UNITED STATES

SECURITIES AND EXCHANGE            COMMISSION

Washington, DC 20549

 

**FORM N-Q**

**QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF            REGISTERED**

**MANAGEMENT INVESTMENT            COMPANY**

**_______________________________**

Investment Company Act file number            811-5482

DWS High Income Trust

(Exact name of registrant as specified in            charter)

 

222            South Riverside Plaza

Chicago, IL 60606

(Address of principal executive offices)                        (Zip code)

 

Paul Schubert

345 Park Avenue

New York, NY 10154

(Name and address of agent for            service)

Registrant's telephone number, including area            code:(212) 454-7190

Date of fiscal year end:11/30

Date of reporting            period:08/31/07

 

ITEM 1.            SCHEDULE OF INVESTMENTS

 

Investment Portfolio**as of****August 31, 2007 (Unaudited)** 

 

**DWS            High Income Trust**

 

 

|                                                                                       | **Principal****Amount ($) (a)** |   | **Value                            ($)** |
|--------------------------------------------------------------------------------------------|---------------------------------|--------|------------------------------------------|
|                                                                                            |
|                                                                                       | **Corporate Bonds 125.0%**      |   |
| **Consumer Discretionary 30.6%**                                                           |                            |
| AAC Group Holding Corp., 14.75%, 10/1/2012 (PIK)                            (b)            |                            |   | 359,757                                  |   | 360,656 |
| Affinia Group, Inc., 9.0%, 11/30/2014                                                      |                            |   | 705,000                                  |   | 650,362 |
| AMC Entertainment, Inc., 8.0%, 3/1/2014                                                    |                            |   | 1,055,000                                |   | 975,875 |
| American Achievement Corp., 8.25%,                            4/1/2012                     |                            |   | 205,000                                  |   | 198,850 |
| American Media Operations, Inc., Series B, 10.25%,                            5/1/2009 (b) |                            |   | 280,000                                  |   | 246,400 |
| Asbury Automotive Group, Inc.:                                                             |                            |
|                                                                                       | 144A, 7.625%, 3/15/2017         |   |                                     | 475,000 |   | 437,000 |
|                                                                                       | 8.0%, 3/15/2014                 |   |                                     | 200,000 |   | 191,000 |
|                                                                                            |                                 |        |                                          |  |  |  |  |  |

 

 

 

| Ashtead Holdings PLC, 144A, 8.625%,                            8/1/2015                   |                        |   | 340,000   |      | 333,200   |
|-------------------------------------------------------------------------------------------|-----------------------------|--------|-----------|-----------|-----------|
| Buffets, Inc., 12.5%, 11/1/2014                                                           |                        |   | 275,000   |      | 211,750   |
| Burlington Coat Factory Warehouse Corp., 11.125%,                            4/15/2014    |                        |   | 410,000   |      | 373,100   |
| Cablevision Systems Corp., Series B, 9.82% **,                            4/1/2009        |                        |   | 220,000   |      | 225,500   |
| Caesars Entertainment, Inc., 8.875%,                            9/15/2008                 |                        |   | 460,000   |      | 466,325   |
| CanWest MediaWorks LP, 144A, 9.25%,                            8/1/2015                   |                        |   | 345,000   |      | 341,550   |
| Charter Communications Holdings LLC:                                                      |                        |
|                                                                                      | 10.25%, 9/15/2010 (b)       |   |      | 2,145,000 |      | 2,166,450 |
|                                                                                      | Series B, 10.25%, 9/15/2010 |   |      | 640,000   |      | 641,600 |
|                                                                                      | 11.0%, 10/1/2015            |   |      | 2,032,000 |      | 1,991,360 |
| Cirsa Capital Luxembourg, 144A, 7.875%,                            7/15/2012              | EUR                         |   | 260,000   |      | 320,325   |
| Claire's Stores, Inc., 144A, 9.25%,                            6/1/2015                   |                        |   | 475,000   |      | 412,063   |
| Cooper-Standard Automotive, Inc., 8.375%, 12/15/2014                            (b)       |                        |   | 280,000   |      | 242,200   |
| CSC Holdings, Inc.:                                                                       |                        |
|                                                                                      | 7.25%, 7/15/2008            |   |      | 365,000   |      | 365,000 |
|                                                                                      | 7.875%, 12/15/2007          |   |      | 1,180,000 |      | 1,182,950 |
|                                                                                      | Series B, 8.125%, 7/15/2009 |   |      | 1,300,000 |      | 1,309,750 |
|                                                                                      | Series B, 8.125%, 8/15/2009 |   |      | 135,000   |      | 136,013 |
| Denny's Corp. Holdings, Inc., 10.0%,                            10/1/2012                 |                        |   | 135,000   |      | 137,025   |
| Dex Media East LLC, 12.125%, 11/15/2012                                                   |                        |   | 3,020,000 |      | 3,223,850 |
| Dollar General Corp., 144A, 10.625%, 7/15/2015                            (b)             |                        |   | 415,000   |      | 373,500   |
| Dollarama Group LP, 144A, 11.16% **,                            8/15/2012                 |                        |   | 315,000   |      | 308,700   |
| EchoStar DBS Corp.:                                                                       |                        |
|                                                                                      | 6.625%, 10/1/2014           |   |      | 590,000   |      | 570,825 |
|                                                                                      | 7.125%, 2/1/2016            |   |      | 450,000   |      | 439,875 |
| Fontainebleau Las Vegas Holdings LLC, 144A, 10.25%,                            6/15/2015  |                        |   | 580,000   |      | 497,350   |
| Foot Locker, Inc., 8.5%, 1/15/2022                                                        |                        |   | 135,000   |      | 130,950   |
| French Lick Resorts & Casinos LLC, 144A, 10.75%,                            4/15/2014 |                        |   | 1,455,000 |      | 1,156,725 |
| General Motors Corp.:                                                                     |                        |
|                                                                                      | 7.2%, 1/15/2011             |   |      | 995,000   |      | 880,575 |
|                                                                                      | 7.4%, 9/1/2025              |   |      | 365,000   |      | 266,450 |
|                                                                                      | 8.375%, 7/15/2033           |   |      | 465,000   |      | 373,163 |
| Golden Nugget, 8.84% **, 6/16/2014                                                        |                        |   | 110,000   |      | 103,400   |
| Goodyear Tire & Rubber Co., 11.25%,                            3/1/2011               |                        |   | 3,065,000 |      | 3,283,381 |
| Great Canadian Gaming Corp., 144A, 7.25%,                            2/15/2015            |                        |   | 410,000   |      | 393,600   |
| Group 1 Automotive, Inc., 8.25%, 8/15/2013                            (b)                 |                        |   | 200,000   |      | 200,000   |
| Hanesbrands, Inc., Series B, 8.784% **,                            12/15/2014             |                        |   | 610,000   |      | 609,237   |
| Hertz Corp.:                                                                              |                        |
|                                                                                      | 8.875%, 1/1/2014            |   |      | 985,000   |      | 1,019,475 |
|                                                                                      | 10.5%, 1/1/2016             |   |      | 225,000   |      | 243,000 |
| Idearc, Inc., 8.0%, 11/15/2016                                                            |                        |   | 2,045,000 |      | 2,019,437 |
| ION Media Networks, Inc., 144A, 11.61% **,                            1/15/2013           |                        |   | 385,000   |      | 385,000   |
| Isle of Capri Casinos, Inc., 7.0%,                            3/1/2014                    |                        |   | 785,000   |      | 680,987   |
| Jacobs Entertainment, Inc., 9.75%,                            6/15/2014                   |                        |   | 740,000   |      | 738,150   |
| Jarden Corp., 7.5%, 5/1/2017                                                              |                        |   | 340,000   |      | 317,900   |
| Kabel Deutschland GmbH, 10.625%, 7/1/2014                                                 |                        |   | 225,000   |      | 237,938   |
| Liberty Media LLC:                                                                        |                        |
|                                                                                      | 5.7%, 5/15/2013             |   |      | 60,000    |      | 55,471 |
|                                                                                      | 8.25%, 2/1/2030             |   |      | 500,000   |      | 485,000 |
|                                                                                      | 8.5%, 7/15/2029             |   |      | 675,000   |      | 677,616 |
| Majestic Star Casino LLC, 9.5%, 10/15/2010                                                |                        |   | 75,000    |      | 73,500    |
| Mediacom Broadband LLC, 8.5%, 10/15/2015                                                  |                        |   | 30,000    |      | 29,700    |
| MediMedia USA, Inc., 144A, 11.375%,                            11/15/2014                 |                        |   | 205,000   |      | 209,100   |
| Metaldyne Corp.:                                                                          |                        |
|                                                                                      | 10.0%, 11/1/2013 (b)        |   |      | 325,000   |      | 310,375 |
|                                                                                      | 11.0%, 6/15/2012 (b)        |   |      | 145,000   |      | 129,775 |
|                                                                                           |                             |        |           |           |           |  |  |

