As filed with the Securities and Exchange Commission on January 5, 2023
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: 811-22396
NEUBERGER BERMAN HIGH YIELD STRATEGIES FUND INC.
(Exact Name of Registrant as specified in charter)
c/o Neuberger Berman Investment Advisers LLC
1290 Avenue of the Americas
New York, New York 10104-0002
(Address of Principal Executive Offices – Zip Code)
Joseph V. Amato
Chief Executive Officer and President
Neuberger Berman High Yield Strategies Fund Inc.
c/o Neuberger Berman Investment Advisers LLC
1290 Avenue of the Americas
New York, New York 10104-0002
Lori L. Schneider, Esq.
K&L Gates LLP
1601 K Street, N.W.
Washington, D.C. 20006-1600
(Names and Addresses of agents for service)
Registrant’s telephone number, including area code: (212) 476-8800

Date of fiscal year end: October 31
Date of reporting period: October 31, 2022
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940, as amended (“Act”) (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-1090. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Report to Stockholders.
Following is a copy of the annual report transmitted to stockholders pursuant to Rule 30e-1 under the Act.

 
Neuberger Berman
High Yield Strategies
Fund Inc.
 
Annual Report
October 31, 2022
 
 
Contents
The “Neuberger Berman” name and logo and “Neuberger Berman Investment Advisers LLC” name are registered service marks of Neuberger Berman Group LLC. The individual Fund name in this piece is either a service mark or registered service mark of Neuberger Berman Investment Advisers LLC. ©2022 Neuberger Berman Investment Advisers LLC. All rights reserved.
President’s Letter
Dear Stockholder,
I am pleased to present this annual report for Neuberger Berman High Yield Strategies Fund Inc. (the Fund) for the 12 months ended October 31, 2022 (the reporting period). The report includes a portfolio commentary, a listing of the Fund’s investments and its audited financial statements for the reporting period.
The Fund seeks high total return (income plus capital appreciation). To pursue that objective, we have assembled a portfolio that consists primarily of high yield debt securities.
As previously announced, Co-Portfolio Managers Russ Covode and Dan Doyle retired from the asset management business on June 30, 2022 and ceased their portfolio management responsibilities at that time. Co-Portfolio Managers Joseph Lind and Christopher Kocinski continue to manage the Fund with the support of Neuberger Berman’s broader Non-Investment Grade Credit team.
As previously communicated, the Fund commenced a transferable rights offering (Offer) on April 19, 2022 (Record Date), whereby the Fund issued one transferable right (Right) for each share of common stock of the Fund held by stockholders of record as of the Record Date. Holders of Rights were entitled to purchase shares of common stock by submitting three Rights and the subscription price per share for each share purchased. The final subscription price of $8.60 per share of common stock was equal to 87% of the Fund’s net asset value per share of common stock at the close of trading on the NYSE American on May 17, 2022, the expiration date of the Offer. The Offer resulted in the issuance of 4,763,981 shares of common stock and the gross proceeds of the Offer were approximately $40.9 million.
As previously communicated, on June 3, 2022, the Fund completed a private placement of $26,500,000 via a Floating Rate Senior Note (Note) with a major unaffiliated financial institution. The Note pays interest based on a floating rate and matures in September 2023. The issuance of the Note increased the amount of leverage employed by the Fund in order to bring it more in line with the Fund’s asset level following the Offer.
Thank you for your confidence in the Fund. We will continue to do our best to retain your trust in the years to come.
Sincerely,
 
Joseph V. Amato
President and CEO
Neuberger Berman High Yield Strategies Fund Inc.
1
Neuberger Berman High Yield Strategies Fund Inc.
Portfolio Commentary (Unaudited)

Neuberger Berman High Yield Strategies Fund Inc. (the Fund) generated a -21.70% total return on a net asset value (NAV) basis for the 12 months ended October 31, 2022 (the reporting period), underperforming its benchmark, the ICE BofA U.S. High Yield Constrained Index (the Index), which provided a -11.45% total return for the same period. (Fund performance on a market price basis is provided in the table immediately following this commentary.) The use of leverage (typically a performance enhancer in up markets and a detractor during market retreats) detracted from the Fund’s performance during the reporting period.
The overall high yield market, as measured by the Index, generated weak results during the reporting period. The U.S. Federal Reserve Board (Fed) initially characterized rising inflation as being “transitory,” however this was not the case. Robust consumer spending, supply chain bottlenecks, a tight labor market, repercussions from the war in Ukraine, and other factors combined to push U.S. inflation to a 40-year high. Against this backdrop, the Fed began an aggressive rate hike campaign in March 2022, which we expect to continue until inflation is under control, possibly leading to a recession. U.S. credit spreads significantly widened due to periods of risk aversion and the Fed’s monetary tightening campaign.
From a sector perspective, security selection within media-cable, security selection within and an overweight to real estate & homebuilders versus the Index, and security selection within and an overweight to technology & electronics were the worst performers. In contrast, security selection within and an overweight to gas distribution, security selection within diversified financial services, and security selection within and an underweight to healthcare were the top performers.
In terms of the Fund's portfolio credit quality, an overweight to non-rated, and overweight to CCC and below versus the Index were the worst performers. Conversely, security selection within CCC and below, security selection within and an underweight to BB, an overweight to and security selection within B were the best performers.
The Fund’s use of swap contracts contributed positively to performance during the reporting period.
As it became increasingly clear that the Fed would have to become more aggressive with tightening monetary policy, we selectively increased the Fund’s exposure to shorter duration BB and B rated issuers, while reducing exposure to CCC and below rated issuers. As credit spreads widened over the reporting period, we subsequently looked to decrease the Fund’s exposure to higher beta1 (risk) issuers, particularly in the CCC and below credit tier.
Looking ahead, we believe current high yield valuations offer investors an attractive opportunity, especially given our below average default outlook. While the tightening of financial conditions, still-elevated inflation and challenging news out of Europe have been creating incremental volatility, real growth is slowing but still positive, with supply chains mostly back to normal. We see these factors acting to mitigate inflationary pressures, which could eventually lead to a less aggressive path for Fed policy. In our view, healthy consumer and business balance sheets, growing nominal gross domestic product and solid job growth should remain supportive for issuer fundamentals. While inventories are building as a result of slowing demand, we remain focused on sector dynamics and idiosyncratic risks to individual issuers. Despite short-term volatility resulting from heightened uncertainty in commodity prices, central bank tightening and negative news flow out of Europe, we believe our bottom-up, fundamental credit research that focuses on security selection, avoiding credit deterioration, and putting only our “best ideas” into portfolios, will position us well to take advantage of the increased volatility.
Sincerely,
Joe Lind and Chris Kocinski
Portfolio Co-Managers
1 Beta is a measure of the systematic risk of a portfolio. It is the covariance of the portfolio and a market index divided by the variance of the market index. Beta measures the historical sensitivity of a portfolio's returns to movements in the market index. The beta of the market index
2
will always be one. A portfolio with a beta above the market index (i.e. ˃1) means that the portfolio has greater volatility than the market index. If the beta of the portfolio is 1.2, a market increase in return of 1% implies a 1.2% increase in the portfolio's return. If the beta of the portfolio is 0.8, a market decrease in return of 1% implies a 0.8% decrease in the portfolio's return.
The portfolio composition, industries and holdings of the Fund are subject to change without notice.
The opinions expressed are those of the Fund's portfolio managers. The opinions are as of the date of this report and are subject to change without notice.
The value of securities owned by the Fund, as well as the market value of shares of the Fund’s common stock, may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Fund; conditions affecting the general economy; overall market changes; local, regional, national or global political, social or economic instability; regulatory or legislative developments; price, currency and interest rate fluctuations, including those resulting from changes in central bank policies; and changes in investor sentiment.
The performance of certain rated bonds within the Index, as noted above, represent issues that are rated Baa1/BBB+ through Baa3/BBB-, Ba1/BB+ through Ba3/BB-, B1/B+ through B3/B- and Caa1/CCC+ or lower, based on an average of Moody’s, S&P Global and Fitch, as calculated by ICE BofA.
3
High Yield Strategies Fund Inc. (Unaudited)
 
TICKER SYMBOL
High Yield Strategies Fund Inc.
NHS
 
PORTFOLIO BY MATURITY DISTRIBUTION
(as a % of Total Investments*)
Less than One Year
0.0%
One to less than Five Years
36.5
Five to less than Ten Years
59.7
Ten Years or Greater
3.8
Total
100.0%
 
*
Does not include Short-Term Investments or
the impact of the Fund’s open positions in
derivatives, if any.
 
