UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number

811-08460

 

 

MORGAN STANLEY GLOBAL OPPORTUNITY BOND FUND, INC.

(Exact name of registrant as specified in charter)

 

522 FIFTH AVENUE NEW YORK, NY

 

10036

(Address of principal executive offices)

 

(Zip code)

 

RANDY TAKIAN
522 FIFTH AVENUE NEW YORK, NY, 10036

(Name and address of agent for service)

 

Registrant's telephone number, including area code:

1-800-231-2608

 

 

Date of fiscal year end:

12/31

 

 

 

 

Date of reporting period:

3/31/09

 

 



 

Item 1. Schedule of Investments.

 

The Fund’s schedule of investment as of the close of the reporting period prepared pursuant to Rule 12-12 Regulation S-X is as follows:

 



 

Morgan Stanley Global Opportunity Bond Fund, Inc.

Portfolio of Investments

First Quarter Report

March 31, 2009 (unaudited)

(Showing Percentage of Total Value of Investments)

 

 

 

Face Amount
(000)

 

Value
(000)

 

DEBT INSTRUMENTS (98.2%)

 

 

 

 

 

Argentina (0.1%)

 

 

 

 

 

Sovereign (0.1%)

 

 

 

 

 

Republic of Argentina,

 

 

 

 

 

8.28%, 12/31/33

 

$

134

 

$

37

 

 

 

 

 

 

 

Brazil (7.0%)

 

 

 

 

 

Sovereign (7.0%)

 

 

 

 

 

Banco Nacional de Desenvolvimento Economico e Social,

 

 

 

 

 

6.37%, 6/16/18(a)

 

100

 

95

 

Federative Republic of Brazil,

 

 

 

 

 

6.00%, 1/17/17(b)

 

310

 

311

 

7.13%, 1/20/37

 

40

 

40

 

8.00%, 1/15/18

 

190

 

208

 

8.88%, 10/14/19 - 4/15/24

 

476

 

559

 

10.50%, 7/14/14

 

130

 

161

 

11.00%, 8/17/40(b)

 

420

 

536

 

 

 

 

 

1,910

 

Bulgaria (0.4%)

 

 

 

 

 

Sovereign (0.4%)

 

 

 

 

 

Republic of Bulgaria,

 

 

 

 

 

8.25%, 1/15/15(a)

 

101

 

102

 

 

 

 

 

 

 

Canada (1.0%)

 

 

 

 

 

Corporate (1.0%)

 

 

 

 

 

Bombardier, Inc.,

 

 

 

 

 

6.30%, 5/1/14(a)

 

250

 

177

 

Novelis, Inc.,

 

 

 

 

 

7.25%, 2/15/15

 

175

 

71

 

OPTI Canada, Inc.,

 

 

 

 

 

8.25%, 12/15/14

 

75

 

34

 

 

 

 

 

282

 

Chile (0.6%)

 

 

 

 

 

Sovereign (0.6%)

 

 

 

 

 

Empresa Nacional de Petroleo,

 

 

 

 

 

6.75%, 11/15/12(a)

 

150

 

153

 

 

 

 

 

 

 

Colombia (1.2%)

 

 

 

 

 

Sovereign (1.2%)

 

 

 

 

 

Republic of Colombia,

 

 

 

 

 

7.38%, 1/27/17 - 3/18/19

 

140

 

142

 

11.75%, 2/25/20

 

140

 

175

 

 

 

 

 

317

 

Ecuador (0.4%)

 

 

 

 

 

Sovereign (0.4%)

 

 

 

 

 

Republic of Ecuador,

 

 

 

 

 

9.38%, 12/15/15

 

120

 

53

 

9.95%, 8/15/30(c)

 

190

 

58

 

 

 

 

 

111

 

France (0.7%)

 

 

 

 

 

Corporate (0.7%)

 

 

 

 

 

Cie Generale de Geophysique-Veritas S.A.,

 

 

 

 

 

7.50%, 5/15/15

 

240

 

191

 

 

 

 

 

 

 

Ghana (0.2%)

 

 

 

 

 

Sovereign (0.2%)

 

 

 

 

 

Republic of Ghana,

 

 

 

 

 

8.50%, 10/4/17(a)

 

100

 

61

 

 

 

 

 

 

 

Indonesia (3.5%)

 

 

 

 

 

Corporate (0.7%)

 

 

 

 

 

Pindo Deli Finance Mauritius,

 

 

 

 

 

Tranche A, 3.18%, 4/28/15(a)(d)

 

25

 

14

 

Tranche B, 3.18%, 4/28/18(a)(d)

 

146

 

37

 

Tranche C, Zero Coupon, 4/28/25(d)

 

587

 

32

 

Tjiwi Kimia Finance Mauritius Ltd.,

 

 

 

 

 

Tranche A, 3.18%, 4/28/15(d)

 

87

 

48

 

Tranche B, 3.15%, 4/28/18(a)(d)

 

144

 

