Edgar Filing: WESTERN ASSET PREMIER BOND FUND

WESTERN ASSET PREMIER BOND FUND (WEA)

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 811-10603

Western Asset Premier Bond Fund

(Exact name of registrant as specified in charter)

620 Eighth Avenue, 49^th Floor, New York, NY 10018

(Address of principal executive offices) (Zip code)

Robert I. Frenkel, Esq.

Legg Mason & Co., LLC

100 First Stamford Place

Stamford, CT 06902

(Name and address of agent for service)

Registrant’s telephone number, including area code: (888) 777-0102

Date of fiscal year end: December 31

Date of reporting period: September 30, 2015

ITEM 1.

SCHEDULE OF INVESTMENTS.

WESTERN ASSET PREMIER BOND FUND

FORM N-Q

SEPTEMBER 30, 2015

WESTERN ASSET PREMIER BOND FUND


Schedule of investments (unaudited)		September 30, 2015


SECURITY	RATE			MATURITY DATE		FACE AMOUNT†			VALUE
CORPORATE BONDS & NOTES - 96.5%
CONSUMER DISCRETIONARY - 12.2%
Automobiles - 3.1%
Daimler Finance NA LLC, Notes		8.500	%		1/18/31		1,000,000		$	1,419,665	^(a)
Ford Motor Credit Co., LLC, Senior Notes		8.000	%		12/15/16		680,000			730,914	^(a)
Ford Motor Credit Co., LLC, Senior Notes		2.375	%		1/16/18		1,000,000			1,001,120	^(a)
General Motors Co., Senior Notes		6.250	%		10/2/43		1,750,000			1,861,435	^(a)

Total Automobiles										5,013,134

Hotels, Restaurants & Leisure - 1.1%
CCM Merger Inc., Senior Notes		9.125	%		5/1/19		570,000			602,119	^(a)(b)
Greektown Holdings LLC/Greektown Mothership Corp., Senior Secured Notes		8.875	%		3/15/19		420,000			430,500	^(a)(b)
Landry’s Holdings II Inc., Senior Notes		10.250	%		1/1/18		720,000			738,000	^(a)(b)

Total Hotels, Restaurants & Leisure										1,770,619

Household Durables - 0.6%
Shea Homes LP/Shea Homes Funding Corp., Senior Notes		6.125	%		4/1/25		580,000			593,050	^(b)
William Lyon Homes Inc., Senior Notes		8.500	%		11/15/20		390,000			418,275	^(a)

Total Household Durables										1,011,325

Media - 7.2%
21st Century Fox America Inc., Senior Debentures		8.875	%		4/26/23		400,000			528,764	^(a)
AMC Entertainment Inc., Senior Subordinated Notes		5.750	%		6/15/25		350,000			340,375
CCO Safari II LLC, Senior Secured Notes		6.384	%		10/23/35		420,000			424,934	^(b)
CCO Safari II LLC, Senior Secured Notes		6.484	%		10/23/45		2,130,000			2,148,850	^(b)
Comcast Corp., Notes		7.050	%		3/15/33		1,000,000			1,318,412	^(a)
CSC Holdings LLC, Senior Notes		6.750	%		11/15/21		1,000,000			895,000	^(a)
DISH DBS Corp., Senior Notes		7.875	%		9/1/19		385,000			403,607	^(a)
iHeartCommunications Inc., Senior Notes		14.000	%		2/1/21		520,000			215,475	^(c)
New Cotai LLC/New Cotai Capital Corp., Senior Secured Notes		10.625	%		5/1/19		382,592			311,812	^(b)(c)
Time Warner Cable Inc., Debentures		7.300	%		7/1/38		720,000			754,114	^(a)
Time Warner Cable Inc., Senior Notes		5.850	%		5/1/17		500,000			529,172	^(a)
Time Warner Inc., Senior Debentures		7.700	%		5/1/32		980,000			1,272,594	^(a)
Tribune Media Co., Senior Notes		5.875	%		7/15/22		260,000			252,200	^(b)
UPC Holding BV, Junior Secured Subordinated Notes		6.375	%		9/15/22		1,820,000	^EUR		2,165,856	^(a)(b)

Total Media										11,561,165

Specialty Retail - 0.2%
Hot Topic Inc., Senior Secured Notes		9.250	%		6/15/21		270,000			259,200	^(a)(b)

TOTAL CONSUMER DISCRETIONARY										19,615,443

CONSUMER STAPLES - 4.4%
Food & Staples Retailing - 2.3%
CVS Pass-Through Trust, Secured Bonds		5.789	%		1/10/26		429,888			480,718	^(a)(b)
CVS Pass-Through Trust, Secured Notes		5.880	%		1/10/28		440,747			507,275	^(a)
CVS Pass-Through Trust, Secured Notes		6.036	%		12/10/28		440,505			497,599	^(a)
CVS Pass-Through Trust, Secured Notes		6.943	%		1/10/30		426,588			505,902	^(a)
CVS Pass-Through Trust, Secured Notes		7.507	%		1/10/32		418,896			518,428	^(a)(b)
Kroger Co., Senior Notes		6.400	%		8/15/17		1,090,000			1,187,082	^(a)

Total Food & Staples Retailing										3,697,004

Food Products - 1.8%
Ahold Lease USA Inc., Pass-Through Certificates		8.620	%		1/2/25		686,921			857,038	^(a)
WM Wrigley Jr. Co., Senior Notes		2.000	%		10/20/17		2,000,000			2,016,144	^(a)(b)

Total Food Products										2,873,182

Household Products - 0.1%
Kronos Acquisition Holdings Inc., Senior Notes		9.000	%		8/15/23		130,000			116,350	^(b)

Tobacco - 0.2%
Reynolds American Inc., Senior Notes		5.850	%		8/15/45		310,000			344,897

TOTAL CONSUMER STAPLES										7,031,433

See Notes to Schedule of Investments.

WESTERN ASSET PREMIER BOND FUND


Schedule of investments (unaudited) (cont’d)		September 30, 2015


SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
ENERGY - 14.9%
Energy Equipment & Services - 1.3%
CGG, Senior Notes		6.500	%		6/1/21		750,000	$	429,000	^(a)
FTS International Inc., Senior Secured Bonds		6.250	%		5/1/22		370,000		114,700
Hercules Offshore Inc., Senior Notes		8.750	%		7/15/21		410,000		86,100	*^(a)(b)(d)
Hercules Offshore Inc., Senior Notes		6.750	%		4/1/22		650,000		130,000	*^(a)(b)(d)
Transocean Inc., Senior Notes		5.550	%		12/15/16		1,000,000		987,500	^(a)
Transocean Inc., Senior Notes		6.800	%		3/15/38		500,000		310,000	^(a)

