western Midstream Operating LP, Senior Notes

     4.750     8/15/28        680,000        662,017  

Western Midstream Operating LP, Senior Notes

     4.050     2/1/30        90,000        84,029  

Western Midstream Operating LP, Senior Notes

     5.450     4/1/44        80,000        73,588  

Western Midstream Operating LP, Senior Notes

     5.250     2/1/50        270,000        241,692  

Williams Cos. Inc., Senior Notes

     7.500     1/15/31        47,000        52,416  

Williams Cos. Inc., Senior Notes

     7.750     6/15/31        37,000        41,070  

Williams Cos. Inc., Senior Notes

     8.750     3/15/32        610,000        734,492  

Williams Cos. Inc., Senior Notes

     3.500     10/15/51        50,000        35,573  
          

 

 

 

Total Oil, Gas & Consumable Fuels

             17,769,385  
          

 

 

 

TOTAL ENERGY

             17,957,315  
          

 

 

 
FINANCIALS - 33.2%           

Banks - 19.4%

          

Banco Mercantil del Norte SA, Junior Subordinated Notes (7.500% to 6/27/29 then 10 year Treasury Constant Maturity Rate + 5.470%)

     7.500     6/27/29        200,000        199,641 (a)(b)(c) 

 

See Notes to Schedule of Investments.

 

 

 

6

 

 Western Asset Investment Grade Income Fund Inc. 2024 Quarterly Report

 


WESTERN ASSET INVESTMENT GRADE INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    March 31, 2024
(Percentages shown based on Fund net assets)   

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT
     VALUE  

Banks - (continued)

          

Banco Mercantil del Norte SA, Junior Subordinated Notes (8.375% to 10/14/30 then 10 year Treasury Constant Maturity Rate + 7.760%)

     8.375     10/14/30      $ 250,000      $ 256,729 (a)(b)(c) 

Banco Santander SA, Senior Notes

     5.294     8/18/27        400,000        399,229  

Banco Santander SA, Senior Notes

     3.490     5/28/30        200,000        181,462  

Bank of America Corp., Senior Notes

     5.875     2/7/42        320,000        341,659  

Bank of America Corp., Senior Notes (4.083% to 3/20/50 then 3 mo. Term SOFR + 3.412%)

     4.083     3/20/51        160,000        131,301 (c) 

Bank of America Corp., Subordinated Notes

     6.110     1/29/37        320,000        340,093  

Bank of America Corp., Subordinated Notes

     7.750     5/14/38        900,000        1,092,730  

Bank of Nova Scotia, Junior Subordinated Notes (8.000% to 1/27/29 then 5 year Treasury Constant Maturity Rate + 4.017%)

     8.000     1/27/84        360,000        367,228 (c) 

Bank of Nova Scotia, Subordinated Notes (4.588% to 5/4/32 then 5 year Treasury Constant Maturity Rate + 2.050%)

     4.588     5/4/37        390,000        353,842 (c) 

Barclays PLC, Junior Subordinated Notes (6.125% to 6/15/26 then 5 year Treasury Constant Maturity Rate + 5.867%)

     6.125     12/15/25        1,060,000        1,024,363 (b)(c) 

Barclays PLC, Subordinated Notes (5.088% to 6/20/29 then 3 mo. USD LIBOR + 3.054%)

     5.088     6/20/30        640,000        616,886 (c) 

BNP Paribas SA, Junior Subordinated Notes (8.500% to 8/14/28 then 5 year Treasury Constant Maturity Rate + 4.354%)

     8.500     8/14/28        940,000        984,887 (a)(b)(c) 

BNP Paribas SA, Senior Notes (5.198% to 1/10/29 then 3 mo. Term SOFR + 2.829%)

     5.198     1/10/30        280,000        278,580 (a)(c) 

BPCE SA, Senior Notes (6.714% to 10/19/28 then SOFR + 2.270%)

     6.714     10/19/29        350,000        366,348 (a)(c) 

BPCE SA, Subordinated Notes

     5.150     7/21/24        410,000        408,318 (a) 

BPCE SA, Subordinated Notes (3.582% to 10/19/41 then SOFR + 1.952%)

     3.582     10/19/42        270,000        195,398 (a)(c) 

Citigroup Inc., Senior Notes

     8.125     7/15/39        251,000        321,393  

Citigroup Inc., Senior Notes

     5.875     1/30/42        240,000        254,037  

Citigroup Inc., Senior Notes (3.785% to 3/17/32 then SOFR + 1.939%)

     3.785     3/17/33        420,000        375,350 (c) 

Citigroup Inc., Subordinated Notes

     5.500     9/13/25        750,000        749,941  

Citigroup Inc., Subordinated Notes

     6.125     8/25/36        404,000        421,229  

Citigroup Inc., Subordinated Notes

     6.675     9/13/43        370,000        415,163  

Citigroup Inc., Subordinated Notes (6.174% to 5/25/33 then SOFR + 2.661%)

     6.174     5/25/34        250,000        254,003 (c) 

 

See Notes to Schedule of Investments.

 

 

Western Asset Investment Grade Income Fund Inc. 2024 Quarterly Report 

 

 

 

7


WESTERN ASSET INVESTMENT GRADE INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    March 31, 2024
(Percentages shown based on Fund net assets)   

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT
     VALUE  

Banks - (continued)

          

Commonwealth Bank of Australia, Subordinated Notes

     3.743     9/12/39      $ 220,000      $ 175,911 (a) 

Cooperatieve Rabobank UA, Senior Notes

     5.750     12/1/43        450,000        458,904  

Cooperatieve Rabobank UA, Senior Notes

     5.250     8/4/45        340,000        333,958  

Cooperatieve Rabobank UA, Senior Notes (3.758% to 4/6/32 then 1 year Treasury Constant Maturity Rate + 1.420%)

     3.758     4/6/33        350,000        312,491 (a)(c) 

Credit Agricole SA, Junior Subordinated Notes (8.125% to 12/23/25 then USD 5 year ICE Swap Rate + 6.185%)

     8.125     12/23/25        1,040,000        1,062,818 (a)(b)(c) 

Credit Agricole SA, Senior Notes (6.316% to 10/3/28 then SOFR + 1.860%)

     6.316     10/3/29        290,000        300,797 (a)(c) 

HSBC Holdings PLC, Junior Subordinated Notes (4.600% to 6/17/31 then 5 year Treasury Constant Maturity Rate + 3.649%)

     4.600     12/17/30        320,000        271,513 (b)(c) 

HSBC Holdings PLC, Junior Subordinated Notes (6.500% to 3/23/28 then USD 5 year ICE Swap Rate + 3.606%)

     6.500     3/23/28        300,000        294,345 (b)(c) 

HSBC Holdings PLC, Senior Notes

     4.950     3/31/30        200,000        198,680  

HSBC Holdings PLC, Senior Notes (5.546% to 3/4/29 then SOFR + 1.460%)

     5.546     3/4/30        340,000        342,141 (c) 

HSBC Holdings PLC, Senior Notes (6.254% to 3/9/33 then SOFR + 2.390%)

