UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-5769
Van Kampen High Income Trust II
(Exact name of registrant as specified in charter)
522 Fifth Avenue, New York, New York 10036
(Address of principal executive offices) (Zip code)
Ronald Robison
522 Fifth Avenue, New York, New York 10036
(Name and address of agent for service)
Registrant's telephone number, including area code: 212-762-4000
Date of fiscal year end: 12/31
Date of reporting period: 9/30/07
Item 1. Schedule of Investments.
The Trust's schedule of investments as of the close of the reporting period
prepared pursuant to Rule 12-12 of Regulation S-X is as follows:
VAN KAMPEN HIGH INCOME TRUST II
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 2007 (UNAUDITED)
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
------ ------------------------------------------ ------ -------- ------------
CORPORATE BONDS 167.3%
AEROSPACE 1.8%
$ 370 DAE Aviation Holdings, Inc. (b)........... 11.250% 08/01/15 $ 388,500
1,005 Hexcel Corp. ............................. 6.750 02/01/15 997,463
------------
1,385,963
------------
BROADCASTING 2.2%
420 LIN Television Corp. ..................... 6.500 05/15/13 410,550
335 LIN Television Corp., Ser B .............. 6.500 05/15/13 327,463
515 Salem Communications Corp. ............... 7.750 12/15/10 517,575
495 Univision Communications, Inc. (a) (b) ... 9.750 03/15/15 485,100
------------
1,740,688
------------
CABLE 8.5%
1,175 Cablevision Systems Corp. (c)............. 9.820 04/01/09 1,216,125
495 CCH I LLC ................................ 11.000 10/01/15 503,662
350 CCH II LLC................................ 10.250 09/15/10 359,625
495 Echostar DBS Corp. ....................... 5.750 10/01/08 496,238
1,740 Echostar DBS Corp. ....................... 6.375 10/01/11 1,753,050
340 Echostar DBS Corp. ....................... 6.625 10/01/14 342,550
80 Intelsat Subsidiary Holding Co., Ltd.
(Bermuda) ............................. 8.250 01/15/13 81,600
950 Intelsat Subsidiary Holding Co., Ltd.
(Bermuda) ............................. 8.625 01/15/15 973,750
145 NTL Cable PLC (United Kingdom) ........... 8.750 04/15/14 149,350
100 NTL Cable PLC (United Kingdom) ........... 9.125 08/15/16 104,250
693 PanAmSat Corp. ........................... 9.000 08/15/14 717,255
------------
6,697,455
------------
CHEMICALS 8.8%
611 Equistar Chemicals, LP ................... 10.125 09/01/08 633,913
343 Equistar Chemicals, LP ................... 10.625 05/01/11 360,150
740 Innophos, Inc. ........................... 8.875 08/15/14 736,300
705 Koppers, Inc. ............................ 9.875 10/15/13 749,062
1,350 Lyondell Chemical Co. .................... 10.500 06/01/13 1,458,000
1,450 Nalco Co. ................................ 7.750 11/15/11 1,486,250
750 Terra Capital, Inc. ...................... 7.000 02/01/17 735,000
834 Westlake Chemical Corp. .................. 6.625 01/15/16 796,470
------------
6,955,145
------------
CONSUMER PRODUCTS 2.8%
990 Jarden Corp. ............................. 7.500 05/01/17 962,775
565 Oxford Industrials, Inc. ................. 8.875 06/01/11 573,475
740 Steinway Musical Instruments, Inc. (b) ... 7.000 03/01/14 706,700
------------
2,242,950
------------
DIVERSIFIED MEDIA 5.8%
1,425 CanWest Media, Inc. (Canada) ............. 8.000 09/15/12 1,403,625