Total Energy Equipment & Services									2,057,300

Oil, Gas & Consumable Fuels - 13.6%
Anadarko Finance Co., Senior Notes		7.500	%		5/1/31		570,000		695,486	^(a)
Anadarko Petroleum Corp., Senior Notes		4.500	%		7/15/44		1,000,000		889,498	^(a)
Apache Corp., Senior Notes		4.250	%		1/15/44		250,000		212,563	^(a)
Arch Coal Inc., Senior Notes		7.000	%		6/15/19		1,080,000		81,000
Burlington Resources Finance Co., Senior Notes		7.400	%		12/1/31		450,000		584,737	^(a)
Calumet Specialty Products Partners LP/Calumet Finance Corp., Senior Notes		6.500	%		4/15/21		900,000		810,000	^(a)
Colorado Interstate Gas Co., LLC, Senior Notes		6.800	%		11/15/15		150,000		150,905	^(a)
Comstock Resources Inc., Senior Notes		9.500	%		6/15/20		450,000		123,750
Continental Resources Inc., Senior Notes		4.500	%		4/15/23		1,000,000		868,376
Continental Resources Inc., Senior Notes		4.900	%		6/1/44		500,000		357,457	^(a)
Devon Energy Corp., Debentures		7.950	%		4/15/32		310,000		381,035	^(a)
Ecopetrol SA, Senior Bonds		4.125	%		1/16/25		1,000,000		842,500
Ecopetrol SA, Senior Notes		5.875	%		9/18/23		55,000		52,937	^(a)
Ecopetrol SA, Senior Notes		5.375	%		6/26/26		1,000,000		872,500
Ecopetrol SA, Senior Notes		5.875	%		5/28/45		130,000		99,125
Enterprise Products Operating LLC, Senior Notes		3.700	%		2/15/26		880,000		831,554	^(a)
Enterprise Products Operating LLC, Senior Notes		5.100	%		2/15/45		1,000,000		912,780	^(a)
Freeport-McMoran Oil & Gas LLC/FCX Oil & Gas Inc., Senior Notes		6.500	%		11/15/20		429,000		386,907	^(a)
Freeport-McMoran Oil & Gas LLC/FCX Oil & Gas Inc., Senior Notes		6.875	%		2/15/23		650,000		575,087	^(a)
Halcon Resources Corp., Secured Notes		8.625	%		2/1/20		440,000		365,750	^(b)
Halcon Resources Corp., Senior Notes		9.750	%		7/15/20		670,000		227,800	^(a)
Hess Corp., Notes		7.875	%		10/1/29		350,000		413,196	^(a)
Kinder Morgan Inc., Medium-Term Notes		7.800	%		8/1/31		190,000		194,287
Kinder Morgan Inc., Senior Bonds		5.550	%		6/1/45		1,500,000		1,245,952	^(a)
Lonestar Resources America Inc., Senior Notes		8.750	%		4/15/19		180,000		117,900	^(b)
Magnum Hunter Resources Corp., Senior Notes		9.750	%		5/15/20		740,000		333,000
MEG Energy Corp., Senior Notes		7.000	%		3/31/24		840,000		667,800	^(a)(b)
Natural Resource Partners LP/Natural Resource Partners Finance Corp., Senior Notes		9.125	%		10/1/18		370,000		259,000	^(a)
Newfield Exploration Co., Senior Notes		5.625	%		7/1/24		2,500,000		2,362,500
Noble Energy Inc., Senior Notes		5.250	%		11/15/43		1,000,000		888,508	^(a)
Oasis Petroleum Inc., Senior Notes		6.500	%		11/1/21		180,000		142,200
Oasis Petroleum Inc., Senior Notes		6.875	%		3/15/22		380,000		301,074
Petrobras Global Finance BV, Senior Notes		6.750	%		1/27/41		920,000		600,300
Petroleos Mexicanos, Senior Notes		4.250	%		1/15/25		1,500,000		1,372,500	^(b)
Reliance Holdings USA Inc., Senior Notes		5.400	%		2/14/22		1,000,000		1,091,181	^(a)(b)
Reliance Holdings USA Inc., Senior Notes		5.400	%		2/14/22		250,000		272,795	^(e)
RSP Permian Inc., Senior Notes		6.625	%		10/1/22		410,000		393,600	^(b)
Sanchez Energy Corp., Senior Notes		7.750	%		6/15/21		380,000		281,200	^(a)
Williams Cos. Inc., Debentures		7.500	%		1/15/31		413,000		357,967	^(a)
Williams Cos. Inc., Senior Notes		8.750	%		3/15/32		39,000		37,106	^(a)
WPX Energy Inc., Senior Notes		7.500	%		8/1/20		40,000		36,600
WPX Energy Inc., Senior Notes		6.000	%		1/15/22		50,000		43,000
WPX Energy Inc., Senior Notes		8.250	%		8/1/23		280,000		254,100

Total Oil, Gas & Consumable Fuels									21,987,513

TOTAL ENERGY									24,044,813

See Notes to Schedule of Investments.

WESTERN ASSET PREMIER BOND FUND


Schedule of investments (unaudited) (cont’d)		September 30, 2015


SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
FINANCIALS - 27.7%
Banks - 16.7%
Bank of America Corp., Senior Notes		3.750	%		7/12/16		500,000	$	509,962	^(a)
Bank of America Corp., Senior Notes		5.000	%		5/13/21		1,100,000		1,212,070	^(a)
Bank of America Corp., Subordinated Notes		4.250	%		10/22/26		700,000		692,031	^(a)
Barclays Bank PLC, Subordinated Notes		10.179	%		6/12/21		610,000		799,151	^(a)(b)
Barclays Bank PLC, Subordinated Notes		7.625	%		11/21/22		2,500,000		2,801,562
BNP Paribas SA, Junior Subordinated Notes		7.375	%		8/19/25		1,280,000		1,288,000	^(b)(f)(g)
BPCE SA, Subordinated Notes		5.150	%		7/21/24		1,000,000		1,016,383	^(b)
Capital One N.A., Senior Notes		1.500	%		3/22/18		1,810,000		1,785,228	^(a)
Citigroup Inc., Subordinated Notes		3.500	%		5/15/23		500,000		486,748	^(a)
Citigroup Inc., Subordinated Notes		5.500	%		9/13/25		200,000		217,537	^(a)
Citigroup Inc., Subordinated Notes		6.625	%		6/15/32		1,000,000		1,182,792	^(a)
Credit Agricole SA, Junior Subordinated Notes		7.875	%		1/23/24		750,000		746,253	^(b)(f)(g)
Credit Agricole SA, Subordinated Notes		4.375	%		3/17/25		350,000		337,971	^(b)
HBOS PLC, Subordinated Notes		6.750	%		5/21/18		700,000		771,530	^(a)(b)
HSBC Holdings PLC, Junior Subordinated Bonds		6.375	%		9/17/24		1,480,000		1,415,250	^(f)(g)
Intesa Sanpaolo SpA, Senior Notes		3.875	%		1/16/18		1,000,000		1,030,134
Intesa Sanpaolo SpA, Subordinated Bonds		5.017	%		6/26/24		910,000		897,986	^(b)
JPMorgan Chase & Co., Subordinated Notes		4.950	%		6/1/45		1,500,000		1,504,498	^(a)
Lloyds Banking Group PLC, Subordinated Notes		4.500	%		11/4/24		1,000,000		1,005,250
Royal Bank of Scotland Group PLC, Subordinated Notes		6.100	%		6/10/23		1,470,000		1,579,578
Royal Bank of Scotland Group PLC, Subordinated Notes		6.000	%		12/19/23		150,000		159,700
Royal Bank of Scotland Group PLC, Subordinated Notes		5.125	%		5/28/24		2,830,000		2,852,479
Royal Bank of Scotland NV, Subordinated Bonds		7.750	%		5/15/23		140,000		166,498	^(a)
Santander UK PLC, Subordinated Notes		5.000	%		11/7/23		510,000		530,166	^(b)
Standard Chartered PLC, Subordinated Notes		5.700	%		3/26/44		2,000,000		1,921,490	^(b)

Total Banks									26,910,247

Capital Markets - 5.0%
Credit Suisse Group Funding Guernsey Ltd., Senior Notes		4.875	%		5/15/45		1,500,000		1,469,922	^(b)
Deutsche Bank AG, Subordinated Notes		4.296	%		5/24/28		2,000,000		1,904,896	^(a)(f)
Goldman Sachs Group Inc., Senior Notes		6.150	%		4/1/18		1,000,000		1,101,347	^(a)
Goldman Sachs Group Inc., Senior Notes		5.250	%		7/27/21		800,000		892,193	^(a)
Goldman Sachs Group Inc., Subordinated Notes		6.750	%		10/1/37		1,000,000		1,192,918	^(a)
Goldman Sachs Group Inc., Subordinated Notes		5.150	%		5/22/45		450,000		441,701
Pershing Square Holdings Ltd., Senior Notes		5.500	%		7/15/22		1,000,000		972,040	^(b)

Total Capital Markets									7,975,017

Consumer Finance - 1.1%
Ally Financial Inc., Senior Notes		8.000	%		3/15/20		282,000		324,300	^(a)
Capital One Financial Corp., Subordinated Notes		6.150	%		9/1/16		500,000		520,821	^(a)
Synchrony Financial, Senior Notes		4.250	%		8/15/24		1,000,000		996,274

Total Consumer Finance									1,841,395

Diversified Financial Services - 3.0%
Argos Merger Sub Inc., Senior Notes		7.125	%		3/15/23		890,000		900,012	^(a)(b)
General Electric Capital Corp., Subordinated Debentures		6.375	%		11/15/67		500,000		535,938	^(a)(f)
General Electric Capital Corp., Subordinated Notes		5.300	%		2/11/21		450,000		517,639	^(a)
International Lease Finance Corp., Senior Notes		8.750	%		3/15/17		1,380,000		1,483,500	^(a)
International Lease Finance Corp., Senior Notes		5.875	%		8/15/22		500,000		532,500	^(a)
International Lease Finance Corp., Senior Secured Notes		7.125	%		9/1/18		400,000		439,960	^(a)(b)
ZFS Finance USA Trust II, Bonds		6.450	%		12/15/65		500,000		505,000	^(a)(b)(f)

Total Diversified Financial Services									4,914,549

See Notes to Schedule of Investments.

