Salomon Brothers Global High Income Fund Inc.

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 number 811- 21337

Salomon Brothers Global High Income Fund Inc.

(Exact name of registrant as specified in charter)

125 Broad Street, New York, NY 10004

(Address of principal executive offices) (Zip code)

Robert I. Frenkel, Esq.

Legg Mason & Co., LLC

300 First Stamford Place

Stamford, CT 06902

(Name and address of agent for service)

Registrant’s telephone number, including area code: 1-800-725-6666

Date of fiscal year end: May 31

Date of reporting period: August 31, 2006

 



 

ITEM 1. SCHEDULE OF INVESTMENTS


SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.

FORM N-Q

AUGUST 31, 2006


SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.

 

Schedule of Investments (unaudited)

   August 31, 2006

 

FACE
AMOUNT†
 

SECURITY (a)

     VALUE
CORPORATE BONDS & NOTES - 35.2%   
Aerospace & Defense - 0.4%   
410,000  

Alliant Techsystems Inc., Senior Subordinated Notes, 6.750% due 4/1/16

   $ 399,750
1,150,000  

DRS Technologies Inc., Senior Subordinated Notes, 6.875% due 11/1/13

     1,121,250
845,000  

L-3 Communications Corp., Senior Subordinated Notes, 7.625% due 6/15/12

     870,350
650,000  

Moog Inc., Senior Subordinated Notes, 6.250% due 1/15/15

     617,500
        
 

Total Aerospace & Defense

     3,008,850
        
Airlines - 0.1%     
 

Continental Airlines Inc., Pass-Through Certificates:

  
190,167  

Series 974C, 6.800% due 7/2/07

     181,922
142,411  

Series 1998-1, Class C, 6.541% due 9/15/08

     136,242
475,000  

Series 2001-2, Class D, 7.568% due 12/1/06

     474,546
        
 

Total Airlines

     792,710
        
Auto Components - 0.3%   
750,000   Keystone Automotive Operations Inc., Senior Subordinated Notes, 9.750% due 11/1/13      716,250
347,000   TRW Automotive Inc., Senior Notes, 9.375% due 2/15/13      372,158
 

Visteon Corp., Senior Notes:

  
865,000  

8.250% due 8/1/10

     852,025
280,000  

7.000% due 3/10/14

     249,900
        
  Total Auto Components      2,190,333
        
Automobiles - 1.1%   
 

Ford Motor Co.:

  
 

Debentures:

  
545,000  

8.875% due 1/15/22

     465,975
275,000  

8.900% due 1/15/32

     248,188
7,205,000  

Notes, 7.450% due 7/16/31

     5,691,950
 

General Motors Corp.:

  
570,000  

Notes, 7.200% due 1/15/11

     513,712
 

Senior Debentures:

  
300,000  

8.250% due 7/15/23

     250,500
1,540,000  

8.375% due 7/15/33

     1,297,450
        
  Total Automobiles      8,467,775
        
Biotechnology - 0.0%   
80,000   Angiotech Pharmaceuticals Inc., Senior Subordinated Notes, 7.750% due 4/1/14 (b)      78,400
        
Building Products - 0.5%   
 

Associated Materials Inc.:

  
270,000  

Senior Discount Notes, step bond to yield 16.177% due 3/1/14

     148,500
1,095,000  

Senior Subordinated Notes, 9.750% due 4/15/12

     1,078,575
510,000   Jacuzzi Brands Inc., Secured Notes, 9.625% due 7/1/10      543,150
1,180,000   Nortek Inc., Senior Subordinated Notes, 8.500% due 9/1/14      1,103,300
1,275,000   NTK Holdings Inc., Senior Discount Notes, step bond to yield 11.228% due 3/1/14      860,625
        
  Total Building Products      3,734,150
        
Capital Markets - 0.2%   
815,000   BCP Crystal U.S. Holdings Corp., Senior Subordinated Notes, 9.625% due 6/15/14      887,331
730,000   E*TRADE Financial Corp., Senior Notes, 7.375% due 9/15/13      740,950
        
 

Total Capital Markets

     1,628,281
        

 

See Notes to Schedule of Investments.

 

1


SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)    August 31, 2006

 

FACE
AMOUNT†
 

SECURITY (a)

     VALUE
Chemicals - 0.8%   
750,000  

Equistar Chemicals LP, Senior Notes, 10.625% due 5/1/11

   $ 810,000
 

Huntsman International LLC, Senior Subordinated Notes:

  
762,000  

10.125% due 7/1/09

     781,050
160,000  

8.375% due 1/1/15 (b)

     159,600
175,000  

IMC Global Inc., Senior Notes, 10.875% due 8/1/13

     196,875
1,425,000  

Lyondell Chemical Co., Senior Secured Notes, Series A, 9.625% due 5/1/07

     1,460,625
100,000  

Millennium America Inc., Senior Notes, 9.250% due 6/15/08

     102,750
1,190,000  

Montell Finance Co. BV, Debentures, 8.100% due 3/15/27 (b)

     1,109,675
 

Rhodia SA:

  
410,000  

Senior Notes, 10.250% due 6/1/10

     452,025
825,000  

Senior Subordinated Notes, 8.875% due 6/1/11

     847,687
        
 

Total Chemicals

     5,920,287
        
Commercial Banks - 0.4%   
2,710,000  

Russian Agricultural Bank, Notes, 7.175% due 5/16/13 (b)

     2,804,850
        
Commercial Services & Supplies - 0.8%   
225,000  

Allied Security Escrow Corp., Senior Subordinated Notes, 11.375% due 7/15/11

     223,313
 

Allied Waste North America Inc.:

  
 

Senior Notes, Series B:

  
1,083,000  

9.250% due 9/1/12

     1,164,225
400,000  

7.250% due 3/15/15

     395,000
900,000  

Senior Secured Notes, Series B, 7.375% due 4/15/14

     884,250
600,000  

Corrections Corporation of America, Senior Subordinated Notes, 6.250% due 3/15/13

     582,750
1,118,000  

DynCorp International LLC/DIV Capital Corporation, Senior Subordinated Notes, 9.500% due 2/15/13

     1,159,925
1,225,000  

Windstream Corp., Senior Notes, 8.625% due 8/1/16 (b)

     1,301,562
        
 

Total Commercial Services & Supplies

     5,711,025
        
Communications Equipment - 0.3%   
3,000,000  

Lucent Technologies Inc., Debentures, 6.450% due 3/15/29

     2,572,500
        
Consumer Finance - 1.3%   
 

Ford Motor Credit Co.:

  
 

Notes:

  
50,000  

7.875% due 6/15/10

     49,180
1,300,000  

7.000% due 10/1/13

     1,214,932
 

Senior Notes:

  
1,650,000  

10.486% due 6/15/11 (b)(c)

     1,746,837
115,000  

9.875% due 8/10/11

     120,269
 

General Motors Acceptance Corp., Notes:

  
2,040,000  

6.875% due 8/28/12

     1,993,855
4,830,000  

8.000% due 11/1/31

     4,894,886
        
 

Total Consumer Finance

     10,019,959
        
Containers & Packaging - 1.2%   
1,050,000  

Berry Plastics Corp., Senior Subordinated Notes, 10.750% due 7/15/12

     1,149,750
1,020,000  

Graham Packaging Co. Inc., Senior Subordinated Notes, 9.875% due 10/15/14

     986,850
 

Graphic Packaging International Corp.:

  
590,000  

Senior Notes, 8.500% due 8/15/11

     601,800
535,000  

Senior Subordinated Notes, 9.500% due 8/15/13

     540,350
1,250,000  

JSG Funding PLC, Senior Notes, 9.625% due 10/1/12

     1,310,937
1,575,000  

Owens-Illinois Inc., Senior Notes, 7.350% due 5/15/08

     1,582,875

 

See Notes to Schedule of Investments.