37

 

Tranche C, Zero Coupon, 4/28/27(a)(d)

 

268

 

15

 

 

 

 

 

183

 

Sovereign (2.8%)

 

 

 

 

 

Republic of Indonesia,

 

 

 

 

 

6.88%, 1/17/18

 

100

 

81

 

6.88%, 1/17/18(a)

 

192

 

156

 

7.75%, 1/17/38(a)

 

223

 

174

 

11.63%, 3/4/19(a)

 

340

 

371

 

 

 

 

 

782

 

 

 

 

 

965

 

Ivory Coast (0.1%)

 

 

 

 

 

Sovereign (0.1%)

 

 

 

 

 

Ivory Coast,

 

 

 

 

 

Zero Coupon, 3/31/18(c)

 

180

 

33

 

 

 

 

 

 

 

Kazakhstan (1.3%)

 

 

 

 

 

Sovereign (1.3%)

 

 

 

 

 

Intergas Finance BV,

 

 

 

 

 

6.38%, 5/14/17

 

90

 

53

 

KazMunaiGaz Finance Sub BV,

 

 

 

 

 

9.13%, 7/2/18(a)

 

400

 

296

 

 

 

 

 

349

 

Luxembourg (0.9%)

 

 

 

 

 

Corporate (0.9%)

 

 

 

 

 

FMC Finance III S.A.,

 

 

 

 

 

6.88%, 7/15/17

 

120

 

118

 

Wind Acquisition Finance S.A.,

 

 

 

 

 

10.75%, 12/1/15(a)

 

115

 

114

 

 

 

 

 

232

 

Mexico (5.1%)

 

 

 

 

 

Sovereign (5.1%)

 

 

 

 

 

Pemex Project Funding Master Trust,

 

 

 

 

 

2.62%, 6/15/10(a)(d)

 

330

 

317

 

8.63%, 12/1/23

 

250

 

236

 

United Mexican States,

 

 

 

 

 

5.63%, 1/15/17

 

1

 

1

 

5.95%, 3/19/19(b)

 

482

 

472

 

6.75%, 9/27/34

 

355

 

336

 

8.38%, 1/14/11

 

43

 

48

 

 

 

 

 

1,410

 

 



 

Morgan Stanley Global Opportunity Bond Fund, Inc.

Portfolio of Investments

First Quarter Report

March 31, 2009 (unaudited)

(Showing Percentage of Total Value of Investments)

 

 

 

Face Amount
(000)

 

Value
(000)

 

Netherlands (0.4%)

 

 

 

 

 

Corporate (0.4%)

 

 

 

 

 

Intergen N.V.,

 

 

 

 

 

9.00%, 6/30/17(a)

 

$

105

 

$

96

 

 

 

 

 

 

 

Nigeria (0.7%)

 

 

 

 

 

Sovereign (0.7%)

 

 

 

 

 

UBS AG, Federal Republic of Nigeria, Credit Linked Unsecured Notes,

 

 

 

 

 

Zero Coupon, 4/9/09(e)

 

NGN

27,400

 

185

 

 

 

 

 

 

 

Panama (0.6%)

 

 

 

 

 

Sovereign (0.6%)

 

 

 

 

 

Republic of Panama,

 

 

 

 

 

8.88%, 9/30/27

 

$

53

 

57

 

9.38%, 4/1/29

 

106

 

117

 

 

 

 

 

174

 

Peru (2.4%)

 

 

 

 

 

Sovereign (2.4%)

 

 

 

 

 

Republic of Peru,

 

 

 

 

 

6.55%, 3/14/37

 

105

 

94

 

7.13%, 3/30/19

 

180

 

183

 

8.38%, 5/3/16

 

40

 

45

 

8.75%, 11/21/33(b)

 

305

 

343

 

 

 

 

 

665

 

Philippines (2.6%)

 

 

 

 

 

Sovereign (2.6%)

 

 

 

 

 

Republic of Philippines,

 

 

 

 

 

8.38%, 6/17/19

 

100

 

110

 

8.88%, 3/17/15

 

219

 

253

 

9.00%, 2/15/13

 

180

 

207

 

9.50%, 2/2/30

 

113

 

134

 

 

 

 

 

704

 

Qatar (0.5%)

 

 

 

 

 

Sovereign (0.5%)

 

 

 

 

 

State of Qatar (Registered),

 

 

 

 

 

9.75%, 6/15/30

 

110

 

140

 

 

 

 

 

 

 

Russia (5.4%)

 

 

 

 

 

Corporate (0.7%)

 

 

 

 

 

TNK-BP Finance S.A.,

 

 

 

 

 

7.88%, 3/13/18(a)

 

295

 

208

 

 

 

 

 

 

 

Sovereign (4.7%)

 

 

 

 

 

RSHB Capital S.A. for OJSC Russian Agricultural Bank,

 

 

 

 

 

6.30%, 5/15/17(a)

 

100

 

70

 