WESTERN ASSET PREMIER BOND FUND


Schedule of investments (unaudited) (cont’d)		September 30, 2015


SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
Insurance - 0.8%
Genworth Holdings Inc., Senior Notes		4.900	%		8/15/23		330,000	$	257,400	^(a)
Liberty Mutual Group Inc., Junior Subordinated Bonds		7.800	%		3/15/37		200,000		232,500	^(a)(b)
Metlife Inc., Junior Subordinated Notes		10.750	%		8/1/39		500,000		780,000	^(a)

Total Insurance									1,269,900

Real Estate Management & Development - 0.6%
Communications Sales & Leasing Inc., Senior Secured Notes		6.000	%		4/15/23		300,000		267,000	^(b)
Howard Hughes Corp., Senior Notes		6.875	%		10/1/21		690,000		700,971	^(a)(b)

Total Real Estate Management & Development									967,971

Thrifts & Mortgage Finance - 0.5%
Quicken Loans Inc., Senior Notes		5.750	%		5/1/25		860,000		807,325	^(b)

TOTAL FINANCIALS									44,686,404

HEALTH CARE - 5.2%
Biotechnology - 0.9%
AbbVie Inc., Senior Subordinated Notes		3.600	%		5/14/25		700,000		690,387	^(a)
AMAG Pharmaceuticals Inc., Senior Notes		7.875	%		9/1/23		280,000		268,100	^(b)
Celgene Corp., Senior Notes		5.000	%		8/15/45		470,000		466,192

Total Biotechnology									1,424,679

Health Care Equipment & Supplies - 0.8%
ConvaTec Finance International SA, Senior Notes		8.250	%		1/15/19		340,000		334,050	^(a)(b)(c)
DJO Finco Inc./DJO Finance LLC/DJO Finance Corp., Secured Notes		8.125	%		6/15/21		1,040,000		1,014,000	^(b)

Total Health Care Equipment & Supplies									1,348,050

Health Care Providers & Services - 1.7%
HCA Inc., Debentures		7.500	%		11/15/95		475,000		470,250	^(a)
HCA Inc., Notes		7.690	%		6/15/25		90,000		99,900	^(a)
IASIS Healthcare LLC/IASIS Capital Corp., Senior Notes		8.375	%		5/15/19		230,000		236,612	^(a)
Tenet Healthcare Corp., Senior Notes		8.125	%		4/1/22		1,440,000		1,530,576	^(a)
UnitedHealth Group Inc., Senior Notes		4.750	%		7/15/45		340,000		358,909

Total Health Care Providers & Services									2,696,247

Pharmaceuticals - 1.8%
Actavis Funding SCS, Senior Notes		4.550	%		3/15/35		270,000		248,417	^(a)
Actavis Funding SCS, Senior Notes		4.750	%		3/15/45		1,080,000		980,590	^(a)
JLL/Delta Dutch Pledgeco BV, Senior Notes		8.750	%		5/1/20		760,000		767,600	^(b)(c)
Valeant Pharmaceuticals International Inc., Senior Notes		6.125	%		4/15/25		980,000		933,450	^(b)

Total Pharmaceuticals									2,930,057

TOTAL HEALTH CARE									8,399,033

INDUSTRIALS - 10.1%
Aerospace & Defense - 0.6%
Aerojet Rocketdyne Holdings Inc., Secured Notes		7.125	%		3/15/21		250,000		258,750	^(a)
Boeing Co., Notes		6.125	%		2/15/33		600,000		767,646	^(a)

Total Aerospace & Defense									1,026,396

Air Freight & Logistics - 0.7%
XPO Logistics Inc., Senior Notes		6.500	%		6/15/22		1,300,000		1,099,312	^(b)

See Notes to Schedule of Investments.

WESTERN ASSET PREMIER BOND FUND


Schedule of investments (unaudited) (cont’d)		September 30, 2015


SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
Airlines - 5.9%
Air 2 US, Notes		8.027	%		10/1/19		1,033,852	$	1,106,222	^(a)(b)
America West Airlines Inc., Pass-Through Certificates, Ambac Assurance Corp.		8.057	%		7/2/20		1,194,287		1,361,488	^(a)
Continental Airlines Inc., Pass-Through Certificates, Senior Secured Notes		6.900	%		1/2/18		333,547		346,889	^(a)
Continental Airlines Inc., Pass-Through Certificates, Senior Secured Notes		6.820	%		5/1/18		423,470		448,878	^(a)
Continental Airlines Inc., Pass-Through Certificates, Senior Secured Notes		6.545	%		2/2/19		759,466		817,337	^(a)
Continental Airlines Inc., Pass-Through Certificates, Senior Secured Notes		8.048	%		11/1/20		322,437		363,547	^(a)
Continental Airlines Inc., Pass-Through Certificates, Senior Secured Notes		6.703	%		6/15/21		657,055		688,266	^(a)
Delta Air Lines Inc., Pass-Through Certificates, Secured Notes		8.021	%		8/10/22		109,749		124,016	^(a)
Northwest Airlines Corp., Pass-Through Certificates		7.575	%		3/1/19		313,917		345,309
US Airways, Pass-Through Certificates, Senior Secured Bonds		6.850	%		1/30/18		1,982,480		2,101,429	^(a)
US Airways, Pass-Through Certificates, Senior Secured Bonds		7.125	%		10/22/23		1,568,919		1,823,869	^(a)

Total Airlines									9,527,250

Commercial Services & Supplies - 0.1%
Garda World Security Corp., Senior Notes		7.250	%		11/15/21		220,000		200,750	^(b)

Construction & Engineering - 0.7%
Ausdrill Finance Pty Ltd., Senior Notes		6.875	%		11/1/19		270,000		189,000	^(a)(b)
Michael Baker International LLC/CDL Acquisition Co. Inc., Senior Secured Notes		8.250	%		10/15/18		610,000		579,500	^(a)(b)
Modular Space Corp., Secured Notes		10.250	%		1/31/19		360,000		250,200	^(a)(b)
Odebrecht Offshore Drilling Finance Ltd., Senior Secured Notes		6.625	%		10/1/22		186,840		46,897	^(b)

Total Construction & Engineering									1,065,597

Electrical Equipment - 0.2%
International Wire Group Holdings Inc., Senior Secured Notes		8.500	%		10/15/17		340,000		343,400	^(a)(b)

Machinery - 0.5%
SPL Logistics Escrow LLC/SPL Logistics Finance Corp., Senior Secured Notes		8.875	%		8/1/20		710,000		745,500	^(a)(b)

Marine - 0.3%
Navios Maritime Acquisition Corp./Navios Acquisition Finance U.S. Inc., Senior Secured Notes		8.125	%		11/15/21		470,000		434,750	^(a)(b)

Professional Services - 0.6%
IHS Inc., Senior Notes		5.000	%		11/1/22		1,000,000		961,250

Road & Rail - 0.2%
Florida East Coast Holdings Corp., Senior Notes		9.750	%		5/1/20		100,000		90,000	^(a)(b)
Florida East Coast Holdings Corp., Senior Secured Notes		6.750	%		5/1/19		240,000		235,200	^(b)

Total Road & Rail									325,200

Trading Companies & Distributors - 0.3%
H&E Equipment Services Inc., Senior Notes		7.000	%		9/1/22		590,000		572,300	^(a)

TOTAL INDUSTRIALS									16,301,705

INFORMATION TECHNOLOGY - 2.5%
Communications Equipment - 0.9%
Harris Corp., Senior Notes		5.054	%		4/27/45		1,500,000		1,447,785	^(a)

See Notes to Schedule of Investments.

