Investment Commentary and Annual Report to ... - Western Asset

Annual Report to ShareholdersPortfolio of Investments—ContinuedWestern Asset Premier Bond Fund—ContinuedCorporate Bonds and Notes—Continued%OFNET ASSETSRATEMATURITYDATEPAR/SHARESVALUEMulti-Utilities 1.0%Dominion Resources Inc. 5.700% 9/17/12 $ 770,000 $ 762,439MidAmerican Energy Holdings Co. 5.875% 10/1/12 250,000 249,3781,011,817Multiline Retail 0.5%Dollar General Corp. 11.875% 7/15/17 325,000 277,875 BThe Neiman-Marcus Group Inc. 9.000% 10/15/15 260,000 114,400 BThe Neiman-Marcus Group Inc. 7.125% 6/1/28 330,000 155,100547,375Oil, Gas and Consumable Fuels 11.3%Belden and Blake Corp. 8.750% 7/15/12 750,000 513,750Chesapeake Energy Corp. 6.375% 6/15/15 480,000 379,200Chesapeake Energy Corp. 6.625% 1/15/16 30,000 23,700Chesapeake Energy Corp. 7.250% 12/15/18 255,000 198,900Colorado Interstate Gas Co. 6.800% 11/15/15 150,000 129,224DCP Midstream LP 7.875% 8/16/10 750,000 737,338Devon Energy Corp. 7.950% 4/15/32 1,000,000 1,104,490Devon Financing Corp. ULC 6.875% 9/30/11 1,000,000 1,009,161El Paso Corp. 6.375% 2/1/09 333,000 331,316El Paso Corp. 7.750% 6/15/10 1,496,000 1,386,749El Paso Corp. 7.800% 8/1/31 190,000 123,786Exco Resources Inc. 7.250% 1/15/11 465,000 362,700Hess Corp. 7.875% 10/1/29 1,640,000 1,574,370Hess Corp. 7.300% 8/15/31 60,000 54,591International Coal Group Inc. 10.250% 7/15/14 220,000 165,000KazMunaiGaz ExplorationProduction—GDR 8.375% 7/2/13 330,000 257,400 AKinder Morgan Energy Partners LP 7.125% 3/15/12 500,000 482,901Occidental Petroleum Corp. 6.750% 1/15/12 500,000 520,833Parker Drilling Co. 9.625% 10/1/13 300,000 232,500Petrohawk Energy Corp. 9.125% 7/15/13 145,000 117,450SemGroup LP 8.750% 11/15/15 305,000 10,675 A,F,H,MSonat Inc. 7.625% 7/15/11 500,000 455,869Stone Energy Corp. 8.250% 12/15/11 160,000 99,200The Williams Cos. Inc. 7.500% 1/15/31 902,000 604,340The Williams Cos. Inc. 8.750% 3/15/32 85,000 63,325Valero Energy Corp. 7.500% 4/15/32 400,000 319,80911,258,57714