     6.254     3/9/34        840,000        885,714 (c) 

HSBC Holdings PLC, Subordinated Notes

     7.625     5/17/32        70,000        78,460  

HSBC Holdings PLC, Subordinated Notes (4.762% to 3/29/32 then SOFR + 2.530%)

     4.762     3/29/33        400,000        372,034 (c) 

Intesa Sanpaolo SpA, Senior Notes

     7.000     11/21/25        200,000        203,781 (a) 

Intesa Sanpaolo SpA, Senior Notes

     4.700     9/23/49        200,000        151,946 (a) 

Intesa Sanpaolo SpA, Senior Notes (7.778% to 6/20/53 then 1 year Treasury Constant Maturity Rate + 3.900%)

     7.778     6/20/54        220,000        234,823 (a)(c) 

Intesa Sanpaolo SpA, Subordinated Notes (4.198% to 6/1/31 then 1 year Treasury Constant Maturity Rate + 2.600%)

     4.198     6/1/32        200,000        167,353 (a)(c) 

Intesa Sanpaolo SpA, Subordinated Notes (4.950% to 6/1/41 then 1 year Treasury Constant Maturity Rate + 2.750%)

     4.950     6/1/42        200,000        149,316 (a)(c) 

JPMorgan Chase & Co., Junior Subordinated Notes (3 mo. Term SOFR + 3.562%)

     8.868     5/1/24        260,000        260,203 (b)(c) 

JPMorgan Chase & Co., Senior Notes (3.897% to 1/23/48 then 3 mo. Term SOFR + 1.482%)

     3.897     1/23/49        50,000        40,781 (c) 

 

See Notes to Schedule of Investments.

 

 

 

8

 

 Western Asset Investment Grade Income Fund Inc. 2024 Quarterly Report

 


WESTERN ASSET INVESTMENT GRADE INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    March 31, 2024
(Percentages shown based on Fund net assets)   

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT
     VALUE  

Banks - (continued)

          

JPMorgan Chase & Co., Subordinated Notes

     5.625     8/16/43      $ 440,000      $ 458,608  

JPMorgan Chase & Co., Subordinated Notes

     4.950     6/1/45        490,000        466,264  

Lloyds Banking Group PLC, Junior Subordinated Notes (7.500% to 6/27/24 then USD 5 year ICE Swap Rate + 4.760%)

     7.500     6/27/24        360,000        358,134 (b)(c) 

Lloyds Banking Group PLC, Junior Subordinated Notes (7.500% to 9/27/25 then USD 5 year ICE Swap Rate + 4.496%)

     7.500     9/27/25        370,000        369,446 (b)(c) 

Lloyds Banking Group PLC, Junior Subordinated Notes (8.000% to 3/27/30 then 5 year Treasury Constant Maturity Rate + 3.913%)

     8.000     9/27/29        270,000        272,529 (b)(c) 

Mitsubishi UFJ Financial Group Inc., Senior Notes (4.315% to 4/19/32 then 1 year Treasury Constant Maturity Rate + 1.550%)

     4.315     4/19/33        330,000        312,402 (c) 

NatWest Group PLC, Subordinated Notes (3.754% to 11/1/24 then 5 year Treasury Constant Maturity Rate + 2.100%)

     3.754     11/1/29        230,000        226,133 (c) 

Santander UK Group Holdings PLC, Subordinated Notes

     4.750     9/15/25        210,000        206,209 (a) 

Standard Chartered PLC, Subordinated Notes

     5.700     3/26/44        410,000        407,697 (a) 

Swedbank AB, Senior Notes

     5.407     3/14/29        310,000        310,382 (a) 

Truist Financial Corp., Senior Notes (5.867% to 6/8/33 then SOFR + 2.361%)

     5.867     6/8/34        250,000        253,158 (c) 

Truist Financial Corp., Senior Notes (7.161% to 10/30/28 then SOFR + 2.446%)

     7.161     10/30/29        230,000        245,351 (c) 

UniCredit SpA, Subordinated Notes (7.296% to 4/2/29 then USD 5 year ICE Swap Rate + 4.914%)

     7.296     4/2/34        1,040,000        1,069,782 (a)(c) 

US Bancorp, Senior Notes (5.836% to 6/10/33 then SOFR + 2.260%)

     5.836     6/12/34        300,000        305,891 (c) 

Wells Fargo & Co., Senior Notes (4.611% to 4/25/52 then SOFR + 2.130%)

     4.611     4/25/53        380,000        336,100 (c) 

Wells Fargo & Co., Senior Notes (5.013% to 4/4/50 then 3 mo. Term SOFR + 4.502%)

     5.013     4/4/51        230,000        216,094 (c) 

Wells Fargo & Co., Senior Notes (5.557% to 7/25/33 then SOFR + 1.990%)

     5.557     7/25/34        570,000        572,449 (c) 

Wells Fargo & Co., Subordinated Notes

     5.375     11/2/43        430,000        415,645  

Wells Fargo & Co., Subordinated Notes

     4.750     12/7/46        580,000        509,136  

Westpac Banking Corp., Subordinated Notes

     4.421     7/24/39        110,000        96,964  
          

 

 

 

Total Banks

             24,034,153  
          

 

 

 

 

See Notes to Schedule of Investments.

 

 

Western Asset Investment Grade Income Fund Inc. 2024 Quarterly Report 

 

 

 

9


WESTERN ASSET INVESTMENT GRADE INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    March 31, 2024
(Percentages shown based on Fund net assets)   

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT
     VALUE  

Capital Markets - 7.5%

          

Charles Schwab Corp., Junior Subordinated Notes (4.000% to 12/1/30 then 10 year Treasury Constant Maturity Rate + 3.079%)

     4.000     12/1/30      $ 320,000      $ 270,401 (b)(c) 

Charles Schwab Corp., Senior Notes (5.853% to 5/19/33 then SOFR + 2.500%)

     5.853     5/19/34        260,000        266,420 (c) 

Charles Schwab Corp., Senior Notes (6.136% to 8/24/33 then SOFR + 2.010%)

     6.136     8/24/34        600,000        626,310 (c) 

CI Financial Corp., Senior Notes

     3.200     12/17/30        330,000        270,575  

CI Financial Corp., Senior Notes

     4.100     6/15/51        160,000        100,072  

CME Group Inc., Senior Notes

     5.300     9/15/43        440,000        449,648  

Credit Suisse AG AT1 Claim

     —        —         1,700,000        195,500 *(d) 

Credit Suisse USA Inc., Senior Notes

     7.125     7/15/32        40,000        44,887  

Goldman Sachs Group Inc., Junior Subordinated Notes (7.500% to 2/10/29 then 5 year Treasury Constant Maturity Rate + 3.156%)

     7.500     2/10/29        100,000        106,434 (b)(c) 

Goldman Sachs Group Inc., Senior Notes

     5.700     11/1/24        380,000        380,214  

Goldman Sachs Group Inc., Senior Notes

     6.250     2/1/41        570,000        621,133  

Goldman Sachs Group Inc., Senior Notes (3.615% to 3/15/27 then SOFR + 1.846%)