WESTERN ASSET PREMIER BOND FUND


Schedule of investments (unaudited) (cont’d)		September 30, 2015


SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
Electronic Equipment, Instruments & Components - 0.2%
Interface Security Systems Holdings Inc./Interface Security Systems LLC, Senior Secured Notes		9.250	%		1/15/18		340,000	$	344,250	^(a)

IT Services - 1.4%
Compiler Finance Subordinated Inc., Senior Notes		7.000	%		5/1/21		465,000		279,000	^(b)
First Data Corp., Senior Notes		12.625	%		1/15/21		940,000		1,068,075	^(a)
First Data Corp., Senior Secured Notes		6.750	%		11/1/20		98,000		102,410	^(a)(b)
First Data Corp., Senior Subordinated Notes		11.750	%		8/15/21		208,000		230,880	^(a)
HP Enterprise Services LLC, Notes		7.450	%		10/15/29		500,000		641,910	^(a)

Total IT Services									2,322,275

TOTAL INFORMATION TECHNOLOGY									4,114,310

MATERIALS - 3.8%
Chemicals - 0.2%
Braskem Finance Ltd., Senior Notes		5.375	%		5/2/22		230,000		181,700	^(b)
HIG BBC Intermediate Holdings LLC/HIG BBC Holdings Corp., Senior Notes		10.500	%		9/15/18		250,000		244,375	^(b)(c)

Total Chemicals									426,075

Containers & Packaging - 0.8%
Ardagh Packaging Finance PLC/Ardagh MP Holdings USA Inc., Senior Notes		9.125	%		10/15/20		415,000		432,638	^(b)
Ardagh Packaging Finance PLC/Ardagh MP Holdings USA Inc., Senior Notes		7.000	%		11/15/20		213,529		213,529	^(b)
Coveris Holdings SA, Senior Notes		7.875	%		11/1/19		590,000		559,025	^(b)
Pactiv LLC, Senior Notes		7.950	%		12/15/25		50,000		47,375	^(a)

Total Containers & Packaging									1,252,567

Metals & Mining - 2.3%
ArcelorMittal, Senior Notes		6.250	%		3/1/21		160,000		144,299
ArcelorMittal, Senior Notes		7.750	%		10/15/39		430,000		350,450
Barminco Finance Pty Ltd., Senior Notes		9.000	%		6/1/18		430,000		312,825	^(a)(b)
Barrick Gold Corp., Senior Notes		6.950	%		4/1/19		300,000		335,939	^(a)
FMG Resources (August 2006) Pty Ltd., Senior Secured Notes		9.750	%		3/1/22		1,060,000		987,125	^(b)
Freeport-McMoRan Inc., Senior Notes		4.550	%		11/14/24		900,000		670,500	^(a)
Joseph T. Ryerson & Son Inc., Senior Notes		11.250	%		10/15/18		414,000		375,705	^(a)
Prince Mineral Holding Corp., Senior Secured Notes		11.500	%		12/15/19		80,000		67,200	^(a)(b)
Vedanta Resources PLC, Senior Bonds		8.250	%		6/7/21		580,000		406,244	^(a)(e)

Total Metals & Mining									3,650,287

Paper & Forest Products - 0.5%
Verso Paper Holdings LLC/Verso Paper Inc., Senior Secured Bonds		11.750	%		1/15/19		360,000		66,600
Weyerhaeuser Co., Debentures		7.375	%		3/15/32		560,000		703,872	^(a)

Total Paper & Forest Products									770,472

TOTAL MATERIALS									6,099,401

TELECOMMUNICATION SERVICES - 12.3%
Diversified Telecommunication Services - 9.9%
AT&T Inc., Senior Notes		5.350	%		9/1/40		170,000		167,931	^(a)
Cincinnati Bell Telephone Co., LLC, Senior Debentures		6.300	%		12/1/28		25,000		23,375	^(a)
Frontier Communications Corp., Senior Notes		10.500	%		9/15/22		430,000		419,250	^(b)
Frontier Communications Corp., Senior Notes		11.000	%		9/15/25		530,000		512,775	^(b)
Intelsat Luxembourg SA, Senior Bonds		7.750	%		6/1/21		470,000		310,200
Level 3 Financing Inc., Senior Notes		8.625	%		7/15/20		290,000		303,050	^(a)
Level 3 Financing Inc., Senior Notes		6.125	%		1/15/21		530,000		544,845	^(a)
Oi SA, Senior Notes		5.750	%		2/10/22		400,000		186,000	^(b)
Orange SA, Notes		9.000	%		3/1/31		600,000		850,503	^(a)
Qwest Corp., Senior Notes		6.750	%		12/1/21		2,000,000		2,116,250	^(a)

See Notes to Schedule of Investments.

WESTERN ASSET PREMIER BOND FUND


Schedule of investments (unaudited) (cont’d)		September 30, 2015


SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
Diversified Telecommunication Services - (continued)
Telecom Italia SpA, Senior Notes		5.303	%		5/30/24		2,750,000	$	2,688,125	^(b)
Telefonica Emisiones SAU, Senior Notes		5.134	%		4/27/20		2,000,000		2,204,020	^(a)
Verizon Communications Inc., Senior Notes		5.150	%		9/15/23		4,330,000		4,783,308	^(a)
Windstream Services LLC, Senior Notes		7.750	%		10/1/21		200,000		155,000
Windstream Services LLC, Senior Notes		6.375	%		8/1/23		930,000		670,158	^(a)

Total Diversified Telecommunication Services									15,934,790

Wireless Telecommunication Services - 2.4%
Altice Financing SA, Senior Secured Notes		6.625	%		2/15/23		400,000		384,750	^(a)(b)
Neptune Finco Corp., Senior Notes		10.125	%		1/15/23		200,000		202,250	^(b)
Neptune Finco Corp., Senior Notes		6.625	%		10/15/25		610,000		613,050	^(b)
Neptune Finco Corp., Senior Notes		10.875	%		10/15/25		240,000		242,400	^(b)
Sprint Capital Corp., Senior Notes		6.875	%		11/15/28		750,000		538,125	^(a)
Sprint Capital Corp., Senior Notes		8.750	%		3/15/32		1,000,000		777,500
Sprint Communications Inc., Senior Notes		9.000	%		11/15/18		500,000		524,650	^(a)(b)
VimpelCom Holdings BV, Senior Notes		5.950	%		2/13/23		570,000		518,930	^(a)(b)

Total Wireless Telecommunication Services									3,801,655

TOTAL TELECOMMUNICATION SERVICES									19,736,445

UTILITIES - 3.4%
Electric Utilities - 2.8%
Centrais Eletricas Brasileiras SA, Senior Notes		5.750	%		10/27/21		210,000		157,500	^(b)
Electricite de France SA, Junior Subordinated Notes		5.625	%		1/22/24		1,500,000		1,482,000	^(a)(b)(f)(g)
FirstEnergy Corp., Notes		7.375	%		11/15/31		1,770,000		2,136,183	^(a)
Southern Co., Senior Notes		1.950	%		9/1/16		150,000		151,146	^(a)
State Grid Overseas Investment 2014 Ltd., Senior Notes		4.125	%		5/7/24		500,000		526,566	^(e)

Total Electric Utilities									4,453,395

Gas Utilities - 0.0%
Southern Natural Gas Co., LLC, Senior Notes		8.000	%		3/1/32		20,000		21,743	^(a)