7.18%, 5/16/13

 

100

 

82

 

7.18%, 5/16/13(a)

 

210

 

173

 

Russian Federation,

 

 

 

 

 

7.50%, 3/31/30(a)(f)

 

289

 

273

 

Russian Federation (Registered),

 

 

 

 

 

7.50%, 3/31/30(b)(f)

 

410

 

388

 

12.75%, 6/24/28

 

225

 

298

 

 

 

 

 

1,284

 

 

 

 

 

1,492

 

Singapore (0.2%)

 

 

 

 

 

Corporate (0.2%)

 

 

 

 

 

Flextronics International Ltd.,

 

 

 

 

 

6.50%, 5/15/13

 

60

 

54

 

 

 

 

 

 

 

South Africa (0.4%)

 

 

 

 

 

Sovereign (0.4%)

 

 

 

 

 

Republic of South Africa,

 

 

 

 

 

7.38%, 4/25/12

 

110

 

114

 

 

 

 

 

 

 

South Korea (0.2%)

 

 

 

 

 

Sovereign (0.2%)

 

 

 

 

 

Korea Development Bank,

 

 

 

 

 

8.00%, 1/23/14

 

50

 

51

 

 

 

 

 

 

 

Trinidad (0.4%)

 

 

 

 

 

Sovereign (0.4%)

 

 

 

 

 

National Gas Co. of Trinidad & Tobago Ltd.,

 

 

 

 

 

6.05%, 1/15/36(a)

 

172

 

114

 

 

 

 

 

 

 

Turkey (3.9%)

 

 

 

 

 

Sovereign (3.9%)

 

 

 

 

 

Republic of Turkey,

 

 

 

 

 

6.75%, 4/3/18

 

639

 

591

 

6.88%, 3/17/36

 

301

 

241

 

8.00%, 2/14/34

 

47

 

42

 

11.50%, 1/23/12

 

20

 

23

 

11.88%, 1/15/30

 

134

 

178

 

 

 

 

 

1,075

 

United Kingdom (0.8%)

 

 

 

 

 

Corporate (0.8%)

 

 

 

 

 

Virgin Media Finance plc,

 

 

 

 

 

8.75%, 4/15/14

 

120

 

114

 

9.13%, 8/15/16

 

100

 

93

 

 

 

 

 

207

 

United States (54.3%)

 

 

 

 

 

Corporate (54.1%)

 

 

 

 

 

AES Corp. (The),

 

 

 

 

 

7.75%, 3/1/14

 

40

 

36

 

8.00%, 6/1/20(a)(b)

 

160

 

131

 

8.75%, 5/15/13(a)

 

190

 

188

 

Airgas, Inc.,

 

 

 

 

 

7.13%, 10/1/18(a)

 

135

 

130

 

Allied Waste North America, Inc.,

 

 

 

 

 

7.25%, 3/15/15

 

135

 

128

 

AMC Entertainment, Inc.,

 

 

 

 

 

8.63%, 8/15/12

 

75

 

74

 

American Tower Corp.,

 

 

 

 

 

7.13%, 10/15/12

 

120

 

121

 

7.50%, 5/1/12

 

75

 

76

 

Anixter, Inc.,

 

 

 

 

 

10.00%, 3/15/14

 

160

 

149

 

Aramark Corp.,

 

 

 

 

 

8.50%, 2/1/15

 

180

 

167

 

ArvinMeritor, Inc.,

 

 

 

 

 

8.75%, 3/1/12

 

85

 

31

 

Axcan Intermediate Holdings, Inc.,

 

 

 

 

 

12.75%, 3/1/16

 

40

 

37

 

Baldor Electric Co.,

 

 

 

 

 

8.63%, 2/15/17

 

40

 

32

 

Berry Plastics Corp.,

 

 

 

 

 

8.88%, 9/15/14

 

125

 

71

 

Biomet, Inc.,

 

 

 

 

 

11.63%, 10/15/17

 

205

 

182

 

 



 

Morgan Stanley Global Opportunity Bond Fund, Inc.

Portfolio of Investments

First Quarter Report

March 31, 2009 (unaudited)

(Showing Percentage of Total Value of Investments)

 

 

 

Face Amount
(000)

 

Value
(000)

 

United States (cont’d)

 

 

 

 

 

Boyd Gaming Corp.,

 

 

 

 

 

7.75%, 12/15/12

 

$

215

 

$

174

 

Brown Shoe Co., Inc.,

 

 

 

 

 

8.75%, 5/1/12(b)

 

100

 

82

 

Chaparral Energy, Inc.,

 

 

 

 

 

8.50%, 12/1/15(b)

 

140

 

49

 

8.88%, 2/1/17

 

20

 

7

 

Charter Communications Operating LLC/Charter Communications Operating Capital,

 

 

 

 

 

10.88%, 9/15/14(a)(b)(c)

 

215

 

210

 

Chesapeake Energy Corp.,

 

 

 

 

 