 

2


SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)    August 31, 2006

 

FACE
AMOUNT†
 

SECURITY (a)

     VALUE
Containers & Packaging - 1.2% (continued)   
390,000  

Plastipak Holdings Inc., Senior Notes, 8.500% due 12/15/15 (b)

   $ 390,000
 

Pliant Corp.:

  
381,113  

Senior Secured Notes, 11.625% due 6/15/09

     423,035
100,000  

Senior Secured Second Lien Notes, 11.125% due 9/1/09

     97,000
575,000  

Radnor Holdings Corp., Senior Notes, 11.000% due 3/15/10 (d)

     140,875
 

Smurfit-Stone Container Enterprises Inc., Senior Notes:

  
559,000  

9.750% due 2/1/11

     577,168
745,000  

8.375% due 7/1/12

     713,338
600,000  

Tekni-Plex Inc., Senior Subordinated Notes, Series B, 12.750% due 6/15/10

     435,000
        
 

Total Containers & Packaging

     8,948,978
        
Diversified Consumer Services - 0.4%   
515,000  

Education Management LLC/Education Management Corp., Senior Notes, 8.750% due 6/1/14 (b)

     512,425
 

Hertz Corp.:

  
750,000  

Senior Notes, 8.875% due 1/1/14 (b)

     781,875
1,660,000  

Senior Subordinated Notes, 10.500% due 1/1/16 (b)

     1,796,950
        
 

Total Diversified Consumer Services

     3,091,250
        
Diversified Financial Services - 2.4%   
487,000  

Alamosa Delaware Inc., Senior Notes, 11.000% due 7/31/10

     534,482
755,000  

Basell AF SCA, Senior Subordinated Notes, 8.375% due 8/15/15 (b)

     759,719
550,000  

CCM Merger Inc., Notes, 8.000% due 8/1/13 (b)

     529,375
 

CitiSteel USA Inc., Senior Secured Notes:

  
335,000  

12.490% due 9/1/10 (c)

     345,887
225,000  

15.000% due 10/1/10 (b)(e)

     241,875
3,160,000  

Dow Jones CDX HY, Pass-Through Trust, Series 6-T3, 8.125% due 6/29/11 (b)

     3,161,975
860,000  

El Paso Performance-Linked Trust, Notes, 7.750% due 7/15/11 (b)

     880,425
487,000  

Global Cash Access LLC/Global Cash Finance Corp., Senior Subordinated Notes, 8.750% due 3/15/12

     511,959
300,000  

Hexion U.S. Finance Corp./Hexion Nova Scotia Finance ULC, Second Priority, Senior Secured Notes, 9.000% due 7/15/14

     303,000
525,000  

Hughes Network Systems LLC/HNS Finance Corp., Senior Notes, 9.500% due 4/15/14 (b)

     535,500
6,429,000  

Targeted Return Index Securities (TRAINS), Secured Notes, Series HY-1-2006, 7.548% due 5/1/16 (b)

     6,385,971
1,750,000  

TNK-BP Finance SA, 7.500% due 7/18/16 (b)

     1,819,466
360,000  

UCAR Finance Inc., Senior Notes, 10.250% due 2/15/12

     379,800
430,000  

UGS Corp., Senior Subordinated Notes, 10.000% due 6/1/12

     464,400
890,000  

Vanguard Health Holdings Co. I LLC, Senior Discount Notes, step bond to yield 9.952% due 10/1/15

     645,250
555,000  

Vanguard Health Holdings Co. II LLC, Senior Subordinated Notes, 9.000% due 10/1/14

     541,125
        
 

Total Diversified Financial Services

     18,040,209
        
Diversified Telecommunication Services - 2.1%   
 

Cincinnati Bell Inc.:

  
865,000  

Senior Notes, 7.000% due 2/15/15

     847,700
185,000  

Senior Subordinated Notes, 8.375% due 1/15/14

     186,619
50,000  

Cincinnati Bell Telephone Co., Senior Debentures, 6.300% due 12/1/28

     43,000
660,000  

Citizens Communications Co., Senior Notes, 9.000% due 8/15/31

     699,600
1,020,000  

Hawaiian Telcom Communications Inc., Senior Subordinated Notes, Series B, 12.500% due 5/1/15

     1,048,050
1,000,000  

Insight Midwest LP/Insight Capital Inc., Senior Notes, 10.500% due 11/1/10

     1,055,000

 

See Notes to Schedule of Investments.

 

3


SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)    August 31, 2006

 

FACE
AMOUNT†
 
 
 

SECURITY (a)

     VALUE
Diversified Telecommunication Services - 2.1% (continued)   
 

Intelsat Bermuda Ltd., Senior Notes:

  
755,000    

9.250% due 6/15/16 (b)

   $ 788,975
1,505,000    

11.250% due 6/15/16 (b)

     1,567,081
195,000    

Intelsat Ltd., Notes, 7.625% due 4/15/12

     170,138
500,000    

Nordic Telephone Co. Holdings, Senior Notes, 8.875% due 5/1/16 (b)

     522,500
1,200,000    

NTL Cable PLC, Senior Notes, 8.750% due 4/15/14

     1,251,000
315,000    

PanAmSat Corp., Senior Notes, 9.000% due 8/15/14

     322,087
 

Qwest Communications International Inc., Senior Notes:

  
590,000    

7.500% due 2/15/14

     587,787
1,520,000    

Series B, 7.500% due 2/15/14

     1,514,300
2,155,000    

Qwest Corp., Debentures, 6.875% due 9/15/33

     1,939,500
1,760,000    

Southwestern Bell Telephone Co., Debentures, 7.000% due 11/15/27

     1,772,739
1,255,000    

Telcordia Technologies Inc., Senior Subordinated Notes, 10.000% due 3/15/13 (b)

     1,007,137
8,000,000 MXN  

Telefonos de Mexico SA de CV, 8.750% due 1/31/16

     722,062
155,000    

Wind Acquisition Finance SA, Senior Bond, 10.750% due 12/1/15 (b)

     169,144
        
 

Total Diversified Telecommunication Services

     16,214,419
        
Electric Utilities - 0.3%   
 

Enersis SA Notes:

  
962,000    

7.375% due 1/15/14

     1,015,042
364,000    

7.400% due 12/1/16

     386,734
530,225    

Midwest Generation LLC, Pass-Through Certificates, Series B, 8.560% due 1/2/16

     563,695
280,000    

Orion Power Holdings Inc., Senior Notes, 12.000% due 5/1/10

     319,200
        
 

Total Electric Utilities

     2,284,671
        
Energy Equipment & Services - 0.2%   
969,000    

Dresser-Rand Group Inc., Senior Subordinated Notes, 7.375% due 11/1/14

     937,507
160,000    

GulfMark Offshore Inc., Senior Notes 7.750% due 7/15/14

     160,000
125,000    

Pride International Inc., Senior Notes, 7.375% due 7/15/14

     127,813
        
 

Total Energy Equipment & Services

     1,225,320
        
Food Products - 0.2%   
 

Dole Food Co. Inc., Senior Notes:

  
575,000    

7.250% due 6/15/10

     541,938
432,000    

8.875% due 3/15/11

     423,360
600,000    

Pinnacle Foods Holding Corp., Senior Subordinated Notes, 8.250% due 12/1/13

     592,500
        
 

Total Food Products

     1,557,798
        
Health Care Providers & Services - 1.8%   
1,100,000    

AmeriPath Inc., Senior Subordinated Notes, 10.500% due 4/1/13

     1,168,750
775,000    

Community Health Systems Inc., Senior Subordinated Notes, 6.500% due 12/15/12

     728,500
1,300,000    

DaVita Inc., Senior Subordinated Notes, 7.250% due 3/15/15

     1,280,500
440,000    

Extendicare Health Services Inc., Senior Notes, 9.500% due 7/1/10

     462,000
1,075,000    

Genesis HealthCare Corp., Senior Subordinated Notes, 8.000% due 10/15/13

     1,120,687
 

HCA Inc.:

  
 

Debentures:

  
2,025,000    

7.050% due 12/1/27

     1,447,903
335,000    

7.500% due 11/15/95

     230,470
75,000    

Notes, 7.690% due 6/15/25

     58,334
 

Senior Notes:

  
360,000    

6.375% due 1/15/15

     287,100
200,000    

6.500% due 2/15/16

     158,500

 

See Notes to Schedule of Investments.

 

4


SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)    August 31, 2006

 

FACE
AMOUNT†
 

SECURITY (a)

     VALUE
Health Care Providers & Services - 1.8% (continued)   
1,675,000  

IASIS Healthcare LLC/IASIS Capital Corp., Senior Subordinated Notes, 8.750% due 6/15/14

   $ 1,603,812
667,000  

Psychiatric Solutions Inc., Senior Subordinated Notes, 10.625% due 6/15/13

     715,358
 

Tenet Healthcare Corp., Senior Notes:

  
125,000  

7.375% due 2/1/13

     111,875
2,740,000  

9.875% due 7/1/14

     2,685,200
95,000  

6.875% due 11/15/31

     72,438
1,275,000  

Triad Hospitals Inc., Senior Subordinated Notes, 7.000% due 11/15/13

     1,224,000
        
 

Total Health Care Providers & Services

     13,355,427
        
Hotels, Restaurants & Leisure - 3.1%   
675,000  

Boyd Gaming Corp., Senior Subordinated Notes, 6.750% due 4/15/14

     639,563
 

Caesars Entertainment Inc.:

  
1,825,000  

Senior Notes, 7.000% due 4/15/13

     1,886,315
650,000  

Senior Subordinated Notes, 8.875% due 9/15/08

     683,313
575,000  

Choctaw Resort Development Enterprise, Senior Notes, 7.250% due 11/15/19 (b)