685 Dex Media West, LLC, Ser B ............... 9.875 08/15/13 732,094
1,095 Idearc, Inc. ............................. 8.000 11/15/16 1,097,737
515 Interpublic Group of Cos., Inc. .......... 6.250 11/15/14 463,500
985 Valassis Communications, Inc. (b) ........ 8.250 03/01/15 861,875
------------
4,558,831
------------
ENERGY 15.4%
1,440 CHC Helicopter Corp. (Canada) ............ 7.375 05/01/14 1,375,200
1,825 Chesapeake Energy Corp. .................. 6.625 01/15/16 1,825,000
350 Chesapeake Energy Corp. .................. 7.500 09/15/13 361,375
230 Cimarex Energy Co. ....................... 7.125 05/01/17 229,425
565 Compagnie Generale de Geophysique, SA
(France) .............................. 7.500 05/15/15 584,775
1,500 Frontier Oil Corp. ....................... 6.625 10/01/11 1,481,250
1,670 Hilcorp Energy/Finance Corp. (b).......... 7.750 11/01/15 1,640,775
1,100 Kinder Morgan, Inc. ...................... 6.500 09/01/12 1,094,665
1,310 Massey Energy Co. ........................ 6.875 12/15/13 1,228,125
620 OPTI Canada, Inc. (Canada) (b)............ 8.250 12/15/14 627,750
650 Pacific Energy Partners, LP............... 7.125 06/15/14 667,183
1,085 Pogo Producing Co. ....................... 6.875 10/01/17 1,095,850
------------
12,211,373
------------
FINANCIAL 1.0%
205 Capmark Financial Group, Inc. (b)......... 5.875 05/10/12 186,881
85 Capmark Financial Group, Inc. (b)......... 6.300 05/10/17 74,103
476 UCAR Finance, Inc. ....................... 10.250 02/15/12 498,610
------------
759,594
------------
FOOD & DRUG 1.8%
845 Rite Aid Corp. ........................... 8.125 05/01/10 851,338
560 SUPERVALU, Inc. .......................... 7.500 05/15/12 582,810
------------
1,434,148
------------
FOOD & TOBACCO 10.0%
465 Constellation Brands, Inc. (b)............ 7.250 05/15/17 467,325
1,300 Constellation Brands, Inc. ............... 8.000 02/15/08 1,306,500
635 Michael Foods, Inc. ...................... 8.000 11/15/13 638,175
930 Pilgrim's Pride Corp. .................... 7.625 05/01/15 948,600
725 Reynolds American, Inc. .................. 6.500 07/15/10 747,643
380 Smithfield Foods, Inc. ................... 7.625 02/15/08 381,900
1,810 Smithfield Foods, Inc., Ser B ............ 8.000 10/15/09 1,877,875
1,500 Tyson Foods, Inc. ........................ 6.850 04/01/16 1,553,276
------------
7,921,294
------------
FOREST PRODUCTS 7.1%
1,270 Crown Americas LLC ....................... 7.625 11/15/13 1,309,687
850 Georgia-Pacific Corp. (b)................. 7.125 01/15/17 826,625
1,000 Graphic Packaging International, Inc. .... 9.500 08/15/13 1,032,500
2,083 Owens-Brockway Glass Containers, Inc. .... 8.875 02/15/09 2,124,660
320 P.H. Glatfelter Co. ...................... 7.125 05/01/16 320,000
------------
5,613,472
------------
GAMING & LEISURE 15.0%
750 Caesars Entertainment, Inc. .............. 8.875 09/15/08 767,813
965 Host Marriott LP ......................... 6.375 03/15/15 948,113
1,135 Host Marriott LP, Ser J .................. 7.125 11/01/13 1,149,187
1,630 Isle of Capri Casinos, Inc. .............. 7.000 03/01/14 1,467,000
1,370 Las Vegas Sands Corp. .................... 6.375 02/15/15 1,332,325
2,900 MGM Mirage, Inc. ......................... 6.000 10/01/09 2,892,750
1,510 Mohegan Tribal Gaming Authority .......... 7.125 08/15/14 1,521,325