     3.615     3/15/28        740,000        708,028 (c) 

Goldman Sachs Group Inc., Subordinated Notes

     6.750     10/1/37        640,000        699,542  

Goldman Sachs Group Inc., Subordinated Notes

     5.150     5/22/45        500,000        483,787  

Intercontinental Exchange Inc., Senior Notes

     4.950     6/15/52        250,000        236,270  

Intercontinental Exchange Inc., Senior Notes

     5.200     6/15/62        260,000        255,312  

KKR Group Finance Co. III LLC, Senior Notes

     5.125     6/1/44        820,000        758,118 (a) 

KKR Group Finance Co. VI LLC, Senior Notes

     3.750     7/1/29        70,000        65,373 (a) 

KKR Group Finance Co. X LLC, Senior Notes

     3.250     12/15/51        90,000        60,644 (a) 

Morgan Stanley, Senior Notes

     6.375     7/24/42        90,000        101,658  

Morgan Stanley, Senior Notes (4.889% to 7/20/32 then SOFR + 2.076%)

     4.889     7/20/33        280,000        271,674 (c) 

Morgan Stanley, Subordinated Notes (5.297% to 4/20/32 then SOFR + 2.620%)

     5.297     4/20/37        130,000        124,813 (c) 

Morgan Stanley, Subordinated Notes (5.948% to 1/19/33 then 5 year Treasury Constant Maturity Rate + 2.430%)

     5.948     1/19/38        100,000        100,284 (c) 

Raymond James Financial Inc., Senior Notes

     4.650     4/1/30        70,000        69,133  

Raymond James Financial Inc., Senior Notes

     4.950     7/15/46        90,000        82,864  

State Street Corp., Junior Subordinated Notes (6.700% to 3/15/29 then 5 year Treasury Constant Maturity Rate + 2.613%)

     6.700     3/15/29        250,000        254,306 (b)(c) 

 

See Notes to Schedule of Investments.

 

 

 

10

 

 Western Asset Investment Grade Income Fund Inc. 2024 Quarterly Report

 


WESTERN ASSET INVESTMENT GRADE INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    March 31, 2024
(Percentages shown based on Fund net assets)   

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT
     VALUE  

Capital Markets - (continued)

          

UBS Group AG, Junior Subordinated Notes (7.750% to 4/12/31 then USD 5 year SOFR ICE Swap Rate + 4.160%)

     7.750     4/12/31      $ 200,000      $ 206,194 (a)(b)(c) 

UBS Group AG, Junior Subordinated Notes (9.250% to 11/13/33 then 5 year Treasury Constant Maturity Rate + 4.758%)

     9.250     11/13/33        290,000        328,001 (a)(b)(c) 

UBS Group AG, Senior Notes (4.194% to 4/1/30 then SOFR + 3.730%)

     4.194     4/1/31        250,000        232,293 (a)(c) 

UBS Group AG, Senior Notes (6.301% to 9/22/33 then 1 year Treasury Constant Maturity Rate + 2.000%)

     6.301     9/22/34        230,000        240,890 (a)(c) 

UBS Group AG, Senior Notes (6.537% to 8/12/32 then SOFR + 3.920%)

     6.537     8/12/33        380,000        400,891 (a)(c) 

UBS Group AG, Senior Notes (9.016% to 11/15/32 then SOFR + 5.020%)

     9.016     11/15/33        250,000        303,572 (a)(c) 
          

 

 

 

Total Capital Markets

             9,315,241  
          

 

 

 

Consumer Finance - 0.1%

          

Capital One Financial Corp., Senior Notes (5.817% to 2/1/33 then SOFR + 2.600%)

     5.817     2/1/34        150,000        149,879 (c) 
          

 

 

 

Financial Services - 2.1%

          

AerCap Ireland Capital DAC/AerCap Global Aviation Trust, Senior Notes

     3.000     10/29/28        430,000        389,300  

AerCap Ireland Capital DAC/AerCap Global Aviation Trust, Senior Notes

     3.850     10/29/41        540,000        427,973  

Carlyle Finance LLC, Senior Notes

     5.650     9/15/48        110,000        106,722 (a) 

Carlyle Finance Subsidiary LLC, Senior Notes

     3.500     9/19/29        150,000        138,970 (a) 

Carlyle Holdings II Finance LLC, Senior Notes

     5.625     3/30/43        220,000        214,684 (a) 

Everest Reinsurance Holdings Inc., Senior Notes

     3.500     10/15/50        140,000        98,309  

ILFC E-Capital Trust I, Ltd. GTD (3 mo. Term SOFR + 1.812%)

     7.145     12/21/65        470,000        368,285 (a)(c) 

ILFC E-Capital Trust II, Ltd. GTD (3 mo. Term SOFR + 2.062%)

     7.395     12/21/65        270,000        216,820 (a)(c) 

Rocket Mortgage LLC/Rocket Mortgage Co-Issuer Inc., Senior Notes

     2.875     10/15/26        160,000        147,977 (a) 

Rocket Mortgage LLC/Rocket Mortgage Co-Issuer Inc., Senior Notes

     4.000     10/15/33        140,000        118,730 (a) 

SMBC Aviation Capital Finance DAC, Senior Notes

     5.300     4/3/29        380,000        379,306 (a)(e) 
          

 

 

 

Total Financial Services

             2,607,076  
          

 

 

 

 

See Notes to Schedule of Investments.

 

 

Western Asset Investment Grade Income Fund Inc. 2024 Quarterly Report 

 

 

 

11


WESTERN ASSET INVESTMENT GRADE INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    March 31, 2024
(Percentages shown based on Fund net assets)   

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT
     VALUE  

Insurance - 3.7%

          

Allianz SE, Junior Subordinated Notes (3.500% to 4/30/26 then 5 year Treasury Constant Maturity Rate + 2.973%)

     3.500     11/17/25      $ 200,000      $ 186,001 (a)(b)(c) 

Allstate Corp., Junior Subordinated Notes (6.500% to 5/15/37 then 3 mo. USD LIBOR + 2.120%)

     6.500     5/15/57        480,000        488,890 (c) 

American International Group Inc., Junior Subordinated Notes

     6.250     3/15/37        80,000        73,598  

American International Group Inc., Senior Notes

     4.750     4/1/48        70,000        64,744  

Americo Life Inc., Senior Notes

     3.450     4/15/31        80,000        62,737 (a) 

AXA SA, Subordinated Notes

     8.600     12/15/30        200,000        236,378  

Fidelity & Guaranty Life Holdings Inc., Senior Notes

     5.500     5/1/25        230,000        228,129 (a) 

Liberty Mutual Insurance Co., Subordinated Notes

     7.875     10/15/26        490,000        510,823 (a) 

Massachusetts Mutual Life Insurance Co., Subordinated Notes

     4.900     4/1/77        260,000        220,255 (a) 

