UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number

811-05012

 

CREDIT SUISSE ASSET MANAGEMENT INCOME FUND, INC.

(Exact name of registrant as specified in charter)

 

Eleven Madison Avenue, New York, New York

 

10010

(Address of principal executive offices)

 

(Zip code)

 

John G. Popp

Credit Suisse Asset Management Income Fund, Inc.

Eleven Madison Avenue

New York, New York  10010

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:

(212) 325-2000

 

 

Date of fiscal year end:

December 31

 

 

Date of reporting period:

January 1, 2010 to June 30, 2010

 

 



 

Item 1. Reports to Stockholders.

 



Credit Suisse Asset Management
Income Fund, Inc.
Eleven Madison Avenue
New York, NY 10010

Directors

Enrique R. Arzac

Chairman of the Board

Terry Fires Bovarnick

James Cattano

Lawrence J. Fox

Steven Rappaport

Officers

John Popp

Chief Executive Officer and President

Thomas J. Flannery

Chief Investment Officer

Roger Machlis

Chief Legal Officer

Emidio Morizio

Chief Compliance Officer

Michael A. Pignataro

Chief Financial Officer

Karen Regan

Senior Vice President and Secretary

Cecilia Chau

Treasurer

Investment Adviser

Credit Suisse Asset Management, LLC
Eleven Madison Avenue
New York, NY 10010

Administrator and Custodian

State Street Bank and Trust Co.
225 Franklin Street
Boston, MA 02110

Shareholder Servicing Agent

Computershare Trust Company, N.A.
P.O. Box 43078
Providence, RI 02940-3078

Legal Counsel

Willkie Farr & Gallagher LLP
787 7th Avenue
New York, NY 10019

Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP
125 High Street
Boston, MA 02110

Credit Suisse Asset Management
Income Fund, Inc.

SEMIANNUAL REPORT
June 30, 2010
(unaudited)




Credit Suisse Asset Management Income Fund, Inc.

Semiannual Investment Adviser's Report

June 30, 2010 (unaudited)

July 28, 2010

Dear Shareholder:

Performance Summary

1/1/10 – 06/30/10

Fund & Benchmark   Performance  
Total Return (based on NAV)1     3.79 %  
Total Return (based on market value)1     8.41 %  
BofA Merrill Lynch US High Yield Master II Constrained Index2     4.71 %  

 

Market Review: A positive period overall

The six-month period ended June 30, 2010 was a positive one for the high yield bond market. The BofA Merrill Lynch US High Yield Master II Constrained Index, the Fund's benchmark, returned 4.71% for the period, with positive returns in 5 of the 6 months (May 2010 as the exception). High yield spreads widened 74 basis points versus the Treasury market to end the period at +714 basis points, while high yield bond yields ended the period at 9.03%.

From a quality point-of-view, BB-rated and CCC-rated securities outperformed the Index, returning 5.6% and 5.0%, respectively. In contrast, B-rated securities had positive returns for the period, but underperformed the Index with returns of 3.5%. The insurance, financials and airlines sectors led the Index, while technology, utilities, and food & drug retail lagged during the period.

High yield default rates rose throughout much of last year, peaking at 13.48% in November 2009. Since then, the global default rate, as measured by Moody's, has declined steadily to 6.1%, and is expected to decline further over the balance of the year. Additionally, according to JPMorgan, the pace of corporate high yield defaults is continuing to slow, with only two companies defaulting or missing coupons in June — bringing the year to date total to 22. The percentage of securities considered "distressed" (defined as those trading at spreads of more than 1,000 basis points over Treasuries), fell steadily throughout most of the period, but rose slightly toward the end of the period. Though the percentage of distressed securities was 13.83% at the end of June, this number was still down from 2009's year-end of 17.9% — and down significantly from the all-time high of 83.6% in November 2008.

Following the record high calendar year bond issuance of $180.7 billion set in 2009, JP Morgan is reporting that new issue volume for this six-month period was $125 billion. New issuance activity occurred mostly in the first quarter of 2010, with latter parts of the period showing a significant slowdown. High-yield mutual funds saw volatile fund flows during the period, and ended with inflows of approximately $150 million as reported by Lipper.

Strategic Review and Outlook: We remain cautious going forward

For the semiannual period ended June 30, 2010, the Fund underperformed its benchmark on an NAV basis, but outperformed it on a market price basis. Superior security selection in the media-broadcast, building & construction, specialty retail and chemical sectors contributed positively to returns. On the other hand, security selection in electric-generation and an overweight position in the oil field equipment sector detracted from returns.

Portfolio construction remains selective as we focus on securities that offer solid relative value versus their peers. We continue to take advantage of opportunities in the new issuance market at attractive yields, especially in more senior bonds. Portfolio exposures reflect our positive view on the technology, cable, and broadcast sectors, as well as growing comfort with some of the more cyclical chemical and paper companies. In contrast, we remain cautious with respect to consumer-driven industries, and have sought to limit exposures to those sectors.



Credit Suisse Asset Management Income Fund, Inc.

Semiannual Investment Adviser's Report (continued)

June 30, 2010 (unaudited)

The reopening of both debt and equity capital markets has made capital available to a broad range of companies, allowing many below-investment-grade issuers to refinance and extend debt maturities. The improved liquidity, combined with a stabilizing fundamental backdrop, has significantly decreased expectations for upcoming defaults. Moody's is currently forecasting that the June 2011 global default rate will decline from its current rate of 6.1% to 1.8%. In addition, 2010 recovery rates (the price at which a defaulted security is trading one month post default) have risen back to near historical averages compared to 2009 figures. Given this environment of declining defaults and a stabilizing economy, the high yield market has rallied significantly from its 2009 lows. However, given the overhang of sovereign default risk and likely regulatory changes for the U.S. financial services sector, we remain cautious and anticipate further volatility in the near future.

   
Thomas J. Flannery
Chief Investment Officer*
  John Popp
Chief Executive Officer and President**
 

 

High yield bonds are lower-quality bonds that are also known as "junk bonds." Such bonds entail greater risks than those found in higher-rated securities.

International investing entails special risk considerations, including currency fluctuations, lower liquidity, economic and political risks, and differences in accounting methods; these risks are generally heightened for emerging-market investments. The Fund may involve a greater degree of risk than other funds that invest in larger, more developed markets.

In addition to historical information, this report contains forward-looking statements, which may concern, among other things, domestic and foreign market, industry and economic trends and developments and government regulation and their potential impact on the Fund's investments. These statements are subject to risks and uncertainties and actual trends, developments and regulations in the future, and their impact on the Fund could be materially different from those projected, anticipated or implied. The Fund has no obligation to update or revise forward-looking statements.

1  Assuming reinvestment of dividends of $0.16 per share.

2  The BofA Merrill Lynch US High Yield Master II Constrained Index is an unmanaged index that tracks the performance of below investment-grade U.S. dollar-denominated corporate bonds issued in the U.S. domestic market, where each issuer's allocation is limited to 2% of the index. Investors cannot invest directly in an index.

*  Thomas J. Flannery is a Managing Director of Credit Suisse Asset Management, LLC ("Credit Suisse") and Head of the Credit Suisse US High Yield Management Team. Mr. Flannery joined Credit Suisse in June 2010. He is a portfolio manager for the Performing Credit Strategies Group ("PCS") within the Asset Management business of Credit Suisse Group AG with responsibility for originating and analyzing investment opportunities. Mr. Flannery is also a member of the PCS Investment Committee and is currently a high yield bond portfolio manager and trader for PCS. Mr. Flannery joined Credit Suisse Group AG in 2000 from First Dominion Capital, LLC where he was an Associate. Mr. Flannery began his career with Houlihan Lokey Howard & Zukin, Inc.

**  John Popp is a Managing Director of Credit Suisse. He is the Group Manager and Senior Portfolio Manager for Performing Credit Strategies. Mr. Popp has been associated with Credit Suisse since 1997.



Credit Suisse Asset Management Income Fund, Inc.

Semiannual Investment Adviser's Report (continued)

June 30, 2010 (unaudited)

Top Ten Holdings

(% of net assets as of 06/30/10)

Security Description

1.
  HCA, Inc.
9.250% 11/15/16
  1.42%
 
2.
  Ford Motor Credit Co., LLC
8.000% 12/15/16
  1.05%
 
3.

  Texas Competitive Electric
Holdings Co., LLC Series A
10.250% 11/01/15
  1.02%
 
4.
  Ford Motor Credit Co., LLC,
7.000% 10/01/13
  1.01%
 
5.
  Sprint Nextel Corp.
6.000% 12/01/16
  1.01%
 
6.
  Block Communications, Inc.
8.250% 12/15/15
  1.01%
 
7.
  Intelsat Corp.,
9.250% 08/15/14
  0.99%
 
8.
  CCO Holdings Capital Corp.
8.125% 04/30/20
  0.86%
 
9.
  Nextel Communications, Inc.
5.950% 03/15/14
  0.82%
 
10.
  Greektown Superholdings, Inc.
13.000% 07/01/15
  0.80%
 

 

Credit Quality Breakdown*

(% of total investments as of 06/30/10)

S&P Ratings  
BBB     1.0 %  
BB     23.0    
B     50.0    
CCC     17.2    
CC     0.3    
C     0.5    
D     0.6    
NR     5.4    
Subtotal     98.0    
Equities and Other     2.0    
Total     100.0 %  

 

*  Expressed as a percentage of total investments (excluding securities lending collateral if applicable) and may vary over time.


1



Credit Suisse Asset Management Income Fund, Inc.

Average Annual Returns

June 30, 2010 (unaudited)

    1 Year   3 Years   5 Years   10 Years  
Net Asset Value (NAV)     27.22 %     4.90 %     6.96 %     4.63 %  
Market Value     34.19 %     5.05 %     5.22 %     5.05 %  

 

Credit Suisse may waive fees and/or reimburse expenses, without which performance would be lower. Waivers and/or reimbursements are subject to change and may be discontinued at any time. Returns represent past performance. Total investment return at net asset value is based on changes in the net asset value of fund shares and assumes reinvestment of dividends and distributions, if any. Total investment return at market value is based on changes in the market price at which the fund's shares traded on the stock exchange during the period and assumes reinvestment of dividends and distributions, if any, at actual prices pursuant to the fund's dividend reinvestment program. Because the fund's shares trade in the stock market based on investor demand, the fund may trade at a price higher or lower than its NAV. Therefore, returns are calculated based on share price and NAV. Past performance is no guarantee of future results. The current performance of the fund may be lower or higher than the figures shown. The fund's yield, return and market price and NAV will fluctuate. Performance information current to the most recent month-end is available by calling 1-800-293-1232.

The annualized gross and net expense ratios are 0.76%.


2




Credit Suisse Asset Management Income Fund, Inc.

Schedule of Investments

June 30, 2010 (unaudited)

Par
(000)
 
  Ratings
(S&P/Moody's)
  Maturity   Rate%   Value  
U.S. CORPORATE BONDS (86.0%)      
Aerospace & Defense (1.0%)      
$ 800     BE Aerospace, Inc., Senior Unsecured Notes (Callable 07/01/13 @ $104.25) §   (BB, Ba3)   07/01/18     8.500     $ 842,000    
  975     Hawker Beechcraft Notes Co., Global Company Guaranteed Notes (Callable 04/01/11 @ $104.25) §   (CCC-, Caa3)   04/01/15     8.500       786,094    
  175     Hawker Beechcraft Notes Co., Global Company Guaranteed Notes (Callable 04/01/12 @ $104.88) §   (CCC-, Ca)   04/01/17     9.750       108,937    
                  1,737,031    
Auto Loans (2.0%)      
  1,725     Ford Motor Credit Co., LLC, Global Senior Unsecured Notes §   (B-, Ba3)   10/01/13     7.000       1,760,178    
  1,775     Ford Motor Credit Co., LLC, Senior Unsecured Notes §   (B-, Ba3)   12/15/16     8.000       1,817,364    
                  3,577,542    
Auto Parts & Equipment (2.2%)      
  300     American Axle & Manufacturing Holdings, Inc., Rule 144A, Senior Secured Notes
(Callable 01/15/14 @ $104.63) ‡§
  (B, B1)   01/15/17     9.250       310,500    
  500     American Axle & Manufacturing, Inc., Company Guaranteed Notes (Callable 03/01/12 @ $103.94)   (CCC, Caa2)   03/01/17     7.875       436,250    
  800     American Tire Distributors, Inc., Rule 144A, Senior Secured Notes (Callable 06/01/13 @ $107.31) ‡§   (CCC+, B2)   06/01/17     9.750       806,000    
  675     ArvinMeritor, Inc., Company Guaranteed Notes (Callable 03/15/14 @ $105.31) §   (CCC, Caa2)   03/15/18     10.625       718,875    
  800     Stanadyne Corp., Series 1, Global Senior Subordinated Notes (Callable 08/15/10 @ $103.33)   (CCC, Caa1)   08/15/14     10.000       732,000    
  737     The Goodyear Tire & Rubber Co., Global Company Guaranteed Notes (Callable 07/01/10 @ $104.50)   (B+, B1)   07/01/15     9.000       760,952    
  150     The Goodyear Tire & Rubber Co., Senior Unsecured Notes (Callable 05/15/12 @ $107.88) §   (B+, B1)   05/15/16     10.500       163,875    
                  3,928,452    
Banks (3.1%)      
  1,175     Ally Financial, Inc., Global Company Guaranteed Notes §   (B, B3)   03/02/11     7.250       1,199,969    
  474     Ally Financial, Inc., Global Company Guaranteed Notes §   (B, B3)   04/01/11     6.000       476,370    
  78     Ally Financial, Inc., Global Subordinated Notes §   (CCC+, B3)   12/31/18     8.000       72,540    
  1,200     Ally Financial, Inc., Rule 144A, Company Guaranteed Notes ‡   (B, B3)   02/12/15     8.300       1,218,000    
  475     Ally Financial, Inc., Rule 144A, Company Guaranteed Notes ‡   (B, B3)   03/15/20     8.000       465,500    
  142     CIT Group, Inc., Senior Secured Notes (Callable 01/01/11 @ $102.00) §   (B+, B3)   05/01/13     7.000       136,280    
  212     CIT Group, Inc., Senior Secured Notes (Callable 01/01/11 @ $102.00)   (B+, B3)   05/01/14     7.000       201,236    
  537     CIT Group, Inc., Senior Secured Notes (Callable 01/01/11 @ $102.00) §   (B+, B3)   05/01/15     7.000       498,425    
  354     CIT Group, Inc., Senior Secured Notes (Callable 01/01/11 @ $102.00)   (B+, B3)   05/01/16     7.000       324,774    
  496     CIT Group, Inc., Senior Secured Notes (Callable 01/01/11 @ $102.00)   (B+, B3)   05/01/17     7.000       448,488    
  450     Provident Funding Associates Rule 144A, Senior Secured Notes ‡   (B+, Ba3)   04/15/17     10.250       456,750    
                  5,498,332    
Beverages (0.4%)      
  225     Constellation Brands, Inc., Company Guaranteed Notes   (BB, Ba3)   12/15/14     8.375       240,750    
  525     Constellation Brands, Inc., Company Guaranteed Notes   (BB, Ba3)   09/01/16     7.250       532,219    
                  772,969    
Building & Construction (0.6%)      
  468     Ashton Woods Finance Co., Rule 144A, Company Guaranteed Notes (Callable 02/24/14 @ $105.50) +‡   (NR, NR)   06/30/15     0.000       273,780    
  500     K Hovnanian Enterprises, Inc., Global Company Guaranteed Notes §   (CCC-, Caa2)   01/15/16     6.250       352,500    
  250     William Lyon Homes, Inc., Global Company Guaranteed Notes (Callable 02/15/11 @ $101.25)   (CC, Caa3)   02/15/14     7.500       181,250    
  350     William Lyon Homes, Inc., Global Company Guaranteed Notes (Callable 12/15/10 @ $100.00)   (CC, Caa3)   12/15/12     7.625       292,250    
                  1,099,780    
Building Materials (2.1%)      
  850     AMH Holdings Inc., Global Senior Discount Notes (Callable 03/01/11 @ $101.88) §   (CCC, Caa2)   03/01/14     11.250       871,250    
  975     CPG International I, Inc., Global Company Guaranteed Notes (Callable 07/01/10 @ $102.63)   (B-, Caa1)   07/01/13     10.500       975,000    
  300     Dayton Superior Corp., Company Guaranteed Notes ø^   (D, NR)   06/15/09     13.000       0    
  1,050     Headwaters, Inc., Global Senior Secured Notes (Callable 11/01/12 @ $105.69) §   (B+, B2)   11/01/14     11.375       1,065,750    
  114     Norcraft Capital Corp., Global Senior Discount Notes (Callable 09/01/10 @ $100.00)   (CCC, Caa1)   09/01/12     9.750       108,442    
  675     Norcraft Finance Corp., Rule 144A, Senior Secured Notes (Callable 12/15/12 @ $105.25) ‡   (B-, B2)   12/15/15     10.500       698,625    
                  3,719,067    

