UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-07358

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		Lawrence R. Hamilton
Duff & Phelps Utility and Corporate Bond Trust Inc.		Mayer Brown LLP
200 S. Wacker Dr., Suite 500		71 South Wacker Drive
Chicago, Illinois 60606		Chicago, Illinois 60606
(Name and address of agents for service)

Registrant’s telephone number, including area code: (800) 338-8214

Date of fiscal year end: December 31

Date of reporting period: September 30, 2009

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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, 2009

(Unaudited)

 

Principal Amount (000)			Description				Value
			LONG-TERM INVESTMENTS - 154.7%
			U.S. Government and Agency Obligations - 10.0%
			Federal National Mortgage Association,
$	10,000		7.25%,		1/15/10		$	10,206,900
	5,000		6.00%,		5/15/11			5,415,750
	242		8.00%,		10/01/30			274,561
	902		7.00%,		12/01/31			996,651
			Government National Mortgage Association Pass-Through Certificates,
	14		7.00%,		3/15/26			15,351
	90		8.00%,		11/15/30			102,720
	34		8.00%,		2/15/31			38,596
			U.S. Treasury Note,
	10,000		4.75%,		2/15/10			10,173,050
	5,000		4.00%,		3/15/10			5,088,090
			Total U.S. Government and Agency Obligations (Cost $31,894,770)					32,311,669
			Corporate Bonds - 138.2%
			Financial - 28.4%
			Boeing Capital Corp.,
	7,000		6.50%,		2/15/12			7,713,237
			Caterpillar Financial Services Corp.,
	7,000		7.15%,		2/15/19			8,131,151
			CPG Partners L.P.,
	7,900		8.25%,		2/01/11			8,364,520
			Daimler Finance NA LLC.,
	5,000		7.75%,		1/18/11			5,301,130
			ERP Operating Limited Partnership,
	5,000		6.625%,		3/15/12			5,338,675
			Firstar Bank, N.A.,
	7,000		7.125%,		12/01/09			7,072,779
			General Electric Capital Corp.,
	6,000		6.125%,		2/22/11			6,333,012
			Household Finance Corp.,
	6,000		8.00%,		7/15/10			6,274,452
			JPMorgan Chase & Co.,
	10,000		7.875%,		6/15/10			10,456,550
			Keybank, N.A.,
	3,200		7.30%,		5/01/11			3,332,442
			Mack-Cali Realty, L.P.,
	7,000		7.75%,		2/15/11			7,342,230
			NationsBank Capital Trust IV,
	10,000		8.25%,		4/15/27			9,900,000
			PNC Funding Corp.,
	6,000		7.50%,		11/01/09			6,023,544
								91,583,722

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DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.

PORTFOLIO OF INVESTMENTS-(Continued)

September 30, 2009

(Unaudited)

 

Principal Amount (000)				Description				Value
				Industrial - 30.8%
				Archer-Daniels-Midland Company,
$	4,000			7.125%,		3/01/13		$	4,538,556
				Coca-Cola Enterprises, Inc.,
	5,000			8.50%,		2/01/12			5,674,890
				Devon Financing Corp.,
	5,000			6.875%,		9/30/11			5,442,210
				Dow Chemical Company,
	6,000			9.00%,		4/01/21			6,791,574
				Kraft Foods, Inc.,
	5,000			6.25%,		6/01/12			5,440,550
				Potash Corporation of Saskatchewan, Inc.,
	8,578	(a)		7.75%,		5/31/11			9,385,198
				Premcor Refining Group, Inc.,
	5,000			6.125%,		5/01/11			5,263,400
				Sun Company, Inc.,
	5,000			9.00%,		11/01/24			5,522,860
				Target Corp.,
	5,000			6.00%,		1/15/18			5,642,400
				Tele-Communications, Inc.,
	5,275			10.125%,		4/15/22			6,673,445
	3,200			9.875%,		6/15/22			4,019,373
				Time Warner Entertainment Company, L.P.,
	5,000			8.875%,		10/01/12			5,793,365
				Time Warner, Inc.,
	5,000			9.15%,		2/01/23			6,295,190
				USX Corporation,
	10,000	(a)		9.125%,		1/15/13			11,251,430
				Wal-Mart Stores, Inc.,
	5,000			6.75%,		10/15/23			6,058,570
				XTO Energy, Inc.,
	5,000			6.50%,		12/15/18			5,529,490
									99,322,501
				Telephone - 17.6%
				British Telecommunications PLC,
	10,000	(b)		8.125%,		12/15/10			10,769,860
				Deutsche Telekom International Finance,
	12,000	(a)(b)		8.00%,		6/15/10			12,580,488
				France Telecom SA,
	7,625	(b)		7.75%,		3/01/11			8,258,943
				New Cingular Wireless Services, Inc.,
	10,000	(a)		8.125%,		5/01/12			11,416,830
				New York Telephone Co.,
	5,000			8.625%,		11/15/10			5,368,660
				Verizon Global Funding Corp.,
	7,500			7.375%,		9/01/12			8,527,335
									56,922,116
				Utilities - 61.4%
				AGL Capital Corp.,
	10,000			7.125%,		1/14/11			10,522,360
				Arizona Public Service Co.,
	5,000			6.875%,		8/01/36			5,061,410
				CalEnergy Company, Inc.,
	10,000			8.48%,		9/15/28			13,161,300
				CenterPoint Energy Resources Corp.,
	10,000	(a)		7.75%,		2/15/11			10,637,310
				Cleveland Electric Illumination Co.,
	6,713			8.875%,		11/15/18			8,521,690
				Duke Energy Corporation,
	10,000	(a)		7.375%,		3/01/10			10,260,430
				Entergy Texas, Inc.,
	10,000	(a)		7.125%,		2/01/19			11,222,330
				FirstEnergy Corp.,
	5,000			7.375%,		11/15/31			5,620,710
				Hydro-Quebec,
	10,000			7.50%,		4/01/16			11,787,730

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DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.