PERFORMANCE HIGHLIGHTS1
 
Inception
Date
Average Annual Total Return
Ended 10/31/2022
 
1 Year
5 Years
10 Years
Life of Fund
At NAV2
 
 
 
 
 
High Yield
Strategies
Fund Inc.
07/28/2003
-21.70%
0.27%
3.86%
7.35%
At Market
Price3
 
 
 
 
 
High Yield
Strategies
Fund Inc.
07/28/2003
-30.34%
1.24%
3.20%
6.80%
Index
 
 
 
 
 
ICE BofA
U.S. High
Yield
Constrained
Index4
 
-11.45%
1.88%
4.06%
6.42%
Listed closed-end funds, unlike open-end funds, are not continually offered. Generally, there is an initial public offering and, once issued, shares of common stock of closed-end funds are sold in the secondary market on a stock exchange.
The performance data quoted represent past performance and do not indicate future results. Current performance may be lower or higher than the performance data quoted. For current performance data, please visit www. nb.com/cef-performance.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a stockholder would pay on Fund distributions or on the sale of shares of the Fund’s common stock.
The investment return and market price will fluctuate and shares of the Fund’s common stock may trade at prices above or below NAV. Shares of the Fund’s common stock, when sold, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Investment Advisers LLC (“NBIA”) had not waived certain expenses during certain of the periods shown. The waived fees are from prior years that are no longer disclosed in the Financial Highlights.
4
High Yield Strategies Fund Inc. (Unaudited)
COMPARISON OF A $10,000 INVESTMENT
 
This graph shows the change in value of a hypothetical $10,000 investment in the Fund over the past 10 fiscal years. The graph is based on the Fund’s shares of common stock both at net asset value (NAV) and at market price. The Fund’s common stock may trade at market prices above or below NAV per share (see Performance Highlights chart). The result is compared with a broad-based market index. The market index has not been reduced to reflect any of the fees and costs of investing. The results shown in the graph reflect the reinvestment of income dividends and other distributions, if any, at prices obtained under the Fund’s Distribution Reinvestment Plan. The results do not reflect the effect of taxes a stockholder would pay on Fund distributions or on the sale of Fund shares. Results represent past performance and do not indicate future results.
Impact of the Fund’s Distribution Policy
The Fund has a practice of seeking to maintain a relatively stable level of distributions to common stockholders. In general, this practice does not affect the Fund’s investment strategy and may reduce the Fund’s NAV. Management believes the practice helps maintain the Fund’s competitiveness and may benefit the Fund’s market price and its premium/discount to the Fund’s NAV per share. During the 12-month period ended October 31, 2022, the Fund made distributions to common stockholders totaling $1.09 per share, of which $0.28 will be treated as a return of capital for tax purposes.
5
Endnotes (Unaudited)
 
1
The performance information for periods prior to August 6, 2010 is that of a predecessor fund (Neuberger
Berman High Yield Strategies Fund).
2
Returns based on the NAV of the Fund.
3
Returns based on the market price of shares of the Fund’s common stock on the NYSE American.
4
Please see “Description of Index” on page 7 for a description of the index.
For more complete information on Neuberger Berman High Yield Strategies Fund Inc., call Neuberger Berman Investment Advisers LLC at (877) 461-1899, or visit our website at www.nb.com. 
6
Description of Index (Unaudited)
 
ICE BofA U.S. High Yield
Constrained Index:
The index tracks the performance of U.S. dollar-denominated, below investment
grade corporate debt publicly issued in the U.S. domestic market. In addition to
meeting other criteria, qualifying securities must have a below investment grade
rating (based on an average of Moody’s, S&P and Fitch ratings) and have risk exposure
to countries that are members of the FX-G10, Western Europe or territories of the
U.S. and Western Europe. Securities in legal default are excluded from the index.
Index constituents are capitalization-weighted, provided the total allocation to an
individual issuer does not exceed 2%. Transaction costs will be incorporated into the
calculation of total return for ICE fixed income indices beginning in July 2022.
Please note that the index does not take into account any fees and expenses or any tax consequences of investing in the individual securities that it tracks and that individuals cannot invest directly in any index. Data about the performance of this index are prepared or obtained by NBIA and include reinvestment of all income dividends and other distributions, if any. The Fund may invest in securities not included in the above described index and generally does not invest in all securities included in the index.
7
Legend October 31, 2022 (Unaudited)
Neuberger Berman High Yield Strategies Fund Inc. 
Benchmarks:
CME Term SOFR
= CME Group, Inc. Term Secured Overnight Financing Rate
LIBOR
= London Interbank Offered Rate
SOFR
= Secured Overnight Financing Rate
Clearinghouses:
CME
= CME Group, Inc.
Index Periods/Payment Frequencies:
1M
= 1 Month
3M
= 3 Months
6M
= 6 Months
Other Abbreviations:
Management or NBIA
= Neuberger Berman Investment Advisers LLC
Currency Abbreviations:
USD
= United States Dollar
8
Schedule of Investments High Yield Strategies Fund Inc.^
October 31, 2022
 
Principal Amount
Value
Asset-Backed Securities 1.4%
$    500,000
Ares LIV CLO Ltd., Ser. 2019-54A, Class E, (3M USD LIBOR + 7.34%), 11.42%, due 10/15/2032
$    422,396(a)(b)
   250,000
Barings CLO Ltd., Ser. 2017-1A, Class E, (3M USD LIBOR + 6.00%), 10.19%, due 7/18/2029
    209,971(a)(b)
   350,000
Cedar Funding X CLO Ltd., Ser. 2019-10A, Class ER, (3M USD LIBOR + 6.50%), 10.74%, due
10/20/2032
    297,888(a)(b)
   250,000
Crown City CLO II, Ser. 2020-2A, Class DR, (3M CME Term SOFR + 7.11%), 11.07%, due 4/20/2035
    208,226(a)(b)
 1,000,000
TSTAT 2022-1 Ltd., Ser. 2022-1A, Class E, (3M CME Term SOFR + 8.50%), 11.05%, due 7/20/2031
    934,378(a)(b)
   250,000
Voya CLO Ltd., Ser. 2019-2A, Class E, (3M USD LIBOR + 6.60%), 10.84%, due 7/20/2032
    213,038(a)(b)
Total Asset-Backed Securities (Cost $2,518,927)
2,285,897
 
Corporate Bonds 145.5%
Advertising 0.7%
 1,290,000
Cars.com, Inc., 6.38%, due 11/1/2028
1,117,759(a)
Aerospace & Defense 1.0%
 
TransDigm, Inc.
 
   505,000
7.50%, due 3/15/2027
    497,617
 1,310,000
5.50%, due 11/15/2027
  1,194,982
 
 
1,692,599
Air Transportation 5.7%
   515,000
Air Canada, 3.88%, due 8/15/2026
    455,682(a)
   300,000
American Airlines Group, Inc., 3.75%, due 3/1/2025
    263,958(a)
 
American Airlines, Inc./AAdvantage Loyalty IP Ltd.
 
 3,855,000
5.50%, due 4/20/2026
  3,671,200(a)
 1,545,000
5.75%, due 4/20/2029
  1,405,950(a)
 
Latam Airlines Group SA
 
   420,000
13.38%, due 10/15/2027
    412,650(a)
   335,000
13.38%, due 10/15/2029
    333,325(a)
 
United Airlines, Inc.
 
   400,000
4.38%, due 4/15/2026
    365,063(a)
   435,000
4.63%, due 4/15/2029
    372,051(a)
 
VistaJet Malta Finance PLC/XO Management Holding, Inc.
 
 1,715,000
7.88%, due 5/1/2027
  1,545,984(a)
   935,000
6.38%, due 2/1/2030
    776,373(a)
 
 
9,602,236
Auto Loans 0.8%
 
Ford Motor Credit Co. LLC
 
   590,000
4.06%, due 11/1/2024
    565,662
   725,000
4.39%, due 1/8/2026
    668,950
    70,000
4.13%, due 8/17/2027
     62,164
 
 
1,296,776
Auto Parts & Equipment 2.2%
   460,000
Adient Global Holdings Ltd., 4.88%, due 8/15/2026
    411,700(a)
   475,000
Dana, Inc., 4.50%, due 2/15/2032
    363,178
   715,000
Dealer Tire LLC/DT Issuer LLC, 8.00%, due 2/1/2028
    625,338(a)
 
Goodyear Tire & Rubber Co.
 
 1,070,000
5.00%, due 7/15/2029
    927,851
   285,000
5.63%, due 4/30/2033
    238,569
See Notes to Financial Statements
9
Schedule of Investments High Yield Strategies Fund Inc.^  (cont’d)
Principal Amount
Value
 
Auto Parts & Equipment – cont'd
 
Tenneco, Inc.
 
$    730,000
5.38%, due 12/15/2024
$    727,854
   475,000
7.88%, due 1/15/2029
    469,255(a)
 
 
3,763,745
Automakers 1.8%
 
Ford Motor Co.
 
   845,000
9.63%, due 4/22/2030
    943,272
   395,000
4.75%, due 1/15/2043
    275,102
 1,860,000
7.40%, due 11/1/2046
  1,712,632
   225,000
Jaguar Land Rover Automotive PLC, 5.88%, due 1/15/2028
    166,436(a)
 
 
3,097,442
Banking 0.9%
   450,000
Bank of America Corp., Ser. TT, 6.13%, due 4/27/2027
    425,250(c)(d)
   505,000
JPMorgan Chase & Co., Ser. HH, 4.60%, due 2/1/2025
    450,662(c)(d)
   375,000
PNC Financial Services Group, Inc., Ser. T, 3.40%, due 9/15/2026
    279,844(c)(d)
   290,000
Truist Financial Corp., Ser. P, 4.95%, due 9/1/2025
    277,675(c)(d)
 
 
1,433,431
Building & Construction 1.3%
 1,265,000
Global Infrastructure Solutions, Inc., 7.50%, due 4/15/2032
    936,114(a)
   755,000
KB Home, 7.25%, due 7/15/2030
    697,431
 
Mattamy Group Corp.
 
   160,000
5.25%, due 12/15/2027
    136,712(a)
   155,000
4.63%, due 3/1/2030
    120,861(a)
   280,000
Shea Homes L.P./Shea Homes Funding Corp., 4.75%, due 4/1/2029
    228,262(a)
 
 
2,119,380
Building Materials 4.4%
   525,000
Advanced Drainage Systems, Inc., 6.38%, due 6/15/2030
    507,355(a)
   565,000
Builders FirstSource, Inc., 6.38%, due 6/15/2032
    519,631(a)
 1,050,000
Camelot Return Merger Sub, Inc., 8.75%, due 8/1/2028
    874,125(a)
 1,790,000
Cornerstone Building Brands, Inc., 6.13%, due 1/15/2029
  1,118,750(a)
 2,375,000
Jeld-Wen, Inc., 4.88%, due 12/15/2027
  1,771,465(a)
 1,275,000
Masonite Int'l Corp., 5.38%, due 2/1/2028
  1,167,211(a)
   665,000
MIWD Holdco II LLC/MIWD Finance Corp., 5.50%, due 2/1/2030
    512,934(a)
 
Standard Industries, Inc.
 