 

 

 

| MGM MIRAGE:                                                                                                     |                                                                             |
|-----------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------|
|                                                                                                            | 6.75%, 9/1/2012                                                                  |   |   | 170,000 |   | 164,900 |
|                                                                                                            | 8.375%, 2/1/2011 (b)                                                             |   |   | 365,000 |   | 373,213 |
| Michaels Stores, Inc., 144A, 10.0%, 11/1/2014                            (b)                                    |                                                                             |   | 615,000 |   | 616,537 |
| MTR Gaming Group, Inc., Series B, 9.75%,                            4/1/2010                                    |                                                                             |   | 705,000 |   | 712,050 |
| Norcraft Holdings/Capital, Step-up Coupon, 0% to                            9/1/2008, 9.75% to 9/1/2012         |                                                                             |   | 1,130,000 |   | 1,000,050 |
| OSI Restaurant Partners, Inc., 144A, 10.0%,                            6/15/2015                                |                                                                             |   | 475,000 |   | 409,688 |
| Penske Automotive Group, Inc., 7.75%,                            12/15/2016                                     |                                                                             |   | 1,030,000 |   | 983,650 |
| Pinnacle Entertainment, Inc., 8.75%, 10/1/2013                            (b)                                   |                                                                             |   | 425,000 |   | 431,375 |
| Quebecor World, Inc., 144A, 9.75%,                            1/15/2015                                         |                                                                             |   | 330,000 |   | 310,200 |
| Quiksilver, Inc., 6.875%, 4/15/2015                                                                             |                                                                             |   | 555,000 |   | 513,375 |
| Reader's Digest Association, Inc., 144A, 9.0%,                            2/15/2017                             |                                                                             |   | 260,000 |   | 223,600 |
| Sabre Holdings Corp., 8.35%, 3/15/2016                                                                          |                                                                             |   | 375,000 |   | 326,250 |
| Sbarro, Inc., 10.375%, 2/1/2015                                                                                 |                                                                             |   | 240,000 |   | 210,900 |
| Seminole Hard Rock Entertainment, Inc., 144A, 7.86%                            **, 3/15/2014                    |                                                                             |   | 475,000 |   | 460,750 |
| Shingle Springs Tribal Gaming Authority, 144A,                            9.375%, 6/15/2015                     |                                                                             |   | 335,000 |   | 329,975 |
| Simmons Co.:                                                                                                    |                                                                             |
|                                                                                                            | Step-up Coupon, 0% to 12/15/2009, 10.0% to                            12/15/2014 |   |   | 1,345,000 |   | 1,045,737 |
|                                                                                                            | 7.875%, 1/15/2014                                                                |   |   | 270,000 |   | 252,788 |
| Sinclair Broadcast Group, Inc., 8.0%, 3/15/2012                            (b)                                  |                                                                             |   | 208,000 |   | 210,080 |
| Sirius Satellite Radio, Inc., 9.625%, 8/1/2013                            (b)                                   |                                                                             |   | 615,000 |   | 581,175 |
| Six Flags, Inc., 9.75%, 4/15/2013                                                                               |                                                                             |   | 190,000 |   | 159,600 |
| Sonic Automotive, Inc., Series B, 8.625%,                            8/15/2013                                  |                                                                             |   | 405,000 |   | 396,900 |
| Station Casinos, Inc., 6.5%, 2/1/2014                                                                           |                                                                             |   | 695,000 |   | 589,013 |
| Telenet Group Holding NV, 144A, Step-up Coupon, 0% to                            12/15/2008, 11.5% to 6/15/2014 |                                                                             |   | 2,064,000 |   | 1,960,800 |
| The Bon-Ton Stores, Inc., 10.25%,                            3/15/2014                                          |                                                                             |   | 430,000 |   | 391,300 |
| Toys "R" Us, Inc., 7.375%, 10/15/2018                                                                           |                                                                             |   | 345,000 |   | 269,100 |
| Travelport LLC:                                                                                                 |                                                                             |
|                                                                                                            | 9.875%, 9/1/2014                                                                 |   |   | 170,000 |   | 171,275 |
|                                                                                                            | 9.985% **, 9/1/2014                                                              |   |   | 315,000 |   | 315,000 |
|                                                                                                            | 11.875%, 9/1/2016 (b)                                                            |   |   | 170,000 |   | 175,525 |
| Trump Entertainment Resorts, Inc., 8.5%, 6/1/2015                            (b)                                |                                                                             |   | 890,000 |   | 725,350 |
| TRW Automotive, Inc., 144A, 7.0%, 3/15/2014                            (b)                                      |                                                                             |   | 235,000 |   | 218,550 |
| United Components, Inc., 9.375%, 6/15/2013                                                                      |                                                                             |   | 70,000 |   | 70,000 |
| Unity Media GmbH, 144A, 10.375%, 2/15/2015                                                                      |                                                                             |   | 260,000 |   | 257,400 |
| Univision Communications, Inc., 144A, 9.75%,                            3/15/2015 (PIK)                         |                                                                             |   | 1,585,000 |   | 1,509,712 |
| UPC Holding BV, 144A, 7.75%, 1/15/2014                                                                          | EUR                                                                              |   | 265,000 |   | 341,141 |
| Vitro SAB de CV:                                                                                                |                                                                             |
|                                                                                                            | 144A, 8.625%, 2/1/2012                                                           |   |   | 270,000 |   | 259,875 |
|                                                                                                            | 144A, 9.125%, 2/1/2017                                                           |   |   | 550,000 |   | 529,375 |
|                                                                                                            | Series A, 11.75%, 11/1/2013                                                      |   |   | 155,000 |   | 165,850 |
| Wheeling Island Gaming, Inc., 10.125%,                            12/15/2009                                    |                                                                             |   | 305,000 |   | 301,950 |
| XM Satellite Radio, Inc., 9.75%, 5/1/2014                            (b)                                        |                                                                             |   | 810,000 |   | 769,500 |
| Young Broadcasting, Inc., 8.75%, 1/15/2014                                                                      |                                                                             |   | 1,940,000 |   | 1,622,325 |
|                                                                                                                 |
|                                                                                                            | **54,696,143**                                                                   |
| **Consumer Staples 4.6%**                                                                                       |                                                                             |
| Alliance One International, Inc., 144A, 8.5%,                            5/15/2012                              |                                                                             |   | 205,000 |   | 203,975 |
| Cerveceria Nacional Dominicana, 144A, 8.0%,                            3/27/2014                                |                                                                             |   | 170,000 |   | 170,850 |
| Del Laboratories, Inc., 8.0%, 2/1/2012                                                                          |                                                                             |   | 370,000 |   | 334,850 |
| Delhaize America, Inc.:                                                                                         |                                                                             |
|                                                                                                            | 8.05%, 4/15/2027                                                                 |   |   | 115,000 |   | 122,422 |
|                                                                                                            | 9.0%, 4/15/2031                                                                  |   |   | 923,000 |   | 1,079,910 |
| General Nutrition Centers, Inc., 144A, 9.796% **,                            3/15/2014 (PIK)                    |                                                                             |   | 470,000 |   | 446,500 |
| Harry & David Holdings, Inc., 10.36% **,                            3/1/2012                                |                                                                             |   | 440,000 |   | 426,800 |
|                                                                                                                 |                                                                                  |  |  |  |  |  |  |  |

 

 

