Duff & Phelps Utility and Corporate Bond Trust Inc.

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-07358

Duff & Phelps Utility and Corporate Bond Trust Inc.

(Exact name of registrant as specified in charter)

55 East Monroe Street, Suite 3600, Chicago, Illinois 60603

(Address of principal executive offices) (Zip code)

 

Alan M. Meder  

Lawrence Hamilton

Duff & Phelps Utility and Corporate Bond Trust Inc.   Mayer Brown, LLP
55 East Monroe Street, Suite 3600   71 South Wacker Drive
Chicago, Illinois 60603   Chicago, Illinois 60606

(Name and address of agents for service)

 

Registrant’s telephone number, including area code: (312) 541-5555

 

Date of fiscal year end: December 31

 

Date of reporting period: September 30, 2007

Item 1– Schedule of Investments

DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.

PORTFOLIO OF INVESTMENTS

September 30, 2007

(Unaudited)

 

Principal
Amount

(000)

   

Description

    Value
   LONG-TERM INVESTMENTS - 155.0%   
   U.S. Government and Agency Obligations - 13.3%   
   Federal National Mortgage Association,   
$ 323   

8.00%, 10/01/30

    $ 340,331
  1,119   

7.00%, 12/01/31

      1,165,770
   Government National Mortgage Association   
   Pass-Through Certificates,   
  15   

7.00%, 3/15/26

      16,029
  105   

7.50%, 5/15/26

      110,393
  94   

8.00%, 11/15/30

      100,202
  102   

8.00%, 2/15/31

      108,769
   U.S. Treasury Bonds,   
  40,000   

10.375%, 11/15/12

      40,321,880
         
  

Total U.S. Government and Agency Obligations

(cost $46,828,174)

      42,163,374
         
   Corporate Bonds - 135.7%   
   Financial - 33.8%   
   Aegon NV,   
  4,000   

9.375%, 3/01/08

      4,048,560
   Bank United,   
  4,910   

8.00%, 3/15/09

      5,103,572
   Bear Stearns & Co. Inc.,   
  7,000   

7.625%, 12/07/09

      7,308,714
   Boeing Capital Corp.,   
  5,000   

6.50%, 2/15/12

      5,276,185
   Duke Realty Corp, L.P.,   
  6,000   

6.80%, 2/12/09

      6,126,942
   ERP Operating Limited Partnership,   
  5,000   

6.625%, 3/15/12

      5,162,340
   Firstar Bank, N.A.,   
  7,000   

7.125%, 12/01/09

      7,285,621
   Household Finance Corp.,   
  10,000   

8.00%, 7/15/10

      10,738,580
   JPMorgan Chase & Co.,   
  10,000   

7.875%, 6/15/10

      10,678,150
   Mack-Cali Realty, L.P.,   
  7,000   

7.75%, 2/15/11

      7,501,025
   Merrill Lynch & Co.,   
  5,000   

6.50%, 7/15/18

      5,193,805
  5,000   

6.875%, 11/15/18

      5,341,730
   NationsBank Capital Trust IV,   
  10,000   

8.25%, 4/15/27

      10,407,400
   PNC Funding Corp.,   
  6,000   

7.50%, 11/01/09

      6,297,474
   Simon Property Group, L.P.,   
  5,000   

7.125%, 2/09/09

      5,099,345
  5,000   

7.00%, 7/15/09

      5,143,220
         
        106,712,663
         

DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.