Independent Power and Renewable Electricity Producers - 0.6%
AES Corp., Senior Notes		8.000	%		6/1/20		100,000		113,000	^(a)
Calpine Corp., Senior Secured Notes		7.875	%		1/15/23		489,000		522,007	^(a)(b)
TerraForm Power Operating LLC, Senior Notes		5.875	%		2/1/23		370,000		326,525	^(a)(b)

Total Independent Power and Renewable Electricity Producers									961,532

TOTAL UTILITIES									5,436,670

TOTAL CORPORATE BONDS & NOTES (Cost - $159,039,572)									155,465,657

ASSET-BACKED SECURITIES - 14.7%
AAA Trust, 2005-1A 1A3B		0.604	%		2/27/35		463,839		422,093	^(b)(f)
ABFS Mortgage Loan Trust, 2002-3 M1		5.902	%		9/15/33		929,142		731,463
ACE Securities Corp., 2005-WF1 M1		0.824	%		5/25/35		470,000		466,750	^(f)
Ameriquest Mortgage Securities Inc., 2004-R1 A1B		0.994	%		2/25/34		394,645		369,993	^(f)
Ameriquest Mortgage Securities Inc., 2004-R9 M1		1.124	%		10/25/34		27,210		27,207	^(f)
Argent Securities Inc., 2003-W3 M1		1.319	%		9/25/33		32,125		31,170	^(f)
Associates Manufactured Housing Pass-Through Certificates, 1997-CLB2		8.900	%		6/15/28		1,992,120		1,885,342	^(h)
Bank of America Manufactured Housing Contract Trust, 1997-2M		6.900	%		4/10/28		34,695		35,750	^(f)
Bayview Financial Asset Trust, 2004-SSRA A1		0.794	%		12/25/39		160,417		153,731	^(b)(f)
Bayview Financial Asset Trust, 2007-SR1A M1		0.994	%		3/25/37		899,091		781,220	^(b)(f)
Bayview Financial Asset Trust, 2007-SR1A M3		1.344	%		3/25/37		341,035		271,054	^(b)(f)

See Notes to Schedule of Investments.

WESTERN ASSET PREMIER BOND FUND


Schedule of investments (unaudited) (cont’d)		September 30, 2015


SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
ASSET-BACKED SECURITIES - (continued)
Bayview Financial Asset Trust, 2007-SR1A M4		1.694	%		3/25/37		93,010	$	69,413	^(b)(f)
Bear Stearns Asset-Backed Securities Trust, 2006-SD3 1P0, STRIPS, PO		0.000	%		8/25/36		513,982		316,755
Centex Home Equity Loan Trust, 2003-B AF4		3.735	%		2/25/32		349,152		350,897
Citigroup Mortgage Loan Trust Inc., 2006-SHL1 A1		0.399	%		11/25/45		65,895		63,839	^(b)(f)
Conseco Financial Corp., 1993-1 B		8.450	%		4/15/18		16,852		7,793
Contimortgage Home Equity Trust, 1997-4 B1F		7.330	%		10/15/28		156,199		157,400
Countrywide Asset-Backed Certificates, 2004-3 3A3		0.954	%		8/25/34		135,516		132,586	^(f)
Countrywide Asset-Backed Certificates, 2006-3 3A1		0.314	%		6/25/36		51,487		51,029	^(f)
Countrywide Asset-Backed Certificates, 2007-13 2A1		1.094	%		10/25/47		863,433		769,368	^(f)
Countrywide Asset-Backed Certificates, 2007-SEA2 1A1		1.194	%		8/25/47		38,664		35,705	^(b)(f)
Credit Suisse First Boston Mortgage Securities Corp., 2004-CF2 2A1		0.664	%		5/25/44		11,667		11,467	^(b)(f)
Credit-Based Asset Servicing and Securitization LLC, 2005-RP1 M1		0.814	%		1/25/35		77,912		77,350	^(b)(f)
Education Funding Capital Trust, 2004-1 B1		1.846	%		6/15/43		1,200,000		1,119,100	^(a)(f)
EMC Mortgage Loan Trust, 2003-B A1		0.744	%		11/25/41		18,903		17,741	^(b)(f)
Firstfed Corp. Manufactured Housing Contract, 1996-1 B		8.060	%		10/15/22		319,308		191,585	^(b)
GMAC Mortgage Corp. Loan Trust, 2004-VF1 A1		0.944	%		2/25/31		78,247		76,873	^(b)(f)
Green Tree Home Improvement Loan Trust, 1996-D HIB2		8.000	%		9/15/27		13,245		11,504
Greenpoint Manufactured Housing, 1999-2 A2		2.899	%		3/18/29		425,000		370,139	^(f)
Greenpoint Manufactured Housing, 1999-3 2A2		3.562	%		6/19/29		125,000		108,750	^(f)
Greenpoint Manufactured Housing, 1999-4 A2		3.702	%		2/20/30		125,000		108,750	^(f)
Greenpoint Manufactured Housing, 1999-5 A5		7.820	%		12/15/29		71,183		71,403	^(f)
Greenpoint Manufactured Housing, 2001-2 IA2		3.691	%		2/20/32		300,000		275,440	^(f)
Greenpoint Manufactured Housing, 2001-2 IIA2		3.694	%		3/13/32		475,000		430,684	^(f)
GSAA Home Equity Trust, 2004-8 A3A		0.934	%		9/25/34		114,569		112,902	^(f)
GSAA Home Equity Trust, 2006-19 A3A		0.434	%		12/25/36		582,912		338,729	^(f)
GSAMP Trust, 2003-SEA2 A1		4.422	%		7/25/33		1,201,262		1,182,405
GSRPM Mortgage Loan Trust, 2006-1 A1		0.494	%		3/25/35		71,846		70,502	^(b)(f)
GSRPM Mortgage Loan Trust, 2006-2 A2		0.494	%		9/25/36		106,133		100,963	^(b)(f)
Indymac Manufactured Housing Contract, 1997-1 A5		6.970	%		2/25/28		104,825		106,798
Lehman XS Trust, 2007-1 WF1		4.822	%		1/25/37		561,199		354,976	^(f)
Morgan Stanley Capital Inc., 2003-NC9 M		1.319	%		9/25/33		1,002,505		969,634	^(f)
Morgan Stanley Capital Inc., 2003-SD1 A1		1.194	%		3/25/33		14,509		13,702	^(f)
Morgan Stanley Capital Inc., 2004-HE7 M1		1.094	%		8/25/34		1,539,471		1,407,983	^(a)(f)
New Century Home Equity Loan Trust, 2004-2 A2		0.934	%		8/25/34		475,320		435,458	^(f)
New Century Home Equity Loan Trust, 2004-3 M1		1.124	%		11/25/34		1,480,740		1,368,551	^(f)
Oakwood Mortgage Investors Inc., 2002-B A3		6.060	%		6/15/32		155,958		161,021	^(f)
Option One Mortgage Loan Trust, 2003-2 A2		0.794	%		4/25/33		277,732		257,267	^(f)
Origen Manufactured Housing Contract Trust, 2006-A A2		2.644	%		10/15/37		1,849,901		1,650,768	^(f)
Origen Manufactured Housing Contract Trust, 2007-A A2		2.645	%		4/15/37		2,078,962		1,837,238	^(f)
Park Place Securities Inc., 2004-WCW1 M2		1.214	%		9/25/34		575,059		570,590	^(f)
Park Place Securities Inc., 2004-WHQ2 M2		1.139	%		2/25/35		313,917		312,901	^(f)
People’s Choice Home Loan Securities Trust, 2004-1 A3		1.234	%		6/25/34		400,842		391,489	^(f)
RAAC Series, 2007-RP1 M1		0.749	%		5/25/46		210,000		159,400	^(b)(f)
Renaissance Home Equity Loan Trust, 2004-2 AF4		5.392	%		7/25/34		194,001		195,945
Renaissance Home Equity Loan Trust, 2005-3 AV3		0.574	%		11/25/35		502,006		443,855	^(f)
Residential Asset Mortgage Products Inc., 2004-RZ1 AII		0.674	%		3/25/34		206,830		206,178	^(f)
Residential Asset Securities Corp., 2002-KS2 AI6		6.228	%		4/25/32		117,666		119,772	^(f)
Residential Asset Securities Corp., 2003-KS8 AI6		4.830	%		10/25/33		94,862		94,198	^(f)
Settlement Fee Finance LLC, 2004-1A A		9.100	%		7/25/34		420,254		447,696	^(b)
Structured Asset Securities Corp., 2006-GEL3 A2		0.424	%		7/25/36		387,835		385,770	^(b)(f)

TOTAL ASSET-BACKED SECURITIES (Cost - $20,175,702)									23,698,035

See Notes to Schedule of Investments.