 

| North Atlantic Trading Co., 144A, 10.0%,                            3/1/2012               |                     |   | 1,616,750 |      | 1,487,410 |
|--------------------------------------------------------------------------------------------|--------------------------|--------|-----------|-----------|-----------|
| Pilgrim's Pride Corp., 7.625%, 5/1/2015                                                    |                     |   | 170,000   |      | 169,575   |
| Rite Aid Corp.:                                                                            |                     |
|                                                                                       | 7.5%, 3/1/2017           |   |      | 680,000   |      | 632,400 |
|                                                                                       | 144A, 9.5%, 6/15/2017    |   |      | 340,000   |      | 308,550 |
| Smithfield Foods, Inc., 7.75%, 7/1/2017                            (b)                     |                     |   | 475,000   |      | 477,375   |
| Tereos Europe SA, 144A, 6.375%, 4/15/2014                                                  | EUR                      |   | 190,000   |      | 236,827   |
| Viskase Companies, Inc., 11.5%, 6/15/2011                                                  |                     |   | 2,160,000 |      | 2,160,000 |
|                                                                                            |
|                                                                                       | **8,257,444**            |
| **Energy 10.2%**                                                                           |                     |
| Belden & Blake Corp., 8.75%, 7/15/2012                                                 |                     |   | 1,845,000 |      | 1,845,000 |
| Chaparral Energy, Inc., 8.5%, 12/1/2015                                                    |                     |   | 485,000   |      | 434,075   |
| Chesapeake Energy Corp.:                                                                   |                     |
|                                                                                       | 6.25%, 1/15/2018         |   |      | 260,000   |      | 243,425 |
|                                                                                       | 6.875%, 1/15/2016        |   |      | 1,315,000 |      | 1,285,412 |
|                                                                                       | 7.75%, 1/15/2015         |   |      | 175,000   |      | 177,406 |
| Cimarex Energy Co., 7.125%, 5/1/2017                                                       |                     |   | 340,000   |      | 331,500   |
| Complete Production Services, Inc., 8.0%,                            12/15/2016            |                     |   | 610,000   |      | 587,125   |
| Delta Petroleum Corp., 7.0%, 4/1/2015 (b)                                                  |                     |   | 915,000   |      | 745,725   |
| Denbury Resources, Inc., 7.5%, 12/15/2015                                                  |                     |   | 135,000   |      | 134,325   |
| Dynegy Holdings, Inc.:                                                                     |                     |
|                                                                                       | 6.875%, 4/1/2011 (b)     |   |      | 130,000   |      | 124,800 |
|                                                                                       | 144A, 7.75%, 6/1/2019    |   |      | 680,000   |      | 629,000 |
|                                                                                       | 8.375%, 5/1/2016 (b)     |   |      | 760,000   |      | 746,700 |
| Energy Partners Ltd., 144A, 9.75%,                            4/15/2014                    |                     |   | 275,000   |      | 255,750   |
| Frontier Oil Corp., 6.625%, 10/1/2011                                                      |                     |   | 300,000   |      | 291,000   |
| Mariner Energy, Inc., 8.0%, 5/15/2017                                                      |                     |   | 275,000   |      | 260,563   |
| OPTI Canada, Inc.:                                                                         |                     |
|                                                                                       | 144A, 7.875%, 12/15/2014 |   |      | 525,000   |      | 526,313 |
|                                                                                       | 144A, 8.25%, 12/15/2014  |   |      | 410,000   |      | 415,125 |
| Plains Exploration & Production Co., 7.0%,                            3/15/2017        |                     |   | 205,000   |      | 186,550   |
| Quicksilver Resources, Inc., 7.125%,                            4/1/2016                   |                     |   | 265,000   |      | 253,075   |
| Sabine Pass LNG LP:                                                                        |                     |
|                                                                                       | 7.25%, 11/30/2013        |   |      | 105,000   |      | 101,850 |
|                                                                                       | 7.5%, 11/30/2016         |   |      | 1,145,000 |      | 1,113,512 |
| Secunda International Ltd., 13.36% **,                            9/1/2012                 |                     |   | 575,000   |      | 585,063   |
| Stone Energy Corp., 6.75%, 12/15/2014                                                      |                     |   | 1,170,000 |      | 1,050,075 |
| Tennessee Gas Pipeline Co., 7.625%,                            4/1/2037                    |                     |   | 340,000   |      | 364,618   |
| Tesoro Corp., 144A, 6.5%, 6/1/2017                                                         |                     |   | 540,000   |      | 525,150   |
| VeraSun Energy Corp., 144A, 9.375%,                            6/1/2017                    |                     |   | 270,000   |      | 250,425   |
| Whiting Petroleum Corp.:                                                                   |                     |
|                                                                                       | 7.0%, 2/1/2014           |   |      | 405,000   |      | 381,713 |
|                                                                                       | 7.25%, 5/1/2012          |   |      | 260,000   |      | 250,250 |
|                                                                                       | 7.25%, 5/1/2013          |   |      | 135,000   |      | 128,588 |
| Williams Companies, Inc.:                                                                  |                     |
|                                                                                       | 8.125%, 3/15/2012        |   |      | 1,265,000 |      | 1,356,712 |
|                                                                                       | 8.75%, 3/15/2032         |   |      | 2,015,000 |      | 2,292,062 |
| Williams Partners LP, 7.25%, 2/1/2017                                                      |                     |   | 335,000   |      | 331,650   |
|                                                                                            |
|                                                                                       | **18,204,537**           |
| **Financials 16.9%**                                                                       |                     |
| Algoma Acquistion Corp., 144A, 9.875%,                            6/15/2015                |                     |   | 1,065,000 |      | 995,775   |
| Ashton Woods USA LLC, 9.5%, 10/1/2015                                                      |                     |   | 1,060,000 |      | 842,700   |
| Buffalo Thunder Development Authority, 144A, 9.375%,                            12/15/2014 |                     |   | 200,000   |      | 188,000   |
| CEVA Group PLC, 144A, 8.5%, 12/1/2014                                                      | EUR                      |   | 330,000   |      | 373,120   |
| Conproca SA de CV, Series REG S, 12.0%,                            6/16/2010               |                     |   | 1,850,000 |      | 2,044,250 |
|                                                                                            |                          |        |           |           |           |  |  |  |

 

 

 