     566,375
875,000  

Denny’s Holdings Inc., Senior Notes, 10.000% due 10/1/12

     885,937
1,175,000  

Gaylord Entertainment Co., Senior Notes, 6.750% due 11/15/14

     1,122,125
825,000  

Herbst Gaming Inc., Senior Subordinated Notes, 7.000% due 11/15/14

     798,187
950,000  

Hilton Hotels Corp., Notes, 7.625% due 12/1/12

     1,009,189
1,000,000  

Inn of the Mountain Gods Resort & Casino, Senior Notes, 12.000% due 11/15/10

     1,015,000
1,150,000  

Isle of Capri Casinos Inc., Senior Subordinated Notes, 7.000% due 3/1/14

     1,098,250
420,000  

Kerzner International Ltd., Senior Subordinated Notes, 6.750% due 10/1/15

     451,500
975,000  

Las Vegas Sands Corp., Senior Notes, 6.375% due 2/15/15

     911,625
 

MGM MIRAGE Inc., Senior Notes:

  
1,050,000  

6.750% due 9/1/12

     1,026,375
675,000  

5.875% due 2/27/14

     619,313
400,000  

6.625% due 7/15/15

     378,500
 

Mohegan Tribal Gaming Authority, Senior Subordinated Notes:

  
675,000  

7.125% due 8/15/14

     661,500
625,000  

6.875% due 2/15/15

     600,000
1,150,000  

Penn National Gaming Inc., Senior Subordinated Notes, 6.750% due 3/1/15

     1,112,625
 

Pinnacle Entertainment Inc., Senior Subordinated Notes:

  
450,000  

8.250% due 3/15/12

     454,500
675,000  

8.750% due 10/1/13

     712,125
940,000  

Pokagon Gaming Authority, Senior Notes, 10.375% due 6/15/14 (b)

     998,750
85,000  

River Rock Entertainment Authority, Senior Notes, 9.750% due 11/1/11

     90,419
1,150,000  

Seneca Gaming Corp., Senior Notes, 7.250% due 5/1/12

     1,135,625
1,225,000  

Starwood Hotels & Resorts Worldwide Inc., Senior Notes, 7.875% due 5/1/12

     1,332,187
 

Station Casinos Inc.:

  
105,000  

Senior Notes, 7.750% due 8/15/16

     108,806
1,125,000  

Senior Subordinated Notes, 6.875% due 3/1/16

     1,047,656
2,000,000  

Turning Stone Casino Resort Enterprise, Senior Notes, 9.125% due 12/15/10 (b)

     2,020,000
        
 

Total Hotels, Restaurants & Leisure

     23,365,760
        
Household Durables - 0.8%   
80,000  

American Greetings Corp., Senior Notes, 7.375% due 6/1/16

     80,900
 

Beazer Homes USA Inc., Senior Notes:

  
75,000  

6.875% due 7/15/15

     67,125
460,000  

8.125% due 6/15/16 (b)

     441,600

 

See Notes to Schedule of Investments.

 

5


SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)    August 31, 2006

 

FACE
AMOUNT†
 

SECURITY (a)

     VALUE
Household Durables - 0.8% (continued)   
1,100,000  

Interface Inc., Senior Subordinated Notes, 9.500% due 2/1/14

   $ 1,135,750
 

K Hovnanian Enterprises Inc., Senior Notes:

  
780,000  

7.500% due 5/15/16

     721,500
840,000  

8.625% due 1/15/17

     824,250
1,400,000  

Norcraft Cos. LP/Norcraft Finance Corp., Senior Subordinated Notes, 9.000% due 11/1/11

     1,414,000
525,000  

Sealy Mattress Co., Senior Subordinated Notes, 8.250% due 6/15/14

     532,875
1,061,000  

Tempur-Pedic Inc./Tempur Production USA Inc., Senior Subordinated Notes, 10.250% due 8/15/10

     1,116,702
        
 

Total Household Durables

     6,334,702
        
Household Products - 0.2%   
 

Nutro Products Inc.:

  
115,000  

Senior Notes, 9.230% due 10/15/13 (b)(c)

     119,025
320,000  

Senior Subordinated Notes, 10.750% due 4/15/14 (b)

     339,200
 

Spectrum Brands Inc., Senior Subordinated Notes:

  
480,000  

8.500% due 10/1/13

     401,400
257,000  

7.562% due 2/1/15

     200,460
490,000  

Visant Holding Corp., Senior Notes, 8.750% due 12/1/13 (b)

     482,650
        
 

Total Household Products

     1,542,735
        
Independent Power Producers & Energy Traders - 1.1%   
695,000  

AES China Generating Co., Ltd., Class A, 8.250% due 6/26/10

     685,442
 

AES Corp.:

  
 

Senior Notes:

  
525,000  

9.375% due 9/15/10

     569,625
570,000  

8.875% due 2/15/11

     612,750
910,000  

7.750% due 3/1/14

     941,850
190,000  

Senior Secured Notes, 9.000% due 5/15/15 (b)

     205,913
625,000  

Calpine Generating Co. LLC, Senior Secured Notes, 14.120% due 4/1/11 (c)(d)

     670,312
360,000  

Dynegy Holdings Inc., Senior Notes, 8.375% due 5/1/16 (b)

     356,400
 

Edison Mission Energy, Senior Notes:

  
75,000  

7.500% due 6/15/13 (b)

     75,375
690,000  

7.750% due 6/15/16 (b)

     693,450
100,000  

Mirant Americas Generation LLC, Senior Notes, 9.125% due 5/1/31

     101,000
845,000  

Mirant North America LLC, Senior Notes, 7.375% due 12/31/13

     840,775
 

NRG Energy Inc., Senior Notes:

  
450,000  

7.250% due 2/1/14

     445,500
2,135,000  

7.375% due 2/1/16

     2,108,312
        
 

Total Independent Power Producers & Energy Traders

     8,306,704
        
Industrial Conglomerates - 0.1%   
523,000  

Koppers Inc., Senior Notes, 9.875% due 10/15/13

     568,763
225,000  

Sequa Corp., Senior Notes, 9.000% due 8/1/09

     238,500
        
 

Total Industrial Conglomerates

     807,263
        
Insurance - 0.2%   
1,185,000  

Crum & Forster Holdings Corp., Senior Notes, 10.375% due 6/15/13

     1,185,000
        
Internet & Catalog Retail - 0.1%   
175,000  

Brookstone Co. Inc., Senior Secured Notes, 12.000% due 10/15/12

     160,125
520,000  

FTD Inc., Senior Subordinated Notes, 7.750% due 2/15/14

     509,600
        
 

Total Internet & Catalog Retail

     669,725
        
IT Services - 0.2%   
 

Sungard Data Systems Inc.:

  
325,000  

Senior Notes, 9.125% due 8/15/13

     337,187

 

See Notes to Schedule of Investments.

 

6


SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)    August 31, 2006

 

FACE

AMOUNT†

  

SECURITY (a)

   VALUE
IT Services - 0.2% (continued)   
1,415,000   

Senior Subordinated Notes, 10.250% due 8/15/15

   $ 1,452,144
         
  

Total IT Services

     1,789,331
         
Leisure Equipment & Products - 0.1%   
470,000   

Warner Music Group, Senior Subordinated Notes, 7.375% due 4/15/14

     454,725
         
Machinery - 0.2%   
550,000   

Case New Holland Inc., Senior Notes, 9.250% due 8/1/11

     585,750
360,000   

Commercial Vehicle Group Inc., Senior Notes, 8.000% due 7/1/13

     344,700
179,000   

Mueller Group Inc., Senior Subordinated Notes, 10.000% due 5/1/12

     196,005
601,000   

Mueller Holdings Inc., Discount Notes, step bond to yield 11.446% due 4/15/14

     531,885
91,000   

Terex Corp., Senior Subordinated Notes, 7.375% due 1/15/14

     91,455
         
  

Total Machinery

     1,749,795
         
Media - 4.4%   
805,000   

Affinion Group Inc., Senior Notes, 10.125% due 10/15/13 (b)

     839,212
  

AMC Entertainment Inc.:

  
105,000   

Senior Notes, Series B, 8.625% due 8/15/12

     108,150
1,265,000   

Senior Subordinated Notes, 11.000% due 2/1/16

     1,380,431
200,000   

Barrington Broadcasting Group LLC/Barrington Broadcasting Capital Corp., Senior Subordinated Notes, 10.500% due 8/15/14 (b)

     197,000
55,000   

Block Communications Inc., Senior Notes, 8.250% due 12/15/15 (b)

     53,556
2,487,678   

CanWest Media Inc., Senior Subordinated Notes, 8.000% due 9/15/12

     2,419,267
840,000   

CCH I Holdings LLC/CCH I Holding Capital Corp., Senior Notes, 11.750% due 5/15/14

     575,400
1,210,000   

CCH I LLC/CCH Capital Corp., Senior Secured Notes, 11.000% due 10/1/15

     1,079,925
1,050,000   

CCH II LLC/CCH II Capital Corp., Senior Notes, 10.250% due 9/15/10

     1,068,375
  

Charter Communications Holdings LLC/Charter Communications Holdings Capital Corp., Senior Notes:

  
340,000   

8.625% due 4/1/09

     311,950
160,000   

10.750% due 10/1/09

     147,200
350,000   

Charter Communications Holdings LLC/Charter Communications Holdings II Capital Corp., Senior Notes, 9.625% due 11/15/09

     320,250
1,650,000   

Charter Communications Operating LLC, Second Lien Senior Notes, 8.375% due 4/30/14 (b)

     1,674,750
400,000   

Chukchansi Economic Development Authority, Senior Notes, 8.000% due 11/15/13 (b)

     406,000
170,000   

CMP Susquehanna Corp., Senior Subordinated Notes, 9.875% due 5/15/14 (b)

     159,375
  

CSC Holdings Inc.:

  
425,000   

Debentures, Series B, 8.125% due 8/15/09

     440,938
  

Senior Debentures:

  
305,000   

7.875% due 2/15/18

     313,388
150,000   

7.625% due 7/15/18

     152,063
  

Senior Notes:

  
  

Series B:

  
550,000   

8.125% due 7/15/09

     571,312
250,000   

7.625% due 4/1/11

     256,875
575,000   

Series WI, 6.750% due 4/15/12 (f)

     567,813
790,000   

Dex Media Inc., Discount Notes, step bond to yield 8.015% due 11/15/13

     661,625
1,367,000   

Dex Media West LLC/Dex Media Finance Co., Senior Subordinated Notes, Series B, 9.875% due 8/15/13

     1,474,651
1,365,000   

DIRECTV Holdings LLC/DIRECTV Financing Co. Inc., Senior Notes, 8.375% due 3/15/13

     1,440,075
  

EchoStar DBS Corp., Senior Notes:

  
1,775,000   

6.625% due 10/1/14

     1,710,656

 

See Notes to Schedule of Investments.

 

7


SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)    August 31, 2006

 

FACE
AMOUNT†
 

SECURITY (a)

     VALUE
Media - 4.4% (continued)   
865,000  

7.125% due 2/1/16 (b)

   $ 846,619
1,300,000  

Houghton Mifflin Co., Senior Discount Notes, step bond to yield 20.129% due 10/15/13

     1,095,250
475,000  

Interep National Radio Sales Inc., Senior Subordinated Notes, Series B, 10.000% due 7/1/08

     408,500
485,000  

Kabel Deutschland GMBH, Senior Notes, 10.625% due 7/1/14 (b)

     521,375
1,175,000  

Lamar Media Corp., Senior Subordinated Notes, 6.625% due 8/15/15

     1,107,437
1,000,000  

LodgeNet Entertainment Corp., Senior Subordinated Notes, 9.500% due 6/15/13

     1,077,500
500,000  

Mediacom Broadband LLC/Mediacom Broadband Corp., Senior Notes, 8.500% due 10/15/15

     497,500
700,000  

Primedia Inc., Senior Notes, 8.875% due 5/15/11

     682,500
270,000  

Quebecor Media Inc., Senior Notes, 7.750% due 3/15/16

     268,650
 

R.H. Donnelley Corp.:

  
 

Senior Discount Notes:

  
200,000  

Series A-1, 6.875% due 1/15/13

     180,500
325,000  

Series A-2, 6.875% due 1/15/13

     293,313
550,000  

Senior Notes, Series A-3, 8.875% due 1/15/16

     544,500
1,000,000  

R.H. Donnelley Inc., Senior Subordinated Notes, 10.875% due 12/15/12

     1,100,000
1,850,000  

Radio One Inc., Senior Subordinated Notes, 6.375% due 2/15/13

     1,683,500
1,310,000  

Rainbow National Services LLC, Senior Notes, 8.750% due 9/1/12 (b)

     1,388,600
 

Rogers Cable Inc.:

  
80,000  

Secured Notes, 5.500% due 3/15/14

     74,500
 

Senior Secured Notes:

  
1,100,000  

7.875% due 5/1/12

     1,164,625
45,000  

6.250% due 6/15/13

     44,044
130,000  

Senior Secured Second Priority Notes, 6.750% due 3/15/15

     129,675
1,150,000  

Sinclair Broadcast Group Inc., Senior Subordinated Notes, 8.000% due 3/15/12

     1,170,125
140,000  

Vertis Inc., Senior Secured Second Lien Notes, 9.750% due 4/1/09

     142,450
225,000  

Videotron Ltee., Senior Notes, 6.375% due 12/15/15

     211,781
 

XM Satellite Radio Inc., Senior Notes:

  
230,000  

9.989% due 5/1/13 (b)(c)

     215,625
520,000  

9.750% due 5/1/14 (b)

     491,400
        
 

Total Media

     33,670,206
        
Metals & Mining - 0.8%   
80,000  

Chaparral Steel Co., Senior Notes, 10.000% due 7/15/13

     88,800
1,050,000  

Corporacion Nacional del Cobre-Codelco, Notes, 5.500% due 10/15/13 (b)

     1,041,666
485,000  

International Steel Group Inc., Senior Notes, 6.500% due 4/15/14

     463,175
275,000  

IPSCO Inc., Senior Notes, 8.750% due 6/1/13

     294,938
1,180,000  

Metals USA Inc., Senior Secured Notes, 11.125% due 12/1/15 (b)

     1,306,850
140,000  

PNA Group Inc., Senior Notes, 10.750% due 9/1/16 (b)

     143,500
530,000  

RathGibson Inc., Senior Notes, 11.250% due 2/15/14 (b)

     548,550
 

Vale Overseas Ltd., Notes:

  
475,000  

6.250% due 1/11/16

     473,812
1,448,000  

8.250% due 1/17/34

     1,674,612
        
 

Total Metals & Mining

     6,035,903
        
Multiline Retail - 0.2%   
625,000  

Harry & David Operations, Senior Notes, 9.000% due 3/1/13

     575,000
1,215,000  

Neiman Marcus Group Inc., Senior Subordinated Notes, 10.375% due 10/15/15

     1,306,125
        
 

Total Multiline Retail

     1,881,125
        
Office Electronics - 0.1%   
800,000  

Xerox Capital Trust I Exchange Capital Securities, 8.000% due 2/1/27

     825,000

 

See Notes to Schedule of Investments.

 

8


SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)    August 31, 2006

 

FACE
AMOUNT†
 
 
 

SECURITY (a)

     VALUE
Office Electronics - 0.1% (continued)   
250,000    

Xerox Corp., Senior Notes, 6.750% due 2/1/17

   $ 251,875
        
 

Total Office Electronics

     1,076,875
        
Oil, Gas & Consumable Fuels - 4.5%   
1,135,000    

Belden & Blake Corp., Secured Notes, 8.750% due 7/15/12

     1,169,050
 

Chesapeake Energy Corp., Senior Notes:

  
1,350,000    

6.375% due 6/15/15

     1,289,250
980,000    

6.625% due 1/15/16

     945,700
150,000    

6.875% due 1/15/16

     146,250
50,000    

6.500% due 8/15/17

     46,625
812,000    

Cimarex Energy Co., Senior Notes, 9.600% due 3/15/12

     862,750
160,000    

Colorado Interstate Gas Co., Senior Notes, 6.800% due 11/15/15

     159,371
245,000    

Compagnie Generale de Geophysique SA, Senior Notes, 7.500% due 5/15/15

     245,000
 

El Paso Corp.:

  
 

Medium-Term Notes:

  
2,050,000    

7.375% due 12/15/12

     2,078,187
1,400,000    

7.750% due 1/15/32

     1,414,000
125,000    

Notes, 7.875% due 6/15/12

     129,688
540,000    

Enterprise Products Operating LP, Junior Subordinated Notes, 8.375% due 8/1/66 (c)

     563,882
1,030,000     

EXCO Resources Inc., Senior Notes, 7.250% due 1/15/11

     1,006,825
61,340,000 RUB    

Gazprom OAO, Series A6, 6.950% due 8/6/09

     2,311,909
800,000    

Hanover Equipment Trust, Secured Notes, 8.750% due 9/1/11

     836,000
600,000    

Holly Energy Partners, L.P., Senior Notes, 6.250% due 3/1/15

     556,500
1,400,000    

Inergy L.P./Inergy Finance Corp., Senior Notes, 6.875% due 12/15/14

     1,333,500
1,250,000    

International Coal Group Inc., Senior Notes, 10.250% due 7/15/14 (b)

     1,296,875
390,000    

Mariner Energy Inc., Senior Notes, 7.500% due 4/15/13 (b)

     381,225
845,000    

Northwest Pipelines Corp., Senior Notes, 7.000% due 6/15/16 (b)

     858,731
115,000    

OMI Corp., Senior Notes, 7.625% due 12/1/13

     115,575
 

Pemex Project Funding Master Trust:

  
5,000,000    

8.625% due 12/1/23

     5,987,500
800,000    

Guaranteed Bonds, 9.500% due 9/15/27

     1,042,000
520,000    

Petrohawk Energy Corp., Senior Notes, 9.125% due 7/15/13 (b)

     531,700
3,000,000    

Petronas Capital Ltd., Notes, 7.875% due 5/22/22 (b)

     3,587,664
1,800,000    

Petrozuata Finance Inc., 8.220% due 4/1/17

     1,809,000
610,000    

Pogo Producing Co., Senior Subordinated Notes, 7.875% due 5/1/13 (b)

     625,250
40,000    

SESI LLC, Senior Notes, 6.875% due 6/1/14 (b)

     39,400
275,000    

Swift Energy Co., Senior Subordinated Notes, 9.375% due 5/1/12

     291,500
630,000    

Whiting Petroleum Corp., Senior Subordinated Notes, 7.000% due 2/1/14

     623,700
 

Williams Cos. Inc.:

  
1,060,000    

Notes, 8.750% due 3/15/32

     1,147,450
1,000,000    

Senior Notes, 7.625% due 7/15/19

     1,020,000
        
 

Total Oil, Gas & Consumable Fuels

     34,452,057
        
Paper & Forest Products - 0.5%   
425,000    

Abitibi-Consolidated Inc., Notes, 7.750% due 6/15/11

     394,188
 

Appleton Papers Inc.:

  
375,000    

Senior Notes, 8.125% due 6/15/11

     373,125
715,000    

Senior Subordinated Notes, Series B, 9.750% due 6/15/14

     709,637
1,375,000    

Boise Cascade LLC, Senior Subordinated Notes, Series B, 7.125% due 10/15/14

     1,285,625
195,000    

Domtar Inc., Notes, 5.375% due 12/1/13

     167,700
 

NewPage Corp.:

  
205,000    

Senior Secured Notes, 11.739% due 5/1/12 (c)

     222,425
275,000    

Senior Subordinated Notes, 12.000% due 5/1/13

     285,313

 

See Notes to Schedule of Investments.

 

9


SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)    August 31, 2006

 

FACE

AMOUNT†

  

SECURITY (a)

   VALUE
Paper & Forest Products - 0.5% (continued)   
210,000   

P.H. Glatfelter, Senior Notes, 7.125% due 5/1/16 (b)

   $ 208,065
  

Verso Paper Holdings LLC:

  
260,000   

Senior Secured Notes, 9.125% due 8/1/14 (b)

     260,000
280,000   

Senior Subordinated Notes, 11.375% due 8/1/16 (b)

     278,600
         
  

Total Paper & Forest Products

     4,184,678
         
Personal Products - 0.1%   
515,000   

Playtex Products Inc., Senior Secured Notes, 8.000% due 3/1/11

     538,175
         
Pharmaceuticals - 0.1%   
940,000   

Leiner Health Products Inc., Senior Subordinated Notes, 11.000% due 6/1/12

     897,700
         
Real Estate Investment Trusts (REITs) - 0.6%   
1,200,000   

Felcor Lodging LP, Senior Notes, 8.500% due 6/1/11

     1,275,000
30,000   

Forest City Enterprises Inc., Senior Notes, 7.625% due 6/1/15

     30,375
  

Host Marriott LP:

  
2,275,000   

Senior Notes, 7.125% due 11/1/13

     2,309,125
390,000   

Series Q, 6.750% due 6/1/16

     380,250
410,000   

Kimball Hill Inc., Senior Subordinated Notes, 10.500% due 12/15/12

     353,625
175,000   

Ventas Realty LP/Ventas Capital Corp., Senior Notes, 6.500% due 6/1/16

     173,250
         
  

Total Real Estate Investment Trusts (REITs)

     4,521,625
         
Road & Rail - 0.2%   
490,000   

Avis Budget Car Rental LLC/Avis Budget Finance Inc., Senior Notes, 7.905% due 5/15/14 (b)(c)

     481,425
  

Grupo Transportacion Ferroviaria Mexicana SA de CV, Senior Notes:

  
150,000   

10.250% due 6/15/07

     153,750
790,000   

9.375% due 5/1/12

     840,363
50,000   

12.500% due 6/15/12

     55,750
         
  

Total Road & Rail

     1,531,288
         
Semiconductors & Semiconductor Equipment - 0.1%   
960,000   

MagnaChip Semiconductor, Senior Subordinated Notes, 8.000% due 12/15/14

     619,200
         
Software - 0.2%   
500,000   

Activant Solutions Inc., Senior Subordinated Notes, 9.500% due 5/1/16 (b)

     471,250
740,000   

UGS Capital Corp. II, Senior Subordinated Notes, 10.380% due 6/1/11 (b)(c)(e)

     749,250
         
  

Total Software

     1,220,500
         
Specialty Retail - 0.9%   
  

AutoNation Inc., Senior Notes:

  
185,000   

7.507% due 4/15/13 (b)(c)

     186,850
235,000   

7.000% due 4/15/14 (b)

     232,944
510,000   

Blockbuster Inc., Senior Subordinated Notes, 9.000% due 9/1/12

     474,300
2,000,000   

Buffets Inc., Senior Subordinated Notes, 11.250% due 7/15/10

     2,120,000
160,000   

EPL Finance Corp., Senior Notes, 11.750% due 11/15/13 (b)

     179,600
345,000   

Eye Care Centers of America, Senior Subordinated Notes, 10.750% due 2/15/15

     371,738
1,400,000   

Hines Nurseries Inc., Senior Notes, 10.250% due 10/1/11

     1,253,000
990,000   

Jafra Cosmetics International Inc., Senior Subordinated Notes, 10.750% due 5/15/11

     1,074,150
785,000   

Suburban Propane Partners LP/Suburban Energy Finance Corp., Senior Notes, 6.875% due 12/15/13

     755,562
         
  

Total Specialty Retail

     6,648,144
         

 

See Notes to Schedule of Investments.

 

10


SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)    August 31, 2006

 

FACE
AMOUNT†
 

SECURITY (a)

     VALUE
Textiles, Apparel & Luxury Goods - 0.4%   
1,625,000  

Levi Strauss & Co., Senior Notes, 9.750% due 1/15/15

   $ 1,690,000
175,000  

Russell Corp., Senior Notes, 9.250% due 5/1/10

     183,094
350,000  

Simmons Bedding Co., Senior Subordinated Notes, 7.875% due 1/15/14

     339,500
1,375,000  

Simmons Co., Senior Discount Notes, step bond to yield 9.983% due 12/15/14

     965,937
        
 

Total Textiles, Apparel & Luxury Goods

     3,178,531
        
Tobacco - 0.1%   
480,000  

Alliance One International Inc., Senior Notes 11.000% due 5/15/12

     482,400
        
Trading Companies & Distributors - 0.3%   
340,000  

Ashtead Capital Inc., Notes, 9.000% due 8/15/16 (b)

     348,500
350,000  

H&E Equipment Services Inc., Senior Notes, 8.375% due 7/15/16 (b)

     357,000
905,000  

Penhall International Corp., Senior Secured Notes, 12.000% due 8/1/14 (b)

     927,625
610,000  

Transdigm Inc., Senior Subordinated Notes, 7.750% due 7/15/14 (b)

     608,475
        
 

Total Trading Companies & Distributors

     2,241,600
        
Wireless Telecommunication Services - 0.8%   
315,000  

Centennial Communications Corp., Senior Notes, 10.125% due 6/15/13

     333,900
3,020,000  

Nextel Communications Inc., Senior Notes, Series D, 7.375% due 8/1/15

     3,110,564
20,000  

Rogers Wireless Communications Inc., Senior Secured Notes, 7.250% due 12/15/12

     20,725
 

Rogers Wireless Inc.:

  
1,125,000  

Secured Notes, 7.500% due 3/15/15

     1,181,250
170,000  

Senior Subordinated Notes, 8.000% due 12/15/12

     178,500
845,000  

Rural Cellular Corp., Senior Notes, 9.875% due 2/1/10

     876,687
700,000  

UbiquiTel Operating Co., Senior Notes, 9.875% due 3/1/11

     764,750
        
 

Total Wireless Telecommunication Services

     6,466,376
        
 

TOTAL CORPORATE BONDS & NOTES

(Cost - $268,456,386)

     267,499,315
        
ASSET-BACKED SECURITIES - 0.2%   
Home Equity - 0.2%   
12,364  

Ameriquest Finance Net Interest Margin Trust, Series 2004-RN5, Class A, 5.193% due 6/25/34 (b)

     12,329
110,125  

Finance America Net Interest Margin Trust, Series 2004-01, Class A, 5.250% due 6/27/34 (b)

     58,638
 

Sail Net Interest Margin Notes:

  
14,101  

Series 2003-6A, Class A, 7.000% due 7/27/33 (b)

     10,849
42,974  

Series 2003-7A, Class A, 7.000% due 7/27/33 (b)

     42,322
1,500,000  

Structured Asset Investment Loan Trust, Series 2003-BC10, Class M2, 7.174% due 10/25/33 (c)

     1,506,773
        
 

TOTAL ASSET-BACKED SECURITIES

(Cost - $1,685,750)

     1,630,911
        
COLLATERALIZED MORTGAGE OBLIGATIONS - 0.7%   
 

Federal National Mortgage Association (FNMA) STRIP:

  
9,752,317  

Series 329, Class 2, IO, 5.500% due 1/1/33

     2,389,436
11,903,697  

Series 338, Class 2, IO, 5.500% due 6/1/33

     2,934,545
        
 

TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS

(Cost - $6,054,299)

     5,323,981
        

 

See Notes to Schedule of Investments.