MetLife Inc., Junior Subordinated Notes

     6.400     12/15/36        1,150,000        1,179,374  

New York Life Insurance Co., Subordinated Notes

     4.450     5/15/69        90,000        73,442 (a) 

Nippon Life Insurance Co., Subordinated Notes (2.750% to 1/21/31 then 5 year Treasury Constant Maturity Rate + 2.653%)

     2.750     1/21/51        200,000        167,252 (a)(c) 

Northwestern Mutual Life Insurance Co., Subordinated Notes

     3.625     9/30/59        110,000        77,542 (a) 

Prudential Financial Inc., Junior Subordinated Notes (6.500% to 3/15/34 then 5 year Treasury Constant Maturity Rate + 2.404%)

     6.500     3/15/54        120,000        121,959 (c) 

Prudential Financial Inc., Junior Subordinated Notes (6.750% to 3/1/33 then 5 year Treasury Constant Maturity Rate + 2.848%)

     6.750     3/1/53        170,000        177,173 (c) 

RenaissanceRe Holdings Ltd., Senior Notes

     5.750     6/5/33        190,000        191,715  

Teachers Insurance & Annuity Association of America, Subordinated Notes

     6.850     12/16/39        400,000        455,223 (a) 
          

 

 

 

Total Insurance

             4,515,235  
          

 

 

 

Mortgage Real Estate Investment Trusts (REITs) - 0.4%

          

Blackstone Holdings Finance Co. LLC, Senior Notes

     6.200     4/22/33        450,000        473,278 (a) 
          

 

 

 

TOTAL FINANCIALS

             41,094,862  
          

 

 

 

 

See Notes to Schedule of Investments.

 

 

 

12

 

 Western Asset Investment Grade Income Fund Inc. 2024 Quarterly Report

 


WESTERN ASSET INVESTMENT GRADE INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    March 31, 2024
(Percentages shown based on Fund net assets)   

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT
     VALUE  
HEALTH CARE - 7.6%           

Biotechnology - 1.5%

          

AbbVie Inc., Senior Notes

     4.050     11/21/39      $ 740,000      $ 659,315  

Amgen Inc., Senior Notes

     5.250     3/2/33        740,000        746,560  

Amgen Inc., Senior Notes

     5.650     3/2/53        300,000        305,904  

Amgen Inc., Senior Notes

     5.750     3/2/63        110,000        112,282  

Gilead Sciences Inc., Senior Notes

     5.650     12/1/41        60,000        61,794  

Gilead Sciences Inc., Senior Notes

     4.750     3/1/46        50,000        45,958  
          

 

 

 

Total Biotechnology

             1,931,813  
          

 

 

 

Health Care Equipment & Supplies - 0.4%

          

Abbott Laboratories, Senior Notes

     4.900     11/30/46        90,000        87,913  

Becton Dickinson & Co., Senior Notes

     4.669     6/6/47        410,000        367,701  
          

 

 

 

Total Health Care Equipment & Supplies

             455,614  
          

 

 

 

Health Care Providers & Services - 4.3%

          

Centene Corp., Senior Notes

     4.250     12/15/27        100,000        95,423  

Centene Corp., Senior Notes

     4.625     12/15/29        360,000        342,034  

Centene Corp., Senior Notes

     3.375     2/15/30        500,000        442,786  

Cigna Group, Senior Notes

     4.800     8/15/38        340,000        319,593  

CVS Health Corp., Senior Notes

     4.100     3/25/25        530,000        523,528  

CVS Health Corp., Senior Notes

     4.300     3/25/28        540,000        527,140  

CVS Health Corp., Senior Notes

     4.780     3/25/38        570,000        526,643  

CVS Health Corp., Senior Notes

     5.125     7/20/45        340,000        313,537  

CVS Health Corp., Senior Notes

     5.050     3/25/48        560,000        508,917  

Dartmouth-Hitchcock Health, Secured Bonds

     4.178     8/1/48        100,000        80,561  

Elevance Health Inc., Senior Notes

     5.350     10/15/25        320,000        320,290  

HCA Inc., Senior Notes

     4.125     6/15/29        210,000        198,936  

HCA Inc., Senior Notes

     5.125     6/15/39        110,000        103,909  

HCA Inc., Senior Notes

     5.500     6/15/47        220,000        209,314  

HCA Inc., Senior Notes

     5.250     6/15/49        350,000        319,706  

Humana Inc., Senior Notes

     8.150     6/15/38        80,000        97,466  

Humana Inc., Senior Notes

     4.800     3/15/47        150,000        132,422  

Inova Health System Foundation, Senior Notes

     4.068     5/15/52        90,000        77,144  

Orlando Health Obligated Group, Senior Notes

     4.089     10/1/48        170,000        145,078  
          

 

 

 

Total Health Care Providers & Services

             5,284,427  
          

 

 

 

Pharmaceuticals - 1.4%

          

Bausch Health Cos. Inc., Senior Notes

     5.000     1/30/28        80,000        36,421 (a) 

Bristol-Myers Squibb Co., Senior Notes

     6.250     11/15/53        140,000        157,815  

Pfizer Investment Enterprises Pte Ltd., Senior Notes

     4.750     5/19/33        390,000        384,187  

 

See Notes to Schedule of Investments.

 

 

Western Asset Investment Grade Income Fund Inc. 2024 Quarterly Report 

 

 

 

13


WESTERN ASSET INVESTMENT GRADE INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    March 31, 2024
(Percentages shown based on Fund net assets)   

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT
     VALUE  

Pharmaceuticals - (continued)

          

Pfizer Investment Enterprises Pte Ltd., Senior Notes

     5.110     5/19/43      $ 400,000      $ 391,382  

Pfizer Investment Enterprises Pte Ltd., Senior Notes

     5.300     5/19/53        290,000        288,540  

Pfizer Investment Enterprises Pte Ltd., Senior Notes

     5.340     5/19/63        60,000        58,840  

Teva Pharmaceutical Finance Netherlands III BV, Senior Notes

     7.125     1/31/25        200,000        201,274  

Teva Pharmaceutical Finance Netherlands III BV, Senior Notes

     8.125     9/15/31        200,000        219,610  

Zoetis Inc., Senior Notes

     4.700     2/1/43        30,000        27,490  
          

 

 

 

Total Pharmaceuticals

             1,765,559  
          

 

 

 

TOTAL HEALTH CARE

             9,437,413  
          

 

 

 
INDUSTRIALS - 5.9%           

Aerospace & Defense - 1.9%

          

Avolon Holdings Funding Ltd., Senior Notes

     3.950     7/1/24        140,000        139,201 (a) 

Avolon Holdings Funding Ltd., Senior Notes

     4.250     4/15/26        530,000        511,723 (a) 