6.38%, 6/15/15

 

25

 

21

 

7.50%, 9/15/13(b)

 

280

 

258

 

7.63%, 7/15/13

 

25

 

23

 

CHS/Community Health Systems, Inc.,

 

 

 

 

 

8.88%, 7/15/15

 

330

 

314

 

Cimarex Energy Co.,

 

 

 

 

 

7.13%, 5/1/17

 

30

 

24

 

Constellation Brands, Inc.,

 

 

 

 

 

7.25%, 9/1/16 - 5/15/17

 

150

 

143

 

Crown Americas LLC/Crown Americas Capital Corp.,

 

 

 

 

 

7.63%, 11/15/13(b)

 

70

 

71

 

CSC Holdings, Inc.,

 

 

 

 

 

8.63%, 2/15/19(a)

 

355

 

343

 

DaVita, Inc.,

 

 

 

 

 

6.63%, 3/15/13

 

145

 

141

 

Dex Media West LLC/Dex Media West Finance Co.,

 

 

 

 

 

9.88%, 8/15/13

 

69

 

14

 

DirecTV Holdings LLC/DirecTV Financing Co.,

 

 

 

 

 

6.38%, 6/15/15

 

15

 

14

 

7.63%, 5/15/16

 

220

 

217

 

Dish DBS Corp.,

 

 

 

 

 

6.38%, 10/1/11

 

75

 

73

 

6.63%, 10/1/14

 

250

 

224

 

Dynegy Holdings, Inc.,

 

 

 

 

 

7.75%, 6/1/19

 

95

 

62

 

Edison Mission Energy,

 

 

 

 

 

7.75%, 6/15/16

 

250

 

191

 

El Paso Corp.,

 

 

 

 

 

12.00%, 12/12/13

 

190

 

201

 

Expedia, Inc.,

 

 

 

 

 

8.50%, 7/1/16(a)

 

200

 

171

 

Eye Care Centers of America,

 

 

 

 

 

10.75%, 2/15/15

 

165

 

151

 

Fisher Scientific International, Inc.,

 

 

 

 

 

6.13%, 7/1/15(b)

 

170

 

169

 

Ford Motor Credit Co. LLC,

 

 

 

 

 

7.00%, 10/1/13(b)

 

155

 

104

 

7.25%, 10/25/11(b)

 

235

 

167

 

Forest Oil Corp.,

 

 

 

 

 

7.25%, 6/15/19

 

25

 

20

 

7.75%, 5/1/14

 

65

 

58

 

Foundation PA Coal Co. LLC,

 

 

 

 

 

7.25%, 8/1/14

 

35

 

32

 

Freeport-McMoran Copper & Gold, Inc.,

 

 

 

 

 

8.38%, 4/1/17

 

185

 

173

 

Fresenius Medical Care Capital Trust IV,

 

 

 

 

 

7.88%, 6/15/11

 

35

 

36

 

Fresenius U.S. Finance II, Inc.,

 

 

 

 

 

9.00%, 7/15/15(a)

 

150

 

157

 

Frontier Communications Corp.,

 

 

 

 

 

9.00%, 8/15/31

 

145

 

100

 

General Motors Acceptance Corp. LLC,

 

 

 

 

 

6.75%, 12/1/14(a)

 

119

 

69

 

6.88%, 9/15/11(a)

 

161

 

115

 

General Motors Corp.,

 

 

 

 

 

8.38%, 7/15/33

 

85

 

11

 

Georgia-Pacific LLC,

 

 

 

 

 

7.13%, 1/15/17(a)

 

205

 

191

 

Glatfelter,

 

 

 

 

 

7.13%, 5/1/16

 

30

 

26

 

Graham Packaging Co. LP/GPC Capital Corp. I,

 

 

 

 

 

9.88%, 10/15/14(b)

 

165

 

107

 

Graphic Packaging International, Inc.,

 

 

 

 

 

9.50%, 8/15/13

 

85

 

61

 

Harrah’s Operating Co., Inc.,

 

 

 

 

 

10.00%, 12/15/15(a)

 

147

 

46

 

HCA, Inc.,

 

 

 

 

 

5.75%, 3/15/14

 

55

 

36

 

6.25%, 2/15/13(b)

 

90

 

68

 

7.58%, 9/15/25

 

65

 

34

 

7.69%, 6/15/25

 

25

 

13

 

9.13%, 11/15/14(b)

 

220

 

207

 

Healthsouth Corp.,

 

 

 

 

 

10.75%, 6/15/16

 

110

 

108

 

Hexcel Corp.,

 

 

 

 

 

6.75%, 2/1/15

 

95

 

81

 

Hilcorp Energy I LP/Hilcorp Finance Co.,

 

 

 

 

 

7.75%, 11/1/15(a)

 

185

 

136

 

Host Hotels & Resorts LP,

 

 

 

 

 

6.38%, 3/15/15

 

80

 

60

 

7.13%, 11/1/13(b)

