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 | John R. Sagan | |
| Duff & Phelps Utility and Corporate Bond Trust Inc. | Mayer, Brown, Rowe & Maw LLP | |
| 55 East Monroe Street, Suite 3600 | 71 South Wacker Drive | |
| Chicago, Illinois 60603 | Chicago, Illinois 60606 |
(Name and address of agents for service)
Registrant’s telephone number, including area code: (312) 541-5555
Date of fiscal year end: December 31
Date of reporting period: September 30, 2006
Item 1 – Schedule of Investments – [ INSERT SCHEDULE ]
DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.
PORTFOLIO OF INVESTMENTS
September 30, 2006
(Unaudited)
| Principal Amount (000) |
Description |
Value | ||||
| LONG-TERM INVESTMENTS - 137.0% | ||||||
| U.S. Government and Agency Obligations - 13.6% | ||||||
| Federal National Mortgage Association, | ||||||
| $ | 404 | 8.00%, 10/01/30 |
$ | 425,741 | ||
| 1,369 | 7.00%, 12/01/31 |
1,409,636 | ||||
| Government National Mortgage Association | ||||||
| Pass-Through Certificates, | ||||||
| 21 | 7.00%, 3/15/26 |
22,107 | ||||
| 247 | 7.50%, 5/15/26 |
257,392 | ||||
| 95 | 8.00%, 11/15/30 |
101,166 | ||||
| 104 | 8.00%, 2/15/31 |
109,801 | ||||
| U.S. Treasury Bonds, | ||||||
| 40,000 | 10.375%, 11/15/12 |
42,371,880 | ||||
| Total U.S. Government and Agency Obligations | ||||||
| (cost $48,098,284) | 44,697,723 | |||||
| Corporate Bonds - 118.0% | ||||||
| Auto & Truck - 3.2% | ||||||
| DaimlerChrysler NA Holdings, | ||||||
| 10,000 | 7.20%, 9/01/09 |
10,426,310 | ||||
| Financial - 29.8% | ||||||
| Boeing Capital Corp., | ||||||
| 5,000 | 6.50%, 2/15/12 |
5,307,950 | ||||
| EOP Operating Limited Partnership | ||||||
| 5,750 | 8.10%, 8/01/10 |
6,248,950 | ||||
| ERP Operating Limited Partnership | ||||||
| 5,000 | 6.625%, 3/15/12 |
5,297,515 | ||||
| General Electric Capital Corporation, | ||||||
| 7,565 | 8.625%, 6/15/08 |
7,975,878 | ||||
| Great Western Financial Trust II, | ||||||
| 10,000 | 8.206%, 2/01/27 |
10,481,750 | ||||
| Household Finance Corp., | ||||||
| 16,000 | 8.00%, 7/15/10 |
17,493,888 | ||||
| KeyCorp Institution Capital B, | ||||||
| 10,000 | 8.25%, 12/15/26 |
10,450,630 | ||||
| Merrill Lynch & Co., | ||||||
| 5,000 | 6.50%, 7/15/18 |
5,417,685 | ||||
| 5,000 | 6.875%, 11/15/18 |
5,576,440 | ||||
| NationsBank Capital Trust IV, | ||||||
| 10,000 | 8.25%, 4/15/27 |
10,492,450 | ||||
| Simon Property Group, L.P., | ||||||
| 5,000 | 7.125%, 2/09/09 |
5,197,880 | ||||
| Verizon Global Funding Corp., | ||||||
| 7,500 | 7.375%, 9/01/12 |
8,213,332 | ||||
| 98,154,348 | ||||||
DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.