Boeing Co., Senior Notes

     3.250     2/1/28        370,000        340,573  

Boeing Co., Senior Notes

     5.705     5/1/40        210,000        201,154  

Boeing Co., Senior Notes

     5.805     5/1/50        130,000        123,118  

HEICO Corp., Senior Notes

     5.350     8/1/33        240,000        240,913  

Huntington Ingalls Industries Inc., Senior Notes

     3.483     12/1/27        200,000        187,930  

L3Harris Technologies Inc., Senior Notes

     5.400     7/31/33        190,000        191,300  

L3Harris Technologies Inc., Senior Notes

     4.854     4/27/35        260,000        248,770  

Lockheed Martin Corp., Senior Notes

     4.500     5/15/36        40,000        38,032  

RTX Corp., Senior Notes

     4.625     11/16/48        110,000        97,861  
          

 

 

 

Total Aerospace & Defense

             2,320,575  
          

 

 

 

Building Products - 0.1%

          

Carrier Global Corp., Senior Notes

     3.577     4/5/50        100,000        74,590  
          

 

 

 

Commercial Services & Supplies - 0.4%

          

Waste Connections Inc., Senior Notes

     4.250     12/1/28        480,000        468,412  
          

 

 

 

Construction & Engineering - 0.7%

          

Vinci SA, Senior Notes

     3.750     4/10/29        890,000        852,150 (a) 
          

 

 

 

Ground Transportation - 0.2%

          

Union Pacific Corp., Senior Notes

     4.375     11/15/65        320,000        252,097  
          

 

 

 

Industrial Conglomerates - 0.6%

          

General Electric Co., Senior Notes

     6.875     1/10/39        94,000        111,660  

 

See Notes to Schedule of Investments.

 

 

 

14

 

 Western Asset Investment Grade Income Fund Inc. 2024 Quarterly Report

 


WESTERN ASSET INVESTMENT GRADE INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    March 31, 2024
(Percentages shown based on Fund net assets)   

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT
     VALUE  

Industrial Conglomerates - (continued)

          

Honeywell International Inc., Senior Notes

     4.950     9/1/31      $ 320,000      $ 322,572  

Honeywell International Inc., Senior Notes

     5.000     2/15/33        350,000        354,162  
          

 

 

 

Total Industrial Conglomerates

             788,394  
          

 

 

 

Machinery - 0.2%

          

Caterpillar Inc., Senior Notes

     4.750     5/15/64        220,000        203,165  
          

 

 

 

Passenger Airlines - 0.9%

          

American Airlines Inc./AAdvantage Loyalty IP Ltd., Senior Secured Notes

     5.500     4/20/26        82,500        81,990 (a) 

American Airlines Inc./AAdvantage Loyalty IP Ltd., Senior Secured Notes

     5.750     4/20/29        110,000        108,212 (a) 

Delta Air Lines Inc., Senior Secured Notes

     7.000     5/1/25        260,000        263,499 (a) 

Delta Air Lines Inc./SkyMiles IP Ltd., Senior Secured Notes

     4.500     10/20/25        222,250        220,033 (a) 

Delta Air Lines Inc./SkyMiles IP Ltd., Senior Secured Notes

     4.750     10/20/28        180,000        176,110 (a) 

Southwest Airlines Co., Senior Notes

     5.125     6/15/27        190,000        189,708  

United Airlines Pass-Through Trust

     4.875     1/15/26        116,760        114,958  
          

 

 

 

Total Passenger Airlines

             1,154,510  
          

 

 

 

Trading Companies & Distributors - 0.9%

          

Air Lease Corp., Senior Notes

     5.850     12/15/27        320,000        325,075  

Aircastle Ltd., Senior Notes

     5.250     8/11/25        630,000        624,685 (a) 

Aviation Capital Group LLC, Senior Notes

     5.500     12/15/24        180,000        179,354 (a) 
          

 

 

 

Total Trading Companies & Distributors

             1,129,114  
          

 

 

 

TOTAL INDUSTRIALS

             7,243,007  
          

 

 

 
INFORMATION TECHNOLOGY - 3.7%           

Electronic Equipment, Instruments & Components - 0.3%

 

       

TD SYNNEX Corp., Senior Notes

     1.250     8/9/24        380,000        373,882  
          

 

 

 

IT Services - 0.3%

          

International Business Machines Corp., Senior Notes

     3.500     5/15/29        110,000        103,640  

Kyndryl Holdings Inc., Senior Notes

     4.100     10/15/41        300,000        230,271  
          

 

 

 

Total IT Services

             333,911  
          

 

 

 

Semiconductors & Semiconductor Equipment - 1.5%

 

       

Broadcom Inc., Senior Notes

     4.150     11/15/30        113,000        106,904  

Broadcom Inc., Senior Notes

     4.300     11/15/32        370,000        347,789  

Broadcom Inc., Senior Notes

     3.187     11/15/36        14,000        11,147 (a) 

Broadcom Inc., Senior Notes

     4.926     5/15/37        152,000        144,335 (a) 

Foundry JV Holdco LLC, Senior Secured Notes

     5.875     1/25/34        300,000        300,785 (a) 

Intel Corp., Senior Notes

     4.900     7/29/45        130,000        125,626  

 

See Notes to Schedule of Investments.

 

 

Western Asset Investment Grade Income Fund Inc. 2024 Quarterly Report 

 

 

 

15


WESTERN ASSET INVESTMENT GRADE INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    March 31, 2024
(Percentages shown based on Fund net assets)   

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT
     VALUE  

Semiconductors & Semiconductor Equipment - (continued)

 

       

Intel Corp., Senior Notes

     4.750     3/25/50      $ 10,000      $ 9,065  

Intel Corp., Senior Notes

     4.950     3/25/60        60,000        55,980  

Intel Corp., Senior Notes

     3.200     8/12/61        120,000        78,229  

Micron Technology Inc., Senior Notes

     3.366     11/1/41        30,000        22,306  

NVIDIA Corp., Senior Notes

     3.500     4/1/50        190,000        151,387  

NVIDIA Corp., Senior Notes

     3.700     4/1/60        80,000        63,847  

Texas Instruments Inc., Senior Notes

     4.600     2/15/28        250,000        250,215  

Texas Instruments Inc., Senior Notes

     3.875     3/15/39        270,000        241,822  
          

 

 

 

Total Semiconductors & Semiconductor Equipment

 

          1,909,437  
          

 

 

 

Software - 1.2%

          

Microsoft Corp., Senior Notes

     4.250     2/6/47        970,000        910,278  

Oracle Corp., Senior Notes

     3.950     3/25/51        310,000        236,375  

Oracle Corp., Senior Notes

     4.100     3/25/61        380,000        285,588  
          

 

 

 

Total Software

             1,432,241  
          

 

 

 

Technology Hardware, Storage & Peripherals - 0.4%

 

       

Apple Inc., Senior Notes

     3.850     8/4/46        340,000        287,878  

Dell International LLC/EMC Corp., Senior Notes

     8.100     7/15/36        120,000        145,166  

Dell International LLC/EMC Corp., Senior Notes

     8.350     7/15/46        30,000        38,842  
          

 

 

 

Total Technology Hardware, Storage & Peripherals

 

          471,886  
          

 

 

 

TOTAL INFORMATION TECHNOLOGY

             4,521,357  
          

 

 

 
MATERIALS - 5.5%           

Chemicals - 1.3%

          