 

See Accompanying Notes to Financial Statements.
3



Credit Suisse Asset Management Income Fund, Inc.

Schedule of Investments (continued)

June 30, 2010 (unaudited)

Par
(000)
 
  Ratings
(S&P/Moody's)
  Maturity   Rate%   Value  
U.S. CORPORATE BONDS      
Chemicals (2.0%)      
$ 450     CF Industries, Inc., Company Guaranteed Notes §   (BB+, B1)   05/01/20     7.125     $ 462,375    
  300     LBI Escrow Corp., Rule 144A, Senior Secured Notes (Callable 05/01/13 @ $106.00) ‡   (BB, Ba3)   11/01/17     8.000       309,750    
  425     Momentive Performance Materials, Inc., Global Company Guaranteed Notes
(Callable 12/01/10 @ $104.88) §
  (CCC-, Caa2)   12/01/14     9.750       403,750    
  437     Momentive Performance Materials, Inc., Global Company Guaranteed Notes
(Callable 12/15/11 @ $106.25) §
  (CCC-, B3)   06/15/14     12.500       478,515    
  150     Nalco Co., Global Company Guaranteed Notes (Callable 11/15/10 @ $101.48)   (B, B2)   11/15/13     8.875       154,500    
  175     Nalco Co., Global Company Guaranteed Notes (Callable 11/15/10 @ $101.50)   (B, B2)   11/15/13     9.000       216,501    
  800     Nalco Finance Holdings, Inc., Global Senior Discount Notes (Callable 02/01/11 @ $101.50)   (B, B2)   02/01/14     9.000       816,000    
  750     Reichhold Industries, Inc., Rule 144A, Senior Notes (Callable 08/15/10 @ $104.50) ‡   (CCC+, Caa2)   08/15/14     9.000       663,750    
                  3,505,141    
Computer Hardware (0.5%)      
  1,000     Activant Solutions, Inc., Global Company Guaranteed Notes (Callable 05/01/11 @ $104.75)   (CCC, Caa1)   05/01/16     9.500       955,000    
Consumer Products (1.0%)      
  650     AAC Group Holding Corp., Rule 144A, Senior Discount Notes (Callable 10/01/10 @ $100.00) ‡§   (CCC, Caa2)   10/01/12     10.250       646,750    
  250     Prestige Brands, Inc., Rule 144A, Company Guaranteed Notes (Callable 04/01/14 @ $104.13) ‡   (B+, B3)   04/01/18     8.250       253,125    
  850     Spectrum Brands Holdings, Inc., Rule 144A, Secured Notes (Callable 06/15/14 @ $104.75) ‡   (B, B2)   06/15/18     9.500       877,625    
                  1,777,500    
Consumer/Commercial/Lease Financing (0.9%)      
  1,150     International Lease Finance Corp., Rule 144A, Senior Unsecured Notes ‡   (BB+, B1)   09/15/15     8.625       1,092,500    
  500     International Lease Finance Corp., Rule 144A, Senior Unsecured Notes ‡   (BB+, B1)   03/15/17     8.750       475,000    
  100     International Lease Finance Corp., Series MTN, Senior Unsecured Notes §   (BB+, B1)   06/01/14     5.650       89,250    
                  1,656,750    
Department Stores (0.3%)      
  500     The Neiman Marcus Group, Inc., Global Company Guaranteed Notes (Callable 10/15/10 @ $105.19) §   (CCC+, Caa2)   10/15/15     10.375       511,250    
Diversified Capital Goods (2.9%)      
  250     Belden, Inc., Global Company Guaranteed Notes (Callable 03/15/12 @ $103.50)   (B+, Ba2)   03/15/17     7.000       242,812    
  575     Belden, Inc., Rule 144A, Company Guaranteed Notes (Callable 06/15/14 @ $104.62) ‡   (B+, Ba2)   06/15/19     9.250       609,500    
  625     Coleman Cable, Inc., Rule 144A, Senior Notes (Callable 02/15/14 @ $104.50) ‡   (B, B3)   02/15/18     9.000       600,000    
  575     Esco Corp., Rule 144A, Company Guaranteed Notes (Callable 12/15/10 @ $100.00) #‡   (B, B2)   12/15/13     4.412       529,000    
  875     International Wire Group, Inc., Rule 144A, Senior Secured Notes (Callable 10/15/12 @ $104.88) ‡   (B, B3)   04/15/15     9.750       870,625    
  800     Mueller Water Products, Inc., Global Company Guaranteed Notes (Callable 06/01/12 @ $103.69) §   (B-, B3)   06/01/17     7.375       706,000    
  450     Sensus USA Systems, Inc., Global Company Guaranteed Notes (Callable 12/15/10 @ $101.44)   (B-, B3)   12/15/13     8.625       441,000    
  625     Titan International, Inc., Global Company Guaranteed Notes   (B-, B2)   01/15/12     8.000       653,125    
  550     TriMas Corp., Rule 144A, Senior Secured Notes (Callable 12/15/13 @ $104.88) ‡§   (B-, Caa1)   12/15/17     9.750       559,625    
                  5,211,687    
Electric - Generation (4.1%)      
  100     Dynegy Holdings, Inc., Global Senior Unsecured Notes   (B-, B3)   06/01/15     7.500       79,625    
  925     Dynegy Holdings, Inc., Global Senior Unsecured Notes §   (B-, B3)   05/01/16     8.375       736,531    
  1,075     Edison Mission Energy, Global Senior Unsecured Notes   (B-, B2)   05/15/17     7.000       693,375    
  800     Edison Mission Energy, Global Senior Unsecured Notes   (B-, B2)   05/15/19     7.200       496,000    
  1,200     Mirant Americas Generation LLC, Senior Unsecured Notes §   (B-, B3)   10/01/21     8.500       1,122,000    
  268     Mirant Mid Atlantic Trust, Series B, Global Pass Thru Certificates   (BB, Ba1)   06/30/17     9.125       277,080    
  200     NRG Energy, Inc., Company Guaranteed Notes (Callable 01/15/12 @ $103.69) §   (BB-, B1)   01/15/17     7.375       198,500    
  425     NRG Energy, Inc., Company Guaranteed Notes (Callable 02/01/11 @ $103.69)   (BB-, B1)   02/01/16     7.375       423,938    
  550     NRG Energy, Inc., Company Guaranteed Notes (Callable 06/15/14 @ $104.25) §   (BB-, B1)   06/15/19     8.500       561,687    
  2,650     Texas Competitive Electric Holdings Co., LLC, Series A, Global Company Guaranteed Notes
(Callable 11/01/11 @ $105.13) §
  (CCC, Caa2)   11/01/15     10.250       1,762,250    
  1,300     Texas Competitive Electric Holdings Co., LLC, Series B, Global Company Guaranteed Notes
(Callable 11/01/11 @ $105.13) §
  (CCC, Caa2)   11/01/15     10.250       864,500    
                  7,215,486    

 

See Accompanying Notes to Financial Statements.
4



Credit Suisse Asset Management Income Fund, Inc.

Schedule of Investments (continued)

June 30, 2010 (unaudited)

Par
(000)
 
  Ratings
(S&P/Moody's)
  Maturity   Rate%   Value  
U.S. CORPORATE BONDS      
Electric - Integrated (1.0%)      
$ 200     The AES Corp., Global Senior Unsecured Notes   (BB-, B1)   04/15/16     9.750     $ 216,000    
  1,000     The AES Corp., Global Senior Unsecured Notes §   (BB-, B1)   10/15/17     8.000       1,015,000    
  550     The AES Corp., Senior Unsecured Notes   (BB-, B1)   03/01/14     7.750       562,375    
                  1,793,375    
Electronics (0.8%)      
  850     Freescale Semiconductor, Inc., Rule 144A, Senior Secured Notes (Callable 03/15/14 @ $105.06) ‡§   (B-, B2)   03/15/18     10.125       871,250    
  525     Sanmina-SCI Corp., Company Guaranteed Notes (Callable 03/01/11 @ $104.06)   (CCC+, B2)   03/01/16     8.125       519,750    
                  1,391,000    
Energy - Exploration & Production (3.5%)      
  475     Berry Petroleum Co., Senior Subordinated Notes (Callable 11/01/11 @ $104.13) §   (B, B3)   11/01/16     8.250       461,938    
  175     Chesapeake Energy Corp., Company Guaranteed Notes §   (BB, Ba3)   12/15/18     7.250       181,563    
  475     Denbury Resources, Inc., Company Guaranteed Notes (Callable 03/01/13 @ $104.88)   (BB, B1)   03/01/16     9.750       515,375    
  300     Forest Oil Corp., Global Company Guaranteed Notes (Callable 06/15/12 @ $103.63) §   (B+, B1)   06/15/19     7.250       291,000    
  600     Hilcorp Financial Co., Rule 144A, Senior Unsecured Notes (Callable 06/01/11 @ $104.50) ‡   (BB-, B2)   06/01/16     9.000       618,000    
  425     Penn Virginia Corp., Senior Notes (Callable 06/15/13 @ $105.19) §   (BB-, B2)   06/15/16     10.375       454,750    
  925     PetroHawk Energy Corp., Global Company Guaranteed Notes (Callable 06/01/12 @ $103.94)   (B, B3)   06/01/15     7.875       931,937    
  425     Pioneer Natural Resources Co., Senior Unsecured Notes   (BB+, Ba1)   01/15/20     7.500       440,129    
  625     Plains Exploration & Production Co., Company Guaranteed Notes (Callable 06/15/11 @ $103.88)   (BB-, B1)   06/15/15     7.750       621,875    
  375     Stone Energy Corp., Company Guaranteed Notes (Callable 02/01/14 @ $104.31)   (BB-, Caa1)   02/01/17     8.625       339,375    
  475     Stone Energy Corp., Global Senior Subordinated Notes (Callable 12/15/10 @ $102.25)   (B-, Caa2)   12/15/14     6.750       406,125    
  525     Swift Energy Co, Company Guaranteed Notes (Callable 06/01/12 @ $103.56) §   (BB-, B3)   06/01/17     7.125       486,937    
  450     Whiting Petroleum Corp., Global Company Guaranteed Notes   (BB, B1)   02/01/14     7.000       461,250    
                  6,210,254    
Environmental (0.6%)      
  925     Casella Waste Systems, Inc., Rule 144A, Senior Secured Notes (Callable 07/15/12 @ $105.50) ‡   (B+, B2)   07/15/14     11.000       1,003,625    
Food & Drug Retailers (0.8%)      
  350     Ingles Markets, Inc., Global Senior Unsecured Notes (Callable 05/15/13 @ $104.44)   (BB-, B1)   05/15/17     8.875       357,875    
  650     Rite Aid Corp., Global Company Guaranteed Notes (Callable 06/15/11 @ $104.69) §   (CCC, Caa3)   12/15/15     9.375       534,625    
  425     Rite Aid Corp., Global Senior Secured Notes (Callable 06/12/13 @ $104.88) §   (B+, B3)   06/12/16     9.750       446,250    
                  1,338,750    
Food - Wholesale (1.0%)      
  350     Michael Foods, Inc., Rule 144A, Senior Notes (Callable 07/15/14 @ 104.88) ‡   (B-, Caa1)   07/15/18     9.750       361,375    
  550     Pinnacle Foods Finance Corp., Rule 144A, Senior Unsecured Notes (Callable 04/01/11 @ $104.63) ‡   (CCC+, Caa2)   04/01/15     9.250       563,750    
  950     Southern States Cooperative, Inc., Rule 144A, Senior Notes (Callable 05/15/13 @ $105.63) ‡   (B+, B3)   05/15/15     11.250       916,750    
                  1,841,875    
Forestry & Paper (1.8%)      
  388     Boise Cascade LLC, Global Company Guaranteed Notes (Callable 10/15/10 @ $102.38)   (B+, Caa1)   10/15/14     7.125       367,145    
  200     Georgia-Pacific LLC Rule 144A, Company Guaranteed Notes (Callable 01/15/12 @ $103.56) ‡   (BB+, Ba2)   01/15/17     7.125       205,000    
  450     Georgia-Pacific LLC Rule 144A, Company Guaranteed Notes (Callable 05/01/13 @ $104.13) ‡   (BB+, Ba2)   05/01/16     8.250       482,063    
  800     NewPage Corp., Global Secured Notes (Callable 05/01/11 @ $100.00) §   (CCC-, Caa2)   05/01/12     10.000       438,000    
  1,050     NewPage Corp., Global Senior Secured Notes (Callable 03/31/12 @ $105.00) §   (CCC+, B2)   12/31/14     11.375       958,125    
  675     Verso Paper, Inc., Series B, Global Company Guaranteed Notes (Callable 08/01/11 @ $105.69) §   (CCC+, Caa1)   08/01/16     11.375       578,812    
  75     Verso Paper, Inc., Series B, Global Senior Secured Notes (Callable 08/01/10 @ $104.56) §   (B, B2)   08/01/14     9.125       72,000    
                  3,101,145    
Gaming (5.0%)      
  775     Buffalo Thunder Development Authority, Rule 144A, Senior Secured Notes
(Callable 12/15/10 @ $104.69) ø‡
  (NR, NR)   12/15/14     9.375       143,375    
  775     CCM Merger, Inc., Rule 144A, Notes (Callable 08/01/10 @ $102.00) ‡§   (CCC+, Caa3)   08/01/13     8.000       713,000    
  140     Choctaw Resort Development Enterprise, Rule 144A, Senior Notes (Callable 11/15/11 @ $103.63) ‡   (B, B2)   11/15/19     7.250       97,300    
  375     FireKeepers Development Authority, Rule 144A, Senior Secured Notes (Callable 05/01/12 @ $110.50) ‡   (B+, B2)   05/01/15     13.875       435,000    