   305,000
4.75%, due 1/15/2028
    267,256(a)
   905,000
4.38%, due 7/15/2030
    731,738(a)
 
 
7,470,465
Cable & Satellite Television 6.4%
 
CCO Holdings LLC/CCO Holdings Capital Corp.
 
   645,000
5.00%, due 2/1/2028
    583,725(a)
 1,145,000
5.38%, due 6/1/2029
  1,022,920(a)
   890,000
6.38%, due 9/1/2029
    820,122(a)
   865,000
4.50%, due 8/15/2030
    701,999(a)
   570,000
4.25%, due 2/1/2031
    450,300(a)
 1,355,000
Charter Communications Operating LLC/Charter Communications Operating Capital, 3.90%, due
6/1/2052
    839,073
See Notes to Financial Statements
10
Schedule of Investments High Yield Strategies Fund Inc.^  (cont’d)
Principal Amount
Value
 
Cable & Satellite Television – cont'd
 
CSC Holdings LLC
 
$    715,000
7.50%, due 4/1/2028
$    619,455(a)
   535,000
6.50%, due 2/1/2029
    504,238(a)
 4,610,000
5.75%, due 1/15/2030
  3,526,650(a)
   725,000
4.63%, due 12/1/2030
    521,835(a)
   710,000
DISH DBS Corp., 5.13%, due 6/1/2029
    476,870
 
Radiate Holdco LLC/Radiate Finance, Inc.
 
   580,000
4.50%, due 9/15/2026
    490,100(a)
   245,000
6.50%, due 9/15/2028
    154,350(a)
 
 
10,711,637
Chemicals 5.2%
   675,000
Avient Corp., 7.13%, due 8/1/2030
    645,482(a)
   370,000
Cheever Escrow Issuer LLC, 7.13%, due 10/1/2027
    339,660(a)
   325,000
Illuminate Buyer LLC/Illuminate Holdings IV, Inc., 9.00%, due 7/1/2028
    274,479(a)
 
NOVA Chemicals Corp.
 
    65,000
5.00%, due 5/1/2025
     61,905(a)
   736,000
5.25%, due 6/1/2027
    656,939(a)
 
Olympus Water U.S. Holding Corp.
 
   700,000
4.25%, due 10/1/2028
    568,269(a)
   615,000
6.25%, due 10/1/2029
    425,860(a)
 1,180,000
PMHC II, Inc., 9.00%, due 2/15/2030
    777,500(a)
 
SCIH Salt Holdings, Inc.
 
 1,175,000
4.88%, due 5/1/2028
  1,019,894(a)
 1,015,000
6.63%, due 5/1/2029
    814,683(a)
   400,000
SCIL IV LLC/SCIL USA Holdings LLC, 5.38%, due 11/1/2026
    317,972(a)
   635,000
Tronox, Inc., 4.63%, due 3/15/2029
    490,405(a)
 3,070,000
WR Grace Holdings LLC, 5.63%, due 8/15/2029
  2,373,049(a)
 
 
8,766,097
Consumer - Commercial Lease Financing 3.5%
   715,000
AerCap Global Aviation Trust, 6.50%, due 6/15/2045
    652,437(a)(c)
   290,000
Ally Financial, Inc., 5.75%, due 11/20/2025
    279,842
 3,084,067
Global Aircraft Leasing Co. Ltd., 6.50% Cash/7.25% PIK, due 9/15/2024
  2,476,253(a)(e)
   435,000
OneMain Finance Corp., 3.88%, due 9/15/2028
    338,735
 
Springleaf Finance Corp.
 
   495,000
6.88%, due 3/15/2025
    480,150
   895,000
7.13%, due 3/15/2026
    861,885
   860,000
6.63%, due 1/15/2028
    781,250
 
 
5,870,552
Diversified Capital Goods 0.5%
 1,000,000
Resideo Funding, Inc., 4.00%, due 9/1/2029
820,000(a)
Electric - Generation 5.8%
 
Calpine Corp.
 
   420,000
5.13%, due 3/15/2028
    372,378(a)
   930,000
4.63%, due 2/1/2029
    781,409(a)
 3,490,000
5.00%, due 2/1/2031
  2,948,782(a)
   450,000
Leeward Renewable Energy Operations LLC, 4.25%, due 7/1/2029
    364,500(a)
 
NRG Energy, Inc.
 
   515,000
5.25%, due 6/15/2029
    467,362(a)
   595,000
3.63%, due 2/15/2031
    473,483(a)
See Notes to Financial Statements
11
Schedule of Investments High Yield Strategies Fund Inc.^  (cont’d)
Principal Amount
Value
 
Electric - Generation – cont'd
$ 1,765,000
Sunnova Energy Corp., 5.88%, due 9/1/2026
$  1,553,200(a)
 1,940,000
Vistra Corp., 7.00%, due 12/15/2026
  1,716,133(a)(c)(d)
 1,240,000
Vistra Operations Co. LLC, 4.38%, due 5/1/2029
  1,060,541(a)
 
 
9,737,788
Electric - Integrated 0.0%(f)
     3,000
FirstEnergy Corp., Ser. C, 5.35%, due 7/15/2047
2,475(g)
Electronics 1.3%
 1,560,000
Clarios Global L.P./Clarios U.S. Finance Co., 8.50%, due 5/15/2027
  1,528,800(a)
   167,000
Panther BF Aggregator 2 L.P./Panther Finance Co., Inc., 6.25%, due 5/15/2026
    161,573(a)
   555,000
Sensata Technologies BV, 5.88%, due 9/1/2030
    527,250(a)
 
 
2,217,623
Energy - Exploration & Production 5.8%
 
Ascent Resources Utica Holdings LLC/ARU Finance Corp.
 
   915,000
7.00%, due 11/1/2026
    901,275(a)
   190,000
9.00%, due 11/1/2027
    231,800(a)
   755,000
8.25%, due 12/31/2028
    728,575(a)
   600,000
5.88%, due 6/30/2029
    526,500(a)
 
Callon Petroleum Co.
 
   250,000
8.00%, due 8/1/2028
    249,078(a)
   430,000
7.50%, due 6/15/2030
    408,414(a)
   740,000
Chesapeake Energy Corp., 6.75%, due 4/15/2029
    724,810(a)
   895,000
Colgate Energy Partners III LLC, 5.88%, due 7/1/2029
    834,373(a)
 
Comstock Resources, Inc.
 
 1,027,000
6.75%, due 3/1/2029
    983,353(a)
   970,000
5.88%, due 1/15/2030
    875,347(a)
 
Hilcorp Energy I L.P./Hilcorp Finance Co.
 
   520,000
6.25%, due 11/1/2028
    488,800(a)
   338,000
5.75%, due 2/1/2029
    309,270(a)
   373,000
6.00%, due 2/1/2031
    338,471(a)
   825,000
Northern Oil and Gas, Inc., 8.13%, due 3/1/2028
    800,250(a)
 1,040,000
PDC Energy, Inc., 5.75%, due 5/15/2026
    997,006
   310,000
Rockcliff Energy II LLC, 5.50%, due 10/15/2029
    276,095(a)
 
 
9,673,417
Environmental 0.2%
   405,000
GFL Environmental, Inc., 4.38%, due 8/15/2029
343,023(a)
Food - Wholesale 2.0%
 
Performance Food Group, Inc.
 
 1,390,000
5.50%, due 10/15/2027
  1,313,856(a)
   525,000
4.25%, due 8/1/2029
    444,770(a)
 
U.S. Foods, Inc.
 
 1,365,000
4.75%, due 2/15/2029
  1,209,731(a)
   460,000
4.63%, due 6/1/2030
    399,059(a)
 
 
3,367,416
See Notes to Financial Statements
12
Schedule of Investments High Yield Strategies Fund Inc.^  (cont’d)
Principal Amount
Value
 
Food & Drug Retailers 0.4%
 
Albertsons Cos., Inc./Safeway, Inc./New Albertsons LP/Albertsons LLC
 
$    350,000
3.50%, due 3/15/2029
$    289,625(a)
   330,000
4.88%, due 2/15/2030
    292,875(a)
 
 
582,500
Forestry & Paper 0.3%
   605,000
Ahlstrom-Munksjo Holding 3 Oy, 4.88%, due 2/4/2028
481,649(a)
Gaming 2.8%
 
Caesars Entertainment, Inc.
 
 1,880,000
8.13%, due 7/1/2027
  1,828,300(a)
   460,000
4.63%, due 10/15/2029
    368,000(a)
   400,000
Everi Holdings, Inc., 5.00%, due 7/15/2029
    348,500(a)
   305,000
Midwest Gaming Borrower LLC, 4.88%, due 5/1/2029
    257,920(a)
   730,000
SC Games Holdings L.P./U.S. FinCo LLC, 6.63%, due 3/1/2030
    627,348(a)
 1,140,000
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 5.50%, due 3/1/2025
  1,078,987(a)
   345,000
Wynn Resorts Finance LLC/Wynn Resorts Capital Corp., 5.13%, due 10/1/2029
    274,435(a)
 
 
4,783,490
Gas Distribution 14.3%
 1,380,000
Antero Midstream Partners L.P./Antero Midstream Finance Corp., 7.88%, due 5/15/2026
  1,407,600(a)
 
Buckeye Partners L.P.
 
   910,000
4.13%, due 12/1/2027
    790,462
   140,000
4.50%, due 3/1/2028
    121,450(a)
   560,000
5.85%, due 11/15/2043
    420,180
   720,000
5.60%, due 10/15/2044
    532,800
    70,000
Crestwood Midstream Partners L.P./Crestwood Midstream Finance Corp., 5.63%, due 5/1/2027
     65,840(a)
   920,000
DCP Midstream LLC, 5.85%, due 5/21/2043
    890,157(a)(c)
   465,000
DCP Midstream Operating L.P., 5.60%, due 4/1/2044
    407,526
   525,000
EnLink Midstream LLC, 6.50%, due 9/1/2030
    515,813(a)
 
EnLink Midstream Partners L.P.
 