WESTERN ASSET PREMIER BOND FUND


Schedule of investments (unaudited) (cont’d)		September 30, 2015


SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
COLLATERALIZED MORTGAGE OBLIGATIONS - 9.6%
American Home Mortgage Investment Trust, 2007-A 4A		1.091	%		7/25/46		592,817	$	212,365	^(b)(f)
Banc of America Funding Corp., 2004-B 6A1		2.185	%		12/20/34		269,219		188,707	^(f)
BCAP LLC Trust, 2009-RR12 2A2		0.479	%		3/26/35		1,808,457		1,185,675	^(b)(f)
Bear Stearns Alt-A Trust, 2004-03 A1		0.834	%		4/25/34		304,137		295,801	^(f)
Bear Stearns Alt-A Trust, 2005-10 21A1		2.513	%		1/25/36		730,773		602,789	^(f)
Bear Stearns Asset-Backed Securities Trust, 2002-AC1 B4		7.000	%		1/25/32		408,289		56,808	^(b)
BlackRock Capital Finance LP, 1997-R2 B5		4.778	%		12/25/35		23,015		14	^(b)
Chevy Chase Mortgage Funding Corp., 2004-3A A1		0.444	%		8/25/35		774,686		709,041	^(b)(f)
Chevy Chase Mortgage Funding Corp., 2004-4A A1		0.424	%		10/25/35		1,230,966		1,133,723	^(b)(f)
Countrywide Home Loans, 2004-R2 1AF1		0.614	%		11/25/34		204,862		180,624	^(b)(f)
Countrywide Home Loans, 2005-7 1A1		0.734	%		3/25/35		955,816		890,487	^(f)
Countrywide Home Loans, 2006-HYB4 3B		2.680	%		6/20/36		685,776		583,147	^(f)
Credit Suisse Mortgage Capital Certificates, 2009-16R 4A1		2.500	%		3/26/35		245,949		238,733	^(b)(f)
Greenpoint Mortgage Funding Trust, 2005-AR5 3A2		0.464	%		11/25/46		184,430		839,712	^(f)
GSMPS Mortgage Loan Trust, 2001-2 A		7.500	%		6/19/32		991,399		1,025,036	^(b)(f)
HarborView Mortgage Loan Trust, 2004-08 3A2		1.016	%		11/19/34		102,270		78,427	^(f)
HarborView Mortgage Loan Trust, 2004-10 4A		2.551	%		1/19/35		210,581		208,614	^(f)
Impac CMB Trust, 2004-9 1A1		0.954	%		1/25/35		35,080		31,911	^(f)
Impac CMB Trust, 2005-2 2A2		0.994	%		4/25/35		91,590		83,546	^(f)
Impac CMB Trust, 2A-10		0.834	%		3/25/35		257,503		214,043	^(f)
Indymac Manufactured Housing Contract, A2-2		6.170	%		8/25/29		72,678		73,808
JPMorgan Alternative Loan Trust, 2006-S1 3A4		6.180	%		3/25/36		926,729		659,118	^(f)
JPMorgan Mortgage Trust, 2007-A2 4A2		4.875	%		4/25/37		179,574		161,727	^(f)
LB-UBS Commercial Mortgage Trust, 2001-C3 X, IO, STRIPS		0.561	%		6/15/36		241,525		642	^(b)(f)(i)
Merit Securities Corp., 11PA 3A1		0.814	%		4/28/27		94,846		85,866	^(b)(f)
Merit Securities Corp., 11PA B3		2.444	%		9/28/32		696,939		644,392	^(b)(f)
Metropolitan Asset Funding Inc., 1998-BI B1		8.000	%		11/20/24		437,057		397,604	^(f)
Nomura Asset Acceptance Corp., 2004-AR4 1A1		2.658	%		12/25/34		101,101		101,388	^(f)
Prime Mortgage Trust, 2005-2 2XB, STRIPS, IO		1.743	%		10/25/32		2,451,888		122,187	^(f)
Prime Mortgage Trust, 2005-5 1X, STRIPS, IO		0.974	%		7/25/34		4,734,131		170,594	^(f)
Prime Mortgage Trust, 2005-5 1XB, STRIPS, IO		1.156	%		7/25/34		387,538		8,910	^(f)
Regal Trust IV, 1999-1 A		2.180	%		9/29/31		28,738		26,561	^(b)(f)
Residential Asset Mortgage Products Inc., 2005-SL2 AP0, STRIPS, PO		0.000	%		2/25/32		21,149		20,653
Sequoia Mortgage Trust, 2003-2 A2		1.083	%		6/20/33		22,051		21,470	^(f)
Sequoia Mortgage Trust, 2004-10 A1A		0.836	%		11/20/34		18,882		18,062	^(f)
Sequoia Mortgage Trust, 2004-11 A1		0.516	%		12/20/34		27,835		27,028	^(f)
Sequoia Mortgage Trust, 2004-12 A1		0.756	%		1/20/35		229,785		217,708	^(f)
Structured Asset Securities Corp., 1998-RF2 A		6.302	%		7/15/27		221,585		219,046	^(b)(f)
Structured Asset Securities Corp., 2002-9 A2		0.794	%		10/25/27		423,144		413,549	^(f)
Structured Asset Securities Corp., 2003-9A 2A2		2.392	%		3/25/33		138,003		137,474	^(f)
Structured Asset Securities Corp., 2004-NP1 A		0.994	%		9/25/33		82,766		81,280	^(b)(f)
Thornburg Mortgage Securities Trust, 2004-03 A		0.934	%		9/25/44		364,722		350,274	^(f)
Thornburg Mortgage Securities Trust, 2007-04 3A1		6.095	%		9/25/37		142,720		145,799	^(f)
Washington Mutual Alternative Mortgage Pass-Through Certificates, 2006-7 A2A		4.603	%		9/25/36		1,040,352		607,959

See Notes to Schedule of Investments.

WESTERN ASSET PREMIER BOND FUND


Schedule of investments (unaudited) (cont’d)		September 30, 2015


SECURITY	RATE			MATURITY DATE		FACE AMOUNT†			VALUE
COLLATERALIZED MORTGAGE OBLIGATIONS - (continued)
Washington Mutual Alternative Mortgage Pass-Through Certificates, 2006-7 A3		4.603	%		9/25/36		128,890		$	72,443
Washington Mutual Inc., Mortgage Pass-Through Certificates, 2004-AR06 A		0.614	%		5/25/44		384,919			364,107	^(f)
Washington Mutual Inc., Mortgage Pass-Through Certificates, 2004-AR08 A1		0.614	%		6/25/44		253,559			235,295	^(f)
Washington Mutual Inc., Mortgage Pass-Through Certificates, 2004-AR12 A2A		0.584	%		10/25/44		302,176			292,435	^(f)
Washington Mutual Inc., Mortgage Pass-Through Certificates, 2005-AR13 A1A1		0.484	%		10/25/45		223,542			206,739	^(f)
Washington Mutual Inc., Mortgage Pass-Through Certificates, 2005-AR8 2A1A		0.484	%		7/25/45		272,929			254,660	^(f)
Washington Mutual Inc., Mortgage Pass-Through Certificates, 2006-AR5 3A		1.139	%		7/25/46		720,612			457,573	^(f)
Washington Mutual Inc., MSC Pass-Through Certificates, 2004-RA1 2A		7.000	%		3/25/34		14,501			15,301

TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost - $12,410,661)										15,370,855