Celanese US Holdings LLC, Senior Notes

     5.900     7/5/24        310,000        310,091  

Dow Chemical Co., Senior Notes

     7.375     11/1/29        800,000        891,146  

Ecolab Inc., Senior Notes

     4.800     3/24/30        80,000        80,434  

OCP SA, Senior Notes

     3.750     6/23/31        200,000        170,985 (a) 

Sociedad Quimica y Minera de Chile SA, Senior Notes

     3.500     9/10/51        240,000        164,335 (a) 
          

 

 

 

Total Chemicals

             1,616,991  
          

 

 

 

Metals & Mining - 3.8%

          

Anglo American Capital PLC, Senior Notes

     4.000     9/11/27        500,000        477,411 (a) 

ArcelorMittal SA, Senior Notes

     4.550     3/11/26        470,000        462,742  

ArcelorMittal SA, Senior Notes

     6.550     11/29/27        160,000        166,119  

Barrick North America Finance LLC, Senior Notes

     5.700     5/30/41        50,000        51,288  

Barrick PD Australia Finance Pty Ltd., Senior Notes

     5.950     10/15/39        180,000        187,377  

Freeport-McMoRan Inc., Senior Notes

     5.450     3/15/43        210,000        201,229  

Glencore Finance Canada Ltd., Senior Notes

     6.900     11/15/37        430,000        470,899 (a) 

 

See Notes to Schedule of Investments.

 

 

 

16

 

 Western Asset Investment Grade Income Fund Inc. 2024 Quarterly Report

 


WESTERN ASSET INVESTMENT GRADE INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    March 31, 2024
(Percentages shown based on Fund net assets)   

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT
     VALUE  

Metals & Mining - (continued)

          

Glencore Finance Canada Ltd., Senior Notes

     5.550     10/25/42      $ 150,000      $ 144,770 (a) 

Glencore Funding LLC, Senior Notes

     4.000     3/27/27        360,000        348,152 (a) 

Glencore Funding LLC, Senior Notes

     3.875     10/27/27        170,000        163,186 (a) 

Glencore Funding LLC, Senior Notes

     3.375     9/23/51        70,000        47,979 (a) 

Southern Copper Corp., Senior Notes

     5.250     11/8/42        470,000        445,751  

Vale Overseas Ltd., Senior Notes

     6.875     11/21/36        1,148,000        1,227,722  

Yamana Gold Inc., Senior Notes

     4.625     12/15/27        350,000        335,169  

Yamana Gold Inc., Senior Notes

     2.630     8/15/31        30,000        25,029  
          

 

 

 

Total Metals & Mining

             4,754,823  
          

 

 

 

Paper & Forest Products - 0.4%

          

Georgia-Pacific LLC, Senior Notes

     7.375     12/1/25        250,000        257,614  

Suzano Austria GmbH, Senior Notes

     3.125     1/15/32        230,000        191,213  
          

 

 

 

Total Paper & Forest Products

             448,827  
          

 

 

 

TOTAL MATERIALS

             6,820,641  
          

 

 

 
REAL ESTATE - 0.7%           

Diversified REITs - 0.2%

          

VICI Properties LP, Senior Notes

     5.750     4/1/34        190,000        188,377  
          

 

 

 

Health Care REITs - 0.2%

          

Welltower OP LLC, Senior Notes

     4.125     3/15/29        320,000        306,533  
          

 

 

 

Residential REITs - 0.1%

          

Invitation Homes Operating Partnership LP, Senior Notes

     4.150     4/15/32        80,000        73,262  
          

 

 

 

Retail REITs - 0.2%

          

WEA Finance LLC/Westfield UK & Europe Finance PLC, Senior Notes

     3.750     9/17/24        200,000        197,408 (a) 
          

 

 

 

Specialized REITs - 0.0%††

          

Extra Space Storage LP, Senior Notes

     3.900     4/1/29        60,000        56,545  
          

 

 

 

TOTAL REAL ESTATE

             822,125  
          

 

 

 
UTILITIES - 3.1%           

Electric Utilities - 3.1%

          

CenterPoint Energy Houston Electric LLC, Senior Secured Bonds

     4.500     4/1/44        210,000        187,679  

Comision Federal de Electricidad, Senior Notes

     3.348     2/9/31        200,000        167,485 (a) 

Edison International, Junior Subordinated Notes (5.375% to 3/15/26 then 5 year Treasury Constant Maturity Rate + 4.698%)

     5.375     3/15/26        270,000        261,951 (b)(c) 

Enel Finance International NV, Senior Notes

     6.800     10/14/25        330,000        336,734 (a) 

Exelon Corp., Senior Notes

     4.050     4/15/30        120,000        113,231  

FirstEnergy Corp., Senior Notes

     4.150     7/15/27        310,000        297,560  

 

See Notes to Schedule of Investments.

 

 

Western Asset Investment Grade Income Fund Inc. 2024 Quarterly Report 

 

 

 

17


WESTERN ASSET INVESTMENT GRADE INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    March 31, 2024
(Percentages shown based on Fund net assets)   

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT
     VALUE  

Electric Utilities - (continued)

          

FirstEnergy Corp., Senior Notes

     7.375     11/15/31      $ 830,000      $ 977,917  

MidAmerican Energy Co., First Mortgage Bonds

     3.650     4/15/29        150,000        142,747  

Ohio Edison Co., Senior Notes

     5.500     1/15/33        90,000        89,869 (a) 

Pacific Gas and Electric Co., First Mortgage Bonds

     3.300     8/1/40        20,000        14,700  

Pacific Gas and Electric Co., First Mortgage Bonds

     4.950     7/1/50        240,000        206,652  

Pacific Gas and Electric Co., First Mortgage Bonds

     6.750     1/15/53        140,000        152,708  

PG&E Wildfire Recovery Funding LLC, Senior Secured Notes

     5.081     6/1/41        120,000        119,474  

PG&E Wildfire Recovery Funding LLC, Senior Secured Notes

     5.212     12/1/47        30,000        29,937  

Southern California Edison Co., First Mortgage Bonds

     4.125     3/1/48        310,000        250,623  

Virginia Electric & Power Co., Senior Notes

     8.875     11/15/38        390,000        522,936  
          

 

 

 

TOTAL UTILITIES

             3,872,203  
          

 

 

 

TOTAL CORPORATE BONDS & NOTES
(Cost - $118,589,516)

             115,147,768  
          

 

 

 
SOVEREIGN BONDS - 3.8%           

Argentina - 0.6%

          

Argentine Republic Government International Bond, Senior Notes

     1.000     7/9/29        35,342        19,095  

Argentine Republic Government International Bond, Senior Notes, Step bond (3.625% to 7/9/24 then 4.125%)

     3.625     7/9/35        412,972        172,246  

Provincia de Buenos Aires, Senior Notes, Step bond (6.375% to 9/1/24 then 6.625%)

     6.375     9/1/37        1,329,161        546,554 (a) 
          

 

 

 

Total Argentina

             737,895  
          

 

 

 

Brazil - 0.3%

          

Brazilian Government International Bond, Senior Notes

     6.125     3/15/34        330,000        326,933  
          

 

 

 

Canada - 0.6%

          

Province of Quebec Canada, Senior Notes

     7.970     7/22/36        650,000        802,461  
          

 

 

 

Chile - 0.1%

          

Chile Government International Bond, Senior Notes

     2.550     7/27/33        200,000        162,916  
          

 

 

 

Colombia - 0.6%

          

Colombia Government International Bond, Senior Notes

     4.500     3/15/29        870,000        802,967  
          

 

 

 

 

See Notes to Schedule of Investments.