    35,000
5.60%, due 4/1/2044
     27,285
    85,000
5.05%, due 4/1/2045
     61,720
   140,000
5.45%, due 6/1/2047
    106,371
 
EQM Midstream Partners L.P.
 
 1,000,000
7.50%, due 6/1/2027
    987,500(a)
   705,000
6.50%, due 7/1/2027
    687,375(a)
   320,000
4.50%, due 1/15/2029
    272,000(a)
   710,000
7.50%, due 6/1/2030
    690,475(a)
 
EQT Midstream Partners L.P.
 
   450,000
4.13%, due 12/1/2026
    397,637
 1,815,000
5.50%, due 7/15/2028
  1,621,031
 
Genesis Energy L.P./Genesis Energy Finance Corp.
 
   165,000
6.50%, due 10/1/2025
    158,221
   270,000
6.25%, due 5/15/2026
    252,635
   275,000
8.00%, due 1/15/2027
    266,211
 1,055,000
7.75%, due 2/1/2028
  1,006,206
 1,425,000
Harvest Midstream I L.P., 7.50%, due 9/1/2028
  1,366,177(a)
   610,000
Howard Midstream Energy Partners LLC, 6.75%, due 1/15/2027
    553,430(a)
 1,005,000
ITT Holdings LLC, 6.50%, due 8/1/2029
    807,523(a)
   495,000
Kinetik Holdings L.P., 5.88%, due 6/15/2030
    464,396(a)
See Notes to Financial Statements
13
Schedule of Investments High Yield Strategies Fund Inc.^  (cont’d)
Principal Amount
Value
 
Gas Distribution – cont'd
 
New Fortress Energy, Inc.
 
$ 1,215,000
6.75%, due 9/15/2025
$  1,192,773(a)
 1,590,000
6.50%, due 9/30/2026
  1,542,300(a)
   400,000
NuStar Logistics L.P., 5.75%, due 10/1/2025
    385,693
   550,000
Solaris Midstream Holdings LLC, 7.63%, due 4/1/2026
    523,875(a)
   660,000
Summit Midstream Holdings LLC, 8.50%, due 10/15/2026
    633,600(h)(i)(j)
 
Summit Midstream Holdings LLC/Summit Midstream Finance Corp.
 
   585,000
5.75%, due 4/15/2025
    489,938
 1,015,000
8.50%, due 10/15/2026
    974,400(a)
 
Tallgrass Energy Partners L.P./Tallgrass Energy Finance Corp.
 
   375,000
7.50%, due 10/1/2025
    378,731(a)
 1,205,000
6.00%, due 3/1/2027
  1,137,124(a)
   525,000
5.50%, due 1/15/2028
    470,736(a)
   405,000
6.00%, due 12/31/2030
    366,614(a)
 1,125,000
6.00%, due 9/1/2031
  1,001,411(a)
 
 
23,975,216
Health Facilities 1.2%
 
CHS/Community Health Systems, Inc.
 
   422,000
8.00%, due 12/15/2027
    341,664(a)
     5,000
6.00%, due 1/15/2029
      3,712(a)
   460,000
5.25%, due 5/15/2030
    318,550(a)
   480,000
4.75%, due 2/15/2031
    321,566(a)
   825,000
HCA, Inc., 3.50%, due 7/15/2051
    513,908
   630,000
Tenet Healthcare Corp., 6.13%, due 10/1/2028
    545,265(a)
 
 
2,044,665
Health Services 1.7%
   595,000
Consensus Cloud Solutions, Inc., 6.50%, due 10/15/2028
    525,195(a)
 
DaVita, Inc.
 
   725,000
4.63%, due 6/1/2030
    565,228(a)
   780,000
3.75%, due 2/15/2031
    563,964(a)
   580,000
Envision Healthcare Corp., 8.75%, due 10/15/2026
    174,000(a)
   700,000
Team Health Holdings, Inc., 6.38%, due 2/1/2025
    528,500(a)
   585,000
U.S. Acute Care Solutions LLC, 6.38%, due 3/1/2026
    530,402(a)
 
 
2,887,289
Insurance Brokerage 4.6%
 
Alliant Holdings Intermediate LLC/Alliant Holdings Co-Issuer
 
 2,640,000
6.75%, due 10/15/2027
  2,409,000(a)
   505,000
5.88%, due 11/1/2029
    425,477(a)
 1,025,000
AmWINS Group, Inc., 4.88%, due 6/30/2029
    876,212(a)
 
AssuredPartners, Inc.
 
    10,000
7.00%, due 8/15/2025
      9,582(a)
   995,000
5.63%, due 1/15/2029
    818,388(a)
 1,275,000
BroadStreet Partners, Inc., 5.88%, due 4/15/2029
  1,023,281(a)
 1,850,000
GTCR AP Finance, Inc., 8.00%, due 5/15/2027
  1,762,465(a)
   430,000
Ryan Specialty Group LLC, 4.38%, due 2/1/2030
    367,650(a)
 
 
7,692,055
Investments & Misc. Financial Services 1.5%
   320,000
Bank of New York Mellon Corp., Ser. H, 3.70%, due 3/20/2026
    279,812(c)(d)
 1,760,000
CQP Holdco L.P./BIP-V Chinook Holdco LLC, 5.50%, due 6/15/2031
  1,562,000(a)
See Notes to Financial Statements
14
Schedule of Investments High Yield Strategies Fund Inc.^  (cont’d)
Principal Amount
Value
 
Investments & Misc. Financial Services – cont'd
$    280,000
MoneyGram Int'l, Inc., 5.38%, due 8/1/2026
$    274,975(a)
   535,000
MSCI, Inc., 4.00%, due 11/15/2029
    464,551(a)
 
 
2,581,338
Machinery 3.0%
 
Granite U.S. Holdings Corp.
 
   775,000
11.00%, due 10/1/2027
    724,625(a)
   670,000
11.00%, due 10/1/2027
    626,450(k)
   300,000
Harsco Corp., 5.75%, due 7/31/2027
    212,895(a)
 1,100,000
Shea Homes L.P./Shea Homes Funding Corp., 4.75%, due 2/15/2028
    927,839(a)
 1,380,000
SPX FLOW, Inc., 8.75%, due 4/1/2030
  1,121,250(a)
 1,010,000
Terex Corp., 5.00%, due 5/15/2029
    900,971(a)
   410,000
TK Elevator Holdco GmbH, 7.63%, due 7/15/2028
    338,875(a)
   265,000
Vertical U.S. Newco, Inc., 5.25%, due 7/15/2027
    237,506(a)
 
 
5,090,411
Managed Care 2.2%
   170,000
HealthEquity, Inc., 4.50%, due 10/1/2029
    148,538(a)
   880,000
Molina Healthcare, Inc., 3.88%, due 5/15/2032
    733,920(a)
 
MPH Acquisition Holdings LLC
 
   620,000
5.50%, due 9/1/2028
    535,215(a)
 3,050,000
5.75%, due 11/1/2028
  2,356,125(a)
 
 
3,773,798
Media Content 2.4%
   360,000
iHeartCommunications, Inc., 6.38%, due 5/1/2026
    342,965
   960,000
Lions Gate Capital Holdings LLC, 5.50%, due 4/15/2029
    728,630(a)
 
Sirius XM Radio, Inc.
 
 2,550,000
5.50%, due 7/1/2029
  2,351,865(a)
   690,000
3.88%, due 9/1/2031
    552,000(a)
 
 
3,975,460
Medical Products 0.7%
 
Medline Borrower L.P.
 
   710,000
3.88%, due 4/1/2029
    580,070(a)
   835,000
5.25%, due 10/1/2029
    650,256(a)
 
 
1,230,326
Metals - Mining Excluding Steel 4.0%
 3,160,000
Century Aluminum Co., 7.50%, due 4/1/2028
  2,711,154(a)
 
First Quantum Minerals Ltd.
 
   965,000
6.88%, due 3/1/2026
    905,556(a)
 1,275,000
6.88%, due 10/15/2027
  1,185,530(a)
 
FMG Resources August 2006 Pty Ltd.
 
   655,000
5.88%, due 4/15/2030
    587,731(a)
   625,000
6.13%, due 4/15/2032
    548,500(a)
 
Hudbay Minerals, Inc.
 
   415,000
4.50%, due 4/1/2026
    364,065(a)
   560,000
6.13%, due 4/1/2029
    463,400(a)
 
 
6,765,936
Oil Field Equipment & Services 0.3%
   550,000
Nabors Industries, Inc., 7.38%, due 5/15/2027
540,359(a)
See Notes to Financial Statements
15
Schedule of Investments High Yield Strategies Fund Inc.^  (cont’d)
Principal Amount
Value
 
Packaging 4.7%
 
Ardagh Metal Packaging Finance USA LLC/Ardagh Metal Packaging Finance PLC
 
$    555,000
6.00%, due 6/15/2027
$    532,561(a)
    45,000
4.00%, due 9/1/2029
     34,137(a)
 1,940,000
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc., 5.25%, due 8/15/2027
  1,362,850(a)
   515,000
BWAY Holding Co., 7.25%, due 4/15/2025
    463,550(a)
    10,000
Canpack SA/Canpack US LLC, 3.13%, due 11/1/2025
      8,678(a)
 1,545,000
Graham Packaging Co., Inc., 7.13%, due 8/15/2028
  1,266,303(a)
   445,000
Intelligent Packaging Ltd. Finco, Inc./Intelligent Packaging Ltd. Co-Issuer LLC, 6.00%, due 9/15/2028
    331,052(a)
   410,000
Pactiv Evergreen Group Issuer LLC/Pactiv Evergreen Group Issuer, Inc., 4.38%, due 10/15/2028
    358,750(a)
    50,000
Pactiv Evergreen Group Issuer, Inc./Pactiv Evergreen Group Issuer LLC/Reynolds Group Issuer, Inc.,
4.00%, due 10/15/2027
     44,250(a)
 1,495,000
Trident TPI Holdings, Inc., 9.25%, due 8/1/2024
  1,394,374(a)
 
Trivium Packaging Finance BV
 
   540,000
5.50%, due 8/15/2026
    496,638(a)
 1,765,000
8.50%, due 8/15/2027
  1,659,473(a)
 
 
7,952,616
Personal & Household Products 0.7%
   245,000
CD&R Smokey Buyer, Inc., 6.75%, due 7/15/2025
    232,907(a)
   335,000
Diamond BC BV, 4.63%, due 10/1/2029
    246,094(a)
   860,000
Energizer Holdings, Inc., 4.75%, due 6/15/2028
    714,075(a)
 
 
1,193,076
Pharmaceuticals 0.5%
   335,000
Grifols Escrow Issuer SA, 4.75%, due 10/15/2028
    261,719(a)
   590,000
Organon & Co./Organon Foreign Debt Co-Issuer BV, 5.13%, due 4/30/2031
    501,069(a)
 
 
762,788
Printing & Publishing 0.6%
 
McGraw-Hill Ed., Inc.
 