| E*TRADE Financial Corp.:                                                                                    |                             |
|-------------------------------------------------------------------------------------------------------------|----------------------------------|
|                                                                                                        | 7.375%, 9/15/2013                |   |   | 345,000 |   | 307,050 |
|                                                                                                        | 7.875%, 12/1/2015                |   |   | 260,000 |   | 227,500 |
|                                                                                                        | 8.0%, 6/15/2011                  |   |   | 655,000 |   | 625,525 |
| Eaton Vance Corp., CDO II, Series C-X, 13.68%,                            7/15/2012 *                       |                             |   | 5,087,851 |   | 0 |
| Ford Motor Credit Co., LLC:                                                                                 |                             |
|                                                                                                        | 7.25%, 10/25/2011                |   |   | 2,660,000 |   | 2,424,877 |
|                                                                                                        | 7.375%, 10/28/2009               |   |   | 4,950,000 |   | 4,684,017 |
|                                                                                                        | 7.875%, 6/15/2010                |   |   | 1,295,000 |   | 1,215,736 |
|                                                                                                        | 8.11% **, 1/13/2012              |   |   | 315,000 |   | 288,480 |
| GMAC LLC:                                                                                                   |                             |
|                                                                                                        | 6.875%, 9/15/2011                |   |   | 5,775,000 |   | 5,150,491 |
|                                                                                                        | 8.0%, 11/1/2031                  |   |   | 790,000 |   | 709,708 |
| Hawker Beechcraft Acquisition Co., LLC:                                                                     |                             |
|                                                                                                        | 144A, 8.5%, 4/1/2015             |   |   | 670,000 |   | 666,650 |
|                                                                                                        | 144A, 8.875%, 4/1/2015 (PIK) (b) |   |   | 635,000 |   | 619,125 |
|                                                                                                        | 144A, 9.75%, 4/1/2017            |   |   | 510,000 |   | 504,900 |
| Hexion US Finance Corp., 9.75%, 11/15/2014                                                                  |                             |   | 410,000 |   | 442,800 |
| Hub International Holdings, Inc., 144A, 9.0%,                            12/15/2014                         |                             |   | 270,000 |   | 253,800 |
| Inmarsat Finance II PLC, Step-up Coupon, 0% to                            11/15/2008, 10.375% to 11/15/2012 |                             |   | 395,000 |   | 374,262 |
| iPayment, Inc., 9.75%, 5/15/2014                                                                            |                             |   | 365,000 |   | 342,188 |
| KAR Holdings, Inc.:                                                                                         |                             |
|                                                                                                        | 144A, 8.75%, 5/1/2014            |   |   | 380,000 |   | 342,000 |
|                                                                                                        | 144A, 10.0%, 5/1/2015            |   |   | 275,000 |   | 246,125 |
| Local TV Finance LLC, 144A, 9.25%, 6/15/2015                            (PIK)                               |                             |   | 345,000 |   | 315,675 |
| New ASAT (Finance) Ltd., 9.25%, 2/1/2011                                                                    |                             |   | 405,000 |   | 303,750 |
| Petroplus Finance Ltd.:                                                                                     |                             |
|                                                                                                        | 144A, 6.75%, 5/1/2014            |   |   | 360,000 |   | 334,800 |
|                                                                                                        | 144A, 7.0%, 5/1/2017             |   |   | 335,000 |   | 308,200 |
| Pinnacle Foods Finance LLC, 144A, 9.25%,                            4/1/2015                                |                             |   | 270,000 |   | 249,075 |
| Realogy Corp., 144A, 12.375%, 4/15/2015                            (b)                                      |                             |   | 270,000 |   | 198,788 |
| Triad Acquisition Corp., Series B, 11.125%,                            5/1/2013                             |                             |   | 235,000 |   | 200,925 |
| U.S.I. Holdings Corp.:                                                                                      |                             |
|                                                                                                        | 144A, 9.433% **, 11/15/2014      |   |   | 205,000 |   | 190,650 |
|                                                                                                        | 144A, 9.75%, 5/15/2015           |   |   | 275,000 |   | 251,625 |
| UCI Holdco, Inc., 144A, 12.36% **, 12/15/2013                            (PIK)                              |                             |   | 439,856 |   | 426,660 |
| Universal City Development Partners, 11.75%,                            4/1/2010                            |                             |   | 1,695,000 |   | 1,783,987 |
| Wimar Opco LLC, 144A, 9.625%, 12/15/2014                                                                    |                             |   | 1,795,000 |   | 1,328,300 |
| Yankee Acquisition Corp.:                                                                                   |                             |
|                                                                                                        | Series B, 8.5%, 2/15/2015        |   |   | 280,000 |   | 263,200 |
|                                                                                                        | Series B, 9.75%, 2/15/2017 (b)   |   |   | 205,000 |   | 183,475 |
|                                                                                                             |
|                                                                                                        | **30,208,189**                   |
| **Health Care 6.1%**                                                                                        |                             |
| Advanced Medical Optics, Inc., 7.5%,                            5/1/2017                                    |                             |   | 350,000 |   | 319,375 |
| Community Health Systems, Inc., 144A, 8.875%,                            7/15/2015                          |                             |   | 2,610,000 |   | 2,606,737 |
| HCA, Inc.:                                                                                                  |                             |
|                                                                                                        | 6.5%, 2/15/2016                  |   |   | 705,000 |   | 574,575 |
|                                                                                                        | 144A, 9.125%, 11/15/2014         |   |   | 535,000 |   | 548,375 |
|                                                                                                        | 144A, 9.25%, 11/15/2016          |   |   | 1,230,000 |   | 1,263,825 |
|                                                                                                             |                                  |  |  |  |  |  |  |  |

 

 

| HEALTHSOUTH Corp.:                                                                       |                        |
|------------------------------------------------------------------------------------------|-----------------------------|
|                                                                                     | 10.75%, 6/15/2016           |   |   | 665,000 |   | 684,950 |
|                                                                                     | 11.409% **, 6/15/2014       |   |   | 135,000 |   | 138,375 |
| IASIS Healthcare LLC:                                                                    |                        |
|                                                                                     | 5.25%, 6/15/2014            |   |   | 307,955 |   | 286,398 |
|                                                                                     | 8.75%, 6/15/2014            |   |   | 280,000 |   | 273,000 |
| Omnicare, Inc., 6.125%, 6/1/2013                                                         |                        |   | 135,000 |   | 123,188 |
| Psychiatric Solutions, Inc., 144A, 7.75%,                            7/15/2015           |                        |   | 340,000 |   | 333,200 |
| PTS Acquisition Corp., 144A, 9.5%, 4/15/2015                            (PIK)            |                        |   | 210,000 |   | 190,050 |
| Sun Healthcare Group, Inc., 144A, 9.125%,                            4/15/2015           |                        |   | 340,000 |   | 340,000 |
| Surgical Care Affiliates, Inc., 144A, 8.875%,                            7/15/2015 (PIK) |                        |   | 410,000 |   | 379,250 |
| Tenet Healthcare Corp., 9.25%, 2/1/2015                                                  |                        |   | 1,055,000 |   | 907,300 |
| The Cooper Companies, Inc., 7.125%,                            2/15/2015                 |                        |   | 680,000 |   | 649,400 |
| Universal Hospital Services, Inc., 144A, 8.5%,                            6/1/2015 (PIK) |                        |   | 240,000 |   | 228,000 |
| Vanguard Health Holding Co. II, LLC, 9.0%,                            10/1/2014          |                        |   | 1,065,000 |   | 995,775 |
|                                                                                          |
|                                                                                     | **10,841,773**              |
| **Industrials 16.4%**                                                                    |                        |
| Actuant Corp., 144A, 6.875%, 6/15/2017                                                   |                        |   | 270,000 |   | 259,875 |
| Aleris International, Inc., 9.0%, 12/15/2014                            (PIK)            |                        |   | 475,000 |   | 452,438 |
| Allied Security Escrow Corp., 11.375%,                            7/15/2011              |                        |   | 590,000 |   | 587,050 |
| Allied Waste North America, Inc., Series B, 9.25%,                            9/1/2012   |                        |   | 1,337,000 |   | 1,397,165 |
| American Color Graphics, Inc., 10.0%,                            6/15/2010               |                        |   | 655,000 |   | 504,350 |
| American Railcar Industries, Inc., 7.5%,                            3/1/2014             |                        |   | 385,000 |   | 373,450 |
| ARAMARK Corp.:                                                                           |                        |
|                                                                                     | 8.5%, 2/1/2015 (b)          |   |   | 550,000 |   | 547,937 |
|                                                                                     | 8.856% **, 2/1/2015         |   |   | 475,000 |   | 472,625 |
| Baldor Electric Co., 8.625%, 2/15/2017                                                   |                        |   | 340,000 |   | 351,050 |
| Belden, Inc., 144A, 7.0%, 3/15/2017                                                      |                        |   | 340,000 |   | 329,800 |
| Bombardier, Inc.:                                                                        |                        |
|                                                                                     | 144A, 6.3%, 5/1/2014        |   |   | 365,000 |   | 348,575 |
|                                                                                     | 144A, 6.75%, 5/1/2012       |   |   | 100,000 |   | 99,500 |
|                                                                                     | 144A, 8.0%, 11/15/2014      |   |   | 220,000 |   | 227,150 |
| Bristow Group, Inc., 144A, 7.5%, 9/15/2017                                               |                        |   | 405,000 |   | 402,975 |
| Browning-Ferris Industries, Inc., 7.4%,                            9/15/2035             |                        |   | 1,095,000 |   | 1,004,662 |
| Building Materials Corp. of America, 7.75%,                            8/1/2014          |                        |   | 470,000 |   | 399,500 |
| Cenveo Corp., 7.875%, 12/1/2013                                                          |                        |   | 860,000 |   | 786,900 |
| Congoleum Corp., 8.625%, 8/1/2008 *                                                      |                        |   | 715,000 |   | 602,387 |
| DRS Technologies, Inc.:                                                                  |                        |
|                                                                                     | 6.625%, 2/1/2016            |   |   | 170,000 |   | 165,750 |
|                                                                                     | 6.875%, 11/1/2013           |   |   | 970,000 |   | 950,600 |
|                                                                                     | 7.625%, 2/1/2018            |   |   | 1,175,000 |   | 1,151,500 |
| Education Management LLC, 8.75%, 6/1/2014                                                |                        |   | 345,000 |   | 350,175 |
| Esco Corp.:                                                                              |                        |
|                                                                                     | 144A, 8.625%, 12/15/2013    |   |   | 655,000 |   | 641,900 |
|                                                                                     | 144A, 9.235% **, 12/15/2013 |   |   | 40,000 |   | 39,200 |
| General Cable Corp.:                                                                     |                        |
|                                                                                     | 7.125%, 4/1/2017            |   |   | 350,000 |   | 339,500 |
|                                                                                     | 7.735% **, 4/1/2015         |   |   | 530,000 |   | 514,100 |
| Great Lakes Dredge & Dock Co., 7.75%, 12/15/2013                            (b)      |                        |   | 270,000 |   | 257,175 |
| Harland Clarke Holdings Corp., 9.5%, 5/15/2015                            (b)            |                        |   | 340,000 |   | 304,300 |
| Iron Mountain, Inc., 8.75%, 7/15/2018 (b)                                                |                        |   | 260,000 |   | 263,250 |
| K. Hovnanian Enterprises, Inc.:                                                          |                        |
|                                                                                     | 6.25%, 1/15/2016            |   |   | 1,160,000 |   | 870,000 |
|                                                                                     | 8.875%, 4/1/2012            |   |   | 1,270,000 |   | 1,016,000 |
| Kansas City Southern de Mexico SA de CV:                                                 |                        |
|                                                                                     | 144A, 7.375%, 6/1/2014      |   |   | 270,000 |   | 261,900 |
|                                                                                     | 144A, 7.625%, 12/1/2013     |   |   | 905,000 |   | 886,900 |
|                                                                                          |                             |  |  |  |  |  |  |  |