 

See Accompanying Notes to Financial Statements.
5



Credit Suisse Asset Management Income Fund, Inc.

Schedule of Investments (continued)

June 30, 2010 (unaudited)

Par
(000)
 
  Ratings
(S&P/Moody's)
  Maturity   Rate%   Value  
U.S. CORPORATE BONDS      
Gaming      
$ 375     Fontainebleau Las Vegas Holdings LLC, Rule 144A, Second Mortgage Notes
(Callable 06/15/11 @ $105.13) ø‡
  (NR, NR)   06/15/15     11.000     $ 3,281    
  1,300     Greektown Superholdings, Inc., Rule 144A, Senior Secured Notes (Callable 01/01/13 @ $106.50) ‡   (NR, NR)   07/01/15     13.000       1,410,500    
  675     Harrah's Operating Co., Inc., Global Senior Secured Notes (Callable 06/01/13 @ $105.63)   (B, Caa1)   06/01/17     11.250       713,812    
  475     Inn of the Mountain Gods Resort & Casino, Global Company Guaranteed Notes ø   (D, Ca)   11/15/10     12.000       232,750    
  900     Jacobs Entertainment, Inc., Global Company Guaranteed Notes (Callable 06/15/11 @ $102.44)   (B-, Caa1)   06/15/14     9.750       841,500    
  625     Majestic Star Casino Capital Corp., Senior Secured Notes ø   (D, NR)   10/15/10     9.500       402,344    
  850     Mashantucket Western Pequot Tribe, Rule 144A, Bonds (Callable 11/15/11 @ $104.25) ø‡   (D, NR)   11/15/15     8.500       133,875    
  425     MGM Mirage, Inc., Company Guaranteed Notes §   (CCC+, Caa1)   06/01/16     7.500       336,813    
  600     MGM Resorts International, Global Senior Secured Notes (Callable 05/15/13 @ $105.56)   (B, B1)   11/15/17     11.125       664,500    
  1,100     MTR Gaming Group, Inc., Global Secured Notes (Callable 07/15/11 @ $106.31)   (B, B2)   07/15/14     12.625       1,108,250    
  850     Peninsula Gaming LLC, Global Company Guaranteed Notes (Callable 08/15/13 @ $105.38)   (B, B3)   08/15/17     10.750       850,000    
  435     Tropicana Finance Corp., Global Senior Subordinated Notes (Callable 12/15/10 @ $104.81) ø   (NR, NR)   12/15/14     9.625       305    
  675     Turning Stone Resort Casino Enterprise, Rule 144A, Senior Unsecured Notes
(Callable 09/15/10 @ $104.56) ‡
  (B+, B1)   09/15/14     9.125       676,687    
                  8,763,292    
Gas Distribution (2.5%)      
  600     Amerigas Partners LP, Global Senior Unsecured Notes (Callable 05/20/11 @ $102.42)   (NR, Ba3)   05/20/15     7.250       603,000    
  525     El Paso Corp., Senior Unsecured Notes §   (BB-, Ba3)   06/01/18     7.250       529,040    
  850     El Paso Performance-Linked Trust, Rule 144A, Senior Unsecured Notes ‡   (NR, Ba3)   07/15/11     7.750       880,416    
  525     Inergy Finance Corp., Global Company Guaranteed Notes (Callable 03/01/11 @ $104.13) §   (B+, B1)   03/01/16     8.250       534,187    
  200     Inergy Finance Corp., Global Company Guaranteed Notes (Callable 12/15/10 @ $102.29)   (B+, B1)   12/15/14     6.875       198,000    
  350     MarkWest Energy Finance Corp., Series B, Global Company Guaranteed Notes
(Callable 04/15/13 @ $104.38)
  (BB-, B1)   04/15/18     8.750       355,250    
  650     Targa Resources Partners Finance Corp., Global Company Guaranteed Notes
(Callable 07/01/12 @ $104.13)
  (B+, B2)   07/01/16     8.250       641,875    
  600     The Williams Cos., Inc., Series A, Global Senior Unsecured Notes   (BB+, Baa3)   01/15/31     7.500       639,944    
                  4,381,712    
Health Facilities (5.5%)      
  575     Bausch & Lomb, Inc., Global Senior Unsecured Notes (Callable 11/01/11 @ $104.94) §   (B, Caa1)   11/01/15     9.875       593,688    
  350     Biomet, Inc., Global Company Guaranteed Notes (Callable 10/15/12 @ $105.00) §   (B-, B3)   10/15/17     10.000       378,000    
  350     Biomet, Inc., Global Company Guaranteed Notes (Callable 10/15/12 @ $105.81)   (B-, Caa1)   10/15/17     11.625       380,625    
  725     Community Health Systems, Inc., Global Company Guaranteed Notes (Callable 07/15/11 @ $104.44)   (B, B3)   07/15/15     8.875       749,469    
  2,325     HCA, Inc., Global Secured Notes (Callable 11/15/11 @ $104.63)   (BB-, B2)   11/15/16     9.250       2,470,312    
  525     HCA, Inc., Global Senior Secured Notes (Callable 08/15/14 @ $103.94)   (BB, Ba3)   02/15/20     7.875       542,719    
  475     HCA, Inc., Global Senior Unsecured Notes   (B-, Caa1)   01/15/15     6.375       445,906    
  875     Inverness Medical Innovations, Inc., Company Guaranteed Notes (Callable 05/15/13 @ $104.50)   (B-, B3)   05/15/16     9.000       879,375    
  400     Omega Healthcare Investors, Inc., Global Company Guaranteed Notes (Callable 01/15/11 @ $103.50)   (BB+, Ba3)   01/15/16     7.000       397,000    
  425     Omega Healthcare Investors, Inc., Global Company Guaranteed Notes (Callable 04/01/11 @ $101.17)   (BB+, Ba3)   04/01/14     7.000       426,063    
  500     Radiation Therapy Services, Inc., Rule 144A, Senior Subordinated Notes
(Callable 04/15/14 @ $104.94) ‡
  (CCC+, Caa1)   04/15/17     9.875       482,500    
  850     Tenet Healthcare Corp., Rule 144A, Senior Secured Notes (Callable 07/01/14 @ $104.44) ‡§   (BB-, B1)   07/01/19     8.875       905,250    
  275     Universal Hospital Services, Inc., Global Senior Secured Notes (Callable 06/01/11 @ $100.00) #   (B+, B3)   06/01/15     4.134       232,375    
  175     Universal Hospital Services, Inc., Global Senior Secured Notes (Callable 06/01/11 @ $101.00) §   (B+, B3)   06/01/15     8.500       173,250    
  687     VWR Funding, Inc., Series B, Global Company Guaranteed Notes (Callable 07/15/11 @ $105.13) §   (B-, Caa1)   07/15/15     10.250       696,861    
                  9,753,393    
Health Services (1.8%)      
  825     Quintiles Transnational Corp., Rule 144A, Senior Notes (Callable 12/30/11 @ $102.00) ‡§   (B, B3)   12/30/14     9.500       831,187    
  1,100     Rural/Metro Corp., Global Senior Discount Notes (Callable 03/15/11 @ $104.25)   (B, Caa1)   03/15/16     12.750       1,164,625    
  150     Service Corp. International, Global Senior Unsecured Notes   (BB-, B1)   10/01/18     7.625       152,625    
  550     Service Corp. International, Senior Unsecured Notes §   (BB-, B1)   11/15/21     8.000       555,500    
  550     Stewart Enterprises, Inc., Global Company Guaranteed Notes (Callable 02/15/11 @ $100.00)   (BB-, Ba3)   02/15/13     6.250       543,125    
                  3,247,062    

 

See Accompanying Notes to Financial Statements.
6



Credit Suisse Asset Management Income Fund, Inc.

Schedule of Investments (continued)

June 30, 2010 (unaudited)

Par
(000)
 
  Ratings
(S&P/Moody's)
  Maturity   Rate%   Value  
U.S. CORPORATE BONDS      
Hotels (0.5%)      
$ 475     Felcor Lodging LP, Global Senior Secured Notes §   (NR, B2)   10/01/14     10.000     $ 498,750    
  425     Host Hotels & Resorts LP, Global Company Guaranteed Notes (Callable 05/15/13 @ $104.50) §   (BB+, Ba1)   05/15/17     9.000       456,875    
                  955,625    
Household & Leisure Products (0.3%)      
  550     ALH Finance Corp., Global Company Guaranteed Notes (Callable 01/15/11 @ $100.00)   (B-, Caa1)   01/15/13     8.500       552,750    
Machinery (1.1%)      
  700     Baldor Electric Co., Company Guaranteed Notes (Callable 02/15/12 @ $104.31) §   (B, B3)   02/15/17     8.625       728,000    
  450     Cleaver-Brooks, Inc., Rule 144A, Senior Secured Notes (Callable 05/01/13 @ $106.13) ‡   (B, B2)   05/01/16     12.250       439,875    
  500     CPM Holdings, Inc., Rule 144A, Senior Secured Notes (Callable 09/01/12 @ $105.31) ‡   (B+, B2)   09/01/14     10.625       530,625    
  250     Terex Corp., Senior Subordinated Notes (Callable 11/15/12 @ $104.00)   (B, Caa1)   11/15/17     8.000       232,500    
                  1,931,000    
Media - Broadcast (2.0%)      
  515     Barrington Broadcasting Capital Corp., Global Company Guaranteed Notes
(Callable 08/15/10 @ $105.25)
  (CCC-, Caa2)   08/15/14     10.500       478,950    
  775     Clear Channel Communications, Inc., Senior Unsecured Notes §   (CCC-, Ca)   09/15/14     5.500       430,125    
  200     Clear Channel Worldwide Holdings, Inc., Rule 144A, Company Guaranteed Notes
(Callable 12/15/12 @ $106.94) ‡
  (B, B2)   12/15/17     9.250       200,000    
  675     Clear Channel Worldwide Holdings, Inc., Rule 144A, Company Guaranteed Notes
(Callable 12/15/12 @ $106.94) ‡
  (B, B2)   12/15/17     9.250       681,750    
  46     CMP Susquehanna Corp., Global Company Guranteed Notes   (NR, Ca)   05/15/14     3.272       13,800    
  550     Fisher Communications, Inc., Global Company Guaranteed Notes (Callable 09/15/10 @ $102.88)   (B-, B2)   09/15/14     8.625       543,125    
  463     Local TV Finance LLC, Rule 144A, Senior Unsecured Notes (Callable 06/15/11 @ $104.63) ‡   (CCC, Caa2)   06/15/15     9.250       386,647    
  750     Mission Broadcasting, Inc., Rule 144A, Senior Secured Notes (Callable 04/15/14 @ $104.44) ‡   (B-, B3)   04/15/17     8.875       757,500    
  925     Young Broadcasting, Inc., Global Company Guaranteed Notes (Callable 01/15/11 @ $101.46) ø   (D, NR)   01/15/14     8.750       2,867    
                  3,494,764    
Media - Cable (5.3%)      
  1,165     Atlantic Broadband Finance LLC, Global Company Guaranteed Notes (Callable 01/15/11 @ $101.56)   (B-, B3)   01/15/14     9.375       1,179,562    
  150     Cablevision Systems Corp., Senior Unsecured Notes   (B+, B1)   04/15/18     7.750       150,750    
  600     Cablevision Systems Corp., Senior Unsecured Notes §   (B+, B1)   04/15/20     8.000       610,500    
  694     CCH II Capital Corp., Global Senior Notes (Callable 11/30/12 @ $106.75)   (B, B2)   11/30/16     13.500       812,175    
  1,450     CCO Holdings Capital Corp., Rule 144A, Company Guaranteed Notes (Callable 04/30/15 @ $104.06) ‡   (B, B2)   04/30/20     8.125       1,489,875    
  775     Cequel Capital Corp., Rule 144A, Senior Unsecured Notes (Callable 11/15/12 @ $106.47) ‡§   (B-, B3)   11/15/17     8.625       775,969    
  1,050     CSC Holdings LLC, Global Senior Unsecured Notes   (BB, Ba3)   02/15/19     8.625       1,109,063    
  525     DISH DBS Corp., Global Company Guaranteed Notes   (BB-, Ba3)   10/01/14     6.625       526,313    
  600     DISH DBS Corp., Global Company Guaranteed Notes   (BB-, Ba3)   05/31/15     7.750       621,000    
  1,150     Insight Communications Co., Inc., Rule 144A, Senior Notes (Callable 07/15/13 @ $107.03) ‡   (B-, B3)   07/15/18     9.375       1,150,000    
  475     Mediacom Broadband Corp., Global Senior Unsecured Notes (Callable 10/15/10 @ $104.25) §   (B-, B3)   10/15/15     8.500       456,000    
  400     Mediacom Capital Corp., Global Unsecured Notes (Callable 08/15/14 @ $104.56) §   (B-, B3)   08/15/19     9.125       388,000    
                  9,269,207    
Media - Diversified (1.0%)      
  1,800     Block Communications, Inc., Rule 144A, Senior Notes (Callable 12/15/10 @ $104.13) ‡   (B, B1)   12/15/15     8.250       1,759,500    
Media - Services (0.8%)      
  450     Nielsen Finance Co., Global Company Guaranteed Notes (Callable 05/01/13 @ $105.75) §   (B-, Caa1)   05/01/16     11.500       493,875    
  675     WMG Acquisition Corp., Global Company Guaranteed Notes (Callable 04/15/11 @ $101.23)   (B, B1)   04/15/14     7.375       646,313    
  250     WMG Acquisition Corp., Global Senior Secured Notes (Callable 06/15/13 @ $104.75)   (BB, Ba2)   06/15/16     9.500       267,500    
                  1,407,688    
Metals & Mining - Excluding Steel (1.5%)      
  175     Aleris International, Inc., Global Company Guaranteed Notes (Callable 12/15/10 @ $104.50) ø   (D, NR)   12/15/14     9.000       1,746    
  675     Aleris International, Inc., Global Company Guaranteed Notes (Callable 12/15/11 @ $105.00) ø   (D, NR)   12/15/16     10.000       7,594    