PORTFOLIO OF INVESTMENTS-(Continued)

September 30, 2007

(Unaudited)

 

Principal
Amount
(000)		   

Description

    Value
   Industrial - 25.4%   
   DaimlerChrysler NA Holdings,   
$ 10,000   

7.20%, 9/01/09

    $ 10,363,080
   Dow Chemical Company,   
  7,000   

9.00%, 4/01/21

      8,660,939
   General Electric Capital Corporation,   
  7,565   

8.625%, 6/15/08

      7,732,111
   Sun Company, Inc.,   
  5,000   

9.00%, 11/01/24

      6,390,215
   Tele-Communications, Inc.,   
  5,275   

10.125%, 4/15/22

      7,052,427
  3,200   

9.875%, 6/15/22

      4,203,008
   Time Warner Entertainment Company, L.P.,   
  5,000   

8.875%, 10/01/12

      5,699,750
   Time Warner, Inc.,   
  5,000   

9.15%, 2/01/23

      6,110,875
   Union Pacific Corp.,   
  7,000   

7.375%, 9/15/09

      7,314,755
   USX Corporation,   
  10,000   

9.125%, 1/15/13

      11,561,850
   Wal-Mart Stores, Inc.,   
  5,000   

6.875%, 8/10/09

      5,170,690
         
        80,259,700
         
   Telephone - 21.1%   
   British Telecommunications PLC,   
  7,000   

8.625%, 12/15/10

      7,712,040
   Deutsche Telekom International Finance,   
  12,000   

8.00%, 6/15/10

      12,861,984
   France Telecom SA,   
  5,000   

7.75%, 3/01/11

      5,378,640
   Koninklijke (Royal) KPN NV,   
  5,000   

8.00%, 10/01/10

      5,381,730
   New Cingular Wireless Services Inc.,   
  9,000   

8.125%, 5/01/12

      9,989,325
   New York Telephone Co.,   
  5,000   

8.625%, 11/15/10

      5,484,465
   Sprint Corp.,   
  10,125   

9.25%, 4/15/22

      11,832,703
   Verizon Global Funding Corp.,   
  7,500   

7.375%, 9/01/12

      8,174,167
         
        66,815,054
         
   Utilities - 55.4%   
   AGL Capital Corp.,   
  10,000   

7.125%, 1/14/11

      10,583,100
   Alabama Power Co.,   
  2,750   

7.125%, 10/01/07

      2,750,000
   CalEnergy Company, Inc.,   
  10,000   

8.48%, 9/15/28

      12,230,850
   CenterPoint Energy Resources Corp.,   
  10,000   

7.75%, 2/15/11

      10,637,180
   ComEd Financing II,   
  17,438   

8.50%, 1/15/27

      17,260,377
   Duke Energy Corporation,   
  10,000   

7.375%, 3/01/10

      10,471,740

DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.

PORTFOLIO OF INVESTMENTS-(Continued)

September 30, 2007

(Unaudited)

Principal
Amount
(000)		   

Description

    Value
   Utilities (Continued)   
   Hydro-Quebec,   
$ 10,000   

7.50%, 4/01/16

    $ 11,597,440
   Illinois Power Co.,   
  8,485   

7.50%, 6/15/09

      8,730,166
   KeySpan Gas East Corporation,   
  10,088   

7.875%, 2/01/10

      10,679,752
   NSTAR,   
  5,020   

8.00%, 2/15/10

      5,332,987
   Progress Energy, Inc.,   
  6,000   

7.10%, 3/01/11

      6,315,036
   PSE&G Power, LLC.,   
  5,000   

7.75%, 4/15/11

      5,357,995
   Sempra Energy,   
  10,000   

7.95%, 3/01/10

      10,588,700
   South Carolina Electric & Gas Co.,   
  6,000   

6.125%, 3/01/09

      6,079,530
   Southern California Edison Company,   
  5,512   

7.625%, 1/15/10

      5,795,289
   Spectra Energy Capital LLC.,   
  10,000   

7.50%, 10/01/09

      10,436,580
   Trans-Canada Pipelines Limited,   
  10,000   

9.875%, 1/01/21

      13,389,990
   Wisconsin Energy Corp.,   
  6,000   

6.50%, 4/01/11

      6,238,152
   Xcel Energy, Inc.,   
  10,131   

7.00%, 12/01/10

      10,636,365
         
        175,111,229
         
  

Total Corporate Bonds

(cost $424,663,640)

      428,898,646
         
   Asset-Backed Securities - 1.7%   
   Detroit Edison Securitization Funding LLC 2001-1 A6,   
  5,000   