 

11


SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)    August 31, 2006

 

FACET
AMOUNT†
 
 
 

SECURITY (a)

     VALUE
CONVERTIBLE BOND - 0.0%   
Semiconductors & Semiconductor Equipment - 0.0%   
270,000    

Amkor Technologies Inc., Senior Subordinated Bond, 2.500% due 5/15/11 (Cost - $246,362)

   $ 230,513
        
MORTGAGE-BACKED SECURITIES- 31.0%   
FHLMC - 6.4%   
 

Federal Home Loan Mortgage Corp. (FHLMC):

  
 

Gold:

 

  
40,000,000    

5.000% due 9/13/36 (g)(h)

     38,350,000
5,000,000    

5.500% due 9/13/36 (g)(h)

     4,910,940
5,000,000    

5.500% due 10/12/36 (g)(h)

     4,907,810
410,000    

Notes, 5.125% due 4/18/11

     411,880
        
 

TOTAL FHLMC

     48,580,630
        
FNMA - 24.6%   
 

Federal National Mortgage Association (FNMA):

  
340,000    

6.625% due 9/15/09

     355,527
41,700,000    

5.000% due 9/13/36-10/12/36 (g)(h)

     39,952,342
127,400,000    

6.000% due 9/13/36-10/12/36 (g)(h)

     127,460,760
20,000,000    

5.500% due 10/12/36 (g)(h)

     19,618,760
        
 

TOTAL FNMA

     187,387,389
        
 

TOTAL MORTGAGE-BACKED SECURITIES

(Cost - $238,104,740)

     235,968,019
        
SOVEREIGN BONDS - 13.5%   
Argentina - 0.7%   
 

Republic of Argentina:

  
1,074,000  EUR  

9.000% due 6/20/03 (d)

     431,821
1,100,000  EUR  

10.250% due 1/26/07 (d)

     462,398
1,729,117  EUR  

8.000% due 2/26/08 (d)

     708,495
1,311,750     

5.590% due 8/3/12 (c)

     1,220,954
1,550,000  DEM  

11.750% due 11/13/26 (d)

     308,908
2,998,943  ARS  

Bonds, 2.000% due 1/3/10 (c)

     1,882,887
 

GDP Linked Securities:

  
127,000  EUR  

0.000% due 12/15/35 (c)

     15,109
27,000    

0.000% due 12/15/35 (c)

     2,592
522,000  EUR  

Medium-Term Notes, 10.000% due 2/22/07 (d)

     217,492
        
 

Total Argentina

     5,250,656
        
Brazil - 3.5%   
16,706,000    

Federative Republic of Brazil:

     21,830,565
 

11.000% due 8/17/40

  
 

 

Collective Action Securities:

  
2,565,000    

8.750% due 2/4/25

     3,053,633
1,360,000    

Notes, 8.000% due 1/15/18

     1,494,980
        
 

Total Brazil

     26,379,178
        
Colombia - 0.8%   
 

Republic of Colombia:

 

  
1,125,000    

11.750% due 2/25/20

     1,580,625
1,150,000    

8.125% due 5/21/24

     1,269,313
2,555,000    

10.375% due 1/28/33

     3,471,606
        
 

Total Colombia

     6,321,544
        

 

See Notes to Schedule of Investments.

 

12


SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)    August 31, 2006

 

FACE
AMOUNT†
 

SECURITY (a)

     VALUE
Ecuador - 0.4%   
2,765,000  

Republic of Ecuador, 10.000% due 8/15/30 (b)

   $ 2,758,088
        
El Salvador - 0.3%   
 

Republic of El Salvador:

  
1,720,000  

7.750% due 1/24/23 (b)

     1,909,200
330,000  

8.250% due 4/10/32 (b)

     371,250
        
 

Total El Salvador

     2,280,450
        
Indonesia - 0.1%   
525,000  

Republic of Indonesia, 8.500% due 10/12/35 (b)

     607,005
        
Mexico - 2.1%   
 

United Mexican States:

  
300,000  

11.375% due 9/15/16

     429,375
 

Medium-Term Notes:

  
4,400,000  

5.625% due 1/15/17

     4,352,700
 

Series A:

  
5,098,000  

6.375% due 1/16/13

     5,312,116
5,115,000  

8.000% due 9/24/22

     6,157,181
        
 

Total Mexico

     16,251,372
        
Panama - 0.2%   
1,275,000  

Republic of Panama, 9.375% due 4/1/29

     1,625,625
        
Peru - 0.8%   
 

Republic of Peru:

  
425,000  

9.875% due 2/6/15

     524,344
378,000  

8.750% due 11/21/33

     457,380
4,001,250  

FLIRB, 5.000% due 3/7/17 (c)

     3,932,478
 

Global Bonds:

  
305,000  

8.375% due 5/3/16

     349,987
50,000  

7.350% due 7/21/25

     53,000
 

PDI:

  
813,700  

5.000% due 3/7/17 (c)

     804,546
139,040  

5.000% due 3/7/17 (b)(c)

     137,650
        
 

Total Peru

     6,259,385
        
Philippines - 0.4%   
 

Republic of the Philippines:

  
755,000  

9.000% due 2/15/13

     846,053
1,725,000  

9.375% due 1/18/17

     2,020,406
        
 

Total Philippines

     2,866,459
        
Russia - 1.8%   
 

Russian Federation:

  
1,244,444  

8.250% due 3/31/10 (b)

     1,301,222
4,236,000  

12.750% due 6/24/28 (b)

     7,582,440
4,400,000  

5.000% due 3/31/30 (b)

     4,898,960
        
 

Total Russia

     13,782,622
        
South Africa - 0.3%   
 

Republic of South Africa:

  
1,350,000  

9.125% due 5/19/09

     1,470,150
525,000  

6.500% due 6/2/14

     548,943
        
 

Total South Africa

     2,019,093
        

 

See Notes to Schedule of Investments.

 

13


SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)    August 31, 2006

 

FACE

AMOUNT†

  

SECURITY (a)

   VALUE
Turkey - 1.1%   
  

Republic of Turkey:

  
475,000   

11.750% due 6/15/10

   $ 558,125
502,000   

11.500% due 1/23/12

     609,302
1,397,000   

11.000% due 1/14/13

     1,690,370
1,475,000   

7.250% due 3/15/15

     1,502,656
117,000   

7.000% due 6/5/20

     115,538
1,536,000   

11.875% due 1/15/30 (m)

     2,296,320
483,000   

8.000% due 2/14/34

     506,546
  

Collective Action Securities, Notes:

  
491,000   

9.500% due 1/15/14

     563,423
878,000   

7.375% due 2/5/25

     876,902
         
  

Total Turkey

     8,719,182
         
Uruguay - 0.3%   
2,075,000   

Republic of Uruguay, Benchmark Bonds, 7.500% due 3/15/15

     2,155,406
         
Venezuela - 0.7%   
  

Bolivarian Republic of Venezuela:

  
3,245,000   

5.375% due 8/7/10 (b)

     3,164,686
1,120,000   

5.750% due 2/26/16

     1,047,200
475,000   

7.650% due 4/21/25

     508,488
875,000   

Collective Action Securities, Notes, 10.750% due 9/19/13

     1,075,156
         
   Total Venezuela      5,795,530
         
  

TOTAL SOVEREIGN BONDS

(Cost - $95,539,836)

     103,071,595
         
U.S. GOVERNMENT OBLIGATIONS - 1.1%   
U.S. Government Obligations - 1.1%   
700,000   

U.S. Treasury Bonds, 4.500% due 2/15/36

     659,040
7,310,000   

U.S. Treasury Notes, 5.125% due 5/15/16

     7,519,877
         
  

TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS

(Cost - $8,015,357)

     8,178,917
         
U.S. TREASURY INFLATION PROTECTED SECURITIES - 0.4%   
  

U.S. Treasury Bonds, Inflation Indexed:

  
715,554   

2.000% due 1/15/16

     700,768
2,422,661   

2.000% due 1/15/26

     2,334,556
         
  

TOTAL U.S. TREASURY INFLATION PROTECTED SECURITIES

(Cost - $2,943,714)

     3,035,324
         
Shares          
COMMON STOCKS - 0.0%   
CONSUMER DISCRETIONARY - 0.0%   
Household Durables - 0.0%   
2,085,181   

Home Interiors of Gifts Inc. (i)(j)*

     20,852
         
MATERIALS - 0.0%   
Chemicals - 0.0%   
30,303   

Applied Extrusion Technologies Inc., Class A Shares *

     196,969
         
  

TOTAL COMMON STOCKS

(Cost - $1,798,746)

     217,821
         
PREFERRED STOCKS - 0.2%   
CONSUMER DISCRETIONARY - 0.1%   
Automobiles - 0.1%   
30,500   

Ford Motor Co.,7.400%

     556,625

 

See Notes to Schedule of Investments.