 

See Accompanying Notes to Financial Statements.
7



Credit Suisse Asset Management Income Fund, Inc.

Schedule of Investments (continued)

June 30, 2010 (unaudited)

Par
(000)
 
  Ratings
(S&P/Moody's)
  Maturity   Rate%   Value  
U.S. CORPORATE BONDS      
Metals & Mining - Excluding Steel      
$ 975     Consol Energy, Inc. Rule 144A, Senior Secured Notes (callable 04/01/15 @ $104.13) ‡   (BB, B1)   04/01/20     8.250     $ 1,021,312    
  625     Freeport-McMoRan Copper & Gold, Inc., Senior Unsecured Notes (Callable 04/01/12 @ $104.19)   (BBB-, Ba2)   04/01/17     8.375       688,393    
  1,152     Noranda Aluminium Acquisition Corp., Global Company Guaranteed Notes #   (CCC+, B3)   05/15/15     5.373       892,562    
                  2,611,607    
Oil Field Equipment & Services (3.3%)      
  525     Bristow Group, Inc., Global Company Guaranteed Notes (Callable 09/15/12 @ $103.75)   (BB, Ba2)   09/15/17     7.500       504,000    
  900     Calfrac Holdings LP, Rule 144A, Company Guaranteed Notes (Callable 02/15/11 @ $103.88) ‡   (NR, B2)   02/15/15     7.750       873,000    
  650     Edgen Murray Corp., Rule 144A, Senior Secured Notes (Callable 01/15/13 @ $106.13) ‡§   (B, Caa2)   01/15/15     12.250       552,500    
  525     Helix Energy Solutions Group, Inc., Rule 144A, Company Guaranteed Notes
(Callable 01/15/12 @ $104.75) ‡
  (B, B3)   01/15/16     9.500       485,625    
  250     Hornbeck Offshore Services, Inc., Global Company Guaranteed Notes (Callable 09/01/13 @ $104.00) §   (B+, Ba3)   09/01/17     8.000       223,750    
  350     Hornbeck Offshore Services, Inc., Series B, Global Company Guaranteed Notes
(Callable 12/01/10 @ $102.04) §
  (B+, Ba3)   12/01/14     6.125       314,125    
  600     Key Energy Services, Inc., Global Company Guaranteed Notes (Callable 12/01/11 @ $104.19) §   (BB-, B1)   12/01/14     8.375       599,250    
  650     McJunkin Red Man Corp., Rule 144A, Senior Secured Notes (Callable 12/15/12 @ $107.13) ‡   (B, B3)   12/15/16     9.500       633,750    
  400     Parker Drilling Co., Rule 144A, Senior Notes (Callable 04/01/14 @ $104.56) ‡   (B+, B1)   04/01/18     9.125       382,000    
  825     Pioneer Drilling Co., Rule 144A, Senior Notes (Callable 03/15/14 @ $104.94) ‡   (B, B3)   03/15/18     9.875       812,625    
  400     Pride International, Inc., Senior Unsecured Notes §   (BBB-, Ba1)   06/15/19     8.500       417,000    
                  5,797,625    
Oil Refining & Marketing (1.6%)      
  175     Coffeyville Finance, Inc., Rule 144A, Senior Secured Notes (Callable 04/01/12 @ $106.75) ‡   (BB-, Ba3)   04/01/15     9.000       174,125    
  1,325     Coffeyville Finance, Inc., Rule 144A, Senior Secured Notes (Callable 04/01/13 @ $108.16) ‡   (BB-, B3)   04/01/17     10.875       1,298,500    
  475     Tesoro Corp., Company Guaranteed Notes (Callable 06/01/14 @ $104.88) §   (BB+, Ba1)   06/01/19     9.750       495,188    
  875     Western Refining, Inc., Rule 144A, Senior Secured Notes (Callable 12/15/11 @ $105.00) #‡   (BB-, B3)   06/15/14     10.750       791,875    
                  2,759,688    
Packaging (1.8%)      
  765     Berry Plastics Corp., Global Secured Notes (Callable 09/15/10 @ $104.44) §   (CCC, Caa1)   09/15/14     8.875       740,137    
  175     Berry Plastics Corp., Global Senior Secured Notes (Callable 11/15/12 @ $104.13)   (B, B1)   11/15/15     8.250       174,563    
  225     BWAY Holding Co., Rule 144A, Company Guaranteed Notes (Callable 06/15/14 @ $105.00) ‡   (B-, B3)   06/15/18     10.000       235,688    
  800     GPC Capital Corp. I, Global Company Guaranteed Notes (Callable 10/15/10 @ $103.29) §   (CCC+, Caa1)   10/15/14     9.875       822,000    
  750     GPC Capital Corp. I, Rule 144A, Senior Notes (Callable 01/01/14 @ $104.13) ‡   (CCC+, Caa1)   01/01/17     8.250       742,500    
  500     Reynolds Group Issuer LLC, Rule 144A, Senior Secured Notes (Callable 10/15/12 @ $103.88) ‡   (BB-, B1)   10/15/16     7.750       491,250    
                  3,206,138    
Pharmaceuticals (0.9%)      
  450     Mylan, Inc., Rule 144A, Company Guaranteed Notes (Callable 07/15/15 @ $103.94) ‡§   (BB-, B1)   07/15/20     7.875       461,250    
  450     PharmaNet Development Group, Inc., Rule 144A, Senior Secured Notes (Callable 04/15/14 @105.44) ‡   (B+, B3)   04/15/17     10.875       441,000    
  374     QHP Royalty Sub LLC, Rule 144A, Senior Secured Notes ‡   (NR, NR)   03/15/15     10.250       381,729    
  230     Valeant Pharmaceuticals International, Global Company Guaranteed Notes
(Callable 06/15/12 @ $104.19)
  (BB-, Ba3)   06/15/16     8.375       261,050    
                  1,545,029    
Printing & Publishing (1.5%)      
  875     Cengage Learning Acquisitions, Inc., Rule 144A, Senior Notes (Callable 07/15/11 @ $105.25) ‡   (CCC+, Caa2)   01/15/15     10.500       818,125    
  500     Cenveo Corp., Global Senior Subordinated Notes (Callable 12/01/10 @ $101.31) §   (B-, Caa1)   12/01/13     7.875       482,500    
  1,215     The Reader's Digest Association, Inc., Global Company Guaranteed Notes
(Callable 02/15/12 @ $104.50) ø^
  (NR, NR)   02/15/17     9.000       0    
  1,075     The Reader's Digest Association, Inc., Rule 144A, Senior Secured Notes
(Callable 02/15/13 @ $104.00) #‡§
  (B, B1)   02/15/17     9.500       1,077,687    
  235     Valassis Communications, Inc., Global Company Guaranteed Notes (Callable 03/01/11 @ $104.13)   (BB-, Ba3)   03/01/15     8.250       243,813    
                  2,622,125    

 

See Accompanying Notes to Financial Statements.
8



Credit Suisse Asset Management Income Fund, Inc.

Schedule of Investments (continued)

June 30, 2010 (unaudited)

Par
(000)
 
  Ratings
(S&P/Moody's)
  Maturity   Rate%   Value  
U.S. CORPORATE BONDS      
Railroads (0.3%)      
$ 500     Kansas City Southern Railway, Company Guaranteed Notes (Callable 06/01/12 @ $104.00) §   (BB-, B2)   06/01/15     8.000     $ 517,500    
Real Estate Development & Management (0.5%)      
  1,025     Icahn Enterprises LP, Rule 144A, Senior Unsecured Notes #‡   (NR, NR)   08/15/13     4.000       896,875    
Restaurants (0.3%)      
  475     Denny's Holdings, Inc., Global Company Guaranteed Notes (Callable 10/01/10 @ $100.00)   (B-, Caa1)   10/01/12     10.000       478,563    
Software/Services (2.2%)      
  400     SSI Co-Issuer LLC, Rule 144A, Senior Unsecured Notes (Callable 06/01/14 @ $105.56) ‡   (B-, Caa1)   06/01/18     11.125       408,000    
  875     SunGard Data Systems, Inc., Global Company Guaranteed Notes (Callable 08/15/10 @ $105.13) §   (B-, Caa1)   08/15/15     10.250       907,812    
  475     Unisys Corp., Rule 144A, Senior Secured Notes (Callable 10/15/12 @ $106.38) ‡§   (BB-, Ba3)   10/15/14     12.750       533,188    
  700     Unisys Corp., Senior Unsecured Notes (Callable 01/15/12 @ $106.25)   (B, Caa1)   01/15/16     12.500       759,500    
  1,325     Vangent, Inc., Global Company Guaranteed Notes (Callable 02/15/11 @ $104.81)   (CCC+, Caa2)   02/15/15     9.625       1,273,656    
                  3,882,156    
Specialty Retail (1.5%)      
  525     Asbury Automotive Group, Inc., Global Company Guaranteed Notes (Callable 03/15/12 @ $103.81)   (B-, Caa1)   03/15/17     7.625       496,125    
  825     Brookstone Co., Inc., Global Senior Secured Notes (Callable 10/15/10 @ $103.00)   (C, Caa3)   10/15/12     12.000       676,500    
  225     Penske Automotive Group, Inc., Global Company Guaranteed Notes (Callable 12/15/11 @ $103.88)   (B-, Caa1)   12/15/16     7.750       212,625    
  400     SGS International, Inc., Global Company Guaranteed Notes (Callable 12/15/10 @ $103.00)   (B-, B3)   12/15/13     12.000       410,500    
  400     Susser Finance Corp., Rule 144A, Company Guaranteed Notes (Callable 05/15/13 @ $104.25) ‡   (B+, B2)   05/15/16     8.500       402,000    
  400     Yankee Acquisition Corp., Series B, Global Company Guaranteed Notes (Callable 02/15/11 @ $104.25) §   (B-, B3)   02/15/15     8.500       406,500    
                  2,604,250    
Steel Producers/Products (1.1%)      
  700     California Steel Industries, Inc., Global Senior Notes (Callable 03/15/11 @ $101.02)   (BB-, B1)   03/15/14     6.125       661,500    
  800     Ryerson, Inc., Global Senior Secured Notes (Callable 11/01/11 @ $106.00)   (CCC+, Caa1)   11/01/15     12.000       822,000    
  475     Tube City IMS Corp., Global Company Guaranteed Notes (Callable 02/01/11 @ $104.88)   (B-, Caa1)   02/01/15     9.750       461,938    
                  1,945,438    
Support-Services (2.9%)      
  750     Ashtead Capital, Inc., Rule 144A, Secured Notes (Callable 08/15/11 @ $104.50) ‡   (B+, B2)   08/15/16     9.000       738,750    
  225     DynCorp International, Inc., Rule 144A, Senior Unsecured Notes (Callable 07/01/14 @ 105.19) ‡   (B, B1)   07/01/17     10.375       226,688    
  550     DynCorp International, Series B, Global Senior Subordinated Notes (Callable 02/15/11 @ $100.00)   (B+, B1)   02/15/13     9.500       567,187    
  800     Maxim Crane Works LP, Rule 144A, Senior Secured Notes (Callable 04/15/12 @ $109.19) ‡   (B, Caa1)   04/15/15     12.250       787,000    
  325     Sotheby's, Global Company Guaranteed Notes §   (B, B1)   06/15/15     7.750       326,625    
  450     The Geo Group, Inc., Rule 144A, Company Guaranteed Notes (Callable 10/15/13 @ $103.88) ‡   (BB-, B1)   10/15/17     7.750       455,625    
  400     The Hertz Corp., Global Company Guaranteed Notes (Callable 01/01/11 @ $105.25) §   (CCC+, B3)   01/01/16     10.500       417,000    
  175     Travelport LLC, Global Company Guaranteed Notes (Callable 09/01/10 @ $104.94)   (CCC+, B3)   09/01/14     9.875       176,313    
  775     Travelport LLC, Global Company Guaranteed Notes (Callable 09/01/11 @ $105.94) §   (CCC, Caa1)   09/01/16     11.875       786,625    
  400     United Rentals North America, Inc., Global Company Guaranteed Notes (Callable 02/15/11 @ $101.17) §   (CCC+, Caa1)   02/15/14     7.000       378,000    
  275     United Rentals North America, Inc., Global Company Guaranteed Notes (Callable 06/15/13 @ $105.44) §   (B, B3)   06/15/16     10.875       296,312    
                  5,156,125    
Telecom - Integrated/Services (3.9%)      
  475     Frontier Communications Corp., Senior Unsecured Notes §   (BB, Ba2)   10/01/18     8.125       474,406    
  700     HNS Finance Corp., Global Company Guaranteed Notes (Callable 04/15/11 @ $102.38)   (B, B1)   04/15/14     9.500       712,250    
  1,675     Intelsat Corp., Global Senior Unsecured Notes (Callable 08/15/10 @ $103.13)   (BB-, B3)   08/15/14     9.250       1,721,062    
  175     Level 3 Financing, Inc., Global Company Guaranteed Notes (Callable 02/15/11 @ $100.00) #   (CCC, Caa1)   02/15/15     4.140       136,500    
  775     Level 3 Financing, Inc., Rule 144A, Company Guaranteed Notes (Callable 02/01/14 @ $105.00) ‡§   (CCC, Caa1)   02/01/18     10.000       689,750    
  425     New Communications Holdings, Inc. Rule 144A, Senior Notes ‡   (BB, Ba2)   04/15/20     8.500       428,188    
  725     Paetec Holding Corp., Global Company Guaranteed Notes (Callable 07/15/11 @ $104.75) §   (CCC+, Caa1)   07/15/15     9.500       708,688    
  300     Qwest Communications International, Inc., Rule 144A, Company Guaranteed Notes
(Callable 10/01/12 @ $104.00) ‡§
  (B+, Ba3)   10/01/15     8.000       309,750    

 

See Accompanying Notes to Financial Statements.
9



Credit Suisse Asset Management Income Fund, Inc.