PORTFOLIO OF INVESTMENTS-(Continued)
September 30, 2006
(Unaudited)
| Principal Amount (000) |
Description |
Value | ||||
| Industrial - 22.7% |
||||||
| Archer-Daniels-Midland Company, | ||||||
| $ | 5,000 | 8.125%, 6/01/12 |
$ | 5,687,055 | ||
| Occidental Petroleum Corporation, | ||||||
| 5,000 | 9.25%, 8/01/19 |
6,648,905 | ||||
| Sun Company, Inc., | ||||||
| 5,000 | 9.00%, 11/01/24 |
6,664,320 | ||||
| Tele-Communications, Inc., | ||||||
| 5,275 | 10.125%, 4/15/22 |
7,034,951 | ||||
| 3,200 | 9.875%, 6/15/22 |
4,204,627 | ||||
| Time Warner Entertainment Company, L.P., | ||||||
| 5,000 | 8.875%, 10/01/12 |
5,754,135 | ||||
| Time Warner, Inc., | ||||||
| 5,000 | 9.15%, 2/01/23 |
6,226,435 | ||||
| Trans-Canada Pipelines Limited, | ||||||
| 10,000 | 9.875%, 1/01/21 |
13,818,350 | ||||
| USX Corporation, | ||||||
| 10,000 | 9.125%, 1/15/13 |
11,934,160 | ||||
| Weyerhaeuser Co., | ||||||
| 6,500 | 6.75%, 3/15/12 |
6,801,073 | ||||
| 74,774,011 | ||||||
| Retail - 1.6% | ||||||
| Wal-Mart Stores, Inc., | ||||||
| 5,000 | 6.875%, 8/10/09 |
5,239,520 | ||||
| Telephone - 16.4% |
||||||
| Bell Canada, Inc., | ||||||
| 10,000 | 9.50%, 10/15/10 |
11,422,370 | ||||
| Deutsche Telekom International Finance, | ||||||
| 12,000 | 8.00%, 6/15/10 |
13,101,240 | ||||
| France Telecom SA | ||||||
| 5,000 | 7.75%, 3/01/11 |
5,483,020 | ||||
| Koninklijke (Royal) KPN NV, | ||||||
| 5,000 | 8.00%, 10/01/10 |
5,406,505 | ||||
| New York Telephone Co., | ||||||
| 5,000 | 8.625%, 11/15/10 |
5,486,170 | ||||
| Sprint Corp., | ||||||
| 10,125 | 9.25%, 4/15/22 |
12,911,866 | ||||
| 53,811,171 | ||||||
| Utilities - Electric - 44.3% | ||||||
| AGL Capital Corp., | ||||||
| 5,000 | 7.125%, 1/14/11 |
5,326,665 | ||||
| Alabama Power Co., | ||||||
| 2,750 | 7.125%, 10/01/07 |
2,798,007 | ||||
| CalEnergy Company, Inc., | ||||||
| 10,000 | 8.48%, 9/15/28 |
12,755,340 | ||||
| CenterPoint Energy Resources Corp., | ||||||
| 8,000 | 7.75%, 2/15/11 |
8,684,640 | ||||
| ComEd Financing II, | ||||||
| 17,438 | 8.50%, 1/15/27 |
18,103,940 | ||||
| Dominion Resources, Inc., | ||||||
| 10,000 | 8.125%, 6/15/10 |
10,892,660 | ||||
| Duke Energy Corporation, | ||||||
| 10,000 | 7.375%, 3/01/10 |
10,646,940 | ||||
DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.