 

 

 

18

 

 Western Asset Investment Grade Income Fund Inc. 2024 Quarterly Report

 


WESTERN ASSET INVESTMENT GRADE INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    March 31, 2024
(Percentages shown based on Fund net assets)   

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT
     VALUE  

Indonesia - 0.2%

          

Indonesia Government International Bond, Senior Notes

     4.350     1/11/48      $ 240,000      $ 210,001  
          

 

 

 

Ivory Coast - 0.2%

          

Ivory Coast Government International Bond, Senior Notes

     7.625     1/30/33        300,000        298,210 (a) 
          

 

 

 

Kenya - 0.4%

          

Republic of Kenya Government International Bond, Senior Notes

     8.000     5/22/32        460,000        432,460 (a) 
          

 

 

 

Mexico - 0.8%

          

Mexico Government International Bond, Senior Notes

     3.500     2/12/34        230,000        191,870  

Mexico Government International Bond, Senior Notes

     4.280     8/14/41        200,000        160,877  

Mexico Government International Bond, Senior Notes

     4.350     1/15/47        360,000        281,329  

Mexico Government International Bond, Senior Notes

     6.400     5/7/54        310,000        309,544  
          

 

 

 

Total Mexico

             943,620  
          

 

 

 

TOTAL SOVEREIGN BONDS
(Cost - $5,114,671)

             4,717,463  
          

 

 

 
MUNICIPAL BONDS - 1.1%           

California - 0.7%

          

Los Angeles County, CA Public Works Financing Authority Revenue, Multiple Capital Projects I, Series 2010 B, Taxable Build America Bonds

     7.618     8/1/40        650,000        801,305  

Regents of the University of California Medical Center Pooled Revenue, Series Q

     4.563     5/15/53        110,000        100,473  
          

 

 

 

Total California

             901,778  
          

 

 

 

Florida - 0.1%

          

Sumter Landing, FL, Community Development District Recreational Revenue, Taxable Community Development District

     4.172     10/1/47        170,000        151,356  
          

 

 

 

Illinois - 0.3%

          

Illinois State, GO, Taxable, Build America Bonds, Series 2010-3

     6.725     4/1/35        286,154        301,905  
          

 

 

 

TOTAL MUNICIPAL BONDS
(Cost - $1,474,700)

             1,355,039  
          

 

 

 
U.S. GOVERNMENT & AGENCY OBLIGATIONS - 0.2%           

U.S. Government Obligations - 0.2%

          

U.S. Treasury Bonds

     4.750     11/15/53        250,000        266,934  

U.S. Treasury Notes

     5.000     8/31/25        40,000        40,087  
          

 

 

 

TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS
(Cost - $305,632)

             307,021  
          

 

 

 

 

See Notes to Schedule of Investments.

 

 

Western Asset Investment Grade Income Fund Inc. 2024 Quarterly Report 

 

 

 

19


WESTERN ASSET INVESTMENT GRADE INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    March 31, 2024
(Percentages shown based on Fund net assets)   

 

SECURITY

   RATE            SHARES      VALUE  
PREFERRED STOCKS - 0.1%           
FINANCIALS - 0.1%           

Insurance - 0.1%

          

Delphi Financial Group Inc. (3 mo. Term SOFR + 3.452%)
(Cost - $143,068)

     8.759        5,725      $ 138,573 (c) 
          

 

 

 

TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS
(Cost - $125,627,587)

             121,665,864  
          

 

 

 
SHORT-TERM INVESTMENTS - 0.9%           

Western Asset Premier Institutional Government Reserves, Premium Shares
(Cost - $1,120,029)

     5.271        1,120,029        1,120,029 (f)(g) 
          

 

 

 

TOTAL INVESTMENTS - 99.2%
(Cost - $126,747,616)

             122,785,893  

Other Assets in Excess of Liabilities - 0.8%

             941,276  
          

 

 

 

TOTAL NET ASSETS - 100.0%

           $ 123,727,169  
          

 

 

 

 

††

Represents less than 0.1%.

 

*

Non-income producing security.

 

(a)

Security is exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid pursuant to guidelines approved by the Board of Directors.

 

(b)

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

 

(c)

Variable rate security. Interest rate disclosed is as of the most recent information available. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above.

 

(d)

Security is fair valued in accordance with procedures approved by the Board of Directors (Note 1).

 

(e)

Securities traded on a when-issued or delayed delivery basis.

 

(f)

Rate shown is one-day yield as of the end of the reporting period.

 

(g)

In this instance, as defined in the Investment Company Act of 1940, an “Affiliated Company” represents Fund ownership of at least 5% of the outstanding voting securities of an issuer, or a company which is under common ownership or control with the Fund. At March 31, 2024, the total market value of investments in Affiliated Companies was $1,120,029 and the cost was $1,120,029 (Note 2).

Abbreviation(s) used in this schedule:

 

GO    — General Obligation
GTD    — Guaranteed
ICE    — Intercontinental Exchange
JSC    — Joint Stock Company
LIBOR    — London Interbank Offered Rate
SOFR    — Secured Overnight Financing Rate
USD    — United States Dollar

 

See Notes to Schedule of Investments.

 

 

 

20

 

 Western Asset Investment Grade Income Fund Inc. 2024 Quarterly Report

 


WESTERN ASSET INVESTMENT GRADE INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    March 31, 2024

 

At March 31, 2024, the Fund had the following open futures contracts:

 

     Number of
Contracts
     Expiration
Date
     Notional
Amount
     Market
Value
     Unrealized
Appreciation
(Depreciation)
 
Contracts to Buy:               

U.S. Treasury 2-Year Notes

     43        6/24      $ 8,808,352      $ 8,792,828      $ (15,524

U.S. Treasury 5-Year Notes

     51        6/24        5,451,529        5,457,797        6,268  

U.S. Treasury Ultra Long-Term Bonds

     23        6/24        2,918,486        2,967,000        48,514  
              

 

 

 
                 39,258  
              

 

 

 
Contracts to Sell:               

U.S. Treasury 10-Year Notes

     1        6/24        111,483        110,797        686  

U.S. Treasury Long-Term Bonds

     51        6/24        6,055,362        6,142,313        (86,951

U.S. Treasury Ultra 10-Year Notes

     26        6/24        2,958,543        2,979,844        (21,301
              

 

 

 
                 (107,566
              

 

 

 
Net unrealized depreciation on open futures contracts                $ (68,308
              

 

 

 

This Schedule of Investments is unaudited and is intended to provide information about the Fund’s investments as of the date of the schedule. Other information regarding the Fund is available in the Fund’s most recent annual or semi-annual shareholder report.