PORTFOLIO OF INVESTMENTS-(Continued)

September 30, 2009

(Unaudited)

 

Principal Amount (000)				Description				Value
				Utilities (Continued)
				KeySpan Gas East Corporation,
$	10,088	(a)		7.875%,		2/01/10		$	10,313,931
				Kinder Morgan Energy Partners,
	5,000			7.75%,		3/15/32			5,639,430
				NSTAR,
	7,020			8.00%,		2/15/10			7,203,791
				ONEOK Inc.,
	4,060			7.125%,		4/15/11			4,350,172
				ONEOK Partners,
	6,040			8.875%,		6/15/10			6,355,107
				Progress Energy, Inc.,
	6,000			7.10%,		3/01/11			6,362,790
				PSE&G Power, LLC.,
	7,195			7.75%,		4/15/11			7,776,334
				Sempra Energy,
	10,000			7.95%,		3/01/10			10,283,600
				South Carolina Electric & Gas Co.,
	5,685			6.50%,		11/01/18			6,577,249
				Southern California Edison Company,
	5,512			7.625%,		1/15/10			5,615,934
				Spectra Energy Capital LLC.,
	10,000			7.50%,		10/01/09			10,000,000
				Trans-Canada Pipelines Limited,
	10,000			9.875%,		1/01/21			13,904,160
				Wisconsin Energy Corp.,
	6,000			6.50%,		4/01/11			6,381,780
				Xcel Energy, Inc.,
	10,131	(a)		7.00%,		12/01/10			10,654,378
									198,213,926
				Total Corporate Bonds (Cost $423,920,486)					446,042,265
				Asset-Backed Securities - 1.8%
				Detroit Edison Securitization Funding LLC 2001-1 A6,
	5,000			6.62%,		3/01/16			5,763,758
				Total Asset-Backed Securities (Cost $5,925,000)					5,763,758
Shares
				Non-Convertible Preferred Stock - 4.7%
				Financial - 4.7%
				Duke Realty Corp., Series M,
	100,000			6.95%					1,981,000
				Duke Realty Corp., Series N,
	100,000			7.25%					2,101,000
				Kimco Realty Corp., Series G,
	100,000			7.75%					2,435,000
				Public Storage, Inc., Series I,
	120,000			7.25%					3,025,200
				Realty Income Corp., Series D,
	100,000			7.375%					2,494,000
				UDR, Inc., Series G,
	100,000			6.75%					2,090,000
				Vornado Realty Trust, Series I,
	50,000			6.625%					1,062,500
				Total Non-Convertible Preferred Stock (Cost $16,713,000)					15,188,700
				Total Investments - 154.7% (Cost $478,453,256)					499,306,392
				Liabilities in Excess of Other Assets - (25.3)%					(81,638,124	)
				Liquidation Value of Preferred Shares - (29.4)%					(95,000,000	)
				Net Assets Applicable to Common Stock - 100%				$	322,668,268

 

(a)	A portion of this security has been loaned.

 

(b)	Security’s original coupon rate is shown. Coupon rate subject to change if security’s rating is upgraded or downgraded by Standard & Poor’s Ratings Services or Moody’s Investors Service, Inc.

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The United States federal income tax basis of the Fund’s investments and the net unrealized depreciation as of September 30, 2009 was as follows:

 

Tax Basis of   Investments		Appreciation		Depreciation		Net Unrealized Depreciation
$499,883,430		$14,218,054		$14,795,092		$577,038

Notes

The Fund’s investments are carried at fair value which 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. The three-tier hierarchy of inputs established to classify fair value measurements for disclosure purposes 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, 2009:

 

		Level 1			Level 2			Level 3			Total
Asset-backed securities		$	—		$	5,763,758		$	—		$	5,763,758
Corporate bonds - Financial			—			91,583,722			—			91,583,722
Corporate bonds - Industrial			—			99,322,501			—			99,322,501
Corporate bonds - Telephone			—			56,922,116			—			56,922,116
Corporate bonds - Utilities			—			198,213,926			—			198,213,926
Mortgage-backed securities			—			17,050,529			—			17,050,529
Non-convertible preferred stock			15,188,700			—			—			15,188,700
U.S. Government obligations			—			15,261,140			—			15,261,140
Total		$	15,188,700		$	484,117,692		$	—		$	499,306,392

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.

(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 12, 2009

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 12, 2009
By (Signature and Title)		/S/ ALAN M. MEDER
		Alan M. Meder
		Treasurer
		(Principal Financial and Accounting Officer)
Date November 12, 2009