Schedule of Investments (continued)

June 30, 2010 (unaudited)

Par
(000)
 
  Ratings
(S&P/Moody's)
  Maturity   Rate%   Value  
U.S. CORPORATE BONDS      
Telecom - Integrated/Services      
$ 1,275     Qwest Communications International, Inc., Series B, Global Company Guaranteed Notes
(Callable 02/15/11 @ $101.25)
  (B+, Ba3)   02/15/14     7.500     $ 1,284,562    
  425     Windstream Corp., Global Company Guaranteed Notes (Callable 08/01/11 @ $104.31)   (B+, Ba3)   08/01/16     8.625       430,313    
                  6,895,469    
Telecom - Wireless (2.9%)      
  600     Cricket Communications, Inc., Global Company Guaranteed Notes (Callable 11/01/10 @ $104.69) §   (B-, B3)   11/01/14     9.375       612,000    
  200     Cricket Communications, Inc., Global Senior Secured Notes (Callable 05/15/12 @ $105.81) §   (B+, Ba2)   05/15/16     7.750       205,000    
  1,050     GeoEye, Inc., Rule 144A, Senior Secured Notes (Callable 10/01/13 @ $104.81) ‡   (B, B1)   10/01/15     9.625       1,076,250    
  1,525     Nextel Communications, Inc., Series F, Company Guaranteed Notes (Callable 03/15/11 @ $101.74)   (BB-, Ba2)   03/15/14     5.950       1,422,062    
  1,950     Sprint Nextel Corp., Senior Unsecured Notes   (BB-, Ba3)   12/01/16     6.000       1,759,875    
                  5,075,187    
Telecommunications Equipment (0.4%)      
  675     Avaya, Inc., Global Company Guaranteed Notes (Callable 11/01/11 @ $104.88)   (CCC+, Caa2)   11/01/15     9.750       636,188    
Theaters & Entertainment (1.0%)      
  1,075     AMC Entertainment, Inc., Global Company Guaranteed Notes (Callable 03/01/11 @ $101.33)   (CCC+, Caa1)   03/01/14     8.000       1,040,063    
  675     AMC Entertainment, Inc., Global Senior Unsecured Notes (Callable 06/01/14 @ $104.38) §   (B-, B1)   06/01/19     8.750       681,750    
                  1,721,813    
TOTAL U.S. CORPORATE BONDS (Cost $155,493,924)                 151,713,780    
FOREIGN CORPORATE BONDS (8.4%)      
Aerospace & Defense (0.5%)      
  775     Bombardier, Inc., Rule 144A, Senior Notes (Canada) ‡   (BB+, Ba2)   03/15/20     7.750       807,937    
Chemicals (1.4%)      
  1,125     Cognis GmbH, Rule 144A, Senior Secured Notes (Germany) #‡   (B-, B2)   09/15/13     2.537       1,113,750    
  400     Ineos Finance PLC, Rule 144A, Senior Secured Notes
(Callable 05/15/13 @ $104.50) (United Kingdom) ‡§
  (B, B2)   05/15/15     9.000       401,000    
  1,300     Ineos Group Holdings PLC, Rule 144A, Secured Notes
(Callable 02/15/11 @ $104.25) (United Kingdom) ‡§
  (CCC, Caa3)   02/15/16     8.500       1,020,500    
                  2,535,250    
Electronics (0.0%)      
  75     NXP Funding LLC, Series EXCH, Global Senior Secured Notes
(Callable 10/15/10 @ $103.94) (Netherlands) §
  (CCC+, C)   10/15/14     7.875       69,188    
Energy - Exploration & Production (0.3%)      
  550     OPTI Canada, Inc., Global Senior Secured Notes (Callable 12/15/10 @ $104.13) (Canada)   (B, Caa3)   12/15/14     8.250       481,250    
Forestry & Paper (0.9%)      
  1,450     Abitibi-Consolidated Co. of Canada, Global Company Guaranteed Notes (Canada) ø   (NR, NR)   06/15/11     7.750       213,875    
  500     Smurfit Kappa Acquisitions, Rule 144A, Senior Secured Notes (Callable 11/15/13 @ $103.63) (Ireland) ‡   (BB, Ba2)   11/15/17     7.250       612,450    
  750     Smurfit Kappa Funding PLC, Global Senior Subordinated Notes (Callable 01/31/11 @ $102.58) (Ireland)   (B, B2)   04/01/15     7.750       744,375    
                  1,570,700    
Gaming (0.5%)      
  400     Codere Finance Luxembourg SA, Rule 144A, Senior Secured Notes
(Callable 06/15/11 @ $102.75) (Luxembourg) ‡
  (B, B2)   06/15/15     8.250       453,213    
  350     Peermont Global Proprietary, Ltd., Rule 144A, Senior Secured Notes
(Callable 04/30/11 @ $103.88) (South Africa) ‡
  (B, B3)   04/30/14     7.750       367,623    
                  820,836    

 

See Accompanying Notes to Financial Statements.
10



Credit Suisse Asset Management Income Fund, Inc.

Schedule of Investments (continued)

June 30, 2010 (unaudited)

Par
(000)
 
  Ratings
(S&P/Moody's)
  Maturity   Rate%   Value  
FOREIGN CORPORATE BONDS      
Media - Cable (0.5%)      
$ 200     Unitymedia NRW GmbH, Rule 144A, Senior Secured Notes (Callable 12/01/12 @ $108.22) (Germany) ‡   (BB-, B1)   12/01/17     8.125     $ 243,755    
  150     Virgin Media Finance PLC, Global Company Guaranteed Notes
(Callable 08/15/11 @ $104.56) (United Kingdom)
  (B+, B1)   08/15/16     9.125       156,000    
  500     Virgin Media Finance PLC, Global Company Guaranteed Notes
(Callable 10/15/14 @ $104.19) (United Kingdom)
  (B+, B1)   10/15/19     8.375       508,750    
                  908,505    
Media - Diversified (0.4%)      
  775     Quebecor Media, Inc., Global Senior Unsecured Notes (Callable 03/15/11 @ $103.88) (Canada) §   (B, B2)   03/15/16     7.750       763,375    
Metals & Mining - Excluding Steel (0.4%)      
  550     Teck Resources, Ltd., Global Senior Secured Notes (Callable 05/15/14 @ $105.38) (Canada)   (BBB, Baa3)   05/15/19     10.750       674,930    
Oil Field Equipment & Services (0.3%)      
  475     Cie Generale de Geophysique-Veritas, Global Company Guaranteed Notes
(Callable 05/15/11 @ $102.50) (France)
  (BB-, Ba3)   05/15/15     7.500       454,812    
Packaging (0.1%)      
  175     Impress Holdings BV, Rule 144A, Company Guaranteed Notes
(Callable 09/15/10 @ $104.63) (Netherlands) ‡
  (B-, B3)   09/15/14     9.250       220,788    
Pharmaceuticals (0.3%)      
  500     Patheon, Inc., Rule 144A, Senior Secured Notes (Callable 04/15/13 @ $106.47) (Canada) ‡   (B+, B1)   04/15/17     8.625       498,750    
Support-Services (0.2%)      
  375     Garda World Security Corp., Rule 144A, Senior Unsecured Notes
(Callable 03/15/14 @ $104.88) (Canada) ‡§
  (B, B3)   03/15/17     9.750       382,500    
Telecom - Integrated/Services (0.8%)      
  974     Global Crossing UK Finance PLC, Global Senior Secured Notes
(Callable 12/15/10 @ $103.58) (United Kingdom)
  (B-, B3)   12/15/14     10.750       998,350    
  350     Hellas Telecommunications II SCA, Rule 144A, Subordinated Notes (Luxembourg) ø#‡   (NR, NR)   01/15/15     6.034       8,750    
  375     Intelsat Subsidiary Holding Co., Ltd., Global Company Guaranteed Notes
(Callable 01/15/11 @ $102.96) (Bermuda)
  (B+, B3)   01/15/15     8.875       382,969    
                  1,390,069    
Telecom - Wireless (0.4%)      
  600     Wind Acquisition Finance SA, Rule 144A, Secured Notes (Callable 07/15/13 @ $105.88) (Luxembourg) ‡   (B+, B2)   07/15/17     11.750       692,646    
Textiles & Apparel (0.0%)      
  150     IT Holding Finance SA, Rule 144A, Company Guaranteed Notes (Luxembourg) ø‡   (NR, NR)   11/15/12     9.875       29,398    
Transportation - Excluding Air/Rail (1.4%)      
  1,125     Navios Maritime Holdings, Inc., Global Company Guaranteed Notes
(Callable 12/15/10 @ $104.75) (Marshall Islands)
  (B+, B3)   12/15/14     9.500       1,085,625    
  975     Ship Finance International, Ltd., Global Company Guaranteed Notes
(Callable 12/15/10 @ $102.83) (Bermuda)
  (B+, B1)   12/15/13     8.500       965,250    
  450     Teekay Corp., Global Senior Unsecured Notes (Canada) §   (BB, B1)   01/15/20     8.500       450,000    
                  2,500,875    
TOTAL FOREIGN CORPORATE BONDS (Cost $15,742,554)                 14,801,809    

 

See Accompanying Notes to Financial Statements.
11



Credit Suisse Asset Management Income Fund, Inc.

Schedule of Investments (continued)

June 30, 2010 (unaudited)

Par
(000)
 
  Ratings
(S&P/Moody's)
  Maturity   Rate%   Value  
BANK LOANS (0.9%)      
Gaming (0.3%)      
$ 481     CCM Merger, Inc.   (NR, NR)   07/21/12     8.500     $ 470,091    
Pharmaceuticals (0.2%)      
  342     Nycomed Holdings Aps   (NR, NR)   12/29/13     2.420       316,182    
Telecommunications Equipment (0.4%)      
  916     AVAYA, Inc.   (NR, NR)   10/24/14     3.260       782,461    
TOTAL BANK LOANS (Cost $1,265,936)                 1,568,734    
Number
of Shares
                     
COMMON STOCKS (1.0%)      
Automobile Parts & Equipment (0.0%)      
  1,219     Safelite Realty Corp. *^                     0    
Banks (0.2%)      
  12,186     CIT Group, Inc. *                     412,618    
Building Materials (0.0%)      
  328     Nortek, Inc. *                     13,776    
Chemicals (0.0%)      
  4,893     Huntsman Corp.                     42,422    
Forestry & Paper (0.4%)      
  31,073     Smurfit-Stone Container Corp. *                     769,057    
Gaming (0.0%)      
  1,500     Progressive Gaming International Corp. *                     6    
Leisure (0.3%)      
  13,703     Six Flags Entertainment Corp. *§                     460,832    
Media - Cable (0.0%)      
  7,500     Adelphia (Escrow Holding) *^                     0    
  750,000     Adelphia Recovery Trust *^                     0    
                  0    
Printing & Publishing (0.1%)      
  10,652     Mail Well, Inc., Rule 144A *‡                     58,373    
  888     SuperMedia, Inc. *§                     16,241    
                  74,614    
TOTAL COMMON STOCKS (Cost $3,873,466)                 1,773,325    
PREFERRED STOCKS (0.1%)      
Banks (0.1%)      
  297     Ally Financial, Inc., Rule 144A (Callable 12/31/11 @ $1,000) ‡                     231,030    

 

See Accompanying Notes to Financial Statements.
12



Credit Suisse Asset Management Income Fund, Inc.

Schedule of Investments (continued)

June 30, 2010 (unaudited)

Number
of Shares
 
        Value  
PREFERRED STOCKS      
Media - Broadcast (0.0%)      
  10,727     CMP Susquehanna Radio Holdings Corp., Rule 144A, Series A *‡         $ 1    
TOTAL PREFERRED STOCKS (Cost $61,340)           231,031    
WARRANTS (0.0%)      
Building Materials (0.0%)      
  864     Nortek, Inc., strike price $1.00, expires 12/07/14 *^           864    
Media - Broadcast (0.0%)      
  12,259     CNB Capital Trust I, Rule 144A, strike price $0.00, expires 03/23/19 *‡           1    
Printing & Publishing (0.0%)      
  3,871     The Readers Digest Association, Inc., strike price $0.00, expires 02/15/17 *^           0    
TOTAL WARRANTS (Cost $864)           865    
SHORT-TERM INVESTMENTS (28.0%)      
  45,779,107     State Street Navigator Prime Portfolio §§           45,779,107    
Par
(000)
      Maturity   Rate%    
$ 3,496     State Street Bank and Trust Co. Euro Time Deposit       07/01/10     0.010       3,496,000    
TOTAL SHORT-TERM INVESTMENTS (Cost $49,275,107)                 49,275,107    
TOTAL INVESTMENTS AT VALUE (124.4%) (Cost $225,713,191)     219,364,651    
LIABILITIES IN EXCESS OF OTHER ASSETS (-24.4%)     (42,988,286 )  
NET ASSETS (100.0%)   $ 176,376,365    

 

INVESTMENT ABBREVIATIONS

MTN = Medium Term Note
NR = Not Rated

†  Credit ratings given by the Standard & Poor's Division of The McGraw-Hill Companies, Inc. ("S&P") and Moody's Investors Service, Inc. ("Moody's") are unaudited.