6.62%, 3/01/16

      5,313,147
         
  

Total Asset-Backed Securities

(cost $5,925,000)

      5,313,147
         
Shares          
   Non-Convertible Preferred Stock - 4.3%   
   Financial - 4.3%   
   Duke Realty Corp., Series M,   
  100,000   

6.95%

      2,335,000
   Duke Realty Corp., Series N,   
  100,000   

7.25%

      2,445,000
   Public Storage, Inc., Series I,   
  120,000   

7.25%

      2,948,400
   Realty Income Corp., Series D,   
  100,000   

7.375%

      2,494,000
   UDR, Inc., Series G,   
  100,000   

6.75%

      2,265,000
   Vornado Realty Trust I, Series I,   
  50,000   

6.625%

      1,110,000
         
  

Total Non-Convertible Preferred Stock

(cost $14,213,000)

      13,597,400
         
  

Total Long-Term Investments

(cost $491,629,814)

      489,972,567
         

DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.

PORTFOLIO OF INVESTMENTS-(Continued)

September 30, 2007

(Unaudited)

 

Principal
Amount
(000)		   

Description

    Value  
     SHORT-TERM INVESTMENTS - 0.6%       
   U.S. Treasury Bills,   
$ 1,800   

3.500%,10/25/07

   
   (cost $1,795,428)    $ 1,795,428  
           
  

Total Investments - 155.6%

(Cost $493,425,242)

     491,767,995  
   Other Assets in Excess of Liabilities - 4.5%      14,306,086  
   Liquidation Value of Preferred Shares - (60.1)%      (190,000,000 )
           
   Net Assets Applicable to Common Stock - 100%    $ 316,074,081  
           

Notes

Securities Valuation:

The Fund values its fixed income securities by using market quotations, prices provided by market makers or estimates of market values obtained from yield data relating to instruments or securities with similar characteristics in accordance with procedures established by the Board of Directors of the Fund. The relative liquidity of some securities in the Fund’s portfolio may adversely affect the ability of the Fund to accurately value such securities. Any securities or other assets for which such current market quotations are not readily available are valued at fair value as determined in good faith under procedures established by and under the general supervision and responsibility of the Fund’s Board of Directors.

Debt securities having a remaining maturity of 60 days or less when purchased and debt securities originally purchased with maturities in excess of 60 days but which currently have maturities of 60 days or less are valued at cost adjusted for amortization of premiums and accretion of discounts, which approximates market value.

Investments in mutual funds are valued at their net asset value as of the close of the New York Stock Exchange on the date of valuation.

The United States federal income tax basis of the Fund’s investments and the net unrealized depreciation as of September 30, 2007 was as follows:

 

Tax Basis of

Investments

    Appreciation    Depreciation    Net
Unrealized
Depreciation
$ 516,655,756    $ 4,406,468    $ 29,294,229    $ 24,887,761

Other information regarding the Fund is available in the Fund’s most recent Report to Shareholders. This information is available on the Securities and Exchange Commission's website (www.SEC.gov)

Item 2– Controls and Procedures

(a) The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) are effective, based on an evaluation of those controls and procedures made as of a date within 90 days of the filing date of this report as required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Exchange Act.

(b) There has been no change in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the last fiscal quarter covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3– Exhibits

      Exhibit 99.CERT- Certifications pursuant to Section 302 of the Sarbanes-Oxley Act – Attached hereto

SIGNATURES

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

(Registrant)    Duff & Phelps Utility and Corporate Bond Trust Inc.

By (Signature and Title)    /s/ ALAN M. MEDER
  Alan M. Meder
  Treasurer
  (Principal Financial and Accounting Officer)
Date November 28, 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.

 

By (Signature and Title)    /s/ NATHAN I. PARTAIN
  Nathan I. Partain
  President and Chief Executive Officer
Date November 28, 2007
By (Signature and Title)    /s/ ALAN M. MEDER
  Alan M. Meder
  Treasurer
  (Principal Financial and Accounting Officer)
Date November 28, 2007