   500,000
5.75%, due 8/1/2028
    440,250(a)
   745,000
8.00%, due 8/1/2029
    634,181(a)
 
 
1,074,431
Real Estate Development & Management 2.4%
 
Realogy Group LLC/Realogy Co-Issuer Corp.
 
 3,811,000
5.75%, due 1/15/2029
  2,739,156(a)
 1,740,000
5.25%, due 4/15/2030
  1,206,551(a)
 
 
3,945,707
Real Estate Investment Trusts 5.1%
 1,065,000
American Finance Trust, Inc./American Finance Operating Partner L.P., 4.50%, due 9/30/2028
    777,450(a)
 
Hospitality Properties Trust
 
   358,000
4.35%, due 10/1/2024
    328,744
   500,000
4.95%, due 2/15/2027
    404,780
   115,000
3.95%, due 1/15/2028
     84,528
 
Iron Mountain, Inc.
 
 2,605,000
5.25%, due 3/15/2028
  2,396,600(a)
   245,000
5.00%, due 7/15/2028
    219,177(a)
 1,430,000
4.88%, due 9/15/2029
  1,229,442(a)
   905,000
5.63%, due 7/15/2032
    775,920(a)
 1,120,000
RHP Hotel Properties L.P./RHP Finance Corp., 4.75%, due 10/15/2027
  1,033,805
   650,000
RLJ Lodging Trust L.P., 4.00%, due 9/15/2029
    544,635(a)
See Notes to Financial Statements
16
Schedule of Investments High Yield Strategies Fund Inc.^  (cont’d)
Principal Amount
Value
 
Real Estate Investment Trusts – cont'd
$    345,000
VICI Properties L.P., 5.63%, due 5/15/2052
$    282,093
   166,000
VICI Properties L.P./VICI Note Co., Inc., 4.25%, due 12/1/2026
    151,204(a)
   420,000
XHR L.P., 4.88%, due 6/1/2029
    362,334(a)
 
 
8,590,712
Recreation & Travel 5.9%
 
Carnival Corp.
 
   410,000
5.75%, due 3/1/2027
    284,124(a)
 1,590,000
9.88%, due 8/1/2027
  1,482,675(a)
   665,000
Carnival Holdings Bermuda Ltd., 10.38%, due 5/1/2028
    673,366(a)
   270,000
Cedar Fair L.P., 5.25%, due 7/15/2029
    237,603
   600,000
Cedar Fair L.P./Canada's Wonderland Co./Magnum Management Corp./Millennium Op, 5.50%, due
5/1/2025
    595,494(a)
   580,000
Lindblad Expeditions LLC, 6.75%, due 2/15/2027
    515,966(a)
 1,175,000
Motion Bondco Designated Activity Co., 6.63%, due 11/15/2027
    982,981(a)
 
NCL Corp. Ltd.
 
   585,000
3.63%, due 12/15/2024
    507,609(a)
   900,000
5.88%, due 3/15/2026
    736,875(a)
   405,000
5.88%, due 2/15/2027
    361,462(a)
 1,085,000
NCL Finance Ltd., 6.13%, due 3/15/2028
    843,587(a)
 
Royal Caribbean Cruises Ltd.
 
   345,000
4.25%, due 7/1/2026
    274,292(a)
   675,000
7.50%, due 10/15/2027
    559,572
 1,335,000
5.50%, due 4/1/2028
  1,027,950(a)
   220,000
SeaWorld Parks & Entertainment, Inc., 5.25%, due 8/15/2029
    189,232(a)
   265,000
Six Flags Entertainment Corp., 5.50%, due 4/15/2027
    238,500(a)
   466,000
Six Flags Theme Parks, Inc., 7.00%, due 7/1/2025
    470,557(a)
 
 
9,981,845
Restaurants 0.3%
   625,000
Legends Hospitality Holding Co. LLC/Legends Hospitality Co-Issuer, Inc., 5.00%, due 2/1/2026
546,875(a)
Software - Services 5.7%
   990,000
Ahead DB Holdings LLC, 6.63%, due 5/1/2028
    803,949(a)
   715,000
Central Parent, Inc./Central Merger Sub, Inc., 7.25%, due 6/15/2029
    683,404(a)
 1,855,000
Condor Merger Sub, Inc., 7.38%, due 2/15/2030
  1,534,221(a)
   580,000
Endurance Int'l Group Holdings, Inc., 6.00%, due 2/15/2029
    387,196(a)
 
NortonLifeLock, Inc.
 
   390,000
6.75%, due 9/30/2027
    384,460(a)
   325,000
7.13%, due 9/30/2030
    319,472(a)
   475,000
Open Text Corp., 3.88%, due 12/1/2029
    376,438(a)
   270,000
Open Text Holdings, Inc., 4.13%, due 12/1/2031
    203,175(a)
 3,270,000
Presidio Holdings, Inc., 8.25%, due 2/1/2028
  2,910,300(a)
 2,830,000
Rackspace Technology Global, Inc., 5.38%, due 12/1/2028
  1,191,260(a)
   990,000
VM Consolidated, Inc., 5.50%, due 4/15/2029
    864,225(a)
 
 
9,658,100
Specialty Retail 1.3%
 
Asbury Automotive Group, Inc.
 
   170,000
4.63%, due 11/15/2029
    139,825(a)
    45,000
5.00%, due 2/15/2032
     36,281(a)
   525,000
Crocs, Inc., 4.13%, due 8/15/2031
    397,640(a)
   265,000
Gap, Inc., 3.63%, due 10/1/2029
    185,695(a)
See Notes to Financial Statements
17
Schedule of Investments High Yield Strategies Fund Inc.^  (cont’d)
Principal Amount
Value
 
Specialty Retail – cont'd
$    455,000
Ken Garff Automotive LLC, 4.88%, due 9/15/2028
$    377,751(a)
   425,000
L Brands, Inc., 6.63%, due 10/1/2030
    380,211(a)
   720,000
LCM Investments Holdings II LLC, 4.88%, due 5/1/2029
    607,335(a)
 
 
2,124,738
Steel Producers - Products 1.0%
   420,000
Allegheny Technologies, Inc., 4.88%, due 10/1/2029
    353,146
   440,000
Carpenter Technology Corp., 7.63%, due 3/15/2030
    429,986
 1,320,000
TMS Int'l Corp., 6.25%, due 4/15/2029
    925,748(a)
 
 
1,708,880
Support - Services 11.2%
   550,000
Allied Universal Holdco LLC/Allied Universal Finance Corp., 6.00%, due 6/1/2029
    381,864(a)
 
Allied Universal Holdco LLC/Allied Universal Finance Corp./Atlas Luxco 4 S.a.r.l.
 
   565,000
4.63%, due 6/1/2028
    472,642(a)
   415,000
4.63%, due 6/1/2028
    339,329(a)
 
APX Group, Inc.
 
 2,090,000
6.75%, due 2/15/2027
  2,038,803(a)
 1,210,000
5.75%, due 7/15/2029
    952,693(a)
   300,000
Aramark Services, Inc., 5.00%, due 2/1/2028
    273,331(a)
 1,590,000
Avis Budget Car Rental LLC/Avis Budget Finance, Inc., 5.38%, due 3/1/2029
  1,377,376(a)
 1,685,000
BCPE Empire Holdings, Inc., 7.63%, due 5/1/2027
  1,539,160(a)
   710,000
Clarivate Science Holdings Corp., 4.88%, due 7/1/2029
    591,962(a)
 
Garda World Security Corp.
 
   595,000
4.63%, due 2/15/2027
    528,426(a)
   770,000
6.00%, due 6/1/2029
    600,076(a)
   635,000
GYP Holdings III Corp., 4.63%, due 5/1/2029
    501,477(a)
 
Hertz Corp.
 
 1,040,000
4.63%, due 12/1/2026
    886,600(a)
   585,000
5.00%, due 12/1/2029
    463,408(a)
   785,000
IAA Spinco, Inc., 5.50%, due 6/15/2027
    734,601(a)
   530,000
Korn/Ferry Int'l, 4.63%, due 12/15/2027
    482,120(a)
   150,000
PECF USS Intermediate Holding III Corp., 8.00%, due 11/15/2029
    100,449(a)
 
Prime Security Services Borrower LLC/Prime Finance, Inc.
 
 1,285,000
5.75%, due 4/15/2026
  1,250,754(a)
   990,000
6.25%, due 1/15/2028
    909,795(a)
   730,000
SRS Distribution, Inc., 6.13%, due 7/1/2029
    593,609(a)
   505,000
Summer BC Bidco B LLC, 5.50%, due 10/31/2026
    401,885(a)
 
United Rentals N.A., Inc.
 