 

90

 

73

 

Idearc, Inc.,

 

 

 

 

 

8.00%, 11/15/16(c)

 

300

 

9

 

Innophos Holdings, Inc.,

 

 

 

 

 

9.50%, 4/15/12(a)

 

50

 

35

 

Innophos, Inc.,

 

 

 

 

 

8.88%, 8/15/14

 

80

 

66

 

Intelsat Corp.,

 

 

 

 

 

9.25%, 6/15/16(a)(b)

 

320

 

298

 

Interface, Inc.,

 

 

 

 

 

9.50%, 2/1/14

 

90

 

64

 

10.38%, 2/1/10

 

30

 

29

 

Invacare Corp.,

 

 

 

 

 

9.75%, 2/15/15

 

20

 

19

 

 



 

Morgan Stanley Global Opportunity Bond Fund, Inc.

Portfolio of Investments

First Quarter Report

March 31, 2009 (unaudited)

(Showing Percentage of Total Value of Investments)

 

 

 

Face Amount
(000)

 

Value
(000)

 

United States (cont’d)

 

 

 

 

 

Ipalco Enterprises, Inc.,

 

 

 

 

 

8.63%, 11/14/11

 

$

30

 

$

29

 

Iron Mountain, Inc.,

 

 

 

 

 

7.75%, 1/15/15

 

40

 

40

 

8.63%, 4/1/13(b)

 

130

 

131

 

8.75%, 7/15/18

 

150

 

149

 

Johnsondiversey, Inc.,

 

 

 

 

 

9.63%, 5/15/12(b)

 

125

 

114

 

KAR Holdings, Inc.,

 

 

 

 

 

8.75%, 5/1/14

 

30

 

16

 

Key Energy Services, Inc.,

 

 

 

 

 

8.38%, 12/1/14

 

100

 

64

 

Knight, Inc.,

 

 

 

 

 

6.50%, 9/1/12

 

41

 

38

 

Koppers, Inc.,

 

 

 

 

 

9.88%, 10/15/13

 

45

 

41

 

L-3 Communications Corp.,

 

 

 

 

 

7.63%, 6/15/12

 

70

 

70

 

Las Vegas Sands Corp.,

 

 

 

 

 

6.38%, 2/15/15

 

100

 

47

 

LIN Television Corp.,

 

 

 

 

 

6.50%, 5/15/13

 

40

 

21

 

Massey Energy Co.,

 

 

 

 

 

6.88%, 12/15/13

 

210

 

184

 

Medco Health Solutions, Inc.,

 

 

 

 

 

7.13%, 3/15/18

 

60

 

60

 

MGM Mirage,

 

 

 

 

 

6.00%, 10/1/09(b)

 

270

 

147

 

13.00%, 11/15/13(a)

 

175

 

131

 

Michael Foods, Inc.,

 

 

 

 

 

8.00%, 11/15/13

 

75

 

67

 

Mirant Americas Generation LLC,

 

 

 

 

 

8.50%, 10/1/21

 

245

 

183

 

Mohegan Tribal Gaming Authority,

 

 

 

 

 

6.38%, 7/15/09

 

75

 

62

 

Nalco Co.,

 

 

 

 

 

7.75%, 11/15/11

 

55

 

54

 

Neiman Marcus Group, Inc. (The) PIK,

 

 

 

 

 

9.00%, 10/15/15

 

80

 

26

 

Newfield Exploration Co.,

 

 

 

 

 

6.63%, 9/1/14(b)

 

190

 

173

 

7.13%, 5/15/18

 

25

 

22

 

Nextel Communications, Inc.,

 

 

 

 

 

6.88%, 10/31/13

 

70

 

40

 

Nielsen Finance LLC/Nielsen Finance Co.,

 

 

 

 

 

11.63%, 2/1/14(a)

 

75

 

68

 

Nortek, Inc.,

 

 

 

 

 

8.50%, 9/1/14

 

130

 

14

 

NRG Energy, Inc.,

 

 

 

 

 

7.38%, 1/15/17

 

90

 

84

 

Omnicare, Inc.,

 

 

 

 

 

6.75%, 12/15/13

 

95

 

87

 

6.88%, 12/15/15

 

80

 

72

 

Orion Power Holdings, Inc.,

 

 

 

 

 

12.00%, 5/1/10

 

250

 

259

 

Ormat Funding Corp.,

 

 

 

 

 

8.25%, 12/30/20(e)

 

128

 

97

 

Owens-Illinois, Inc.,

 

 

 

 

 

7.50%, 5/15/10(b)

 

285

 

289

 

Oxford Industries, Inc.,

 

 

 

 

 

8.88%, 6/1/11(b)

 

75

 

55

 

Pacific Energy Partners LP/Pacific Energy Finance Corp.,

 

 

 

 

 

7.13%, 6/15/14

 

90

 

83

 

PetroHawk Energy Corp.,

 

 

 

 

 

10.50%, 8/1/14(a)