1,160 Station Casinos, Inc. .................... 6.000 04/01/12 1,107,800
175 Station Casinos, Inc. .................... 6.875 03/01/16 153,125
490 Station Casinos, Inc. .................... 7.750 08/15/16 487,550
------------
11,826,988
------------
HEALTH CARE 19.0%
725 Community Health Systems, Inc. (b) ....... 8.875 07/15/15 748,563
1,845 DaVita, Inc. ............................. 6.625 03/15/13 1,840,387
1,485 Fisher Scientific International, Inc. .... 6.125 07/01/15 1,460,126
1,000 FMC Finance III, SA (Luxembourg) (b) ..... 6.875 07/15/17 1,000,000
97 Fresenius Medical Care Capital Trust II .. 7.875 02/01/08 974,850
1,290 Fresenius Medical Care Capital Trust IV .. 7.875 06/15/11 1,344,825
595 HCA, Inc. ................................ 5.750 03/15/14 500,544
170 HCA, Inc. ................................ 6.250 02/15/13 150,875
895 HCA, Inc. ................................ 6.375 01/15/15 765,225
882 HCA, Inc. ................................ 8.750 09/01/10 895,230
465 HCA, Inc. (b) ............................ 9.125 11/15/14 491,738
165 Invacare Corp. ........................... 9.750 02/15/15 165,825
735 Omnicare, Inc. ........................... 6.750 12/15/13 689,062
710 Omnicare, Inc. ........................... 6.875 12/15/15 660,300
750 Res-Care, Inc. ........................... 7.750 10/15/13 746,250
575 Tenet Healthcare Corp. ................... 9.875 07/01/14 529,000
1,405 Ventas Realty, LP (REIT) ................. 6.750 06/01/10 1,429,587
650 Warner Chilcott Corp. .................... 8.750 02/01/15 676,000
------------
15,068,387
------------
HOUSING 1.8%
1,090 Interface, Inc. Ser B .................... 9.500 02/01/14 1,144,500
370 Realogy Corp. (b)......................... 10.500 04/15/14 316,350
------------
1,460,850
------------
INFORMATION TECHNOLOGY 3.1%
1,095 Freescale Semiconductor, Inc.............. 8.875 12/15/14 1,062,150
1,340 Iron Mountain, Inc. ...................... 8.625 04/01/13 1,363,450
------------
2,425,600
------------
MANUFACTURING 5.2%
330 Baldor Electric Co. ...................... 8.625 02/15/17 346,500
1,200 Case New Holland, Inc. ................... 7.125 03/01/14 1,236,000
925 JohnsonDiversey, Inc., Ser B ............. 9.625 05/15/12 943,500
540 Propex Fabrics, Inc. ..................... 10.000 12/01/12 413,100
1,140 RBS Global, Inc. & Rexnord Corp. ......... 9.500 08/01/14 1,185,600
------------
4,124,700
------------
METALS 3.7%
245 Foundation, PA Coal Co. .................. 7.250 08/01/14 241,325
735 Freeport-McMoRan Copper & Gold, Inc. ..... 8.375 04/01/17 804,825
1,950 Novelis, Inc. (Canada) ................... 7.250 02/15/15 1,891,500
------------
2,937,650
------------
RETAIL 6.5%
1,045 Brown Shoe Co., Inc. ..................... 8.750 05/01/12 1,081,575
1,400 JC Penney Corp., Inc. .................... 8.000 03/01/10 1,490,584
2,150 Phillips-Van Heusen Corp. ................ 7.250 02/15/11 2,182,250
365 SUPERVALU, Inc. .......................... 7.500 11/15/14 373,213
------------
5,127,622
------------
SERVICES 3.7%
2,210 Allied Waste North America, Inc. ......... 6.375 04/15/11 2,226,575
45 Allied Waste North America, Inc. ......... 7.875 04/15/13 46,687
416 Aramark Services, Inc. ................... 5.000 06/01/12 369,200
215 Aramark Services, Inc. ................... 8.500 02/01/15 220,375