   100,000
5.25%, due 1/15/2030
     92,750
   905,000
3.75%, due 1/15/2032
    733,050
   425,000
Univar Solutions USA, Inc., 5.13%, due 12/1/2027
    393,125(a)
   860,000
White Cap Buyer LLC, 6.88%, due 10/15/2028
    728,850(a)
 1,165,000
White Cap Parent LLC, 8.25% Cash/9.00% PIK, due 3/15/2026
    984,425(a)(e)
   655,000
ZipRecruiter, Inc., 5.00%, due 1/15/2030
    535,888(a)
 
 
18,888,448
Technology Hardware & Equipment 3.1%
 1,455,000
CommScope Finance LLC, 8.25%, due 3/1/2027
  1,291,751(a)
 
CommScope Technologies LLC
 
    14,000
6.00%, due 6/15/2025
     13,055(a)
 1,935,000
5.00%, due 3/15/2027
  1,566,596(a)
See Notes to Financial Statements
18
Schedule of Investments High Yield Strategies Fund Inc.^  (cont’d)
Principal Amount
Value
 
Technology Hardware & Equipment – cont'd
 
CommScope, Inc.
 
$    965,000
7.13%, due 7/1/2028
$    817,285(a)
   695,000
4.75%, due 9/1/2029
    587,855(a)
   985,000
Imola Merger Corp., 4.75%, due 5/15/2029
    849,267(a)
 
 
5,125,809
Telecom - Wireless 0.8%
 
Sprint Capital Corp.
 
   885,000
6.88%, due 11/15/2028
    913,303
   180,000
8.75%, due 3/15/2032
    211,255
   250,000
T-Mobile USA, Inc., 4.75%, due 2/1/2028
    236,620
 
 
1,361,178
Telecom - Wireline Integrated & Services 12.4%
 
Altice France Holding SA
 
   555,000
10.50%, due 5/15/2027
    432,495(a)
 2,195,000
6.00%, due 2/15/2028
  1,419,443(a)
 
Altice France SA
 
 1,170,000
8.13%, due 2/1/2027
  1,070,749(a)
   565,000
5.50%, due 1/15/2028
    446,350(a)
 
Consolidated Communications, Inc.
 
   540,000
5.00%, due 10/1/2028
    418,422(a)
   500,000
6.50%, due 10/1/2028
    408,900(a)
 
Frontier Communications Corp.
 
 2,585,000
5.88%, due 10/15/2027
  2,377,751(a)
   235,000
6.75%, due 5/1/2029
    193,581(a)
 1,040,000
5.88%, due 11/1/2029
    810,176
   545,000
6.00%, due 1/15/2030
    426,190(a)
   745,000
8.75%, due 5/15/2030
    760,831(a)
 
Iliad Holding SASU
 
   250,000
6.50%, due 10/15/2026
    231,530(a)
   225,000
7.00%, due 10/15/2028
    203,625(a)
 
Level 3 Financing, Inc.
 
 1,845,000
4.63%, due 9/15/2027
  1,601,017(a)
 1,455,000
4.25%, due 7/1/2028
  1,200,375(a)
 1,760,000
3.75%, due 7/15/2029
  1,337,142(a)
 
Lumen Technologies, Inc.
 
   745,000
4.00%, due 2/15/2027
    633,399(a)
 1,525,000
4.50%, due 1/15/2029
  1,075,053(a)
 
Northwest Fiber LLC/Northwest Fiber Finance Sub, Inc.
 
   435,000
4.75%, due 4/30/2027
    391,038(a)
   615,000
6.00%, due 2/15/2028
    482,492(a)
   705,000
10.75%, due 6/1/2028
    661,819(a)
   940,000
Uniti Group L.P./Uniti Fiber Holdings, Inc./CSL Capital LLC, 7.88%, due 2/15/2025
    930,605(a)
 2,160,000
Uniti Group L.P./Uniti Group Finance, Inc./CSL Capital LLC, 6.50%, due 2/15/2029
  1,549,800(a)
   800,000
Virgin Media Finance PLC, 5.00%, due 7/15/2030
    641,110(a)
 1,170,000
Virgin Media Vendor Financing Notes IV Designated Activity Co., 5.00%, due 7/15/2028
    996,139(a)
   295,000
Zayo Group Holdings, Inc., 4.00%, due 3/1/2027
    227,887(a)
 
 
20,927,919
See Notes to Financial Statements
19
Schedule of Investments High Yield Strategies Fund Inc.^  (cont’d)
Principal Amount
Value
 
Theaters & Entertainment 0.9%
 
Live Nation Entertainment, Inc.
 
$    905,000
6.50%, due 5/15/2027
$    900,124(a)
   770,000
4.75%, due 10/15/2027
    685,238(a)
 
 
1,585,362
Total Corporate Bonds (Cost $277,999,179)
244,936,837
 
Loan Assignments(b) 4.4%
Automotive 0.3%
   450,403
Tenneco, Inc., Term Loan B, (1M USD LIBOR + 3.00%), 6.21%, due 10/1/2025
448,151
Containers & Glass Products 0.3%
   542,114
BWAY Holding Company, Term Loan B, (1M USD LIBOR + 3.25%), 6.38%, due 4/3/2024
515,008
Diversified Insurance 0.5%
   653,292
Gainwell Acquisition Corp., Term Loan B, (3M USD LIBOR + 4.00%), 7.67%, due 10/1/2027
    619,537
   248,734
Hub International Limited, Term Loan B, (3M USD LIBOR + 3.25%), 7.23% – 7.53%, due 4/25/2025
    244,013(l)
 
 
863,550
Financial Intermediaries 0.2%
   370,000
Asurion LLC, Second Lien Term Loan B4, (1M USD LIBOR + 5.25%), 9.00%, due 1/20/2029
256,225
Health Care 0.9%
   250,000
RegionalCare Hospital Partners Holdings, Inc., Term Loan B, (3M USD LIBOR + 3.75%), 8.16%, due
11/16/2025
    220,312
 1,478,588
Team Health Holdings, Inc., Term Loan B, (1M SOFR + 5.25%), 8.98%, due 3/2/2027
  1,223,532
 
 
1,443,844
Leisure Goods - Activities - Movies 0.1%
   250,000
Delta 2 (LUX) S.a.r.l., Term Loan, (1M USD LIBOR + 2.50%), 6.25%, due 2/1/2024
249,270
Oil & Gas 1.0%
   375,000
Ascent Resources - Utica, Second Lien Term Loan, (3M USD LIBOR + 9.00%), 12.94%, due 11/1/2025
    393,049
   395,000
Prairie ECI Acquiror LP, Term Loan B, (1M USD LIBOR + 4.75%), 8.50%, due 3/11/2026
    371,486
   885,437
Waterbridge Midstream Operating LLC, Term Loan B, (3M USD LIBOR + 5.75%), 9.13%, due
6/22/2026
    866,347(i)(m)
 
 
1,630,882
Retailers (except food & drug) 0.4%
   786,433
Great Outdoors Group, LLC, Term Loan B1, (1M USD LIBOR + 3.75%), 7.50%, due 3/6/2028
738,854
Utilities 0.7%
 
Lightstone Holdco LLC
 
 1,290,546
Term Loan B, (3M SOFR + 5.75%), 9.48%, due 2/1/2027
  1,162,782(i)(m)
    72,992
Term Loan C, (3M SOFR + 5.75%), 9.48%, due 2/1/2027
     65,765(i)(m)
 
 
1,228,547
Total Loan Assignments (Cost $7,866,375)
7,374,331
 
Convertible Bonds 1.2%
Cable & Satellite Television 1.2%
 2,897,000
DISH Network Corp., 3.38%, due 8/15/2026 (Cost $2,575,200)
2,003,276
See Notes to Financial Statements
20
Schedule of Investments High Yield Strategies Fund Inc.^  (cont’d)
Number of Shares
Value
 
Short-Term Investments 19.2%
Investment Companies 19.2%
32,413,008
State Street Institutional U.S. Government Money Market Fund Premier Class, 3.01%(n)
(Cost $32,413,008)
$32,413,008
Total Investments 171.7% (Cost $323,372,689)
289,013,349
Liabilities Less Other Assets (26.5)%
(44,734,536)(o)
Liquidation Preference of Mandatory Redeemable Preferred Shares (45.2%)
(76,000,000)
Net Assets Applicable to Common Stockholders 100.0%
$168,278,813
 
(a)
Securities were purchased under Rule 144A of the Securities Act of 1933, as amended, or are otherwise
restricted and, unless registered under the Securities Act of 1933 or exempted from registration, may only
be sold to qualified institutional investors or may have other restrictions on resale. At October 31, 2022,
these securities amounted to $215,824,691, which represents 128.3% of net assets applicable to common
stockholders of the Fund.
(b)
Variable or floating rate security. The interest rate shown was the current rate as of October 31, 2022 and
changes periodically.
(c)
Security issued at a fixed coupon rate, which converts to a variable rate at a future date. Rate shown is the
rate in effect as of period end.
(d)
Perpetual security. Perpetual securities have no stated maturity date, but they may be called/redeemed by
the issuer. The date shown reflects the next call date.
(e)
Payment-in-kind (PIK) security.
(f)
Represents less than 0.05% of net assets of the Fund.
(g)
Step Bond. Coupon rate is a fixed rate for an initial period that either resets at a specific date or may reset in
the future contingent upon a predetermined trigger. The interest rate shown was the current rate as of
October 31, 2022.
(h)
Security fair valued as of October 31, 2022 in accordance with procedures approved by the valuation
designee. Total value of all such securities at October 31, 2022 amounted to $633,600, which represents
0.4% of net assets applicable to common stockholders of the Fund.
(i)
All or a portion of this security had not settled as of October 31, 2022 and thus may not have an interest
rate in effect. Interest rates do not take effect until settlement.
(j)
When-issued security. Total value of all such securities at October 31, 2022 amounted to $633,600, which
represents 0.4% of net assets applicable to common stockholders of the Fund.
(k)
Security exempt from registration pursuant to Regulation S under the Securities Act of 1933, as amended.
Regulation S applies to securities offerings that are made outside of the United States and do not involve
directed selling efforts in the United States and as such may have restrictions on resale. Total value of all
such securities at October 31, 2022 amounted to $626,450, which represents 0.4% of net assets applicable
to common stockholders of the Fund.
(l)
The stated interest rates represent the range of rates at October 31, 2022 of the underlying contracts within
the Loan Assignment.
(m)
All or a portion of this security was purchased on a delayed delivery basis.
(n)
Represents 7-day effective yield as of October 31, 2022.
See Notes to Financial Statements
21
Schedule of Investments High Yield Strategies Fund Inc.^  (cont’d)
(o)
Includes the impact of the Fund's open positions in derivatives at October 31, 2022.
See Notes to Financial Statements
22
Schedule of Investments High Yield Strategies Fund Inc.^  (cont’d)
 