 

160

 

160

 

Phillips-Van Heusen Corp.,

 

 

 

 

 

7.25%, 2/15/11(b)

 

125

 

121

 

Pioneer Natural Resources Co.,

 

 

 

 

 

6.65%, 3/15/17

 

275

 

210

 

Plains Exploration & Production Co.,

 

 

 

 

 

7.63%, 6/1/18

 

25

 

20

 

7.75%, 6/15/15

 

190

 

164

 

10.00%, 3/1/16

 

105

 

100

 

Pulte Homes, Inc.,

 

 

 

 

 

6.38%, 5/15/33

 

15

 

9

 

Qwest Capital Funding, Inc.,

 

 

 

 

 

7.25%, 2/15/11

 

155

 

149

 

RBS Global, Inc./Rexnord LLC,

 

 

 

 

 

9.50%, 8/1/14

 

125

 

102

 

Reliant Energy, Inc.,

 

 

 

 

 

7.88%, 6/15/17

 

240

 

191

 

Residential Capital LLC,

 

 

 

 

 

8.50%, 5/15/10(a)

 

5

 

4

 

Rite Aid Corp.,

 

 

 

 

 

8.63%, 3/1/15

 

115

 

26

 

Sally Holdings LLC/Sally Capital, Inc.,

 

 

 

 

 

9.25%, 11/15/14

 

190

 

181

 

SandRidge Energy, Inc. PIK,

 

 

 

 

 

8.63%, 4/1/15

 

175

 

115

 

Select Medical Corp.,

 

 

 

 

 

7.63%, 2/1/15

 

160

 

104

 

Sierra Pacific Power Co.,

 

 

 

 

 

6.25%, 4/15/12

 

70

 

71

 

Smithfield Foods, Inc.,

 

 

 

 

 

7.00%, 8/1/11(b)

 

70

 

54

 

8.00%, 10/15/09

 

25

 

25

 

Sonic Automotive, Inc.,

 

 

 

 

 

8.63%, 8/15/13

 

55

 

17

 

Sprint Capital Corp.,

 

 

 

 

 

6.90%, 5/1/19(b)

 

145

 

103

 

Sprint Nextel Corp.,

 

 

 

 

 

6.00%, 12/1/16(b)

 

140

 

101

 

Sun Healthcare Group, Inc.,

 

 

 

 

 

9.13%, 4/15/15

 

65

 

61

 

SunGard Data Systems, Inc.,

 

 

 

 

 

9.13%, 8/15/13

 

95

 

83

 

SUPERVALU, Inc.,

 

 

 

 

 

7.50%, 5/15/12 - 11/15/14

 

115

 

113

 

Tenet Healthcare Corp.,

 

 

 

 

 

7.38%, 2/1/13(b)

 

185

 

148

 

 



 

Morgan Stanley Global Opportunity Bond Fund, Inc.

Portfolio of Investments

First Quarter Report

March 31, 2009 (unaudited)

(Showing Percentage of Total Value of Investments)

 

 

 

Face Amount
(000)

 

Value
(000)

 

United States (cont’d)

 

 

 

 

 

9.88%, 7/1/14

 

$

170

 

$

133

 

Terra Capital, Inc.,

 

 

 

 

 

7.00%, 2/1/17

 

90

 

83

 

Tesoro Corp.,

 

 

 

 

 

6.50%, 6/1/17

 

300

 

228

 

Texas Competitive Electric Holdings Co. LLC,

 

 

 

 

 

10.25%, 11/1/15

 

405

 

205

 

Ticketmaster Entertainment, Inc.,

 

 

 

 

 

10.75%, 7/28/16(a)

 

375

 

257

 

United Rentals North America, Inc.,

 

 

 

 

 

6.50%, 2/15/12

 

185

 

149

 

Univision Communications, Inc.,

 

 

 

 

 

7.85%, 7/15/11

 

300

 

194

 

Vangent, Inc.,

 

 

 

 

 

9.63%, 2/15/15

 

65

 

43

 

Verso Paper Holdings LLC/Verso Paper, Inc.,

 

 

 

 

 

9.13%, 8/1/14

 

95

 

36

 

Warner Chilcott Corp.,

 

 

 

 

 

8.75%, 2/1/15

 

77

 

74

 

Westlake Chemical Corp.,

 

 

 

 

 

6.63%, 1/15/16

 

90

 

63

 

Williams Cos., Inc. (The),

 

 

 

 

 

7.88%, 9/1/21(b)

 

180

 

167

 

Windstream Corp.,

 

 

 

 

 

8.13%, 8/1/13

 

40

 

40

 

 

 

 

 

14,830

 

Mortgage Securities (0.2%)

 

 

 

 

 

CA FM Lease Trust,

 

 

 

 

 

8.50%, 7/15/17(a)

 

64

 

66

 

 

 

 

 

14,896

 

Uruguay (0.1%)

 

 

 

 

 

Sovereign (0.1%)