 

14


SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)    August 31, 2006

 

SHARES

  

SECURITY (a)

   VALUE
  Automobiles - 0.1% (continued)   
  1,900   

Ford Motor Co., 8.000%

   $ 37,050
         
   TOTAL CONSUMER DISCRETIONARY      593,675
         
  ENERGY - 0.1%   
  Oil, Gas & Consumable Fuels - 0.1%   
  1,283    Chesapeake Energy Corp., Convertible 6.250%      344,485
         
  FINANCIALS - 0.0%   
  Diversified Financial Services - 0.0%   
  2,600    Preferred Plus, Series FRD-1, 7.400%      47,554
  9,700    Saturns, Series F 2003-5, 8.125%      187,113
         
   TOTAL FINANCIALS      234,667
         
  

TOTAL PREFERRED STOCKS

(Cost - $1,060,771)

     1,172,827
         
CONTRACTS          
  PURCHASED OPTION - 0.0%   
  19   

Eurodollar Midcurve 1 Year Futures, Call @ $94.75, expires 9/15/06 (Cost - $2,707)

     14,250
         
WARRANTS          
  WARRANTS - 0.0%   
  2,675    Bolivarian Republic of Venezuela, Oil-linked payment obligations, Expires 4/15/20      98,975
  27,000    United Mexican States, Series XW05, Expires 11/9/06 *      94,500
  21,250    United Mexican States, Series XW10, Expires 10/10/06 *      79,687
         
  

TOTAL WARRANTS

(Cost - $196,800)

     273,162
         
  

TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS

(Cost - $624,105,468)

     626,616,635
         

FACE

AMOUNT

         
  SHORT-TERM INVESTMENTS - 17.7%   
  U.S. Government Agency - 0.6%   
  $ 4,050,000   

Federal National Mortgage Association (FNMA), Discount Notes, 5.053% due 9/25/06 (k)(l) (Cost - $4,036,608)

     4,036,608
         
  Repurchase Agreement — 17.1%   
  130,300,000   

Nomura Securities International, Inc. tri-party repurchase agreement dated 8/31/06, 5.240% due 9/1/06; Proceeds at maturity - $130,318,966; (Fully collateralized by various U.S government agency obligations, 3.375% to 7.125% due 3/15/07 to 2/1/11; Market value - $132,906,832) (Cost - $130,300,000)

     130,300,000
         
  

TOTAL SHORT-TERM INVESTMENTS

(Cost - $134,336,608)

     134,336,608
         
  

TOTAL INVESTMENTS - 100.0%

(Cost - $758,442,076#)

   $  760,953,243
         

 

* Non-income producing security.

 

Face amount denominated in U.S. dollars, unless otherwise noted.

 

(a) All securities are segregated pursuant to a revolving credit facility, mortgage dollar rolls, futures contracts, written options and reverse repurchase agreements.

 

(b) 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, unless otherwise noted.

 

(c) Variable rate security. Interest rate disclosed is that which is in effect at August 31, 2006.

 

(d) Security is currently in default.

 

(e) Payment-in-kind security for which part of the income earned may be paid as additional principal.

 

See Notes to Schedule of Investments.

 

15


SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)    August 31, 2006

 

(f) Security is issued on a when-issued basis.

 

(g) This security is traded on a to-be-announced (“TBA”) basis (See Note 1).

 

(h) All or a portion of this security was acquired under a mortgage dollar roll agreement (See Notes 1 and 2).

 

(i) Illiquid security.

 

(j) Security is valued in good faith at fair value by or under the direction of the Board of Directors (See Note 1).

 

(k) All or a portion of this security is held at the broker as collateral for open futures contracts.

 

(l) Rate shown represents yield-to-maturity.

 

(m) All or a portion of this security is held by the counterparty as collateral for reverse repurchase agreements.

 

# Aggregate cost for federal income tax purposes is substantially the same.

 

Abbreviations used in this schedule:

ARS

  — Argentine Peso

DEM

  — German Mark

EUR

  — Euro

FLIRB

  — Front-Loaded Interest Reduction Bonds

GDP

  — Gross Domestic Product

IO

  — Interest Only

MXN

  — Mexican Peso

PDI

  — Past Due Interest

RUB

  — Russian Ruble

STRIP

  — Seperate Trading of Registered Interest and Principle

 

Schedule of Options Written         
Contracts   

Security

  

Expiration

Date

  

Strike

Price

   Value
17    Eurodollar Futures, Call    9/18/06    $ 95.00    $ 106
10    Eurodollar Futures, Call    9/18/06      94.88      63
125    Eurodollar Futures, Call    9/18/06      94.75      781
4    Eurodollar Futures, Call    9/18/06      94.38      2,300
56    Eurodollar Futures, Put    9/18/06      94.63      3,850
24    Eurodollar Futures, Put    9/18/06      94.50      150
32    U.S. Treasury Bonds Futures, Call    9/25/06      113.00      500
8    U.S. Treasury Bonds Futures, Call    11/21/06      110.00      15,125
79    U.S. Treasury Bonds Futures, Put    11/21/06      100.00      1,235
23    U.S. Treasury Notes 10 Year Futures, Call    11/21/06      109.00      5,750
16    U.S. Treasury Notes 10 Year Futures, Call    11/21/06      108.00      8,500
59    U.S. Treasury Notes 10 Year Futures, Call    11/21/06      107.00      56,234
               
  

TOTAL OPTIONS WRITTEN

(Premiums received - $154,854)

         $ 94,594
               

See Notes to Schedule of Investments.

 

16


Notes to Schedule of Investments (unaudited)

1. Organization and Significant Accounting Policies

Salomon Brothers Global High Income Fund Inc. (the “Fund”) was incorporated in Maryland and is registered as a non-diversified, closed-end management investment company under the Investment Company Act of 1940, as amended, (the “1940 Act”).

The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”).

(a) Investment Valuation. Debt securities are valued at the mean between the bid and asked prices provided by an independent pricing service that are based on transactions in debt obligations, quotations from bond dealers, market transactions in comparable securities and various other relationships between securities. Publicly traded foreign government debt securities are typically traded internationally in the over-the-counter market, and are valued at the mean between the bid and asked prices as of the close of business of that market. Equity securities for which market quotations are available are valued at the last sale price or official closing price on the primary market or exchange on which they trade. When prices are not readily available, or are determined not to reflect fair value, 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 may value these investments at fair value as determined in accordance with the procedures approved by the Fund’s Board of Directors. Short-term obligations with maturities of 60 days or less are valued at amortized cost, which approximates market value.

(b) Repurchase Agreements. When entering into repurchase agreements, it is the Fund’s policy that its custodian or a third party custodian take possession of the underlying collateral securities, the market value of which at least equals the principal amount of the repurchase transaction, including accrued interest. To the extent that any repurchase transaction exceeds one business day, the value of the collateral is marked-to-market to ensure the adequacy of the collateral. If the seller defaults, and the market value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Fund may be delayed or limited.

(c) Reverse Repurchase Agreements. The Fund may enter into reverse repurchase agreements in which the Fund sells portfolio securities and agrees to repurchase them from the buyer at a specified date and price. Whenever the Fund enters into a reverse repurchase agreement, the Fund’s custodian delivers liquid assets to the counterparty in an amount at least equal to the repurchase price (including accrued interest). The Fund pays interest on amounts obtained pursuant to reverse repurchase agreements. Reverse repurchase agreements are considered to be borrowings, which may create leverage risk to the Fund.

(d) Financial Futures Contracts. The Fund may enter into financial futures contracts typically to hedge a portion of the portfolio. Upon entering into a financial futures contract, the Fund is required to deposit cash or securities as initial margin. Additional securities are also segregated up to the current market value of the financial futures contracts. Subsequent payments, known as variation margin, are made or received by the Fund each day, depending on the daily fluctuation in the value of the underlying financial instruments. The Fund recognizes an unrealized gain or loss equal to the daily variation margin. When the financial futures contracts are closed, a realized gain or loss is recognized equal to the difference between the proceeds from (or cost of) the closing transactions and the Fund’s basis in the contracts.