 

See Notes to Schedule of Investments.

 

 

Western Asset Investment Grade Income Fund Inc. 2024 Quarterly Report 

 

 

 

21


Notes to Schedule of Investments (unaudited)

 

1. Organization and significant accounting policies

Western Asset Investment Grade Income Fund Inc. (the “Fund”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversified, closed-end management investment company. The Fund’s primary investment objective is to seek a high level of current income, consistent with prudent investment risk, through investment in a diversified portfolio of debt securities. To a lesser extent, the Fund may also invest in privately placed debt securities and in certain equity securities. Capital appreciation is a secondary investment objective.

The Fund follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies (“ASC 946”). The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”), including, but not limited to, ASC 946.

(a) Investment valuation. The valuations for fixed income securities (which may include, but are not limited to, corporate, government, municipal, mortgage-backed, collateralized mortgage obligations and asset-backed securities) and certain derivative instruments are typically the prices supplied by independent third party pricing services, which may use market prices or broker/dealer quotations or a variety of valuation techniques and methodologies. The independent third party pricing services typically use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Investments in open-end funds are valued at the closing net asset value per share of each fund on the day of valuation. Futures contracts are valued daily at the settlement price established by the board of trade or exchange on which they are traded. Equity securities for which market quotations are available are valued at the last reported sales price or official closing price on the primary market or exchange on which they trade. When the Fund holds securities or other assets that are denominated in a foreign currency, the Fund will normally use the currency exchange rates as of 4:00 p.m. (Eastern Time). If independent third party pricing services are unable to supply prices for a portfolio investment, or if the prices supplied are deemed by the adviser to be unreliable, the market price may be determined by the adviser using quotations from one or more broker/dealers or at the transaction price if the security has recently been purchased and no value has yet been obtained from a pricing service or pricing broker. When reliable prices are not readily available, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund values these securities as determined in accordance with procedures approved by the Fund’s Board of Directors.

Pursuant to policies adopted by the Board of Directors, the Fund’s adviser has been designated as the valuation designee and is responsible for the oversight of the daily valuation process. The Fund’s adviser is assisted by the Global Fund Valuation Committee

 

 

 

22

 

 Western Asset Investment Grade Income Fund Inc. 2024 Quarterly Report

 


Notes to Schedule of Investments (unaudited) (continued)

 

(the “Valuation Committee”). The Valuation Committee is responsible for making fair value determinations, evaluating the effectiveness of the Fund’s pricing policies, and reporting to the Fund’s adviser and the Board of Directors. When determining the reliability of third party pricing information for investments owned by the Fund, the Valuation Committee, among other things, conducts due diligence reviews of pricing vendors, monitors the daily change in prices and reviews transactions among market participants.

The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making fair value determinations. Examples of possible methodologies include, but are not limited to, multiple of earnings; discount from market of a similar freely traded security; discounted cash-flow analysis; book value or a multiple thereof; risk premium/yield analysis; yield to maturity; and/or fundamental investment analysis. The Valuation Committee will also consider factors it deems relevant and appropriate in light of the facts and circumstances. Examples of possible factors include, but are not limited to, the type of security; the issuer’s financial statements; the purchase price of the security; the discount from market value of unrestricted securities of the same class at the time of purchase; analysts’ research and observations from financial institutions; information regarding any transactions or offers with respect to the security; the existence of merger proposals or tender offers affecting the security; the price and extent of public trading in similar securities of the issuer or comparable companies; and the existence of a shelf registration for restricted securities.

For each portfolio security that has been fair valued pursuant to the policies adopted by the Board of Directors, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such back testing monthly and fair valuation occurrences are reported to the Board of Directors quarterly.

The Fund uses valuation techniques to measure fair value that are consistent with the market approach and/or income approach, depending on the type of security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable securities. The income approach uses valuation techniques to discount estimated future cash flows to present value.

 

 

Western Asset Investment Grade Income Fund Inc. 2024 Quarterly Report 

 

 

 

23


Notes to Schedule of Investments (unaudited) (continued)

 

GAAP establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These inputs are summarized in the three broad levels listed below:

 

   

Level 1 – unadjusted quoted prices in active markets for identical investments

 

   

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

 

   

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

The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

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

 

ASSETS

 

DESCRIPTION

   QUOTED PRICES
(LEVEL 1)
     OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2)
     SIGNIFICANT
UNOBSERVABLE
INPUTS
(LEVEL 3)
     TOTAL  

Long-Term Investments†:

           

Corporate Bonds & Notes

     —       $ 115,147,768        —       $ 115,147,768  

Sovereign Bonds

     —         4,717,463        —         4,717,463  

Municipal Bonds

     —         1,355,039        —         1,355,039  

U.S. Government & Agency Obligations

     —         307,021        —         307,021  

Preferred Stocks

     —         138,573        —         138,573  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Long-Term Investments

     —         121,665,864        —         121,665,864  
  

 

 

    

 

 

    

 

 

    

 

 

 

Short-Term Investments†

   $ 1,120,029        —         —         1,120,029  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Investments

   $ 1,120,029      $ 121,665,864        —       $ 122,785,893  
  

 

 

    

 

 

    

 

 

    

 

 

 

Other Financial Instruments:

           

Futures Contracts††

   $ 55,468        —         —       $ 55,468  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 1,175,497      $ 121,665,864        —       $ 122,841,361  
  

 

 

    

 

 

    

 

 

    

 

 

 

LIABILITIES

 

DESCRIPTION

   QUOTED PRICES
(LEVEL 1)
     OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2)
     SIGNIFICANT
UNOBSERVABLE
INPUTS
(LEVEL 3)
     TOTAL  

Other Financial Instruments:

           

Futures Contracts††

   $ 123,776        —         —       $ 123,776  

 

See Schedule of Investments for additional detailed categorizations.

 

††

Reflects the unrealized appreciation (depreciation) of the instruments.

 

 

 

24

 

 Western Asset Investment Grade Income Fund Inc. 2024 Quarterly Report

 


Notes to Schedule of Investments (unaudited) (continued)

 

2. Transactions with affiliated company

As defined by the 1940 Act, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control with the Fund. The following company was considered an affiliated company for all or some portion of the period ended March 31, 2024. The following transactions were effected in such company for the period ended March 31, 2024.

 

     Affiliate
Value at
December 31,
2023
     Purchased      Sold      Realized
Gain (Loss)
     Dividend
Income
     Net Increase
(Decrease) in
Unrealized
Appreciation
(Depreciation)
     Affiliate
Value at
March 31,
2024
 
   Cost      Shares      Proceeds      Shares  
Western Asset Premier Institutional Government Reserves, Premium Shares    $ 1,282,190      $ 3,874,117        3,874,117      $ 4,036,278        4,036,278        —       $ 18,189        —       $ 1,120,029  

 

 

Western Asset Investment Grade Income Fund Inc. 2024 Quarterly Report 

 

 

 

25


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