 

 

 

|                                                                                                          | 9.375%, 5/1/2012             |   |      | 845,000   |      | 874,575   |
|---------------------------------------------------------------------------------------------------------------|------------------------------|--------|-----------|-----------|-----------|-----------|
| Kansas City Southern Railway Co.:                                                                             |                         |
|                                                                                                          | 7.5%, 6/15/2009              |   |      | 250,000   |      | 250,000   |
|                                                                                                          | 9.5%, 10/1/2008              |   |      | 2,265,000 |      | 2,301,806 |
| Mobile Services Group, Inc., 144A, 9.75%,                            8/1/2014                                 |                         |   | 635,000   |      | 639,762   |
| Navios Maritime Holdings, Inc., 9.5%, 12/15/2014                            (b)                               |                         |   | 530,000   |      | 541,263   |
| Panolam Industries International, Inc., 144A, 10.75%,                            10/1/2013                    |                         |   | 210,000   |      | 199,500   |
| R.H. Donnelley, Inc., 10.875%, 12/15/2012                                                                     |                         |   | 1,460,000 |      | 1,547,600 |
| Rail America, Inc., 7.6%, 10/2/2008                                                                           |                         |   | 520,000   |      | 507,650   |
| Rainbow National Services LLC, 144A, 10.375%,                            9/1/2014                             |                         |   | 81,000    |      | 88,189    |
| RBS Global & Rexnord Corp., 9.5%,                            8/1/2014                                     |                         |   | 305,000   |      | 308,050   |
| Riverdeep Bank, 12.06% **, 12/15/2007                                                                         |                         |   | 399,185   |      | 397,189   |
| Saint Acquisition Corp., 144A, 12.5%, 5/15/2017                            (b)                                |                         |   | 275,000   |      | 186,313   |
| Sally Holdings LLC, 9.25%, 11/15/2014                                                                         |                         |   | 410,000   |      | 403,850   |
| Seitel, Inc., 144A, 9.75%, 2/15/2014                                                                          |                         |   | 180,000   |      | 166,050   |
| Ship Finance International Ltd., 8.5%,                            12/15/2013                                  |                         |   | 335,000   |      | 340,025   |
| Steel Dynamics, Inc., 144A, 6.75%,                            4/1/2015                                        |                         |   | 540,000   |      | 519,750   |
| Terex Corp., 7.375%, 1/15/2014                                                                                |                         |   | 185,000   |      | 185,000   |
| Titan International, Inc., 8.0%, 1/15/2012                                                                    |                         |   | 1,145,000 |      | 1,128,512 |
| TransDigm, Inc., 7.75%, 7/15/2014                                                                             |                         |   | 205,000   |      | 206,025   |
| U.S. Concrete, Inc., 8.375%, 4/1/2014                                                                         |                         |   | 380,000   |      | 353,400   |
| United Rentals North America, Inc., 7.0%,                            2/15/2014                                |                         |   | 680,000   |      | 693,600   |
| Xerox Capital Trust I, 8.0%, 2/1/2027                                                                         |                         |   | 235,000   |      | 233,238   |
|                                                                                                               |
|                                                                                                          | **29,230,986**               |
| **Information Technology 4.9%**                                                                               |                         |
| Alion Science & Technology Corp., 10.25%,                            2/1/2015                             |                         |   | 275,000   |      | 262,625   |
| Freescale Semiconductor, Inc., 8.875%,                            12/15/2014                                  |                         |   | 330,000   |      | 304,425   |
| L-3 Communications Corp.:                                                                                     |                         |
|                                                                                                          | 5.875%, 1/15/2015            |   |      | 1,150,000 |      | 1,089,625 |
|                                                                                                          | Series B, 6.375%, 10/15/2015 |   |      | 510,000   |      | 493,425   |
| Lucent Technologies, Inc., 6.45%,                            3/15/2029                                        |                         |   | 1,810,000 |      | 1,520,400 |
| MasTec, Inc., 7.625%, 2/1/2017                                                                                |                         |   | 475,000   |      | 472,625   |
| Sanmina-SCI Corp.:                                                                                            |                         |
|                                                                                                          | 144A, 8.11% **, 6/15/2010    |   |      | 285,000   |      | 281,438   |
|                                                                                                          | 8.125%, 3/1/2016             |   |      | 205,000   |      | 177,325   |
| Seagate Technology HDD Holdings, 6.8%,                            10/1/2016                                   |                         |   | 655,000   |      | 630,437   |
| SunGard Data Systems, Inc., 10.25%,                            8/15/2015                                      |                         |   | 1,220,000 |      | 1,256,600 |
| Unisys Corp., 7.875%, 4/1/2008                                                                                |                         |   | 1,995,000 |      | 1,975,050 |
| Vangent, Inc., 144A, 9.625%, 2/15/2015                                                                        |                         |   | 275,000   |      | 254,375   |
|                                                                                                               |
|                                                                                                          | **8,718,350**                |
| **Materials 14.5%**                                                                                           |                         |
| Appleton Papers, Inc., Series B, 8.125%,                            6/15/2011                                 |                         |   | 200,000   |      | 198,250   |
| ARCO Chemical Co., 9.8%, 2/1/2020                                                                             |                         |   | 3,410,000 |      | 3,546,400 |
| Associated Materials, Inc., Step-up Coupon, 0% to                            3/1/2009, 11.25% to 3/1/2014 (b) |                         |   | 665,000   |      | 433,913   |
| Cascades, Inc., 7.25%, 2/15/2013 (b)                                                                          |                         |   | 1,002,000 |      | 956,910   |
| Chemtura Corp., 6.875%, 6/1/2016                                                                              |                         |   | 675,000   |      | 615,938   |
| Clondalkin Acquisition BV:                                                                                    |                         |
|                                                                                                          | 144A, 6.147% **, 12/15/2013  | EUR    |      | 55,000    |      | 71,927    |
|                                                                                                          | 144A, 7.359% **, 12/15/2013  |   |      | 125,000   |      | 118,750   |
| CPG International I, Inc.:                                                                                    |                         |
|                                                                                                          | 10.5%, 7/1/2013              |   |      | 990,000   |      | 970,200   |
|                                                                                                          | 12.13% **, 7/1/2012          |   |      | 220,000   |      | 221,100   |
| Equistar Chemical Funding LP, 10.625%,                            5/1/2011                                    |                         |   | 457,000   |      | 482,135   |
| Exopack Holding Corp., 11.25%, 2/1/2014                                                                       |                         |   | 1,125,000 |      | 1,170,000 |
| Freeport-McMoRan Copper & Gold, Inc., 8.375%,                            4/1/2017                         |                         |   | 540,000   |      | 575,100   |
|                                                                                                               |                              |        |           |           |           |           |  |  |

