UNITED STATES

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)

 

200 S. Wacker Dr., Suite 500, Chicago, Illinois		60606
(Address of principal executive offices)		(Zip code)
Alan M. Meder Duff & Phelps Utility and Corporate Bond Trust Inc. 200 S. Wacker Dr., Suite 500 Chicago, Illinois 60606		Lawrence Hamilton Mayer Brown LLP 71 South Wacker Drive Chicago, Illinois 60606
(Name and address of agents for service)

Registrant’s telephone number, including area code: (312) 263-2610

Date of fiscal year end: December 31

Date of reporting period: September 30, 2008

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Item 1 – Schedule of Investments –

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DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.

PORTFOLIO OF INVESTMENTS

September 30, 2008

(Unaudited)

 

Principal Amount (000)			Description		Value (Note 1)
			LONG-TERM INVESTMENTS - 155.0%
			U.S. Government and Agency Obligations - 9.3%
			Federal Home Loan Banks,
$	10,000		7.125%,    1/15/10		$	10,121,790
			Federal National Mortgage Association,
	10,000		7.25%,      1/15/10			10,514,950
	5,000		6.00%,      5/15/11			5,340,985
	272		8.00%,      10/01/30			294,761
	989		7.00%,      12/01/31			1,039,648
			Government National Mortgage Association Pass-Through Certificates,
	15		7.00%,      3/15/26			15,458
	93		8.00%,      11/15/30			101,618
	34		8.00%,      2/15/31			37,854
			Total U.S. Government and Agency Obligations      (cost $27,455,149)			27,467,064
			Corporate Bonds - 139.8%
			Financial - 33.0%
			Bank United,
	4,910		8.00%,      3/15/09 (a)			30,687
			Bear Stearns & Co. Inc.,
	7,000		7.625%,    12/07/09			7,071,015
			Boeing Capital Corp.,
	7,000		6.50%,      2/15/12			7,444,073
			Duke Realty Corp, L.P.,
	6,000		6.80%,      2/12/09			5,993,862
			ERP Operating Limited Partnership,
	5,000		6.625%,    3/15/12			4,968,555
			Firstar Bank, N.A.,
	7,000		7.125%,    12/01/09			7,145,397
			Household Finance Corp.,
	10,000		8.00%,      7/15/10			10,208,720
			JPMorgan Chase & Co.,
	10,000		7.875%,    6/15/10			10,202,310
			Keybank, N.A.,
	3,200		7.30%,      5/01/11			2,910,010
			Mack-Cali Realty, L.P.,
	7,000		7.75%,      2/15/11			7,351,883
			Merrill Lynch & Co.,
	5,000		6.50%,      7/15/18			4,215,730
	5,000		6.875%,    11/15/18			4,310,710
			NationsBank Capital Trust IV,
	10,000		8.25%,      4/15/27			9,625,550
			PNC Funding Corp.,
	6,000		7.50%,      11/01/09			5,927,262
			Simon Property Group, L.P.,
	5,000		7.125%,    2/09/09			4,985,850
	5,000		7.00%,      7/15/09			4,969,160
						97,360,774

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DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.

PORTFOLIO OF INVESTMENTS-(Continued)

September 30, 2008

(Unaudited)

 

Principal Amount (000)			Description		Value
			Industrial - 29.5%
			Archer-Daniels-Midland Company,
$	4,000		7.125%,    3/01/13		$	4,328,408
			Coca-Cola Enterprises, Inc.,
	5,000		8.50%,      2/01/12			5,539,325
			DaimlerChrysler NA Holdings,
	10,000		7.20%,      9/01/09			10,108,990
			Dow Chemical Company,
	7,000		9.00%,      4/01/21			8,118,264
			Potash Corporation of Saskatchewan, Inc.,
	6,578		7.75%,      5/31/11			6,897,099
			Sun Company, Inc.,
	5,000		9.00%,      11/01/24			6,135,090
			Tele-Communications, Inc.,
	5,275		10.125%,  4/15/22			6,069,742
	3,200		9.875%,    6/15/22			3,619,888
			Time Warner Entertainment Company, L.P.,
	5,000		8.875%,    10/01/12			5,242,090
			Time Warner, Inc.,
	5,000		9.15%,      2/01/23			5,192,425
			Union Pacific Corp.,
	9,258		7.375%,    9/15/09			9,435,041
			USX Corporation,
	10,000		9.125%,    1/15/13			11,173,450
			Wal-Mart Stores, Inc.,
	5,000		6.875%,    8/10/09			5,136,390
						86,996,202
			Telephone - 20.8%
			British Telecommunications PLC,
	7,000		8.625%,    12/15/10			7,319,760
			Deutsche Telekom International Finance,
	12,000		8.50%,      6/15/10			12,461,880
			France Telecom SA,
	5,000		7.75%,      3/01/11			5,250,350
			Koninklijke (Royal) KPN NV,
	5,000		8.00%,      10/01/10			5,241,800
			New Cingular Wireless Services, Inc.,
	9,000		8.125%,    5/01/12			9,606,690
			New York Telephone Co.,
	5,000		8.625%,    11/15/10			5,298,600
			Sprint Corp.,
	10,125		9.25%,      4/15/22			8,316,999
			Verizon Global Funding Corp.,
	7,500		7.375%,    9/01/12			7,748,625
						61,244,704
			Utilities - 56.5%
			AGL Capital Corp.,
	10,000		7.125%,    1/14/11			10,409,100
			CalEnergy Company, Inc.,
	10,000		8.48%,      9/15/28			11,035,000
			CenterPoint Energy Resources Corp.,
	10,000		7.75%,      2/15/11			10,279,700
			Duke Energy Corporation,
	10,000		7.375%,    3/01/10			10,396,700
			FPL Group Capital, Inc.,
	5,050		7.375%,    6/01/09			5,175,442

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DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.