PORTFOLIO OF INVESTMENTS-(Continued)
September 30, 2006
(Unaudited)
| Principal Amount (000) |
Description |
Value | ||||
| Utilites - Electric (Continued) | ||||||
| Hydro-Quebec, |
||||||
| $ | 10,000 | 7.50%, 4/01/16 |
$ | 11,626,010 | ||
| Illinois Power Co., | ||||||
| 8,485 | 7.50%, 6/15/09 |
8,933,975 | ||||
| KeySpan Gas East Corporation, | ||||||
| 10,088 | 7.875%, 2/01/10 |
10,861,639 | ||||
| Progress Energy, Inc., | ||||||
| 5,000 | 7.10%, 3/01/11 |
5,364,780 | ||||
| Sempra Energy, | ||||||
| 10,000 | 7.95%, 3/01/10 |
10,791,820 | ||||
| Southern California Edison Company, | ||||||
| 5,512 | 7.625%, 1/15/10 |
5,893,982 | ||||
| South Carolina Electric & Gas Co., | ||||||
| 6,000 | 6.125%, 3/01/09 |
6,138,480 | ||||
| Wisconsin Energy Corp., | ||||||
| 6,000 | 6.50%, 4/01/11 |
6,266,418 | ||||
| Xcel Energy, Inc., | ||||||
| 10,131 | 7.00%, 12/01/10 |
10,748,201 | ||||
| 145,833,497 | ||||||
| Total Corporate Bonds | ||||||
| (cost $378,989,234) | 388,238,857 | |||||
| Asset-Backed Securities - 1.7% | ||||||
| Detroit Edison Securitization Funding LLC 2001-1 A6 | ||||||
| 5,000 | 6.62%, 3/01/16 |
5,460,811 | ||||
| Total Asset-Backed Securities | ||||||
| (cost $5,925,000) | 5,460,811 | |||||
| Shares | ||||||
| Non-Convertible Preferred Stock - 3.7% | ||||||
| Financial - 3.7% | ||||||
| Duke Realty Corp., | ||||||
| 100,000 | 6.95% |
2,548,000 | ||||
| Duke Realty Corp., | ||||||
| 100,000 | 7.25% |
2,585,000 | ||||
| Public Storage, Inc., | ||||||
| 120,000 | 7.25% |
3,135,000 | ||||
| Realty Income Corp., | ||||||
| 100,000 | 7.375% |
2,540,000 | ||||
| Vornado Realty Trust I, | ||||||
| 50,000 | 6.625% |
1,217,500 | ||||
| Total Non-Convertible Preferred Stock | ||||||
| (cost 11,734,000) | 12,025,500 | |||||
| Total Long-Term Investments | ||||||
| (cost $444,746,518) | 450,422,891 | |||||
DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.
PORTFOLIO OF INVESTMENTS-(Continued)
September 30, 2006
(Unaudited)
| Principal Amount (000) |
Description |
Value | ||||
| SHORT-TERM INVESTMENTS - 0.5% |
||||||
| U.S. Treasury Bills, | ||||||
| $1,800 | 4.62%, 10/26/06 (cost $1,794,225) |
$ | 1,794,225 | |||
| Total Investments - 137.5% | ||||||
| (cost $446,540,743) | 452,217,116 | |||||
| Liabilities, less cash and other assets - (37.5%) | (123,326,310 | ) | ||||
| Net Assets - 100% | $ | 328,890,806 | ||||
Notes
Securities Valuation:
The Fund values its fixed income securities by using market quotations, prices provided by market makers or estimates of market values obtained from yield data relating to instruments or securities with similar characteristics in accordance with procedures established by the Board of Directors of the Fund. The relative liquidity of some securities in the Fund’s portfolio may adversely affect the ability of the Fund to accurately value such securities. Any securities or other assets for which such current market quotations are not readily available are valued at fair value as determined in good faith under procedures established by and under the general supervision and responsibility of the Fund’s Board of Directors.
Debt securities having a remaining maturity of 60 days or less when purchased and debt securities originally purchased with maturities in excess of 60 days but which currently have maturities of 60 days or less are valued at cost adjusted for amortization of premiums and accretion of discounts, which approximates market value.
Investments in mutual funds are valued at their net asset value as of the close of the New York Stock Exchange on the date of valuation.
The United States federal income tax basis of the Fund’s investments and the net unrealized depreciation as of September 30, 2006 was as follows:
| Tax Basis of Investment |
Unrealized Appreciation |
Unrealized Depreciation |
Net Unrealized Depreciation | |||
| $466,218,193 | $8,831,965 | $22,833,042 | $14,001,077 |
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)
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 second fiscal quarter of the fiscal half-year 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
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Duff & Phelps Utility and Corporate Bond Trust Inc
| By (Signature and Title) | /s/ ALAN M. MEDER | |
| Alan M. Meder | ||
| Treasurer and Principal Financial Officer | ||
| Date | November 10, 2006 | |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By (Signature and Title) | /s/ NATHAN I. PARTAIN | |
| Nathan I. Partain | ||
| President and Chief Executive Officer | ||
| Date | November 10, 2006 | |
| By (Signature and Title) | /s/ ALAN M. MEDER | |
| Alan M. Meder | ||
| Treasurer and Principal Financial Officer | ||
| Date | November 10, 2006 | |