1) U.S. Treasury Notes 2.25%, 02/15/27

1.07 %

2) Bausch Health Cos., Inc. 11.00%, 09/30/28

0.53 %

3) Altice France SA 6.50%, 10/15/31 - 03/15/32

0.48 %

4) Warnermedia Holdings 5.05%, 03/15/42

0.46 %

5) DaVita, Inc. 4.625%, 06/01/30

0.46 %

6) Societe Generale SA 5.512%, 05/22/31

0.43 %

7) Advance Auto Parts, Inc. 7.00%, 08/01/30

0.43 %

8) Dominican Republic Intl Bond 8.625%, 04/20/27

0.40 %

9) Millennium Escrow Corp. 6.625%, 08/01/26

0.38 %

10) TransDigm, Inc. 6.00%, 01/15/33

0.38 %

Investment Type

Portfolio %

Corporates - Non-Investment Grade

Industrial

Consumer Non-Cyclical

7.16 %

Energy

6.52 %

Communications - Media

6.47 %

Capital Goods

4.94 %

Consumer Cyclical - Retailers

4.85 %

Consumer Cyclical - Other

4.35 %

Basic

3.86 %

Communications - Telecommunications

3.27 %

Services

3.19 %

Consumer Cyclical - Automotive

2.65 %

Technology

2.38 %

Transportation - Services

1.75 %

Consumer Cyclical - Entertainment

0.91 %

Consumer Cyclical - Restaurants

0.71 %

Transportation - Airlines

0.54 %

Other Industrial

0.51 %

Transportation - Railroads

0.06 %

SUBTOTAL

54.12 %

Credit Default Swaps

13.22 %

Financial Institutions

Finance

2.24 %

REITs

1.41 %

Brokerage

1.12 %

Financial Services

0.78 %

Banking

0.68 %

Insurance

0.60 %

SUBTOTAL

6.83 %

Utility

Electric

1.17 %

Natural Gas

0.05 %

SUBTOTAL

1.22 %

SUBTOTAL

75.39 %

Corporates - Investment Grade

Industrial

Energy

1.73 %

Consumer Cyclical - Other

1.42 %

Communications - Media

0.86 %

Consumer Cyclical - Automotive

0.77 %

Basic

0.67 %

Consumer Cyclical - Entertainment

0.59 %

Consumer Non-Cyclical

0.38 %

Transportation - Services

0.27 %

Consumer Cyclical - Retailers

0.21 %

Communications - Telecommunications

0.20 %

Transportation - Airlines

0.11 %

Services

0.09 %

Other Industrial

0.07 %

Transportation - Railroads

0.03 %

SUBTOTAL

7.40 %

Financial Institutions

Banking

3.54 %

Insurance

0.68 %

REITs

0.53 %

Finance

0.47 %

Brokerage

0.13 %

SUBTOTAL

5.35 %

Utility

Electric

0.91 %

Other Utility

0.05 %

SUBTOTAL

0.96 %

SUBTOTAL

13.71 %

Emerging Markets - Corporate Bonds

Industrial

Basic

1.64 %

Energy

0.99 %

Consumer Cyclical - Other

0.85 %

Consumer Non-Cyclical

0.58 %

Transportation - Services

0.19 %

Capital Goods

0.16 %

Communications - Telecommunications

0.16 %

Communications - Media

0.07 %

Services

0.02 %

SUBTOTAL

4.66 %

Utility

Electric

0.49 %

Other Utility

0.10 %

SUBTOTAL

0.59 %

Financial Institutions

Banking

0.22 %

Finance

0.05 %

SUBTOTAL

0.27 %

SUBTOTAL

5.52 %

Bank Loans

Industrial

Technology

1.49 %

Consumer Non-Cyclical

0.85 %

Communications - Media

0.73 %

Communications - Telecommunications

0.35 %

Capital Goods

0.21 %

Other Industrial

0.20 %

Transportation - Airlines

0.17 %

Transportation - Services

0.17 %

Consumer Cyclical - Retailers

0.13 %

Consumer Cyclical - Other

0.12 %

Consumer Cyclical - Automotive

0.09 %

Basic

0.06 %

Consumer Cyclical - Restaurants

0.02 %

SUBTOTAL

4.59 %

Financial Institutions

Insurance

0.29 %

Financial Services

0.19 %

Brokerage

0.15 %

Finance

0.15 %

Banking

0.02 %

SUBTOTAL

0.80 %

SUBTOTAL

5.39 %

Emerging Markets - Sovereigns

Emerging Markets - Sovereigns

3.32 %

Credit Default Swaps

-0.25 %

SUBTOTAL

3.07 %

Interest Rate Futures

2.17 %

U.S. Govt & Agency Securities

1.64 %

Collateralized Mortgage Obligations

Risk Share Floating Rate

0.89 %

Non-Agency Fixed Rate

0.29 %

Non-Agency Floating Rate

0.25 %

Agency Fixed Rate

0.17 %

SUBTOTAL

1.60 %

Quasi-Sovereigns

Quasi-Sovereign Bonds

1.41 %

SUBTOTAL

1.41 %

EM Governments

0.79 %

Local Governments - US Municipal Bonds

0.38 %

Common Stocks

0.32 %