 

 

 

 

 

Republic of Uruguay,

 

 

 

 

 

8.00%, 11/18/22

 

44

 

40

 

 

 

 

 

 

 

Venezuela (2.8%)

 

 

 

 

 

Sovereign (2.8%)

 

 

 

 

 

Republic of Venezuela,

 

 

 

 

 

5.75%, 2/26/16

 

79

 

39

 

7.00%, 3/31/38

 

130

 

56

 

8.50%, 10/8/14

 

120

 

75

 

9.00%, 5/7/23

 

49

 

25

 

9.25%, 9/15/27 - 5/7/28

 

1,017

 

561

 

 

 

 

 

756

 

TOTAL DEBT INSTRUMENTS (Cost $30,924)

 

 

 

26,916

 

 

 

 

 

 

 

 

 

Shares

 

 

 

COMMON STOCK (0.0%)

 

 

 

 

 

United States (0.0%)

 

 

 

 

 

SW Acquisition LP  (Cost $— )(e)(g)(h)

 

1

 

 

 

 

 

 

 

 

PREFERRED STOCK (0.1%)

 

 

 

 

 

United States (0.1%)

 

 

 

 

 

Preferred Blocker, Inc., 7.00%
(Cost $33 )(a)

 

63

 

13

 

 

 

 

 

 

 

 

 

No. of
Warrants

 

 

 

WARRANTS (0.2%)

 

 

 

 

 

Nigeria (0.2%)

 

 

 

 

 

Central Bank of Nigeria, expires 11/15/20 (d)

 

500

 

50

 

 

 

 

 

 

 

Venezuela (0.0%)

 

 

 

 

 

Republic of Venezuela, Oil-Linked Payment Obligation, expires 4/15/20 (d)

 

950

 

16

 

TOTAL WARRANTS (Cost $—@)

 

 

 

66

 

 

 

 

 

 

 

 

 

Shares

 

 

 

SHORT-TERM INVESTMENT (1.5%)

 

 

 

 

 

United States (1.5%)

 

 

 

 

 

Investment Company (1.5%)

 

 

 

 

 

Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class
(Cost $417)(i)

 

416,655

 

417

 

TOTAL INVESTMENTS (100.0%) (Cost $31,374) +

 

 

 

27,412

 

LIABILITIES IN EXCESS OF OTHER ASSETS

 

 

 

(2,654

)

NET ASSETS

 

 

 

$

24,758

 

 


(a)

 

144A security — Certain conditions for public sale may exist.  Unless otherwise noted, these securities are deemed to be liquid.

(b)

 

Denotes all or a portion of securities subject to repurchase under the Reverse Repurchase Agreements as of March 31, 2009

(c)

 

Issuer is in default.

(d)

 

Variable/Floating Rate Security — Interest rate changes on these instruments are based on changes in a designated base rate.  The rates shown are those in effect on March 31, 2009.

(e)

 

Security has been deemed illiquid at March 31, 2009.

(f)

 

Step Bond — Coupon rate increases in increments to maturity. Rate disclosed is as of March 31, 2009. Maturity date disclosed is the ultimate maturity date.

 



 

Morgan Stanley Global Opportunity Bond Fund, Inc.

Portfolio of Investments

First Quarter Report

March 31, 2009 (unaudited)

(Showing Percentage of Total Value of Investments)

 

(g)

 

At March 31, 2009, the Fund held less than $500 of fair valued securities, representing less than 0.05% of net assets. These securities have been fair valued as determined in good faith under procedures established by and under the general supervision of the Fund’s Directors.

(h)

 

Non-income producing security.

(i)

 

The Fund invests in the Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (the “Liquidity Fund”), an open-end management investment company managed by the Adviser. Investment Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Liquidity Fund. For the period ended March 31, 2009, advisory fees paid were reduced by less than $500 relating to the Fund’s investments in the Liquidity Fund. For the same period, income distributions earned by the Fund are recorded as dividends from affiliates and totaled approximately $1,000. For the period ended March 31, 2009, the approximate cost of purchases and sales in the Liquidity Fund were $6,818,000 and $7,120,000, respectively.

@

 

Value is less than $500.

+

 

At March 31, 2009, the U.S. Federal income tax cost basis of investments was approximately $31,374,000 and, accordingly, net unrealized depreciation for U.S. Federal income tax purposes was $3,962,000 of which $729,000 related to appreciated securities and $4,691,000 related to depreciated securities.