60 Aramark Services, Inc. (c)................ 8.856 02/01/15 60,900
------------
2,923,737
------------
TELECOMMUNICATIONS 9.0%
861 Axtel, SA (Mexico) ....................... 11.000 12/15/13 937,198
375 Citizens Communications Co. .............. 6.250 01/15/13 367,500
500 Exodus Communications, Inc. (d) (e) (f) .. 11.250 07/01/08 0
290 Nordic Tel Co. Holdings (Denmark) (b) .... 8.875 05/01/16 307,400
1,000 Qwest Corp. .............................. 7.875 09/01/11 1,055,000
3,000 Qwest Corp. (c)........................... 8.944 06/15/13 3,217,500
815 Wind Acquisition Finance, SA
(Luxembourg) (b) ...................... 10.750 12/01/15 906,687
345 Windstream Corp. ......................... 8.125 08/01/13 364,838
------------
7,156,123
------------
TRANSPORTATION 16.1%
1,115 Arvin Meritor, Inc. ...................... 8.750 03/01/12 1,142,875
390 Asbury Automotive Group, Inc.(b) ......... 7.625 03/15/17 360,750
1,720 Ford Motor Credit Co. .................... 5.800 01/12/09 1,661,783
615 Ford Motor Credit Co. .................... 7.000 10/01/13 556,432
990 Ford Motor Credit Co. .................... 7.250 10/25/11 928,535
1,175 General Motors Acceptance Corp. .......... 4.375 12/10/07 1,169,338
2,140 General Motors Acceptance Corp. .......... 6.875 09/15/11 2,038,279
710 General Motors Corp. ..................... 7.125 07/15/13 653,200
1,225 Petro Stopping Centers, LP ............... 9.000 02/15/12 1,286,250
2,250 Sonic Automotive, Inc., Ser B ............ 8.625 08/15/13 2,233,125
730 United Auto Group, Inc. .................. 7.750 12/15/16 702,625
------------
12,733,192
------------
UTILITY 13.2%
1,275 AES Corp. ................................ 7.750 03/01/14 1,300,500
41 AES Corp. ................................ 8.875 02/15/11 42,999
127 AES Corp. ................................ 9.375 09/15/10 134,620
615 CMS Energy Corp. ......................... 6.300 02/01/12 617,640
700 CMS Energy Corp. ......................... 8.500 04/15/11 755,237
1,950 Colorado Interstate Gas Co. .............. 6.800 11/15/15 2,028,415
795 Dynegy Holdings, Inc. (b) ................ 7.750 06/01/19 764,194
800 Intergen NV (Netherlands) (b) ............ 9.000 06/30/17 844,000
465 IPALCO Enterprises, Inc. ................. 8.375 11/14/08 476,625
405 IPALCO Enterprises, Inc. ................. 8.625 11/14/11 430,312
510 Nevada Power Co., Ser A .................. 8.250 06/01/11 556,757
765 NRG Energy, Inc. ......................... 7.375 01/15/17 766,912
484 PSEG Energy Holdings ..................... 8.625 02/15/08 488,942
735 Reliant Energy, Inc. ..................... 7.875 06/15/17 743,269
315 Sierra Pacific Power Co., Ser H .......... 6.250 04/15/12 322,560
175 TXU Energy Co. ........................... 7.000 03/15/13 192,395
------------
10,465,377
------------
WIRELESS COMMUNICATIONS 5.8%
265 American Tower Corp. ..................... 7.125 10/15/12 272,288
1,425 American Tower Corp. ..................... 7.500 05/01/12 1,471,312
1,775 Nextel Communications, Inc., Ser E ....... 6.875 10/31/13 1,783,662
1,000 Rural Cellular Corp. ..................... 8.250 03/15/12 1,042,500
------------
4,569,762
------------
TOTAL CORPORATE BONDS 167.3% ............. 132,340,901
------------
COLLATERALIZED MORTGAGE OBLIGATIONS 2.9%