‡  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. At June 30, 2010, these securities amounted to a value of $57,391,400 or 32.5% of net assets.

+  Step Bond - The interest rate is as of June 30, 2010 and will reset at a future date.

ø  Bond is currently in default.

*  Non-income producing security.

^  Not readily marketable security; security is valued at fair value as determined in good faith by, or under the direction of, the Board of Directors.

#  Variable rate obligations - The interest rate is the rate as of June 30, 2010.

§  Security or portion thereof is out on loan.

§§  Represents security purchased with cash collateral received for securities on loan.

See Accompanying Notes to Financial Statements.
13




Credit Suisse Asset Management Income Fund, Inc.

Statement of Assets and Liabilities

June 30, 2010 (unaudited)

Assets  
Investments at value, including collateral for securities on loan of $45,779,107
(Cost $225,713,191) (Note 2)
  $ 219,364,651 1   
Cash     72,766    
Foreign currency at value (cost $634,035)     637,102    
Interest receivable     3,574,014    
Receivable for investments sold     525,984    
Unrealized appreciation on forward currency contracts (Note 2)     357,183    
Prepaid expenses and other assets     14,408    
Total Assets     224,546,108    
Liabilities  
Advisory fee payable (Note 3)     217,921    
Administrative services fee payable (Note 3)     21,899    
Payable upon return of securities loaned (Note 2)     45,779,107    
Payable for investments purchased     2,071,124    
Directors' fee payable     43,595    
Other accrued expenses payable     36,097    
Total Liabilities     48,169,743    
Net Assets  
Applicable to 49,962,646 shares outstanding   $ 176,376,365    
Net Assets  
Capital stock, $.001 par value (Note 6)     49,963    
Paid-in capital (Note 6)     325,736,064    
Accumulated net investment loss     (847,337 )  
Accumulated net realized loss on investments and foreign currency transactions     (142,572,019 )  
Net unrealized depreciation from investments and foreign currency translations     (5,990,306 )  
Net Assets   $ 176,376,365    
Net Asset Value Per Share ($176,376,365 / 49,962,646)   $ 3.53    
Market Price Per Share   $ 3.48    

 

1  Including $44,734,470 of securities on loan

See Accompanying Notes to Financial Statements.
14



Credit Suisse Asset Management Income Fund, Inc.

Statement of Operations

For the Six Months Ended June 30, 2010 (unaudited)

Investment Income (Note 2)  
Interest   $ 8,457,824    
Dividends     10,036    
Securities lending     52,724    
Total investment income     8,520,584    
Expenses  
Investment advisory fees (Note 3)     427,278    
Administrative services fees (Note 3)     68,176    
Directors' fees     50,272    
Printing fees (Note 3)     35,128    
Transfer agent fees     26,041    
Audit and tax fees     24,165    
Legal fees     13,605    
Insurance expense     10,628    
Custodian fees     9,731    
Commitment fees (Note 4)     1,960    
Miscellaneous expense     3,937    
Total expenses     670,921    
Net investment income     7,849,663    
Net Realized and Unrealized Gain (Loss) from Investments and Foreign Currency Related Items  
Net realized gain from investments     1,307,299    
Net realized gain from foreign currency transactions     321,178    
Net change in unrealized appreciation (depreciation) from investments     (3,067,419 )  
Net change in unrealized appreciation (depreciation) from foreign currency translations     214,024    
Net realized and unrealized loss from investments and foreign currency related items     (1,224,918 )  
Net increase in net assets resulting from operations   $ 6,624,745    

 

See Accompanying Notes to Financial Statements.
15



Credit Suisse Asset Management Income Fund, Inc.

Statements of Changes in Net Assets

    For the Six Months
Ended
June 30, 2010
(unaudited)
  For the Year
Ended
December 31, 2009
 
From Operations  
Net investment income   $ 7,849,663     $ 15,330,320    
Net realized gain (loss) from investments and foreign currency transactions     1,628,477       (16,474,755 )  
Net change in unrealized appreciation (depreciation) from investments and foreign
currency translations
    (2,853,395 )     68,849,699    
Net increase in net assets resulting from operations     6,624,745       67,705,264    
From Dividends and Distributions  
Dividends from net investment income     (7,942,978 )     (13,572,265 )  
Distributions from return of capital           (2,209,293 )  
Net decrease in net assets resulting from dividends and distributions     (7,942,978 )     (15,781,558 )  
From Capital Share Transactions (Note 6)  
Issuance of 11,114 shares and 12,805 shares through the directors
compensation plan (Note 3)
    40,270       42,888    
Net increase in net assets from capital share transactions     40,270       42,888    
Net increase (decrease) in net assets     (1,277,963 )     51,966,594    
Net Assets  
Beginning of period     177,654,328       125,687,734    
End of period   $ 176,376,365     $ 177,654,328    
Accumulated net investment loss   $ (847,337 )   $ (919,133 )  

 

See Accompanying Notes to Financial Statements.
16



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Credit Suisse Asset Management Income Fund, Inc.

Financial Highlights

    For the
Six Months
Ended
6/30/10
 
Per share operating performance   (unaudited)  
Net asset value, beginning of period   $ 3.56    
INVESTMENT OPERATIONS  
Net investment income     0.16    
Net gain (loss) on investments, swap contracts, futures contracts
and foreign currency related items (both realized and unrealized)
    (0.03 )  
Total from investment activities     0.13    
LESS DIVIDENDS AND DISTRIBUTIONS  
Dividends from net investment income     (0.16 )  
Distributions from return of capital        
Total dividends and distributions     (0.16 )  
Net asset value, end of period   $ 3.53    
Per share market value, end of period   $ 3.48    
TOTAL INVESTMENT RETURN 4   
Net asset value     3.79 %  
Market value     8.41 %  
RATIOS AND SUPPLEMENTAL DATA  
Net assets, end of period (000s omitted)   $ 176,376    
Ratio of expenses to average net assets     0.76 %  
Ratio of net investment income to average net assets     8.89 %  
Portfolio turnover rate     31.0 %  

 

1  As required, effective January 1, 2001 the Fund has adopted provisions of AICPA Audit and Accounting Guide for Investment Companies and has begun amortizing premium on debt securities. The effect of this change for the year ended December 31, 2001 was a decrease to net investment income per share by $0.004 and increase to net realized and unrealized gains and losses per share by $0.004 and a decrease to the net ratio of investment income to average net assets from 11.73% to 11.66%. Per share ratio and supplemental data for prior periods have not been restated to reflect this change.

2  Per share information is calculated using the average shares outstanding method.

3  This amount represents less than $(0.01) per share.

4  Total investment return at net asset value is based on changes in the net asset value of fund shares and assumes reinvestment of dividends and distributions, if any. Total investment return at market value is based on changes in the market price at which the fund's shares traded on the stock exchange during the period and assumes reinvestment of dividends and distributions, if any, at actual prices pursuant to the fund's dividend reinvestment program. Because the fund's shares trade in the stock market based on investor demand, the fund may trade at a price higher or lower than its NAV. Therefore, returns are calculated based on share price and NAV. Total returns for periods less than one year are not annualized.

5  Due to the realignment of the Fund's portfolio in connection with the combination with Credit Suisse Strategic Global Income Fund, Inc., the cost of purchases of $30,040,944 and proceeds from sales of $37,801,151 have been excluded from the Portfolio Turnover calculations.

See Accompanying Notes to Financial Statements.
18



    For the Year Ended  
Per share operating performance   12/31/09   12/31/08   12/31/07   12/31/06   12/31/05   12/31/04   12/31/03   12/31/02   12/31/011    12/31/00  
Net asset value, beginning of period   $ 2.52     $ 4.06     $ 4.34     $ 4.24     $ 4.56     $ 4.41     $ 3.91     $ 4.74     $ 5.70     $ 7.34    
INVESTMENT OPERATIONS  
Net investment income     0.31       0.35       0.36       0.36       0.36       0.35       0.37       0.42       0.612       0.67    
Net gain (loss) on investments, swap contracts, futures contracts
and foreign currency related items (both realized and unrealized)
    1.07       (1.46 )     (0.31 )     0.14       (0.28 )     0.22       0.58       (0.55 )     (0.85 )     (1.55 )  
Total from investment activities     1.38       (1.11 )     0.05       0.50       0.08       0.57       0.95       (0.13 )     (0.24 )     (0.88 )  
LESS DIVIDENDS AND DISTRIBUTIONS  
Dividends from net investment income     (0.30 )     (0.43 )     (0.33 )     (0.40 )     (0.40 )     (0.40 )     (0.43 )     (0.62 )     (0.72 )     (0.76 )  
Distributions from return of capital     (0.04 )                       (0.00 )3     (0.02 )     (0.02 )     (0.08 )              
Total dividends and distributions     (0.34 )     (0.43 )     (0.33 )     (0.40 )     (0.40 )     (0.42 )     (0.45 )     (0.70 )     (0.72 )     (0.76 )  
Net asset value, end of period   $ 3.56     $ 2.52     $ 4.06     $ 4.34     $ 4.24     $ 4.56     $ 4.41     $ 3.91     $ 4.74     $ 5.70    
Per share market value, end of period   $ 3.36     $ 2.30     $ 3.58     $ 4.38     $ 3.67     $ 4.45     $ 4.50     $ 3.88     $ 4.98     $ 5.56    
TOTAL INVESTMENT RETURN 4   
Net asset value     58.07 %     (27.78 )%     1.59 %     12.73 %     1.74 %     13.55 %     24.59 %     (5.26 )%     (6.04 )%     (12.37 )%  
Market value     63.46 %     (25.25 )%     (11.32 )%     31.44 %     (9.76 )%     8.60 %     28.11 %     (10.52 )%     1.15 %     3.55 %  
RATIOS AND SUPPLEMENTAL DATA  
Net assets, end of period (000s omitted)   $ 177,654     $ 125,688     $ 202,914     $ 216,318     $ 211,536     $ 227,374     $ 219,864     $ 195,089     $ 236,652     $ 197,817    
Ratio of expenses to average net assets     0.73 %     0.73 %     0.78 %     0.74 %     0.82 %     0.78 %     0.78 %     0.79 %     1.07 %     0.78 %  
Ratio of net investment income to average net assets     10.14 %     9.96 %     8.75 %     8.32 %     8.20 %     8.08 %     8.83 %     9.93 %     11.66 %     10.10 %  
Portfolio turnover rate     54.0 %     32.1 %     49.7 %     58.0 %     61.5 %     57.8 %     77.8 %     61.1 %     50.1 %5     39.1 %  

 

See Accompanying Notes to Financial Statements.
19




Credit Suisse Asset Management Income Fund, Inc.

Notes to Financial Statements

June 30, 2010 (unaudited)

Note 1. Organization

Credit Suisse Asset Management Income Fund, Inc. (the "Fund") was incorporated on February 11, 1987 and is registered as a diversified, closed-end investment company under the Investment Company Act of 1940, as amended (the "1940 Act"). The investment objective of the Fund is to seek current income through investment primarily in debt securities.

Note 2. Significant Accounting Policies

A) SECURITY VALUATION — The net asset value of the Fund is determined daily as of the close of regular trading on the New York Stock Exchange, Inc. (the "Exchange") on each day the Exchange is open for business. Debt securities with a remaining maturity greater than 60 days are valued in accordance with the price supplied by a pricing service, which may use a matrix, formula or other objective method that takes into consideration market indices, yield curves and other specific adjustments. Debt obligations that will mature in 60 days or less are valued on the basis of amortized cost, which approximates market value, unless it is determined that using this method would not represent fair value. Equity investments are valued at market value, which is generally determined using the closing price on the exchange or market on which the security is primarily traded at the time of valuation (the "Valuation Time"). If no sales are reported, equity investments are generally valued at the most recent bid quotation as of the Valuation Time or at the lowest asked quotation in the case of a short sale of securities. Investments in mutual funds are valued at the mutual fund's closing net asset value per share on the day of valuation. Securities and other assets for which market quotations are not readily available, or whose values have been materially affected by events occurring before the Fund's Valuation Time but after the close of the securities' primary markets, are valued at fair value as determined in good faith by, or under the direction of, the Board of Directors under procedures established by the Board of Directors.

In accordance with the authoritative guidance on fair value measurements and disclosures under accounting principles generally accepted in the United States of America ("GAAP"), the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. In accordance with GAAP, 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. GAAP established a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value including such a pricing model and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.

• Level 1 — quoted prices in active markets for identical investments

• Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)


20



Credit Suisse Asset Management Income Fund, Inc.