MORTGAGE-BACKED SECURITIES - 0.1%
FNMA - 0.1%
Federal National Mortgage Association (FNMA), Whole Loan (Cost - $201,925)		6.500	%		8/25/44		198,558			222,275

SENIOR LOANS - 1.5%
CONSUMER DISCRETIONARY - 0.3%
Hotels, Restaurants & Leisure - 0.3%
Equinox Holdings Inc., Second Lien Term Loan		9.750	%		7/31/20		430,000			435,733	^(j)(k)

CONSUMER STAPLES - 0.1%
Food Products - 0.1%
AdvancePierre Foods Inc., Second Lien Term Loan		9.500	%		10/10/17		180,000			180,000	^(j)(k)

ENERGY - 0.4%
Energy Equipment & Services - 0.4%
Hercules Offshore Inc., Bridge Term Loan		—			11/6/15		690,000			669,300	^(h)(l)

HEALTH CARE - 0.3%
Health Care Providers & Services - 0.3%
Radnet Management Inc., Second Lien Term Loan		8.000	%		3/25/21		440,000			427,350	^(j)(k)

INDUSTRIALS - 0.2%
Commercial Services & Supplies - 0.2%
Kronos Inc., Second Lien Term Loan		9.750	%		4/30/20		329,741			336,646	^(j)(k)

UTILITIES - 0.2%
Electric Utilities - 0.2%
Panda Temple Power LLC, 2015 Term Loan B		7.250	%		3/4/22		427,850			408,597	^(j)(k)

TOTAL SENIOR LOANS (Cost - $2,455,130)										2,457,626

SOVEREIGN BONDS - 7.3%
Argentina - 0.2%
Republic of Argentina, Senior Bonds		7.000	%		10/3/15		130,000			129,270	^(a)
Republic of Argentina, Senior Bonds		7.000	%		4/17/17		290,000			282,927

Total Argentina										412,197

Brazil - 1.5%
Federative Republic of Brazil, Senior Notes		10.000	%		1/1/17		9,902,000	^BRL		2,351,251

See Notes to Schedule of Investments.

WESTERN ASSET PREMIER BOND FUND


Schedule of investments (unaudited) (cont’d)		September 30, 2015


SECURITY	RATE			MATURITY DATE		FACE AMOUNT†			VALUE
Mexico - 2.9%
United Mexican States, Senior Bonds		8.000	%		6/11/20		11,147,000	^MXN	$	735,483
United Mexican States, Senior Bonds		6.500	%		6/9/22		60,296,400	^MXN		3,699,046
United Mexican States, Senior Bonds		10.000	%		12/5/24		2,750,000	^MXN		207,224

Total Mexico										4,641,753

Poland - 1.5%
Republic of Poland, Bonds		4.000	%		10/25/23		8,440,000	^PLN		2,418,187

Turkey - 1.2%
Republic of Turkey, Senior Bonds		5.625	%		3/30/21		210,000			219,187
Republic of Turkey, Senior Bonds		5.750	%		3/22/24		1,200,000			1,243,800
Republic of Turkey, Senior Notes		6.250	%		9/26/22		400,000			427,500

Total Turkey										1,890,487

TOTAL SOVEREIGN BONDS (Cost - $15,814,954)										11,713,875


						SHARES
COMMON STOCKS - 0.9%
FINANCIALS - 0.8%
Banks - 0.8%
Citigroup Inc.							25,131			1,246,749

HEALTH CARE - 0.1%
Health Care Providers & Services - 0.1%
Physiotherapy Associates Holdings Inc.							1,900			157,700	*^(h)(i)

INDUSTRIALS - 0.0%
Marine - 0.0%
DeepOcean Group Holding AS							8,860			57,111	*^(h)(i)

TOTAL COMMON STOCKS (Cost - $1,128,516)										1,461,560

PREFERRED STOCKS - 2.2%
FINANCIALS - 2.2%
Consumer Finance - 1.0%
GMAC Capital Trust I		8.125	%				62,722			1,601,293	^(f)

Diversified Financial Services - 1.2%
Citigroup Capital XIII		7.875	%				75,725			1,945,375	^(f)
Corporate-Backed Trust Certificates, Series 2001-8, Class A-1		7.375	%				33,900			339	*^(d)(h)

Total Diversified Financial Services										1,945,714

Thrifts & Mortgage Finance - 0.0%
Federal Home Loan Mortgage Corp. (FHLMC)		0.000	%				100			630	*^(f)
Federal Home Loan Mortgage Corp. (FHLMC)		5.000	%				200			1,300	*

Total Thrifts & Mortgage Finance										1,930

TOTAL PREFERRED STOCKS (Cost - $3,682,190)										3,548,937

TOTAL INVESTMENTS - 132.8% (Cost - $214,908,650#)										213,938,820
Liabilities in Excess of Other Assets - (32.8)%										(52,898,449	)

TOTAL NET ASSETS - 100.0%									$	161,040,371

See Notes to Schedule of Investments.

WESTERN ASSET PREMIER BOND FUND


Schedule of investments (unaudited) (cont’d)		September 30, 2015

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

*	Non-income producing security.

(a)	All or a portion of this security is pledged as collateral pursuant to the loan agreement.

(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 Trustees, unless otherwise noted.

(c)	Payment-in-kind security for which the issuer has the option at each interest payment date of making interest payments in cash or additional debt securities.

(d)	The coupon payment on these securities is currently in default as of September 30, 2015.

(e)

Security is exempt from registration under Regulation S of the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States. This security has been deemed liquid pursuant to guidelines approved by the Board of Trustees, unless otherwise noted.

(f)	Variable rate security. Interest rate disclosed is as of the most recent information available.

(g)	Security has no maturity date. The date shown represents the next call date.

(h)	Security is valued in good faith in accordance with procedures approved by the Board of Trustees (See Note 1).

(i)	Illiquid security.

(j)	Interest rates disclosed represent the effective rates on senior loans. Ranges in interest rates are attributable to multiple contracts under the same loan.

(k)	Senior loans may be considered restricted in that the Fund ordinarily is contractually obligated to receive approval from the agent bank and/or borrower prior to the disposition of a senior loan.

(l)	All or a portion of this loan is unfunded as of September 30, 2015. The interest rate for fully unfunded term loans is to be determined.

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

Abbreviations used in this schedule:


BRL		— Brazilian Real
EUR		— Euro
IO		— Interest Only
MXN		— Mexican Peso
PLN		— Polish Zloty
PO		— Principal Only
STRIPS		— Separate Trading of Registered Interest and Principal Securities

This Schedule of Investments is unaudited and is intended to provide information about the Fund’s portfolio holdings as of the date of the schedule. Other information regarding the Fund is available in the Fund’s most recent annual or semi-annual shareholder report.

See Notes to Schedule of Investments.

Notes to Schedule of Investments (unaudited)

1. Organization and significant accounting policies

Western Asset Premier Bond Fund (the “Fund”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversified, closed-end management investment company. The Fund commenced investment operations on March 28, 2002.

The Fund’s investment objective is to provide current income and capital appreciation by investing primarily in a diversified portfolio of investment grade bonds.

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. The valuations for fixed income securities (which may include, but are not limited to, corporate, government, municipal, mortgage-backed, collateralized mortgage obligations and asset-backed securities) and certain derivative instruments are typically the prices supplied by independent third party pricing services, which may use market prices or broker/dealer quotations or a variety of valuation techniques and methodologies. The independent third party pricing services use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Short-term fixed income securities that will mature in 60 days or less are valued at amortized cost, unless it is determined that using this method would not reflect an investment’s fair value. Futures contracts are valued daily at the settlement price established by the board of trade or exchange on which they are traded. Equity securities for which market quotations are available are valued at the last reported sales price or official closing price on the primary market or exchange on which they trade. When the Fund holds securities or other assets that are denominated in a foreign currency, the Fund will normally use the currency exchange rates as of 4:00 p.m. (Eastern Time). If independent third party pricing services are unable to supply prices for a portfolio investment, or if the prices supplied are deemed by the manager to be unreliable, the market price may be determined by the manager using quotations from one or more broker/dealers or at the transaction price if the security has recently been purchased and no value has yet been obtained from a pricing service or pricing broker. When reliable prices are not readily available, 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 values these securities as determined in accordance with procedures approved by the Fund’s Board of Trustees.