443 American Home Mortgage Assets (c) ........ 5.431 06/25/47 425,914
450 Countrywide Alternative Loan Trust (c) ... 5.651 10/25/46 304,222
375 Countrywide Alternative Loan Trust (c) ... 5.951 01/25/36 278,089
375 Harborview Mortgage Loan Trust (c) ....... 5.699 08/21/36 258,022
700 Lehman XS Trust (c) ...................... 6.131 03/25/47 568,750
548 Luminent Mortgage Trust (c)............... 5.491 07/25/36 432,737
------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS ........................... 2,267,734
------------
EQUITIES 0.0%
DecisionOne Corp. (5,483 Common Shares) (f) (g).... 0
Hosiery Corp. of America, Inc., Class A (1,000
Common Shares) (f) (g) ......................... 0
NEON Communications Group, Inc. (344 Common
Shares) (g) .................................... 1,686
VS Holdings, Inc. (20,207 Common Shares) (f) (g) .. 0
XO Holdings, Inc. (681 Common Shares) (g).......... 2,315
XO Holdings, Inc., Ser A (1,364 Common Stock
Warrants, expiring 01/16/10) (g) ............... 675
XO Holdings, Inc., Ser B (1,022 Common Stock
Warrants, expiring 01/16/10) (g) ............... 307
XO Holdings, Inc., Ser C (1,022 Common Stock
Warrants, expiring 01/16/10) (g) ............... 153
------------
TOTAL EQUITIES 0.0% ............................... 5,136
------------
TOTAL LONG-TERM INVESTMENTS 170.2%
(Cost $137,444,579) ............................ 134,613,771
------------
SHORT-TERM INVESTMENTS
REPURCHASE AGREEMENTS 8.4%
Banc of America Securities ($2,191,552 par
collateralized by U.S. Government obligations in
a pooled cash account, interest rate of 5.10%,
dated 09/28/07, to be sold on 10/01/07 at
$2,192,484) .................................... 2,191,552
Citigroup Global Markets, Inc. ($1,948,047 par
collateralized by U.S. Government obligations in
a pooled cash account, interest rate of 4.90%,
dated 09/28/07, to be sold on 10/01/07 at
$1,948,842) .................................... 1,948,047
State Street Bank & Trust Co. ($2,527,401 par
collateralized by U.S. Government obligations in
a pooled cash account, interest rate of 4.55%,
dated 09/28/07, to be sold on 10/01/07 at
$2,528,360) .................................... 2,527,401
------------
TOTAL REPURCHASE AGREEMENTS ....................... 6,667,000
------------
GOVERNMENT AGENCY OBLIGATIONS 0.7%
United States Treasury Bill ($600,000 par, yielding
5.011%, 01/10/08 maturity) (h) ................. 591,891
------------
TOTAL SHORT-TERM INVESTMENTS 9.1%
(Cost $7,258,891) .............................. 7,258,891
------------
TOTAL INVESTMENTS 179.3%
(Cost $144,703,470) ............................ 141,872,662
OTHER ASSETS IN EXCESS OF LIABILITIES 3.6% ........ 2,829,675
PREFERRED SHARES (INCLUDING ACCRUED
DISTRIBUTIONS) (82.9%) ......................... (65,588,596)
------------
NET ASSETS 100.0% ................................. $ 79,113,741
------------
Percentages are calculated as a percentage of net assets applicable to common
shares.
(a) Payment-in-kind security.
(b) 144A-Private Placement security which is exempt from registration under
Rule 144A of the Securities Act of 1933, as amended. This security may only
be resold in transactions exempt from registration which are normally those
transactions with qualified institutional buyers.
(c) Floating Rate Coupon
(d) Non-income producing as security is in default.