 

 

 

| GEO Specialty Chemicals, Inc., 144A, 13.86% **,                            12/31/2009 (c)                 |                   |   | 1,821,000 |      | 1,493,220 |
|-----------------------------------------------------------------------------------------------------------|------------------------|--------|-----------|-----------|-----------|
| Georgia-Pacific Corp., 144A, 7.125%,                            1/15/2017                                 |                   |   | 240,000   |      | 225,600   |
| Gibraltar Industries, Inc., Series B, 8.0%,                            12/1/2015                          |                   |   | 340,000   |      | 319,600   |
| Hexcel Corp., 6.75%, 2/1/2015                                                                             |                   |   | 1,410,000 |      | 1,371,225 |
| Huntsman LLC, 11.625%, 10/15/2010                                                                         |                   |   | 1,738,000 |      | 1,842,280 |
| Jefferson Smurfit Corp., 8.25%, 10/1/2012                            (b)                                  |                   |   | 170,000   |      | 166,175   |
| Koppers Holdings, Inc., Step-up Coupon, 0% to                            11/15/2009, 9.875% to 11/15/2014 |                   |   | 930,000   |      | 776,550   |
| Lyondell Chemical Co.:                                                                                    |                   |
|                                                                                                      | 6.875%, 6/15/2017      |   |      | 1,690,000 |      | 1,829,425 |
|                                                                                                      | 10.5%, 6/1/2013        |   |      | 220,000   |      | 237,050 |
| Massey Energy Co.:                                                                                        |                   |
|                                                                                                      | 6.625%, 11/15/2010     |   |      | 110,000   |      | 108,075 |
|                                                                                                      | 6.875%, 12/15/2013 (b) |   |      | 750,000   |      | 676,875 |
| Metals USA Holdings Corp., 144A, 11.36% **, 7/1/2012                            (PIK)                     |                   |   | 480,000   |      | 444,000   |
| Millar Western Forest Products Ltd., 7.75%,                            11/15/2013 (b)                     |                   |   | 340,000   |      | 266,050   |
| Momentive Performance Materials, Inc., 144A, 9.75%,                            12/1/2014                  |                   |   | 420,000   |      | 400,050   |
| Mueller Water Products, Inc., 144A, 7.375%,                            6/1/2017                           |                   |   | 340,000   |      | 323,000   |
| Neenah Foundry Co., 9.5%, 1/1/2017                                                                        |                   |   | 195,000   |      | 175,500   |
| NewMarket Corp., 7.125%, 12/15/2016                                                                       |                   |   | 810,000   |      | 769,500   |
| OI European Group BV, 144A, 6.875%,                            3/31/2017                                  | EUR                    |   | 400,000   |      | 513,057   |
| Oxford Automotive, Inc., 144A, 12.0%, 10/15/2010                            *                             |                   |   | 1,164,591 |      | 17,469    |
| Pliant Corp., 11.625%, 6/15/2009 (PIK)                                                                    |                   |   | 3         |      | 3         |
| Radnor Holdings Corp., 11.0%, 3/15/2010 *                                                                 |                   |   | 180,000   |      | 225       |
| Rhodia SA, 144A, 6.959% **, 10/15/2013                                                                    | EUR                    |   | 410,000   |      | 545,955   |
| Smurfit-Stone Container Enterprises, Inc.:                                                                |                   |
|                                                                                                      | 8.0%, 3/15/2017        |   |      | 690,000   |      | 658,087 |
|                                                                                                      | 8.375%, 7/1/2012       |   |      | 340,000   |      | 333,200 |
| Terra Capital, Inc., Series B, 7.0%,                            2/1/2017                                  |                   |   | 1,060,000 |      | 1,017,600 |
| The Mosaic Co., 144A, 7.375%, 12/1/2014                                                                   |                   |   | 615,000   |      | 625,763   |
| TriMas Corp., 9.875%, 6/15/2012                                                                           |                   |   | 725,000   |      | 730,437   |
| Witco Corp., 6.875%, 2/1/2026                                                                             |                   |   | 275,000   |      | 203,500   |
| Wolverine Tube, Inc., 10.5%, 4/1/2009                                                                     |                   |   | 600,000   |      | 579,000   |
|                                                                                                           |
|                                                                                                      | **26,009,094**         |
| **Telecommunication Services 11.3%**                                                                      |                   |
| American Cellular Corp., Series B, 10.0%,                            8/1/2011                             |                   |   | 82,000    |      | 85,075    |
| BCM Ireland, Preferred, 144A, 11.574% **, 2/15/2017                            (PIK)                      | EUR                    |   | 348,507   |      | 443,674   |
| Cell C Property Ltd., 144A, 11.0%,                            7/1/2015                                    |                   |   | 1,345,000 |      | 1,149,975 |
| Centennial Communications Corp.:                                                                          |                   |
|                                                                                                      | 10.0%, 1/1/2013 (b)    |   |      | 810,000   |      | 846,450 |
|                                                                                                      | 10.125%, 6/15/2013     |   |      | 275,000   |      | 288,063 |
| Cincinnati Bell, Inc.:                                                                                    |                   |
|                                                                                                      | 7.25%, 7/15/2013       |   |      | 715,000   |      | 709,638 |
|                                                                                                      | 8.375%, 1/15/2014 (b)  |   |      | 395,000   |      | 391,050 |
| Cricket Communications, Inc., 144A, 9.375%,                            11/1/2014                          |                   |   | 1,020,000 |      | 999,600   |
| Dobson Cellular Systems, 9.875%, 11/1/2012                                                                |                   |   | 520,000   |      | 559,000   |
| Embratel, Series B, 11.0%, 12/15/2008                                                                     |                   |   | 150,000   |      | 158,625   |
| Grupo Iusacell SA de CV, Series B, 10.0%, 7/15/2004                            *                          |                   |   | 175,000   |      | 175,000   |
| Insight Midwest LP, 9.75%, 10/1/2009                                                                      |                   |   | 192,000   |      | 192,000   |
| Intelsat Bermuda Ltd.:                                                                                    |                   |
|                                                                                                      | 8.886% **, 1/15/2015   |   |      | 65,000    |      | 65,488 |
|                                                                                                      | 9.25%, 6/15/2016       |   |      | 200,000   |      | 206,000 |
|                                                                                                      | 11.25%, 6/15/2016      |   |      | 625,000   |      | 653,906 |
| Intelsat Corp., 9.0%, 6/15/2016                                                                           |                   |   | 240,000   |      | 244,800   |
| Intelsat Ltd., 5.25%, 11/1/2008                                                                           |                   |   | 630,000   |      | 612,675   |
| Intelsat Subsidiary Holding Co., Ltd., 8.25%,                            1/15/2013                        |                   |   | 705,000   |      | 708,525   |
|                                                                                                           |                        |        |           |           |           |  |  |  |

 

 

 

| iPCS, Inc., 144A, 7.481% **, 5/1/2013                                              |   |   | 170,000   |   | 164,050   |
|------------------------------------------------------------------------------------|--------|--------|-----------|--------|-----------|
| MetroPCS Wireless, Inc., 144A, 9.25%,                            11/1/2014         |   |   | 1,055,000 |   | 1,039,175 |
| Millicom International Cellular SA, 10.0%,                            12/1/2013    |   |   | 2,260,000 |   | 2,384,300 |
| Nextel Communications, Inc., Series D, 7.375%,                            8/1/2015 |   |   | 1,905,000 |   | 1,917,706 |

 

 