POSITIONS BY COUNTRY
Country
Investments at
Value
Percentage of Net
Assets Applicable
to Common
Stockholders
United States
$229,923,685
136.6%
Canada
4,641,754
2.8%
Cayman Islands
3,827,772
2.3%
United Kingdom
2,786,666
1.7%
Switzerland
2,322,357
1.4%
Netherlands
2,156,111
1.3%
Luxembourg
2,101,208
1.2%
Zambia
2,091,086
1.2%
France
1,952,254
1.2%
Australia
1,136,231
0.7%
Bermuda
934,378
0.5%
Chile
745,975
0.4%
Ireland
652,437
0.4%
Germany
576,381
0.3%
Finland
481,649
0.3%
Spain
261,719
0.2%
Other countries, each representing less than 0.05% of net assets of the Fund
8,678
0.0%
Liquidation Preference of Mandatory Redeemable Preferred Shares
(76,000,000)
(45.2)%
Short-Term Investments and Other Liabilities—Net
(12,321,528)
(7.3)%
 
$168,278,813
100.0%
See Notes to Financial Statements
23
Schedule of Investments High Yield Strategies Fund Inc.^  (cont’d)
Derivative Instruments
Interest rate swap contracts ("interest rate swaps")
At October 31, 2022, the Fund had outstanding interest rate swaps as follows:
Centrally cleared interest rate swaps 
Clearinghouse
Notional
Amount
Fund
Receives/
Pays
Floating
Rate
Floating
Rate Index
Annual
Fixed-
Rate
Frequency
of Fund
Receipt/
Payment
Maturity
Date
Unrealized
Appreciation/
(Depreciation)
Accrued
Net
Interest
Receivable/
(Payable)
Value
CME
USD
25,000,000
Receive
3M LIBOR
0.29%
3M/6M
6/21/2023
$716,331
$75,467
$791,798
CME
USD
20,000,000
Receive
3M LIBOR
0.33%
3M/6M
7/1/2023
599,651
38,035
637,686
Total
 
 
 
 
 
 
 
$1,315,982
$113,502
$1,429,484
For the year ended October 31, 2022, the average notional value for the months where the Fund had interest rate swaps outstanding was $45,000,000 when the Fund paid the fixed rate.
 
The following is a summary, categorized by Level (see Note A of the Notes to Financial Statements), of inputs used to value the Fund’s investments as of October 31, 2022: 
Asset Valuation Inputs
Level 1
Level 2
Level 3
Total
Investments:
 
 
 
 
Asset-Backed Securities
$—
$2,285,897
$—
$2,285,897
Corporate Bonds#
—
244,936,837
—
244,936,837
Loan Assignments#
—
7,374,331
—
7,374,331
Convertible Bonds#
—
2,003,276
—
2,003,276
Short-Term Investments
—
32,413,008
—
32,413,008
Total Investments
$—
$289,013,349
$—
$289,013,349
 
#
The Schedule of Investments provides information on the industry or sector categorization as well as a
Positions by Country summary.
The following is a summary, categorized by Level (see Note A of the Notes to Financial Statements), of inputs used to value the Fund’s derivatives as of October 31, 2022: 
Other Financial Instruments
Level 1
Level 2
Level 3
Total
Swaps
 
 
 
 
Assets
$—
$1,429,484
$—
$1,429,484
Total
$—
$1,429,484
$—
$1,429,484
 
^
A balance indicated with a "—", reflects either a zero balance or an amount that rounds to less than 1.
See Notes to Financial Statements
24
Statement of Assets and Liabilities
Neuberger Berman 
 
High Yield
Strategies
Fund Inc.
 
October 31, 2022
Assets
 
Investments in securities, at value (Note A)—see Schedule of Investments:
 
Unaffiliated issuers(a)
$289,013,349
Interest receivable
4,502,935
Receivable for securities sold
232,806
Receivable for accumulated variation margin on centrally cleared swap contracts (Note A)
1,429,484
Prepaid expenses and other assets
138,125
Total Assets
295,316,699
Liabilities
 
Notes payable (net of unamortized deferred issuance costs of $107,325) (Note A)
45,892,675
Mandatory Redeemable Preferred Shares, Series C ($12.50 liquidation preference per share; 6,080,000 shares
issued and outstanding) (Note A)
76,000,000
Distributions payable—preferred shares
940,907
Distributions payable—common stock
14,796
Cash collateral segregated for centrally cleared swap contracts due to broker (Note A)
1,201,597
Payable to investment manager (Note B)
146,133
Payable for securities purchased
2,432,402
Payable to administrator (Note B)
12,178
Payable to directors
13,241
Interest payable (Note A)
197,725
Other accrued expenses and payables
186,232
Total Liabilities
127,037,886
Net Assets applicable to Common Stockholders
$168,278,813
Net Assets applicable to Common Stockholders consist of:
 
Paid-in capital—common stock
$235,965,256
Total distributable earnings/(losses)
(67,686,443)
Net Assets applicable to Common Stockholders
$168,278,813
Shares of Common Stock Outstanding ($0.0001 par value; 992,397,100 shares authorized)
19,432,540
Net Asset Value Per Share of Common Stock Outstanding
$8.66
*Cost of Investments:
 
(a) Unaffiliated issuers
$323,372,689
 
 
See Notes to Financial Statements
25
Statement of Operations
Neuberger Berman 
 
High Yield
Strategies
Fund Inc.
 
For the Fiscal
Year Ended
October 31, 2022
Investment Income:
 
Income (Note A):
 
Interest and other income—unaffiliated issuers
$17,620,146
Income from securities loaned—net
42,002
Foreign taxes withheld
(146)
Total income
$17,662,002
Expenses:
 
Investment management fees (Note B)
1,669,448
Administration fees (Note B)
139,121
Audit fees
59,224
Basic maintenance (Note A)
12,500
Custodian and accounting fees
115,085
Insurance
7,521
Legal fees
92,580
Stockholder reports
19,232
Stock exchange listing fees
7,549
Stock transfer agent fees
30,828
Distributions to mandatory redeemable preferred shareholders (Note A)
2,533,095
Directors' fees and expenses
43,503
Interest (Note A)
1,017,040
Miscellaneous and other fees
50,283
Total expenses
5,797,009
Net investment income/(loss)
$11,864,993
Realized and Unrealized Gain/(Loss) on Investments (Note A):
 
Net realized gain/(loss) on:
 
Transactions in investment securities of unaffiliated issuers
(8,389,064)
Expiration or closing of swap contracts
257,975
Change in net unrealized appreciation/(depreciation) in value of:
 
Investment securities of unaffiliated issuers
(38,513,571)
Swap contracts
1,290,261
Net gain/(loss) on investments
(45,354,399)
Net increase/(decrease) in net assets applicable to Common Stockholders resulting from operations
$(33,489,406)
See Notes to Financial Statements
26
Statements of Changes in Net Assets
Neuberger Berman 
 
High Yield
Strategies Fund Inc.
 
Fiscal Year Ended
Fiscal Year Ended
 
October 31, 2022
October 31, 2021
Increase/(Decrease) in Net Assets Applicable to Common Stockholders:
 
 
From Operations (Note A):
 
 
Net investment income/(loss)
$11,864,993
$11,439,916
Net realized gain/(loss) on investments
(8,131,089)
15,377,349
Change in net unrealized appreciation/(depreciation) of investments
(37,223,310)
(18,561)
Net increase/(decrease) in net assets applicable to Common Stockholders resulting from
operations
(33,489,406)
26,798,704
Distributions to Common Stockholders From (Note A):
 
 
Distributable earnings
(13,347,138)
(11,528,512)
Tax return of capital
(4,737,698)
(4,832,395)
Total distributions to Common Stockholders
(18,084,836)
(16,360,907)
From Capital Share Transactions (Note D):
 
 
Proceeds from the rights offering resulting in the issuance of 4,763,981 shares of common
stock (Note F)(a)
38,701,436
—
Proceeds from reinvestment of dividends and distributions
59,568
103,128
Payments for shares repurchased in connection with common stock tender offer (Note E)
—
(58,768,306)
Total net proceeds from capital share transactions
38,761,004
(58,665,178)
Net Increase/(Decrease) in Net Assets Applicable to Common Stockholders
(12,813,238)
(48,227,381)
Net Assets Applicable to Common Stockholders:
 
 
Beginning of year
181,092,051
229,319,432
End of year
$168,278,813
$181,092,051
 
 
 
(a)
Net of offering costs and related expenses of $2,277,351.
See Notes to Financial Statements
27
Statement of Cash Flows
Neuberger Berman 
 
High Yield
Strategies
Fund Inc.
 