(e) This borrower has filed for protection in federal bankruptcy court.
(f) Market value is determined in accordance with procedures established in
good faith by the Board of Trustees.
(g) Non-income producing security as this stock currently does not declare
dividends.
(h) All or a portion of this security has been physically segregated in
connection with open futures contracts.
REIT - Real Estate Investment Trust
FUTURES CONTRACTS OUTSTANDING AS OF SEPTEMBER 30, 2007:
UNREALIZED
APPRECIATION/
CONTRACTS DEPRECIATION
--------- -------------
LONG CONTRACTS:
U.S. Treasury Notes 2-Year Futures, December 2007
(Current Notional Value of $207,047 per contract) ... 17 15,495
U.S. Treasury Notes 5-Year Futures, December 2007
(Current Notional Value of $107,031 per contract) ... 25 18,648
U.S. Treasury Notes 10-Year Futures, December 2007
(Current Notional Value of $109,281 per contract) ... 88 $68,768
--- -------
SHORT CONTRACTS:
U.S. Treasury Bond Futures, December 2007 (Current
Notional Value of $111,344 per contract) ............ 85 (4,305)
--- -------
215 $98,606
--- -------
SWAP AGREEMENTS OUTSTANDING AS OF SEPTEMBER 30, 2007:
CREDIT DEFAULT SWAPS
PAY/
RECEIVE NOTIONAL
BUY/SELL FIXED EXPIRATION AMOUNT UPFRONT
COUNTERPARTY REFERENCE ENTITY PROTECTION RATE DATE (000 PAYMENTS VALUE
------------ ---------------- ---------- ------- ---------- -------- --------- ---------
JP Morgan
Chase Bank, N.A. CDX.NA.HY.8 Sell 2.75% 06/20/12 $4,300 $(290,250) $(113,879)
--------- ---------
INTEREST RATE SWAPS
PAY/
RECEIVE NOTIONAL
FLOATING FLOATING FIXED EXPIRATION AMOUNT UPFRONT
COUNTERPARTY RATE INDEX RATE RATE DATE (000) PAYMENTS VALUE
------------ ------------- -------- ----- ---------- -------- --------- --------
JP Morgan
Chase Bank, N.A. USD-LIBOR BBA Pay 5.428% 08/20/17 $9,700 $ -0- $165,428
JP Morgan
Chase Bank, N.A. USD-LIBOR BBA Pay 5.361 08/24/17 8,200 -0- 96,384
--------- --------
Total Interest Rate
Swaps -0- 261,812
--------- --------
TOTAL SWAP AGREEMENTS $(290,250) $147,933
--------- --------
Item 2. Controls and Procedures.
(a) The Trust's principal executive officer and principal financial officer have
concluded that the Trust's disclosure controls and procedures are sufficient to
ensure that information required to be disclosed by the Trust in this Form N-Q
was recorded, processed, summarized and reported within the time periods
specified in the Securities and Exchange Commission's rules and forms, based
upon such officers' evaluation of these controls and procedures as of a date
within 90 days of the filing date of the report.
(b) There were no changes in the Trust's internal control over financial
reporting that occurred during the registrant's fiscal quarter that has
materially affected, or is reasonably likely to materially affect, the Trust's
internal control over financial reporting.
Item 3. Exhibits.
(a) A certification for the Principal Executive Officer of the registrant is
attached hereto as part of EX-99.cert.
(b) A certification for the Principal Financial Officer of the registrant is
attached hereto as part of EX-99.cert.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Van Kampen High Income Trust II
By: /s/ Ronald E. Robison
---------------------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: November 20, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed by the following
persons on behalf of the registrant and in the capacities and on the dates
indicated.
By: /s/ Ronald E. Robison
---------------------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: November 20, 2007
By: /s/ Stuart N. Schuldt
---------------------------------
Name: Stuart N. Schuldt
Title: Principal Financial Officer
Date: November 20, 2007