The risks associated with entering into financial futures contracts include the possibility that a change in the value of the contract may not correlate with the changes in the value of the underlying instruments. In addition, investing in financial futures contracts involves the risk that the Fund could lose more than the original margin deposit and subsequent payments required for a futures transaction. Risks may also arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts.

(e) Written Options. When the Fund writes an option, an amount equal to the premium received by the Fund is recorded as a liability, the value of which is marked-to-market daily to reflect the current market value of the option written. If the option expires, the Fund realizes a gain from investments equal to the amount of the premium received. When a written call option is exercised, the difference between the premium and the amount for effecting a closing purchase transaction, including brokerage commission, is also treated as a realized gain or loss. When a written put option is exercised, the amount of the premium received reduces the cost of the security purchased by the Fund.

A risk in writing a covered call option is that the Fund may forego the opportunity of profit if the market price of the underlying security increases and the option is exercised. The risk in writing a put option is that the Fund may incur a loss if the market price of the underlying security decreases and the option is exercised. The risk in writing a call option is that the Fund is exposed to the risk of loss if the market price of the underlying security increases. In addition, there is the risk that the Fund may not be able to enter into a closing transaction because of an illiquid secondary market.

(f) Mortgage Dollar Rolls. The Fund enters into dollar rolls in which the Fund sells mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase substantially similar (same type, coupon and

 

17


Notes to Schedule of Investments (unaudited) (continued)

maturity) securities to settle on a specified future date. During the roll period, the Fund forgoes principal and interest paid on the securities. The Fund is compensated by a fee paid by the counterparty, often in the form of a drop in the repurchase price of the securities. Dollar rolls are accounted for as financing arrangements; the fee is accrued into interest income ratably over the term of the dollar roll and any gain or loss on the roll is deferred and realized upon disposition of the rolled security.

The risk of entering into a mortgage dollar roll is that the market value of the securities the Fund is obligated to repurchase under the agreement may decline below the repurchase price. In the event the buyer of securities under a mortgage dollar roll files for bankruptcy or becomes insolvent, the Fund’s use of proceeds of the dollar roll may be restricted pending a determination by the other party, or its trustee or receiver, whether to enforce the Fund’s obligation to repurchase the securities.

(g) Securities Traded on a To-Be-Announced Basis. The Fund may trade securities on a to-be-announced (“TBA”) basis. In a TBA transaction, the Fund commits to purchasing or selling securities which have not yet been issued by the issuer and for which specific information is not known, such as the face amount and maturity date and the underlying pool of investments in U.S. government agency mortgage pass-through transactions. Securities purchased on a TBA basis are not settled until they are delivered to the Fund, normally 15 to 45 days later. Beginning on the date the Fund enters into a TBA transaction, cash, U.S. government securities or other liquid high-grade debt obligations are segregated in an amount equal in value to the purchase price of the TBA security. These transactions are subject to market fluctuations and their current value is determined in the same manner as for other securities.

(h) Foreign Currency Translation. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the respective dates of such transactions.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar denominated transactions as a result of, among other factors, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.

(i) Stripped Securities. The Fund invests in “Stripped Securities,” a term used collectively for stripped fixed income securities. Stripped securities can be principal only securities (“PO”), which are debt obligations that have been stripped of unmatured interest coupons or interest only securities (“IO”), which are unmatured interest coupons that have been stripped from debt obligations. As is the case with all securities, the market value of Stripped Securities will fluctuate in response to changes in economic conditions, interest rates and the market’s perception of the securities. However, fluctuations in response to interest rates may be greater in Stripped Securities than for debt obligations of comparable maturities that pay interest currently. The amount of fluctuation increases with a longer period of maturity.

The yield to maturity on IO’s is sensitive to the rate of principal repayments (including prepayments) on the related underlying debt obligation and principal payments may have a material effect on yield to maturity. If the underlying debt obligation experiences greater than anticipated prepayments of principal, the Fund may not fully recoup its initial investment in IO’s.

(j) Security Transactions. Security transactions are accounted for on a trade date basis.

2. Investments

At August 31, 2006, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:

 

Gross unrealized appreciation

   $ 13,742,338  
Gross unrealized depreciation      (11,231,171 )
        
Net unrealized appreciation    $ 2,511,167  
        

Written option transactions entered into during the period ended August 31, 2006, were as follows:

 

    

Number of

Contracts

   

Premiums

Received

 

Options written, outstanding May 31, 2006

   1,073     $ 529,871  

Options written

   227       94,391  

Options closed

   (138 )     (106,420 )

Options expired

   (709 )     (362,988 )
              

Options written, outstanding August 31, 2006

   453     $ 154,854  
              

 

18


Notes to Schedule of Investments (unaudited) (continued)

At August 31, 2006, the Fund had the following open futures contracts:

 

     Number of
Contracts
   Expiration
Date
  

Basis

Value

  

Market

Value

  

Unrealized

Gain (Loss)

 

Contracts to Buy:

              

Eurodollar

   38    9/06    $ 8,991,440    $ 8,987,475    $ (3,965 )

Eurodollar

   211    12/06      49,741,668      49,930,513      188,845  

Eurodollar

   7    3/07      1,656,410      1,658,737      2,327  

Eurodollar

   12    3/08      2,844,610      2,853,750      9,140  
                    
               $ 196,347  
                    

Contracts to Sell:

              

U.S. Treasury 2 Year Note

   42    12/06    $ 8,582,228    $ 8,582,438    $ (210 )

U.S. Treasury 5 Year Note

   1    9/06      104,495      105,016      (521 )

U.S. Treasury 5 Year Note

   598    12/06      62,633,760      62,855,406      (221,646 )

U.S. Treasury 10 Year Note

   202    9/06      21,588,771      21,699,218      (110,447 )

U.S. Treasury 10 Year Note

   275    12/06      29,411,618      29,528,125      (116,507 )

U.S. Treasury Bond

   25    9/06      2,675,000      2,767,188      (92,188 )
                    
               $ (541,519 )
                    

Net Unrealized Loss on Open Futures Contracts

               $ (345,172 )
                    

At August 31, 2006, the Fund had outstanding mortgage dollar rolls with a total cost of $237,346,196.

The average monthly balance of mortgage dollar rolls outstanding for the Fund during the period ended August 31, 2006 was approximately $211,138,134.

Counterparties with mortgage dollar rolls outstanding in excess of 10% of total net assets at August 31, 2006 included Merrill Lynch, Pierce, Fenner & Smith Inc. ($73,124,063), JPMorgan Chase ($66,373,594) and Goldman Sachs & Co. ($44,164,797).

At August 31, 2006, the Fund had the following reverse repurchase agreements outstanding:

 

FACE
AMOUNT
  

SECURITY

     VALUE
$594,159   

Reverse Repurchase Agreement with Credit Suisse First Boston, dated 8/9/06 bearing 0.350% to be repurchased at $594,326 on 9/7/06, collateralized by: $441,000 Republic of Turkey, 11.875% due 1/15/30; Market value (Including accrued interest) - $666,126

   $ 594,159
1,476,060   

Reverse Repurchase Agreement with Deutsche Bank Securities Inc., dated 8/23/06 bearing 1.500% to be repurchased at $1,478,397 on 9/25/06, collateralized by: $1,095,000 Republic of Turkey, 11.875% due 1/15/30; Market value (Including accrued interest) - $1,653,986

     1,476,060
         
  

Total Reverse Repurchase Agreements
(Proceeds - $2,070,219)

   $ 2,070,219
         

Transactions in reverse repurchase agreements for the Fund during the period ended August 31, 2006 were as follows:

 

Average
Daily
Balance
  Weighted
Average
Interest Rate
    Maximum
Amount
Outstanding
$1,474,319   0.47 %   $ 2,070,219

Interest rates on reverse repurchase agreements ranged from 0.20% to 1.50% during the period ended August 31, 2006.

3. Loan

At August 31, 2006, the Fund had a $150,000,000 loan available pursuant to a revolving credit and security agreement, of which the Fund had $100,000,000 loan outstanding with Three Pillars Funding Corp. and Citicorp North America Inc. (“CNA”). In addition CNA act as administrative agent. The loan generally bears interest at a variable rate based on the weighted average interest rates of the underlying commercial paper or LIBOR, plus any applicable margin. Securities held by the Fund are subject to a lien, granted to the lenders, to the extent of the borrowing outstanding and any additional expenses.

 

19


 

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, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934

 

  (b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are likely to materially affect the registrant’s internal control over financial reporting.

 

ITEM 3. EXHIBITS.

Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are 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.

 

Salomon Brothers Global High Income Fund Inc.

By  

/s/    R. JAY GERKEN

  R. Jay Gerken
  Chief Executive Officer

Date: October 26, 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  

/s/    R. JAY GERKEN

  R. Jay Gerken
  Chief Executive Officer

Date: October 26, 2006

 

 

By

 

/s/    FRANCES M. GUGGINO

  Frances M. Guggino
  Chief Financial Officer

Date: October 26, 2006