 

| Nortel Networks Ltd.:                                                                        |                                 |
|----------------------------------------------------------------------------------------------|--------------------------------------|
|                                                                                         | 144A, 9.61% **, 7/15/2011            |   |   | 640,000 |   | 641,600 |
|                                                                                         | 144A, 10.125%, 7/15/2013             |   |   | 590,000 |   | 603,275 |
| Orascom Telecom Finance, 144A, 7.875%,                            2/8/2014                   |                                 |   | 245,000 |   | 223,563 |
| Qwest Corp., 7.25%, 9/15/2025                                                                |                                 |   | 120,000 |   | 116,100 |
| Rural Cellular Corp., 9.875%, 2/1/2010                                                       |                                 |   | 615,000 |   | 636,525 |
| Stratos Global Corp., 9.875%, 2/15/2013                                                      |                                 |   | 260,000 |   | 267,800 |
| SunCom Wireless Holdings, Inc., 8.5%,                            6/1/2013                    |                                 |   | 750,000 |   | 754,687 |
| US Unwired, Inc., Series B, 10.0%,                            6/15/2012                      |                                 |   | 775,000 |   | 832,525 |
| Virgin Media Finance PLC, 8.75%, 4/15/2014                                                   |                                 |   | 1,510,000 |   | 1,640,792 |
| West Corp., 9.5%, 10/15/2014                                                                 |                                 |   | 405,000 |   | 407,025 |
|                                                                                              |
|                                                                                         | **20,118,667**                       |
| **Utilities 9.5%**                                                                           |                                 |
| AES Corp., 144A, 8.75%, 5/15/2013                                                            |                                 |   | 3,270,000 |   | 3,400,800 |
| Allegheny Energy Supply Co., LLC, 144A, 8.25%,                            4/15/2012          |                                 |   | 2,715,000 |   | 2,803,237 |
| CMS Energy Corp., 8.5%, 4/15/2011 (b)                                                        |                                 |   | 1,985,000 |   | 2,113,144 |
| Edison Mission Energy, 144A, 7.0%,                            5/15/2017                      |                                 |   | 610,000 |   | 576,450 |
| Mirant Americas Generation LLC, 8.3%,                            5/1/2011                    |                                 |   | 255,000 |   | 251,813 |
| Mirant North America LLC, 7.375%,                            12/31/2013                      |                                 |   | 265,000 |   | 263,675 |
| NRG Energy, Inc.:                                                                            |                                 |
|                                                                                         | 7.25%, 2/1/2014                      |   |   | 1,090,000 |   | 1,079,100 |
|                                                                                         | 7.375%, 2/1/2016                     |   |   | 2,305,000 |   | 2,276,187 |
| PSE&G Energy Holdings LLC, 10.0%,                            10/1/2009                   |                                 |   | 2,115,000 |   | 2,243,706 |
| Regency Energy Partners LP, 144A, 8.375%,                            12/15/2013              |                                 |   | 461,000 |   | 474,830 |
| Reliant Energy, Inc., 7.875%, 6/15/2017                            (b)                       |                                 |   | 675,000 |   | 659,813 |
| Sierra Pacific Resources:                                                                    |                                 |
|                                                                                         | 6.75%, 8/15/2017                     |   |   | 810,000 |   | 779,228 |
|                                                                                         | 8.625%, 3/15/2014                    |   |   | 145,000 |   | 153,444 |
|                                                                                              |
|                                                                                         | **17,075,427**                       |
|                                                                                              |
| **Total Corporate Bonds**(Cost $234,078,877)                                                 |                                 | **223,360,610** |
|                                                                                         | **Shares**                           |   | **Value                            ($)** |
|                                                                                              |
|                                                                                         | **Common Stocks 0.0%**               |   |
| **Materials 0.0%**                                                                           |                                 |   |   |   |
| GEO Specialty Chemicals, Inc.*                                                               |                                 | 14,091 |   | 11,977 |
| GEO                            Specialty Chemicals, Inc. 144A*                               |                                 | 1,283 |   | 1,091 |
|                                                                                              |
| **Total Common Stocks**(Cost $154,244)                                                       |                                 | **13,068** |
|                                                                                         | **Warrants 0.0%**                    |   |
| **Industrials 0.0%**                                                                         |                                 |
| DeCrane Aircraft Holdings, Inc., 144A, Expiration                            Date 9/30/2008* |                                 | 1,640 |   | **0** |
| **Materials 0.0%**                                                                           |                                 |
| Dayton Superior Corp., 144A, Expiration Date                            6/15/2009*           |                                 | 60 |   | **0** |
|                                                                                              |
| **Total Warrants**(Cost                            $1)                                       |                                 | **0** |
|                                                                                         | **Convertible Preferred Stock 0.1%** |   |
| **Consumer Discretionary**                                                                   |                                 |
| ION Media Networks, Inc.:                                                                    |                                 |
|                                                                                         | 144A, 9.75% (PIK)                    |   |   | 40 |   | 178,000 |
|                                                                                         | Series AI, 144A, 9.75% (PIK)         |   |   | 3 |   | 13,350 |
|                                                                                              |
| **Total Convertible Preferred Stocks**(Cost $298,650)                                        |                                 | **191,350** |
|                                                                                              |                                      |  |  |  |  |  |  |  |  |  |

 

 

 

|                                                                                                                           | **Principal****Amount ($)(a)**                                                                                                                                                                                                                                                                                                  |          | **Value                            ($)** |
|--------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|------------------------------------------|
|                                                                                                                                |
|                                                                                                                           | **Loan Participations 1.3%**                                                                                                                                                                                                                                                                                                    |          |
| Advanced Medical Optics, Inc., LIBOR plus 1.75%,                            7.025% **, 4/2/2014                                |                                                                                                                                                                                                                                                                                                                            |          | 199,500                                  |   | 187,530 |
| Alliance Mortgage Cycle Loan, LIBOR plus 7.25%,                            12.525% **, 6/1/2010 *                              |                                                                                                                                                                                                                                                                                                                            |          | 466,667                                  |   | 46,667 |
| HCA, Inc., LIBOR plus 2.25%, 7.525% **,                            11/18/2012                                                  |                                                                                                                                                                                                                                                                                                                            |          | 995,000                                  |   | 952,399 |
| Longview Power LLC:                                                                                                            |                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                           | Demand Draw, LIBOR plus 2.07%, 7.345% **,                            4/1/2014                                                                                                                                                                                                                                                   |          |                                     | 75,000 |   | 70,641 |
|                                                                                                                           | Letter of Credit, LIBOR plus 2.13%, 7.405% **,                            4/1/2014                                                                                                                                                                                                                                              |          |                                     | 25,000 |   | 23,547 |
|                                                                                                                           | Term Loan B, LIBOR plus 2.25%, 7.525% **,                            4/1/2014                                                                                                                                                                                                                                                   |          |                                     | 65,000 |   | 61,222 |
| Sabre, Inc., LIBOR plus 2.25%, 7.525% **,                            9/30/2014                                                 |                                                                                                                                                                                                                                                                                                                            |          | 330,415                                  |   | 307,285 |
| Tribune Co., 7.86%, 5/24/2014                                                                                                  |                                                                                                                                                                                                                                                                                                                            |          | 680,000                                  |   | 616,250 |
|                                                                                                                                |
| **Total Loan Participations**(Cost $2,795,784)                                                                                 |                                                                                                                                                                                                                                                                                                                            | **2,265,541** |
|                                                                                                                           | **Units**                                                                                                                                                                                                                                                                                                                       |          | **Value                            ($)** |
|                                                                                                                                |
|                                                                                                                           | **Other Investments 0.7%**                                                                                                                                                                                                                                                                                                      |          |
| Hercules, Inc., (Bond Unit), 6.5%,                            6/30/2029                                                        |                                                                                                                                                                                                                                                                                                                            | 775,000       |                                     | 674,250 |
| IdleAire Technologies Corp. (Bond Unit), 144A,                            Step-up Coupon, 0% to 6/15/2008, 13.0% to 12/15/2012 |                                                                                                                                                                                                                                                                                                                            | 1,205,000     |                                     | 686,850 |
|                                                                                                                                |
| **Total Other Investments**(Cost $1,427,168)                                                                                   |                                                                                                                                                                                                                                                                                                                            | **1,361,100** |
|                                                                                                                           | **Shares**                                                                                                                                                                                                                                                                                                                      |          | **Value                            ($)** |
|                                                                                                                                |
|                                                                                                                           | **Securities Lending Collateral 9.6%**                                                                                                                                                                                                                                                                                          |          |
| Daily Assets Fund Institutional, 5.49% (d)                            (e)(Cost $17,179,582)                                    |                                                                                                                                                                                                                                                                                                                            |          | 17,179,582                               |   | **17,179,582** |
|                                                                                                                           | **Cash Equivalents 0.0%**                                                                                                                                                                                                                                                                                                       |          |
| Cash Management QP Trust, 5.32% (d)(Cost $49,305)                                                                              |                                                                                                                                                                                                                                                                                                                            |          | 49,305                                   |   | **49,305** |
|                                                                                                                           | **%                            of****Net Assets**                                                                                                                                                                                                                                                                               |          | **Value                            ($)** |
|                                                                                                                                |
| **Total Investment Portfolio**(Cost $255,979,611)                                                                              | 136.7                                                                                                                                                                                                                                                                                                                           |          | **244,420,556**                          |
| **Other Assets and Liabilities, Net**                                                                                          | (7.4)                                                                                                                                                                                                                                                                                                                           |          | **(13,180,987)**                         |
| **Notes Payable**                                                                                                              | (29.3)                                                                                                                                                                                                                                                                                                                          |          | **(52,500,000)**                         |
|                                                                                                                                |
| **Net Assets**                                                                                                                 | 100.0                                                                                                                                                                                                                                                                                                                           |          | **178,739,569**                          |
|                                                                                                                           | *For information on the Fund's policies regarding                            the valuation of investments and other significant accounting policies,                            please refer to the Fund's most recent semi-annual or annual financial                            statements.*                                  |
| ***                                                                                                                            | *Non-income producing security. In the case of a                            bond, generally denotes that the issuer has defaulted on the payment of                            principal or interest or has filed for bankruptcy. The following table                            represents bonds that are in default:*