The Board of Trustees is responsible for the valuation process and has delegated the supervision of the daily valuation process to the Legg Mason North Atlantic Fund Valuation Committee (formerly, Legg Mason North American Fund Valuation Committee) (the “Valuation Committee”). The Valuation Committee, pursuant to the policies adopted by the Board of Trustees, is responsible for making fair value determinations, evaluating the effectiveness of the Fund’s pricing policies, and reporting to the Board of Trustees. When determining the reliability of third party pricing information for investments owned by the Fund, the Valuation Committee, among other things, conducts due diligence reviews of pricing vendors, monitors the daily change in prices and reviews transactions among market participants.

The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making fair value determinations. Examples of possible methodologies include, but are not limited to, multiple of earnings; discount from market of a similar freely traded security; discounted cash-flow analysis; book value or a multiple thereof; risk premium/yield analysis; yield to maturity; and/or fundamental investment analysis. The Valuation Committee will also consider factors it deems relevant and appropriate in light of the facts and circumstances. Examples of possible factors include, but are not limited to, the type of security; the issuer’s financial statements; the purchase price of the security; the discount from market value of unrestricted securities of the same class at the time of purchase; analysts’ research and observations from financial institutions; information regarding any transactions or offers with respect to the security; the existence of merger proposals or tender offers affecting the security; the price and extent of public trading in similar securities of the issuer or comparable companies; and the existence of a shelf registration for restricted securities.

For each portfolio security that has been fair valued pursuant to the policies adopted by the Board of Trustees, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such back testing monthly and fair valuation occurrences are reported to the Board of Trustees quarterly.

The Fund uses valuation techniques to measure fair value that are consistent with the market approach and/or income approach, depending on the type of security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable securities. The income approach uses valuation techniques to discount estimated future cash flows to present value.

Notes to Schedule of Investments (unaudited) (continued)

GAAP establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These 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 methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities carried at fair value:


ASSETS
DESCRIPTION	QUOTED PRICES (LEVEL 1)		OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)		TOTAL
Long-term investments†:
Corporate bonds & notes:
Industrials		—	$	12,645,176	$	3,656,529	$	16,301,705
Other corporate bonds & notes		—		139,163,952		—		139,163,952
Asset-backed securities		—		21,173,100		2,524,935		23,698,035
Collateralized mortgage obligations		—		15,370,855		—		15,370,855
Mortgage-backed securities		—		222,275		—		222,275
Senior loans:
Energy		—		—		669,300		669,300
Utilities		—		—		408,597		408,597
Other senior loans		—		1,379,729		—		1,379,729
Sovereign bonds		—		11,713,875		—		11,713,875
Common stocks:
Health care		—		—		157,700		157,700
Industrials		—		—		57,111		57,111
Financials	$	1,246,749		—		—		1,246,749
Preferred stocks		3,548,598		—		339		3,548,937

Total investments	$	4,795,347	$	201,668,962	$	7,474,511	$	213,938,820

Receivable for insurance proceeds		—	$	1,633,988		—	$	1,633,988

Other assets		—		—	$	7,743		7,743

Other financial instruments:
Futures contracts	$	37,094		—		—	$	37,094

Total	$	4,832,441	$	203,302,950	$	7,482,254	$	215,617,645


LIABILITIES
DESCRIPTION	QUOTED PRICES (LEVEL 1)		OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)		TOTAL
Other financial instruments:
Forward foreign currency contracts		—	$	46,064		—	$	46,064
Futures contracts	$	96,722		—		—		96,722

Total	$	96,722	$	46,064		—	$	142,786

†	See Schedule of Investments for additional detailed categorizations.

Notes to Schedule of Investments (unaudited) (continued)

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:


	CORPORATE BOND & NOTES								SENIOR LOANS
INVESTMENTS IN SECURITIES	INDUSTRIALS		ASSET BACKED SECURITIES			COLLATERALIZED MORTGAGE OBLIGATIONS			ENERGY		UTILITIES
Balance as of December 31, 2014		—	$	3,004,145		$	2,083			—		—
Accrued premiums/discounts		—		43,051			465			—	$	483
Realized gain (loss)		—		(34,457	)		(44,066	)		—		41
Change in unrealized appreciation (depreciation)¹		—		(8,297	)		41,532			—		(11,177	)
Purchases		—					—		$	669,300		421,400
Sales		—					—			—		(2,150	)
Transfers into Level 3²	$	3,656,529		639,593			—			—		—
Transfers out of Level 3³		—		(1,119,100	)		(14	)		—		—

Balance as of September 30, 2015	$	3,656,529	$	2,524,935			—		$	669,300	$	408,597

Net change in unrealized appreciation (depreciation) for investments in securities still held at September 30, 2015¹		—	$	(31,662	)		—			—	$	(11,177	)


	COMMON STOCKS
INVESTMENTS IN SECURITIES	HEALTH CARE		INDUSTRIALS			PREFERRED STOCK		OTHER ASSETS			TOTAL
Balance as of December 31, 2014	$	157,700	$	216,969			—	$	15,486		$	3,396,383
Accrued premiums/discounts		—		—			—		—			43,999
Realized gain (loss)		—		—			—		—			(78,482	)
Change in unrealized appreciation (depreciation)¹		—		(159,858	)		—		(7,743	)		(145,543	)
Purchases		—		—			—		—			1,090,700
Sales		—		—			—		—			(2,150	)
Transfers into Level 3²		—		—		$	339		—			4,296,461
Transfers out of Level 3³		—					—		—			(1,119,114	)

Balance as of September 30, 2015	$	157,700	$	57,111		$	339	$	7,743		$	7,482,254

Net change in unrealized appreciation (depreciation) for investments in securities still held at September 30, 2015¹		—	$	(159,858	)		—	$	(7,743	)	$	(210,440	)

The Fund’s policy is to recognize transfers between levels as of the end of the reporting period.

¹	Change in unrealized appreciation (depreciation) includes net unrealized appreciation (depreciation) resulting from changes in investment values during the reporting period and the reversal of previously recorded unrealized appreciation (depreciation) when gains or losses are realized.

²	Transferred into Level 3 as a result of the unavailability of a quoted price in an active market for an identical investment or the unavailability of other significant observable inputs.

³	Transferred out of Level 3 as a result of the availability of a quoted price in an active market for an identical investment or the availability of other significant observable inputs.

2. Investments

At September 30, 2015, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:


Gross unrealized appreciation	$	14,768,119
Gross unrealized depreciation		(15,737,949	)

Net unrealized depreciation	$	(969,830	)

At September 30, 2015, the Fund had the following open futures contracts:


	Number of Contracts		Expiration Date		Basis Value		Market Value		Unrealized Appreciation (Depreciation)
Contracts to Buy:
U.S. Treasury Ultra Long-Term Bonds		15		12/15	$	2,371,082	$	2,406,094	$	35,012

Contracts to Sell:
U.S. Treasury 10-Year Notes		102		12/15		13,034,184		13,130,906		(96,722	)
U.S. Treasury Long-Term Bonds		1		12/15		159,426		157,344		2,082

										(94,640	)

Net unrealized depreciation on open futures contracts									$	(59,628	)

At September 30, 2015, the Fund had the following open forward foreign currency contract:

Currency
Purchased

Currency
Sold

Counterparty

Settlement
Date

Unrealized
Depreciation

USD

1,966,554

EUR

1,800,000

JPMorgan Chase Bank

11/13/15

(46,064

)

Abbreviations used in this table:


EUR		— Euro
USD		— United States Dollar

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.

Western Asset Premier Bond Fund


By		/s/ JANE TRUST
		Jane Trust
		Chief Executive Officer

Date:		November 20, 2015

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/ JANE TRUST
		Jane Trust
		Chief Executive Officer

Date:		November 20, 2015

By		/s/ RICHARD F. SENNETT
		Richard F. Sennett
		Principal Financial Officer

Date:		November 20, 2015