Inflation-Linked Securities

0.28 %

Emerging Markets - Treasuries

0.27 %

Collateralized Loan Obligations

CLO - Floating Rate

0.21 %

SUBTOTAL

0.21 %

Commercial Mortgage-Backed Securities

Non-Agency Fixed Rate CMBS

0.19 %

SUBTOTAL

0.19 %

Forward Currency Exchange Contracts

Currency Instruments

0.15 %

SUBTOTAL

0.15 %

Asset-Backed Securities

Other ABS - Floating Rate

0.12 %

Autos - Fixed Rate

0.03 %

SUBTOTAL

0.15 %

Governments - Sovereign Agencies

0.05 %

Preferred Stocks

Industrials

0.03 %

SUBTOTAL

0.03 %

Rights

Industrial

0.01 %

SUBTOTAL

0.01 %

Reverse Repurchase Agreements

-0.39 %

Cash & Cash Equivalents

Funds and Investment Trusts

2.45 %

Cash

0.50 %

SUBTOTAL

2.95 %

Derivative Offsets

Futures Offsets

-2.18 %

Swap Offsets

-13.11 %

SUBTOTAL

-15.29 %

TOTAL

100.00 %

Country Breakdown

Portfolio %

United States

65.77 %

France

3.03 %

Canada

2.96 %

United Kingdom

2.94 %

Brazil

1.47 %

Mexico

1.44 %

Italy

1.25 %

Spain

1.22 %

Colombia

1.20 %

Germany

1.10 %

India

1.02 %

Turkey

0.90 %

Luxembourg

0.84 %

Australia

0.74 %

South Africa

0.67 %

Nigeria

0.62 %

Hong Kong

0.61 %

Chile

0.55 %

Israel

0.53 %

Japan

0.46 %

Netherlands

0.44 %

Ireland

0.41 %

Angola

0.40 %

Dominican Republic

0.40 %

Finland

0.38 %

Indonesia

0.36 %

Peru

0.36 %

Argentina

0.35 %

Senegal

0.35 %

China

0.34 %

Macau

0.34 %

Norway

0.34 %

Romania

0.33 %

Switzerland

0.28 %

Puerto Rico

0.27 %

Egypt

0.26 %

El Salvador

0.22 %

Jersey (Channel Islands)

0.22 %

Slovenia

0.22 %

Ecuador

0.21 %

Guatemala

0.21 %

Panama

0.19 %

Kazakhstan

0.16 %

Zambia

0.16 %

Kenya

0.15 %

Uzbekistan

0.13 %

Azerbaijan

0.11 %

Poland

0.09 %

Ukraine

0.09 %

Malaysia

0.08 %

Cayman Islands

0.07 %

Greece

0.07 %

Trinidad and Tobago

0.06 %

Jamaica

0.05 %

Morocco

0.05 %

Kuwait

0.04 %

Serbia

0.03 %

Cash & Cash Equivalents

2.46 %

Total Investments

100.00 %

Net Currency Exposure Breakdown

Portfolio %

US Dollar

100.26 %

Canadian Dollar

0.17 %

Pound Sterling

0.15 %

Norwegian Krone

0.02 %

Indonesian Rupiah

0.01 %

South Korean Won

0.01 %

South African Rand

0.01 %

Swiss Franc

-0.01 %

Chinese Yuan Renminbi (Offshore)

-0.01 %

Czech Koruna

-0.01 %

New Zealand Dollar

-0.01 %

Euro

-0.59 %

Total Net Assets

100.00 %

Credit Rating

Portfolio %

AAA

2.54 %

AA

-1.03 %

A

0.90 %

BBB

14.60 %

BB

44.64 %

B

24.17 %

CCC

8.28 %

CC

0.08 %

D

0.06 %

Not Rated

2.14 %

Short Term Investments

2.45 %

Reverse Repurchase Agreements

-0.39 %

N/A

1.56 %

Total

100.00 %

Bonds by Maturity

Portfolio %

Less than 1 Year

11.30 %

1 to 5 Years

69.10 %

5 to 10 Years

15.34 %

10 to 20 Years

2.75 %

20 to 30 Years

0.86 %

More than 30 Years

0.33 %

Other

0.32 %

Total Net Assets

100.00 %

Portfolio Statistics:

Average Coupon:

7.26 %

Average Bond Price:

97.82

Percentage of Leverage(based on gross assets):

Bank Borrowing:

0.00 %

Investment Operations:*

13.63 %

Preferred Stock:

0.00 %

Tender Option Bonds:

0.00 %

VMTP Shares:

0.00 %

VRDP Shares:

0.00 %

Total Fund Leverage:

13.63 %

Average Maturity:

    4.14 Years

Effective Duration:

    2.95 Years

Total Net Assets:

$991.10 Million

Net Asset Value:

$11.49

Total Number of Holdings:

1,244

Portfolio Turnover:

68.00 %

* Investment Operations may include the use of certain portfolio management techniques such as credit default swaps, dollar rolls, negative cash, reverse repurchase agreements and when-issued securities.

The foregoing portfolio characteristics are as of the date indicated and can be expected to change. The Fund is a closed-end U.S.-registered management investment company advised by AllianceBernstein L. P.