Notes to Financial Statements (continued)

June 30, 2010 (unaudited)

• Level 3 — significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of June 30, 2010 in valuing the Fund's investments carried at value:

    Level 1   Level 2   Level 3   Total  
Investments in Securities                          
U.S. Corporate Bonds                          
Aerospace & Defense   $     $ 1,737,031     $     $ 1,737,031    
Auto Loans           3,577,542             3,577,542    
Auto Parts & Equipment           3,928,452             3,928,452    
Banks           5,498,332             5,498,332    
Beverages           772,969             772,969    
Building & Construction           1,099,780             1,099,780    
Building Materials           3,719,067             3,719,067    
Chemicals           3,505,141             3,505,141    
Computer Hardware           955,000             955,000    
Consumer Products           1,777,500             1,777,500    
Consumer/Commercial/Lease Financing           1,656,750             1,656,750    
Department Stores           511,250             511,250    
Diversified Capital Goods           5,211,687             5,211,687    
Electric - Generation           7,215,486             7,215,486    
Electric - Integrated           1,793,375             1,793,375    
Electronics           1,391,000             1,391,000    
Energy - Exploration & Production           6,210,254             6,210,254    
Environmental           1,003,625             1,003,625    
Food & Drug Retailers           1,338,750             1,338,750    
Food - Wholesale           1,841,875             1,841,875    
Forestry & Paper           3,101,145             3,101,145    
Gaming           8,763,292             8,763,292    
Gas Distribution           4,381,712             4,381,712    
Health Facilities           9,753,393             9,753,393    
Health Services           3,247,062             3,247,062    
Hotels           955,625             955,625    
Household & Leisure Products           552,750             552,750    
Machinery           1,931,000             1,931,000    
Media - Broadcast           3,494,764             3,494,764    
Media - Cable           9,269,207             9,269,207    
Media - Diversified           1,759,500             1,759,500    
Media - Services           1,407,688             1,407,688    
Metals & Mining - Excluding Steel           2,611,607             2,611,607    
Oil Field Equipment & Services           5,797,625             5,797,625    
Oil Refining & Marketing           2,759,688             2,759,688    
Packaging           3,206,138             3,206,138    
Pharmaceuticals           1,545,029             1,545,029    
Printing & Publishing           2,622,125             2,622,125    
Railroads           517,500             517,500    
Real Estate Development & Management           896,875             896,875    
Restaurants           478,563             478,563    
Software/Services           3,882,156             3,882,156    
Specialty Retail           2,604,250             2,604,250    
Steel Producers/Products           1,945,438             1,945,438    
Support-Services           5,156,125             5,156,125    
Telecom - Integrated/Services           6,895,469             6,895,469    

 


21



Credit Suisse Asset Management Income Fund, Inc.

Notes to Financial Statements (continued)

June 30, 2010 (unaudited)

    Level 1   Level 2   Level 3   Total  
Telecom - Wireless   $     $ 5,075,187     $     $ 5,075,187    
Telecommunications Equipment           636,188             636,188    
Theaters & Entertainment           1,721,813             1,721,813    
Foreign Corporate Bonds                          
Aerospace & Defense           807,937             807,937    
Chemicals           2,535,250             2,535,250    
Electronics           69,188             69,188    
Energy - Exploration & Production           481,250             481,250    
Forestry & Paper           1,570,700             1,570,700    
Gaming           820,836             820,836    
Media - Cable           908,505             908,505    
Media - Diversified           763,375             763,375    
Metals & Mining - Excluding Steel           674,930             674,930    
Oil Field Equipment & Services           454,812             454,812    
Packaging           220,788             220,788    
Pharmaceuticals           498,750             498,750    
Support-Services           382,500             382,500    
Telecom - Integrated/Services           1,390,069             1,390,069    
Telecom - Wireless           692,646             692,646    
Textiles & Apparel           29,398             29,398    
Transportation - Excluding Air/Rail           2,500,875             2,500,875    
Bank Loans                          
Gaming           470,091             470,091    
Pharmaceuticals           316,182             316,182    
Telecommunications Equipment           782,461             782,461    
Common Stocks                          
Automobile Parts & Equipment                          
Banks     412,618                   412,618    
Building Materials     13,776                   13,776    
Chemicals     42,422                   42,422    
Forestry & Paper     769,057                   769,057    
Gaming     6                   6    
Leisure     460,832                   460,832    
Media - Cable                          
Printing & Publishing     74,614                   74,614    
Preferred Stocks                          
Banks     231,030                   231,030    
Media - Broadcast           1             1    
Warrants                          
Building Materials                 864       864    
Media - Broadcast           1             1    
Printing & Publishing                          
Short-Term Investments     45,779,107       3,496,000             49,275,107    
Other Financial Instruments*  
Forward Foreign Currency Contracts           357,183             357,183    
    $ 47,783,462     $ 171,937,508     $ 864     $ 219,721,834    

 

*  Other financial instruments include futures, forwards and swap contracts.

As of June 30, 2010, the amounts shown by the Fund as being Level 3 securities that were measured at fair value amounted to less than 0.01% of net assets.

Effective January 1, 2010, the Fund adopted FASB amendments to authoritative guidance which requires the Fund to disclose details of significant transfers in and out of Level 1 and Level 2 measurements and the reasons for the transfers. For the six months ended June 30, 2010, there were no significant transfers in and out of Level 1 and Level 2.


22



Credit Suisse Asset Management Income Fund, Inc.

Notes to Financial Statements (continued)

June 30, 2010 (unaudited)

B) DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES — Effective January 1, 2009, the Fund adopted amendments to authoritative guidance on disclosures about derivative instruments and hedging activities which require that the Fund disclose (a) how and why an entity uses derivative instruments, (b) how derivative instruments and hedging activities are accounted for, and (c) how derivative instruments and related hedging activities affect a fund's financial position, financial performance, and cash flows.

Fair Values of Derivative Instruments as of June 30, 2010

    Asset Derivatives   Liability Derivatives  
    Balance Sheet
Location
  Fair Value   Balance Sheet
Location
 
Fair Value
 
Forward Foreign
Currency Contracts
  Net Assets – Unrealized
Appreciation
   
$357,183*
    Liabilities – Unrealized
Depreciation
   
$0
   

 

*  Includes cumulative appreciation/depreciation of forward foreign currency contracts as reported in the Statement of Assets and Liabilities and Notes to Financial Statements.

Effect of Derivative Instruments on the Statement of Operations

Amount of Realized Gain (Loss) on Derivatives Recognized in Income
Forward Foreign Currency Contracts
  $ 344,861    
Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Forward Foreign Currency Contracts
  $ 211,317    

 

The notional amount of forward foreign currency contracts at period end are reflected in the Notes to Financial Statements and the volume of these open positions relative to the net assets of the Fund is generally representative of open positions throughout the reporting period for the Fund.

C) FOREIGN CURRENCY TRANSACTIONS — The books and records of the Fund are maintained in U.S. dollars. Transactions denominated in foreign currencies are recorded at the current prevailing exchange rates. All assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the current exchange rate at the end of the period. Translation gains or losses resulting from changes in the exchange rate during the reporting period and realized gains and losses on the settlement of foreign currency transactions are reported in the results of operations for the current period. The Fund does not isolate that portion of realized gains and losses on investments in equity securities which is due to changes in the foreign exchange rate from that which is due to changes in market prices of equity securities. The Fund isolates that portion of realized gains and losses on investments in debt securities which is due to changes in the foreign exchange rate from that which is due to changes in market prices of debt securities.

D) SECURITY TRANSACTIONS AND INVESTMENT INCOME — Security transactions are accounted for on a trade date basis. Interest income is recorded on the accrued basis. The Fund amortizes premiums and accretes discounts using the effective yield method. Dividends are recorded on the ex-dividend date. The cost of investments sold is determined by use of the specific identification method for both financial reporting and income tax purposes.

E) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS — Dividends from net investment income are declared and paid monthly. Distributions of net realized capital gains, if any, are declared and paid at least annually. However, to the extent that a net realized capital gain can be reduced by a capital loss carryforward,


23



Credit Suisse Asset Management Income Fund, Inc.

Notes to Financial Statements (continued)

June 30, 2010 (unaudited)

such gain will not be distributed. Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP.

The Fund's dividend policy is to distribute substantially all of its net investment income to its shareholders on a monthly basis. However, in order to provide shareholders with a more consistent yield to the current trading price of shares of beneficial interest of the Fund, the Fund may at times pay out less than the entire amount of net investment income earned in any particular month and may at times in any month pay out such accumulated but undistributed income in addition to net investment income earned in that month. As a result, the dividends paid by the Fund for any particular month may be more or less than the amount of net investment income earned by the Fund during such month.

F) FEDERAL INCOME TAXES — No provision is made for federal taxes as it is the Fund's intention to continue to qualify for and elect the tax treatment applicable to regulated investment companies under the Internal Revenue Code of 1986, as amended, and to make the requisite distributions to its shareholders, which will be sufficient to relieve it from federal income and excise taxes.

The Fund adopted the authoritative guidance for uncertainty in income taxes and recognizes a tax benefit or liability from an uncertain position only if it is more likely than not that the position is sustainable based solely on its technical merits and consideration of the relevant taxing authority's widely understood administrative practices and procedures. The Fund has reviewed its current tax positions and has determined that no provision for income tax is required in the Fund's financial statements. The Fund's federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

G) USE OF ESTIMATES — The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from these estimates.

H) SHORT-TERM INVESTMENTS — The Fund, together with other funds/portfolios advised by Credit Suisse Asset Management, LLC ("Credit Suisse"), an indirect, wholly-owned subsidiary of Credit Suisse Group AG, pools available cash into a short-term variable rate time deposit issued by State Street Bank and Trust Company ("SSB"), the Fund's custodian. The short-term time deposit issued by SSB is a variable rate account classified as a short-term investment.

I) FORWARD FOREIGN CURRENCY CONTRACTS — The Fund may enter into forward foreign currency contracts for the purchase or sale of a specific foreign currency at a fixed price on a future date. Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency. The Fund will enter into forward foreign currency contracts primarily for hedging foreign currency risk. Forward foreign currency contracts are adjusted by the daily forward exchange rate of the underlying currency and any gains or losses are recorded for


24



Credit Suisse Asset Management Income Fund, Inc.

Notes to Financial Statements (continued)

June 30, 2010 (unaudited)

financial statement purposes as unrealized until the contract settlement date or an offsetting position is entered into. At June 30, 2010, the Fund had the following open forward foreign currency contracts:

Forward Foreign
Currency to be
Purchased (Local)
  Forward Foreign
Currency to be
Sold (Local)
  Expiration
Date
  Value on
Settlement Date
  Current
Value
  Unrealized
Appreciation/
(Depreciation)
 
USD 3,570,189     EUR 2,625,000     07/15/10   $ (3,570,189 )   $ (3,215,572 )   $ 354,617    
USD 96,819     GBP 63,000     07/15/10     (96,819 )     (94,253 )     2,566    
Total   $ 357,183    

 

Currency Abbreviations:

EUR — Euro Currency

GBP — British Pound

USD — United States Dollar

J) CREDIT DEFAULT SWAPS — The Fund may enter into credit default swap agreements either as a buyer or seller. The Fund may buy a credit default swap to attempt to mitigate the risk of default or credit quality deterioration in one or more individual holdings or in a segment of the fixed income securities market. The Fund may sell a credit default swap in an attempt to gain exposure to an underlying issuer's credit quality characteristics without investing directly in that issuer.

The Fund bears the risk of loss of the amount expected to be received under a credit default swap agreement in the event of the default or bankruptcy of the counterparty. The Fund will enter into swap agreements only with counterparties that meet certain standards of creditworthiness (generally, such counterparties would have to be eligible counterparties under the terms of the Fund's repurchase agreement guidelines). Credit default swap agreements are generally valued at a price at which the counterparty to such agreement would terminate the agreement. At June 30, 2010, and during the six months ended June 30, 2010, the Fund had no outstanding credit default swap contracts.

K) SECURITIES LENDING — Loans of securities are required at all times to be secured by collateral at least equal to 102% of the market value of domestic securities on loan (including any accrued interest thereon) and 105% of the market value of foreign securities on loan (including any accrued interest thereon). Cash collateral received by the Fund in connection with securities lending activity may be pooled together with cash collateral for other funds/portfolios advised by Credit Suisse and may be invested in a variety of investments, including funds advised by SSB, the Fund's securities lending agent, or money market instruments. However, in the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings.

SSB has been engaged by the Fund to act as the Fund's securities lending agent. The Fund's securities lending arrangement provides that the Fund and SSB will share the net income earned from securities lending activities. During the six months ended June 30, 2010, total earnings from the Fund's investment in cash collateral received in connection with securities lending arrangements was $85,684, of which $19,769 was rebated to borrowers (brokers). The Fund retained $52,724 in income from the cash collateral investment, and SSB, as lending agent, was paid $13,191. Securities lending income is accrued as earned.

L) OTHER — Lower-rated debt securities (commonly known as "junk bonds") possess speculative characteristics and are subject to greater market fluctuations and risk of lost income and principal than higher-rated debt securities for a variety of reasons. Also, during an economic downturn or substantial period of rising interest rates, highly leveraged issuers may experience financial stress which would adversely affect their ability to service their principal and interest payment obligations, to meet projected business goals and to obtain additional financing.


25



Credit Suisse Asset Management Income Fund, Inc.

Notes to Financial Statements (continued)

June 30, 2010 (unaudited)

In addition, periods of economic uncertainty and changes can be expected to result in increased volatility of market prices of lower-rated debt securities and (to the extent the Fund invests in junk bonds) the Fund's net asset value.

The Fund may invest in securities of foreign countries and governments which involve certain risks in addition to those inherent in domestic investments. Such risks generally include, among others, currency risk (fluctuations in currency exchange rates), information risk (key information may be inaccurate or unavailable) and political risk (expropriation, nationalization or the imposition of capital or currency controls or punitive taxes). Other risks of investing in foreign securities include liquidity and valuation risks.

The Fund may be subject to taxes imposed by countries in which it invests with respect to its investments in issuers existing or operating in such countries. Such taxes are generally based on income earned or repatriated and capital gains realized on the sale of such investments. The Fund accrues such taxes when the related income is earned or gains are realized.

Note 3. Transactions with Affiliates and Related Parties

Credit Suisse serves as investment adviser for the Fund. For its investment advisory services, Credit Suisse is entitled to receive a fee from the Fund at a rate per annum, computed weekly and paid quarterly as follows: 0.50% of the lower of the weekly stock price (market value) of the Fund's outstanding shares or its average weekly net assets. For the six months ended June 30, 2010, investment advisory fees earned were $427,278.

SSB serves as accounting and administrative agent to the Fund. For its administrative services, SSB receives a fee, exclusive of out-of-pocket expenses, calculated in total for all the Credit Suisse funds/portfolios co-administered by SSB and allocated based upon the relative average net assets of each fund/portfolio, subject to an annual minimum fee. For the six months ended June 30, 2010, administrative services fees earned by SSB (including out-of-pocket expenses) were $68,176.

The Independent Directors receive fifty percent (50%) of their annual retainer in the form of shares. Since 2008, the Independent Directors have been able to elect to receive up to 100% of their annual retainer in shares of the Fund. During the six months ended June 30, 2010, 11,114 shares were issued through the directors compensation plan. Directors as a group own less than 1% of the Fund's outstanding shares.