 

 

 

PIK

 

Payment In-Kind

 

NGN — Nigerian Naira

 

Futures Contracts:

 

The Fund had the following futures contract(s) open at period end:

 

 

 

Number
of
Contracts

 

Value
(000)

 

Expiration
Date

 

Net Unrealized
Appreciation
(Depreciation)
(000)

 

Short:

 

 

 

 

 

 

 

 

 

U.S. Treasury 10 yr. Note

 

15

 

$

1,861

 

Jun-09

 

$

(45

)

 



 

At March 31, 2009, the Fund had reverse repurchase agreements outstanding with UBS as follows:

 

 

 

Maturity in

 

 

 

less than

 

UBS Agreement

 

365 Days

 

Value of Securities Subject to Repurchase

 

$

4,688,757

 

Liability Under Reverse Repurchase Agreement

 

$

3,147,006

 

Weighted Average Days to Maturity

 

25.16

 

 



 

Notes to Portfolio of Investments (unaudited)

 

The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“SFAS 157”), effective January 1, 2008. In accordance with SFAS 157, fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. SFAS 157 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in valuing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in valuing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund’s investments. The inputs are summarized in the three broad levels listed below.

 

Level 1 — 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 methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

 

The following is a summary of the inputs used as of March 31, 2009 in valuing the Fund’s investments carried at value:

 

 

 

Investments in

 

Other Financial

 

 

 

Securities

 

Instruments*

 

Valuation Inputs - Assets

 

(000)

 

(000)

 

Level 1 - Quoted Prices

 

$

417

 

 

Level 2 - Other Significant Observable Inputs

 

26,995

 

 

Level 3 - Significant Unobservable Inputs

 

**

 

Total

 

$

27,412

 

 

 

 

 

 

 

 

 

 

Investments in

 

Other Financial

 

 

 

Securities

 

Instruments*

 

Valuation Inputs - Liabilities

 

(000)

 

(000)

 

Level 1 - Quoted Prices

 

$

 

(45

)

Level 2 - Other Significant Observable Inputs

 

 

(3,133

)

Level 3 - Significant Unobservable Inputs

 

 

 

Total

 

$

 

(3,178

)

 

Following is a reconciliation of investmnets in which significant unobservable inputs (Level 3) were used in determining value:

 

 

 

Investments in

 

 

 

 

 

Securities

 

 

 

 

 

(000)

 

 

 

Balance as of 3/31/09

 

 

 

 

 

Accrued discounts/premiums

 

$

**

 

 

Realized gain (loss)

 

 

 

 

Change in unrealized appreciation (depreciation)

 

 

 

 

Net purchases (sales)

 

$

 

 

 

Net transfers in and/or out of Level 3

 

 

 

 

Balance as of 3/31/09

 

**

 

 

The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at Level 3 at 3/31/09.

 

 

 

 

 


* Other financial instruments include futures and reverse repurchase agreements.

** Includes a securitiy which is valued at zero.

 

Security Valuation — Bonds and other fixed income securities may be valued according to the broadest and most representative market. In addition, bonds and other fixed income securities may be valued on the basis of prices provided by a pricing service. The prices provided by a pricing service take into account broker dealer market price quotations for institutional size trading in similar groups of securities, security quality, maturity, coupon and other security characteristics as well as any developments related to the specific securities. Securities listed on a foreign exchange are valued at their closing price. Unlisted securities and listed securities not traded on the valuation date for which market quotations are readily available are valued at the mean between the current bid and asked prices obtained from reputable brokers. Equity securities listed on a U.S. exchange are valued at the latest quoted sales price on the valuation date. Equity securities listed or traded on NASDAQ, for which market quotations are available, are valued at the

 



 

NASDAQ Official Closing Price. Debt securities purchased with remaining maturities of 60 days or less are valued at amortized cost, if it approximates market value.

 

All other securities and investments for which market values are not readily available, including restricted securities, and those securities for which it is inappropriate to determine prices in accordance with the aforementioned procedures, are valued at fair value as determined in good faith under procedures adopted by the Board of Directors (the “Directors”), although the actual calculations may be done by others. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer’s financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances.

 

Most foreign markets close before the New York Stock Exchange (“NYSE”). Occasionally, developments that could affect the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business on the NYSE. If these developments are expected to materially affect the value of the securities, the valuations may be adjusted to reflect the estimated fair value as of the close of the NYSE, as determined in good faith under procedures established by the Directors.

 



 

Item 2. Controls and Procedures.

 

(a) The Fund’s principal executive officer and principal financial officer have concluded that the Fund’s disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Fund in this Form N-Q was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, based upon such officers’ evaluation of these controls and procedures as of a date within 90 days of the filing date of the report.

 

(b) There were no changes in the Fund’s internal control over financial reporting that occurred during the registrant’s fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Fund’s internal control over financial reporting.

 

Item 3. Exhibits.

 



 

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)

Morgan Stanley Global Opportunity Bond Fund, Inc.

 

By:

  /s/ Randy Takian

 

Name:  Randy Takian

 

Title:    Principal Executive Officer

 

Date:    May 19, 2009

 

 

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

 

By:

  /s/ Randy Takian

 

Name:  Randy Takian

 

Title:    Principal Executive Officer

 

Date:    May 19, 2009

 

 

By:

  /s/ James Garrett

 

Name:  James Garrett

 

Title:    Principal Financial Officer

 

Date:    May 19, 2009

 

 


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