For the
Fiscal Year Ended
October 31, 2022
Increase/(Decrease) in cash:
 
Cash flows from operating activities:
 
Net decrease in net assets applicable to Common Stockholders resulting from operations
$(33,489,406)
Adjustments to reconcile net increase in net assets applicable to Common Stockholders resulting from operations
to net cash provided by operating activities:
 
Changes in assets and liabilities:
 
Purchase of investment securities
(181,882,934)
Proceeds from disposition of investment securities
143,940,567
Purchase/sale of short-term investment securities, net
(9,787,074)
Increase/decrease in receivable/payable for accumulated variation margin on centrally cleared swap contracts
(1,290,261)
Increase in interest receivable
(883,743)
Decrease in unamortized deferred issuance cost
136,091
Decrease in receivable for securities lending income
5,059
Increase in prepaid expenses and other assets
(119,521)
Decrease in receivable for securities sold
145,273
Decrease in payable for collateral on loaned securities
(9,778,010)
Increase in distributions payable on preferred shares
510,035
Decrease in payable for securities purchased
(3,201,944)
Increase in interest payable
174,645
Net amortization/(accretion) of premium/(discount) on investments
(26,240)
Increase in payable to investment manager
4,686
Decrease in payable to directors
(648)
Increase in payable to administrator
391
Decrease in other accrued expenses and payables
(49,500)
Unrealized depreciation on investment securities of unaffiliated issuers
38,513,571
Net realized loss from transactions in investment securities of unaffiliated issuers
8,389,064
Net cash provided by (used in) operating activities
$(48,689,899)
Cash flows from financing activities:
 
Cash distributions paid on common stock
(18,024,943)
Cash receipt from issuance of Private Notes
26,500,000
Proceeds from rights offering
38,701,436
Net cash provided by (used in) financing activities
$47,176,493
Net increase/(decrease) in cash and restricted cash
(1,513,406)
Cash:
 
Cash and restricted cash at beginning of year
311,809
Cash and restricted cash at end of year
$(1,201,597)
Supplemental disclosure
 
Cash paid for interest
$842,395
The following table provides a reconciliation of cash and restricted cash, if any, reported within the Statement of Assets and Liabilities that sum to the total of such amounts shown on the Statement of Cash Flows. 
 
October 31, 2022
October 31, 2021
Cash
$—
$—
Deposit for derivative collateral
 
 
Cash collateral segregated for centrally cleared swap contracts due from/(to) broker
(1,201,597)
311,809
Total cash and restricted cash as show in the Statement of Cash Flows
$(1,201,597)
$311,809
See Notes to Financial Statements
28
Notes to Financial Statements High Yield Strategies Fund Inc.
Note A—Summary of Significant Accounting Policies:
1
General: Neuberger Berman High Yield Strategies Fund Inc. (the "Fund”) was organized as a Maryland corporation on March 18, 2010, and registered under the Investment Company Act of 1940, as amended
(the "1940 Act”), as a non-diversified, closed-end management investment company. Under the 1940 Act, the status of a fund that was registered as non-diversified may, under certain circumstances, change to that
of a diversified fund. The Fund is currently a diversified fund. The Fund’s Board of Directors (the "Board") may classify or re-classify any unissued shares of capital stock into one or more classes of preferred stock without the approval of stockholders.
A balance indicated with a "—", reflects either a zero balance or a balance that rounds to less than 1.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 946 "Financial Services—Investment Companies."
The preparation of financial statements in accordance with U.S. generally accepted accounting principles ("GAAP") requires Management to make estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.
2
Portfolio valuation: In accordance with ASC 820 "Fair Value Measurement" ("ASC 820"), all investments held by the Fund are carried at the value that Management believes the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment under current market conditions. Various inputs, including the volume and level of activity for the asset or liability in the market, are considered in valuing the Fund's investments, some of which are discussed below. At times, Management may need to apply significant judgment to value investments in accordance with ASC 820.
ASC 820 established a three-tier hierarchy of inputs to create a classification of value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.
•
Level 1 – unadjusted quoted prices in active markets for identical investments
•
Level 2 – other observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, amortized cost, etc.)
•
Level 3 – unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing an investment are not necessarily an indication of the risk associated with investing in those securities.
The value of the Fund’s investments in debt securities is determined by Management primarily by obtaining valuations from independent pricing services based on bid quotations, or if quotations are not available, by methods which include various considerations based on security type (generally Level 2 inputs). In addition to the consideration of yields or prices of securities of comparable quality, coupon, maturity and type, indications as to values from dealers, and general market conditions, the following is a description of other Level 2 inputs and related valuation techniques used by independent pricing services to value certain types of debt securities held by the Fund:
Corporate Bonds. Inputs used to value corporate debt securities generally include relevant credit information, observed market movements, sector news, U.S. Treasury yield curve or relevant benchmark curve, and other market information, which may include benchmark yield curves, reported trades, broker-dealer quotes, issuer spreads, comparable securities, and reference data, such as market research publications, when available ("Other Market Information").
29
Convertible Bonds. Inputs used to value convertible bonds generally include underlying stock data, conversion rates, credit specific details, relevant listed bond and preferred stock prices and Other Market Information.
Collateralized Loan Obligations (CLOs): The value of collateralized loan obligations is primarily determined by cash flow data, relevant loan pricing data and market color, and research from market participants and trading desks (Level 2 or 3 inputs).
Asset-Backed Securities. Inputs used to value asset-backed securities generally include models that consider a number of factors, which may include the following: prepayment speeds, cash flows, spread adjustments and Other Market Information.
High Yield Securities. Inputs used to value high yield securities generally include a number of observations of equity and credit default swap curves related to the issuer and Other Market Information.
The value of loan assignments is determined by Management primarily by obtaining valuations from independent pricing services based on broker quotes (generally Level 2 or Level 3 inputs depending on the number of quotes available).
The value of interest rate swaps is determined by Management primarily by obtaining valuations from independent pricing services based on references to the underlying rates including the local overnight index swap rate and the respective interbank offered forward rate to produce the daily price. The present value is calculated based off of expected cash flows based on swap parameters along with reference to the underlying yield curve and reference rate (Level 2 inputs).
Management has developed a process to periodically review information provided by independent pricing services for all types of securities.
Investments in non-exchange traded investment companies are valued using the respective fund’s daily calculated net asset value ("NAV") per share (Level 2 inputs), when available.
If a valuation is not available from an independent pricing service, or if Management has reason to believe that the valuation received does not represent the amount the Fund might reasonably expect to receive on a current sale in an orderly transaction, Management seeks to obtain quotations from brokers or dealers (generally considered Level 2 or Level 3 inputs depending on the number of quotes available). If such quotations are not available, the security is valued using methods Management has approved in the good-faith belief that the resulting valuation will reflect the fair value of the security. Pursuant to Rule 2a-5 under the 1940 Act, the Board designated Management as the Fund's valuation designee. As the Fund's valuation designee, Management is responsible for determining fair value in good faith for any and all Fund investments. Inputs and assumptions considered in determining the fair value of a security based on Level 2 or Level 3 inputs may include, but are not limited to, the type of the security; the initial cost of the security; the existence of any contractual restrictions on the security’s disposition; the price and extent of public trading in similar securities of the issuer or of comparable companies; quotations or evaluated prices from broker-dealers and/or pricing services; information obtained from the issuer and/or analysts; an analysis of the company’s or issuer’s financial statements; an evaluation of the inputs that influence the issuer and the market(s) in which the security is purchased and sold.
Fair value prices are necessarily estimates, and there is no assurance that such a price will be at or close to the price at which the security is next quoted or next trades.
3
Securities transactions and investment income: Securities transactions are recorded on trade date for financial reporting purposes. Dividend income is recorded on the ex-dividend date. Interest income, including accretion of discount (adjusted for original issue discount, where applicable) and amortization of premium, where applicable, is recorded on the accrual basis. Realized gains and losses from securities transactions are recorded on the basis of identified cost and stated separately in the Statement of Operations.
30
4
Income tax information: It is the policy of the Fund to continue to qualify for treatment as a regulated investment company ("RIC") by complying with the requirements of the U.S. Internal Revenue Code applicable to RICs and to distribute substantially all of its net investment income and net realized capital gains to its stockholders. To the extent the Fund distributes substantially all of its net investment income and net realized capital gains to stockholders, no federal income or excise tax provision is required.
ASC 740 "Income Taxes" sets forth a minimum threshold for financial statement recognition of a tax position taken, or expected to be taken, in a tax return. The Fund recognizes interest and penalties, if any, related to unrecognized tax positions as an income tax expense in the Statement of Operations. The Fund is subject to examination by U.S. federal and state tax authorities for returns filed for the tax years for which the applicable statutes of limitations have not yet expired. As of October 31, 2022, the Fund did not have any unrecognized tax positions.
For federal income tax purposes, the estimated cost of investments held at October 31, 2022 was $323,856,267. The estimated gross unrealized appreciation was $1,969,987 and estimated gross unrealized depreciation was $35,496,923 resulting in net unrealized depreciation in value of investments of $33,526,936 based on cost for U.S. federal income tax purposes.
Income distributions and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatments of income and gains on various investment securities held by the Fund, timing differences and differing characterization of distributions made by the Fund.
Any permanent differences resulting from different book and tax treatment are reclassified at year-end and have no impact on net income, NAV or NAV per share of common stock of the Fund. For the year ended October 31, 2022, the Fund recorded permanent reclassifications primarily related to nondeductible restructuring costs. For the year ended October 31, 2022, the Fund recorded the following permanent reclassifications: 
 
Paid-in Capital
Total Distributable
Earnings/(Losses)
 
$(136,090)
$136,090
The tax character of distributions paid during the years ended October 31, 2022, and October 31, 2021, was as follows: 
 
Distributions Paid From:
 
Ordinary
Income
Long-Term
Capital Gain
Re