PORTFOLIO OF INVESTMENTS-(Continued)

September 30, 2008

(Unaudited)

 

Principal Amount (000)			Description						Value
			Utilities (Continued)
			Hydro-Quebec,
$	10,000				7.50%,		4/01/16		$	11,855,650
			Illinois Power Co.,
	8,485				7.50%,		6/15/09			8,589,705
			KeySpan Gas East Corporation,
	10,088				7.875%,		2/01/10			10,486,779
			NSTAR,
	7,020				8.00%,		2/15/10			7,359,768
			ONEOK Partners, L.P.,
	6,040				8.875%,		6/15/10			6,415,265
			Progress Energy, Inc.,
	6,000				7.10%,		3/01/11			6,168,540
			PSE&G Power, LLC.,
	7,195				7.75%,		4/15/11			7,469,345
			Sempra Energy,
	10,000				7.95%,		3/01/10			10,312,600
			South Carolina Electric & Gas Co.,
	6,000				6.125%,		3/01/09			6,034,860
			Southern California Edison Company,
	5,512				7.625%,		1/15/10			5,726,748
			Spectra Energy Capital LLC.,
	10,000				7.50%,		10/01/09			10,105,540
			Trans-Canada Pipelines Limited,
	10,000				9.875%,		1/01/21			12,242,900
			Wisconsin Energy Corp.,
	6,000				6.50%,		4/01/11			6,096,060
			Xcel Energy, Inc.,
	10,131				7.00%,		12/01/10			10,454,584
										166,614,286
			Total Corporate Bonds
			(cost $427,169,117)							412,215,966
			Asset-Backed Securities - 1.7%
			Detroit Edison Securitization Funding LLC 2001-1 A6,
	5,000				6.62%,		3/01/16			5,040,529
			Total Asset-Backed Securities
			(cost $5,925,000)							5,040,529
Shares
			Non-Convertible Preferred Stock - 4.2%
			Financial - 4.2%
			Duke Realty Corp., Series M,
	100,000				6.95%					1,640,000
			Duke Realty Corp., Series N,
	100,000				7.25%					1,478,000
			Kimco Realty Corp., Series G,
	100,000				7.75%					2,041,000
			Public Storage, Inc., Series I,
	120,000				7.25%					2,325,600
			Realty Income Corp., Series D,
	100,000				7.375%					2,118,000
			UDR, Inc., Series G,
	100,000				6.75%					1,840,000
			Vornado Realty Trust, Series I,
	50,000				6.625%					825,000
			Total Non-Convertible Preferred Stock
			(cost $16,713,000)							12,267,600
			Total Long-Term Investments
			(cost $477,262,266)							456,991,159

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DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.

PORTFOLIO OF INVESTMENTS-(Continued)

September 30, 2008

(Unaudited)

 

Principal Amount (000)			Description						Value
			SHORT-TERM INVESTMENTS - 3.9%
			U.S. Treasury Bills,
$	1,800				1.568%,		10/30/08		$	1,799,318
	1,800				1.58%,		11/28/08			1,797,766
										3,597,084
			U.S. Treasury Note,
	8,000				4.875%,		10/31/08			8,026,248
			Total Short-Term Investments
			(cost $11,671,253)							11,623,332
			Total Investments - 158.9%
			(Cost $488,933,519)							468,614,491
			Other Assets in Excess of Liabilities - 5.5%							16,173,536
			Liquidation Value of Preferred Shares - (64.4)%							(190,000,000	)
			Net Assets Applicable to Common Stock - 100%						$	294,788,027

(a) Security is in default and is non-income producing.

The United States federal income tax basis of the Fund’s investments and the net unrealized depreciation as of September 30, 2008 was as follows:

 

Tax Basis of Investments		Appreciation		Depreciation		Net Unrealized Depreciation
$510,165,549		$766,421		$42,317,479		$(41,551,058)

Notes

Securities Valuation:

Equity securities traded on a national or foreign securities exchange or traded over-the-counter and quoted on the NASDAQ System are valued at the last reported sale price or, if there was no sale on the pricing date, then the security is valued at the mean of the bid and ask prices as obtained on that day from one or more dealers regularly making a market in that security. Fixed income securities are valued at the mean of bid and ask prices provided by an independent pricing service when such prices are believed to reflect the fair market value of such securities. Such bid and ask prices are determined taking into account securities prices, yields, maturities, call features, ratings, and institutional size trading in similar securities and developments related to specific securities. Any securities for which it is determined that market prices are unavailable or inappropriate are valued at a fair value using a procedure determined in good faith by the Board of Directors. Short-term investments having a maturity of 60 days or less at date of purchase are valued on an amortized cost basis, which approximates market value.

The Fund implemented Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“FAS 157”), effective January 1, 2008. In accordance with FAS 157, fair value is defined as the price that the Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. FAS 157 establishes a three-tier hierarchy to classify fair value measurements for disclosure purposes. The three tier hierarchy of inputs is summarized in the three broad levels listed below.

Level 1 – quoted prices in active markets for identical securities

Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.)

Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. The following is a summary of the inputs used to value each of the Fund’s investments as of September 30, 2008.

Level 1 – $ 12,267,600

Level 2 – $456,346,891

Total –    $468,614,491

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).

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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 Securities Exchange Act of 1934 (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 registrant’s last fiscal quarter 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 of 2002 – Attached hereto

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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 19, 2008

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 19, 2008
By (Signature and Title)		/s/ ALAN M. MEDER
		Alan M. Meder
		Treasurer
		(Principal Financial and Accounting Officer)
Date November 19, 2008