Merrill Corporation ("Merrill"), an affiliate of Credit Suisse, has been engaged by the Fund to provide certain financial printing services. For the six months ended June 30, 2010, Merrill was paid $22,304 for its services by the Fund.

Note 4. Line of Credit

The Fund, together with other funds/portfolios advised by Credit Suisse (collectively, the "Participating Funds"), participates in a committed, unsecured line of credit facility ("Credit Facility") for temporary or emergency purposes with SSB. Under the terms of the Credit Facility, the Participating Funds pay an aggregate commitment fee on the average unused amount of the Credit Facility, which is allocated among the Participating Funds in such manner as is determined by the governing Boards of the Participating Funds. In addition, the Participating Funds pay interest on borrowings at either the Overnight Federal Funds rate or the Overnight LIBOR rate plus a spread. At June 30, 2010, and during the six months ended June 30, 2010, the Fund had no borrowings under the Credit Facility.


26



Credit Suisse Asset Management Income Fund, Inc.

Notes to Financial Statements (continued)

June 30, 2010 (unaudited)

Note 5. Purchases and Sales of Securities

For the six months ended June 30, 2010, purchases and sales of investment securities (excluding short-term investments) were $53,288,201 and $55,227,823, respectively.

At June 30, 2010, the identified cost for federal income tax purposes, as well as the gross unrealized appreciation from investments for those securities having an excess of value over cost, gross unrealized depreciation from investments for those securities having an excess of cost over value and the net unrealized depreciation from investments were $225,713,191, $8,608,434, $(14,956,974) and $(6,348,540), respectively.

Note 6. Fund Shares

The Fund has one class of shares of common stock, par value $.001 per share; one hundred million shares are authorized. Transactions in shares of common stock were as follows:

    For the Six Months Ended
June 30, 2010 (unaudited)
  For the Year Ended
December 31, 2009
 
Shares issued through the directors compensation plan     11,114       12,805    
Net increase     11,114       12,805    

 

Note 7. Contingencies

In the normal course of business, the Fund may provide general indemnifications pursuant to certain contracts and organizational documents. The Fund's maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated; however, based on experience, the risk of loss from such claims is considered remote.

Note 8. Subsequent Events

Effective June 30, 2009, the Fund adopted the FASB amendments to general standards on accounting for and disclosures of subsequent events. Management has evaluated the possibility of subsequent events existing in the Fund's financial statements through August 25, 2010. Management has determined that there are no material events that would require disclosure in the Fund's financial statements through this date.


27



Credit Suisse Asset Management Income Fund, Inc.

Notice of Privacy and Information Practices (unaudited)

At Credit Suisse, we know that you are concerned with how we protect and handle nonpublic personal information that identifies you. This notice is designed to help you understand what nonpublic personal information we collect from you and from other sources, and how we use that information in connection with your investments and investment choices that may be available to you. Except where otherwise noted, this notice is applicable only to consumers who are current or former investors, meaning individual persons whose investments are primarily for household, family or personal use ("individual investors"). Specified sections of this notice, however, also apply to other types of investors (called "institutional investors"). Where the notice applies to institutional investors, the notice expressly states so. This notice is being provided by Credit Suisse Funds and Credit Suisse Closed-End Funds. This notice applies solely to U.S. registered investment companies advised by Credit Suisse Asset Management, LLC.

Categories of information we may collect:

We may collect information about you, including nonpublic personal information, such as

•  Information we receive from you on applications, forms, agreements, questionnaires, Credit Suisse websites and other websites that are part of our investment program, or in the course of establishing or maintaining a customer relationship, such as your name, address, e-mail address, Social Security number, assets, income, financial situation; and

•  Information we obtain from your transactions and experiences with us, our affiliates, or others, such as your account balances or other investment information, assets purchased and sold, and other parties to a transaction, where applicable.

Categories of information we disclose and parties to whom we disclose it:

•  We do not disclose nonpublic personal information about our individual investors, except as permitted or required by law or regulation. Whether you are an individual investor or institutional investor, we may share the information described above with our affiliates that perform services on our behalf, and with our asset management and private banking affiliates; as well as with unaffiliated third parties that perform services on our behalf, such as our accountants, auditors, attorneys, broker-dealers, fund administrators, and other service providers.

•  We want our investors to be informed about additional products or services. Whether you are an individual investor or an institutional investor, we may disclose information, including nonpublic personal information, regarding our transactions and experiences with you to our affiliates.

•  In addition, whether you are an individual investor or an institutional investor, we reserve the right to disclose information, including nonpublic personal information, about you to any person or entity, including without limitation any governmental agency, regulatory authority or self-regulatory organization having jurisdiction over us or our affiliates, if (i) we determine in our discretion that such disclosure is necessary or advisable pursuant to or in connection with any United States federal, state or local, or non-U.S., court order (or other legal process), law, rule, regulation, or executive order or policy, including without limitation any anti-money laundering law or the USA PATRIOT Act of 2001; and (ii) such disclosure is not otherwise prohibited by law, rule, regulation, or executive order or policy.


28



Credit Suisse Asset Management Income Fund, Inc.

Notice of Privacy and Information Practices (unaudited) (continued)

Confidentiality and security

•  To protect nonpublic personal information about individual investors, we restrict access to those employees and agents who need to know that information to provide products or services to us and to our investors. We maintain physical, electronic, and procedural safeguards to protect nonpublic personal information.

Other Disclosures

This notice is not intended to be incorporated in any offering materials, but is a statement of our current Notice of Privacy and Information Practices and may be amended from time to time. This notice is current as of May 3, 2010.


29



Credit Suisse Asset Management Income Fund, Inc.

Results of Annual Meeting of Shareholders (unaudited)

On April 19, 2010, the Annual Meeting of Shareholders of the Credit Suisse Asset Management Income Fund, Inc. (the "Fund") was held and the following matter was voted upon:

(1) To re-elect two directors to the Board of Directors of the Fund:

Name of Director   For   Witheld  
Enrique R. Arzac     36,384,743       10,990    
Terry Fires Bovarnick     36,363,358       10,990    

 

In addition to the directors elected at the meeting, James Cattano, Lawrence J. Fox and Steven Rappaport continue to serve as Directors of the Fund.


30



Credit Suisse Asset Management Income Fund, Inc.

Proxy Voting and Portfolio Holdings Information (unaudited)

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 month period ended June 30 of each year, as well as the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities are available:

• By calling 1-800-293-1232

• On the Fund's website, www.credit-suisse.com/us

• On the website of the Securities and Exchange Commission, www.sec.gov.

The Fund files a complete schedule of its portfolio holdings for the first and third quarters of its fiscal year with the SEC on Form N-Q. The Fund's Forms N-Q are available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the SEC's Public Reference Room may be obtained by calling 1-202-551-8090.

Other Funds Managed by Credit Suisse Asset Management, LLC

CLOSED-END FUNDS

Fixed Income
Credit Suisse Asset Management Income Fund, Inc. (NYSE Amex: CIK)
Credit Suisse High Yield Bond Fund (NYSE Amex: DHY)

Literature Request — Call today for free descriptive information on the closed-end funds listed above at 1-800-293-1232 or visit our website at www.credit-suisse.com/us.

OPEN-END FUNDS

Credit Suisse Commodity Return Strategy Fund

Credit Suisse High Income Fund

Credit Suisse Large Cap Blend Fund

Credit Suisse Large Cap Blend II Fund

Fund shares are not deposits or other obligation of Credit Suisse Asset Management, LLC or any affiliate, are not FDIC-insured and are not guaranteed by Credit Suisse Asset Management, LLC or any affiliate. Fund investments are subject to investment risks, including loss of your investment. There are special risk considerations associated with international, global, emerging-market, small-company, private equity, high-yield debt, single-industry, single-country and other special, aggressive or concentrated investment strategies. Past performance cannot guarantee future results.

More complete information about a fund, including charges and expenses, is provided in the Prospectus, which should be read carefully before investing. You may obtain copies by calling Credit Suisse Funds at 1-877-870-2874. Performance information current to the most recent month-end is available at www.credit-suisse.com/us.

Credit Suisse Asset Management Securities, Inc., Distributor.


31



Credit Suisse Asset Management Income Fund, Inc.

Dividend Reinvestment and Cash Purchase Plan (unaudited)

Credit Suisse Asset Management Income Fund, Inc. (the "Fund") offers a Dividend Reinvestment and Cash Purchase Plan (the "Plan") to its common stockholders. The Plan offers common stockholders a prompt and simple way to reinvest net investment income dividends and capital gains and other periodic distributions in shares of the Fund's common stock. Computershare Trust Company, N.A. ("Computershare") acts as Plan Agent for stockholders in administering the Plan.

Participation in the Plan is voluntary. In order to participate in the Plan, you must be a registered holder of at least one share of stock of the Fund. If you are a beneficial owner of the Fund having your shares registered in the name of a bank, broker or other nominee, you must first make arrangements with the organization in whose name your shares are registered to have the shares transferred into your own name. Registered shareholders can join the Plan via the Internet by going to www.computershare.com, authenticating your online account, agreeing to the Terms and Conditions of online "Account Access" and completing an online Plan Enrollment Form. Alternatively, you can complete the Plan Enrollment Form and return it to Computershare at the address below.

By participating in the Plan, your dividends and distributions will be promptly paid to you in additional shares of common stock of the Fund. The number of shares to be issued to you will be determined by dividing the total amount of the distribution payable to you by the greater of (i) the net asset value per share ("NAV") of the Fund's common stock on the payment date, or (ii) 95% of the market price per share of the Fund's common stock on the payment date. If the NAV of the Fund's common stock is greater than the market price (plus estimated brokerage commissions) on the payment date, then Computershare (or a broker-dealer selected by Computershare) shall endeavor to apply the amount of such distribution on your shares to purchase shares of Fund common stock in the open market.

You should be aware that all net investment income dividends and capital gain distributions are taxable to you as ordinary income and capital gain, respectively, whether received in cash or reinvested in additional shares of the Fund's common stock.

The Plan also permits participants to purchase shares of the Fund through Computershare. You may invest $100 or more monthly, with a maximum of $100,000 in any annual period. Computershare will purchase shares for you on the open market on the 25th of each month or the next trading day if the 25th is not a trading day.

There is no service fee payable by Plan participants for dividend reinvestment. For voluntary cash payments, Plan participants must pay a service fee of $5.00 per transaction. Plan participants will also be charged a pro rata share of the brokerage commissions for all open market purchases ($0.03 per share as of October 2006). Participants will also be charged a service fee of $5.00 for each sale and brokerage commissions of $0.03 per share (as of October 2006).

You may terminate your participation in the Plan at any time by requesting a certificate or a sale of your shares held in the Plan. Your withdrawal will be effective immediately if your notice is received by Computershare prior to any dividend or distribution record date; otherwise, such termination will be effective only with respect to any subsequent dividend or distribution. Your dividend participation option will remain the same unless you withdraw all of your whole and fractional Plan shares, in which case your participation in the Plan will be terminated and you will receive subsequent dividends and capital gains distributions in cash instead of shares.


32



Credit Suisse Asset Management Income Fund, Inc.

Dividend Reinvestment and Cash Purchase Plan (unaudited) (continued)

If you want further information about the Plan, including a brochure describing the Plan in greater detail, please contact Computershare as follows:

By Internet:  www.computershare.com

By phone:  (800) 730-6001 (U.S. and Canada)
  (781) 575-3100 (Outside U.S. and Canada)

Customer service associates are available from 9:00 a.m. to 5:00 p.m. Eastern time, Monday through Friday

By mail:  Credit Suisse Asset Management Income Fund, Inc.
  c/o Computershare
  P.O. Box 43078
  Providence, Rhode Island 02940-3078

All notices, correspondence, questions or other communications sent by mail should be sent by registered or certified mail, return receipt requested.

The Plan may be terminated by the Fund or Computershare upon notice in writing mailed to each participant at least 30 days prior to any record date for the payment of any dividend or distribution.

Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940, as amended, that the Credit Suisse Asset Management Income Fund, Inc. may from time to time purchase shares of its capital stock in the open market.


33



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This report, including the financial statements herein, is sent to the shareholders of the Fund for their information. The financial information herein is taken from the records of the Fund without examination by independent registered public accountants who do not express an opinion thereon. It is not a prospectus, circular or representation intended for use in the purchase or sale of shares of the Fund or of any securities mentioned in this report.

  CIK-SAR-0610




 

Item 2. Code of Ethics.

This item is inapplicable to a semi-annual report on Form N-CSR.

 

Item 3. Audit Committee Financial Expert.

This item is inapplicable to a semi-annual report on Form N-CSR.

 

Item 4. Principal Accountant Fees and Services.
This item is inapplicable to a semi-annual report on Form N-CSR.

 

Item 5. Audit Committee of Listed Registrants.

This item is inapplicable to a semi-annual report on Form N-CSR.

 

Item 6. Schedule of Investments.

Included as part of the report to shareholders filed under Item 1 of this Form.

 

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
This item is inapplicable to a semi-annual report on Form N-CSR.

 

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

This item is inapplicable to a semi-annual report on Form N-CSR.

 

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
None.

 

Item 10. Submission of Matters to a Vote of Security Holders.

 

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors since the registrant last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(g) of Schedule 14A in its definitive proxy statement dated March 15, 2010.

 

Item 11. Controls and Procedures.

(a)           As of a date within 90 days from the filing date of this report, the principal executive officer and principal financial officer concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) were effective based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934.

 



 

(b)           There were no changes in registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the registrant’s last fiscal half-year that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 12. Exhibits.

 

(a)(1)       Not applicable.

 

(a)(2)       The certifications of the registrant as required by Rule 30a-2(a) under the Act are exhibits to this report.

 

(a)(3)       Not applicable.

 

(b)           The certifications of the registrant as required by Rule 30a-2(b) under the Act are an exhibit to this report.

 



 

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.

 

CREDIT SUISSE ASSET MANAGEMENT INCOME FUND, INC.

 

/s/John G. Popp

 

Name:

John G. Popp

Title:

Chief Executive Officer

Date:

September 1, 2010

 

 

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.

 

/s/John G. Popp

 

Name:

John G. Popp

Title:

Chief Executive Officer

Date:

September 1, 2010

 

/s/Michael A. Pignataro

 

Name:

Michael A. Pignataro

Title:

Chief Financial Officer

Date:

September 1, 2010