  |
|                                                                                                                           | ***Security***                                                                                                                                                                                                                                                                                                                  | ***Coupon***  | ***Maturity***

***Date***               | ***Principal Amount ($)*** | ***Acquisition***

***Cost ($)*** | ***Value ($)*** |
| *Alliance Mortgage Cycle Loan*                                                                                                 | *12.525%*                                                                                                                                                                                                                                                                                                                       | *6/1/2010*    | *466,667 USD*                            | *467,631* | *46,667* |
| *Congoleum Corp.*                                                                                                              | *8.625%*                                                                                                                                                                                                                                                                                                                        | *8/1/2008*    | *715,000 USD*                            | *600,300* | *602,387* |
| *Eaton Vance Corp.,*

*CDO II*                                                                                                 | *13.68%*                                                                                                                                                                                                                                                                                                                        | *7/15/2012*   | *5,087,851 USD*                          | *3,904,801* | *0* |
| *Grupo Iusacell SA de CV*                                                                                                      | *10.0%*                                                                                                                                                                                                                                                                                                                         | *7/15/2004*   | *175,000 USD*                            | *114,613* | *175,000* |
| *Oxford Automotive, Inc.*                                                                                                      | *12.0%*                                                                                                                                                                                                                                                                                                                         | *10/15/2010*  | *1,164,591 USD*                          | *112,895* | *17,469* |
|                                                                                                                           | *Radnor Holdings Corp.*                                                                                                                                                                                                                                                                                                         | *11.0%*       | *3/15/2010*                              | *180,000 USD* | *126,342* | *225* |
|                                                                                                                           |                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                |                                                                                                                                                                                                                                                                                                                                 |               |                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

 

 

 

| ****                                                                                                                                                                                                                                                                                           | *Floating rate notes are securities whose yields                            vary with a designated market index or market rate, such as the                            coupon-equivalent of the US Treasury bill rate. These securities are                            shown at their current rate as of August 31, 2007.* |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *(a)*                                                                                                                                                                                                                                                                                          | *Principal amount is stated in US dollars unless                            otherwise noted.*                                                                                                                                                                                                                              |
| *(b)*                                                                                                                                                                                                                                                                                          | *All or a portion of these securities were on loan.                            The value of all securities loaned at August 31, 2007 amounted to                            $16,854,963 which is 9.4% of net assets.*                                                                                                      |
| *(c)*                                                                                                                                                                                                                                                                                          | *Security has a deferred interest payment of                            $56,550 from April 1, 2006.*                                                                                                                                                                                                                       |
| *(d)*                                                                                                                                                                                                                                                                                          | *Affiliated fund managed by Deutsche Investment                            Management Americas Inc. The rate shown is the annualized seven-day                            yield at period end.*                                                                                                                            |
| *(e)*                                                                                                                                                                                                                                                                                          | *Represents collateral held in connection with                            securities lending.*                                                                                                                                                                                                                             |
| *144A: Security exempt from registration under Rule                            144A of the Securities Act of 1933. These securities may be resold in                            transactions exempt from registration, normally to qualified                            institutional buyers.* |
| *CDO: Collateralized Debt Obligation*                                                                                                                                                                                                                                                          |
| *LIBOR: Represents the London InterBank Offered                            Rate.*                                                                                                                                                                                                              |
| *PIK: Denotes that all or a portion of the income                            is paid in kind.*                                                                                                                                                                                                 |

             

*As            of August 31, 2007, the Fund had the following open forward foreign currency exchange            contracts:*

 

| ***Contracts to Deliver***          | ***In Exchange For*** | ***Settlement Date*** | ***Unrealized***

***Appreciation ($)*** |
|-------------------------------------|-----------------------|-----------------------|------------------------------------------|
| *EUR*                               | *2,080,420*           | *USD*                 | *2,837,589*                              | *9/17/2007* | *1,335* |
| *EUR*                               | *298,250*             | *USD*                 | *407,448*                                | *9/17/2007* | *841* |
| *EUR*                               | *132,000*             | *USD*                 | *180,142*                                | *9/17/2007* | *186* |
| ***Total unrealized appreciation*** |                  |                  |                                     |   | ***2,362*** |
|                                     |                       |                       |                                          |  |  |  |

             

| ***Currency Abbreviations*** |   |   |                   |
|------------------------------|--------|--------|------------------------|
| *EUR*                        | *Euro* | *USD*  | *United States Dollar* |

             

 

| **ITEM 2.** | **CONTROLS AND PROCEDURES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|-------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|        | (a)                                     The Chief                            Executive and Financial Officers concluded that the Registrant’s                            Disclosure Controls and Procedures are effective based on the                            evaluation of the Disclosure Controls and Procedures as of a date                            within 90 days of the filing date of this report.                                                                                                                                                                               |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|        | (b)                                     There have been                            no changes in the registrant’s internal control over financial                            reporting that occurred during the registrant’s last half-year                            (the registrant’s second fiscal half-year in the case of the                            annual report) that has materially affected, or is reasonably likely to                            materially affect, the registrant’s internal controls over                            financial reporting. |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| **ITEM 3.** | **EXHIBITS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|        | Certification pursuant to Rule 30a-2(a) under the                            Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and                            attached hereto as Exhibit 99.CERT.                                                                                                                                                                                                                                                                                                                                                                                                                                     |

 

 

**SIGNATURES**

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and            the Investment Company Act of 1940, the registrant has duly caused this report to be            signed on its behalf by the undersigned, thereunto duly authorized.

 

| Registrant: | DWS High Income Trust |
|-------------|-----------------------|

 

| By: | /s/Michael G. Clark |
|-----|---------------------|

|   | Michael G. Clark |
|--------|------------------|

President

 

| Date: | October 17, 2007 |
|-------|------------------|

 

 

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.

 

| Registrant: | DWS High Income Trust |
|-------------|-----------------------|

 

| By: | /s/Michael G. Clark |
|-----|---------------------|

|   | Michael G. Clark |
|--------|------------------|

President

 

| Date: | October 17, 2007 |
|-------|------------------|

 

 

| By: | /s/Paul Schubert |
|-----|------------------|

|   | Paul Schubert |
|--------|---------------|

Chief Financial Officer and Treasurer

 

| Date: | October 17, 2007 |
|-------|------------------|