ThZeal - The Zeal

Semi-Annual Shareholder Report

September 30, 2018

Share Class \| Ticker	A \| FHIIX	B \| FHBBX	C \| FHICX
	Institutional \| FHISX	R6 \| FHBRX

Federated High Income Bond Fund, Inc.

Fund Established 1977

Dear Valued Shareholder,

I am pleased to present the Semi-Annual Shareholder Report for your fund covering the period from April 1, 2018 through September 30, 2018. This report includes a complete listing of your fund's holdings, performance information and financial statements along with other important fund information.

In addition, our website, FederatedInvestors.com, offers easy access to Federated resources that include timely fund updates, economic and market insights from our investment strategists, and financial planning tools.

Thank you for investing with Federated. I hope you find this information useful and look forward to keeping you informed.

Sincerely,

J. Christopher Donahue, President

Not FDIC Insured ■ May Lose Value ■ No Bank Guarantee

In Memoriam

With profound sadness, Federated announces the passing of Richard B. (“Dick”) Fisher. He will be greatly missed.

RICHARD B. FISHER

(Former Officer of the Federated Funds, Chairman of Federated Securities Corp., and Vice Chairman of Federated Investors, Inc.)

Dick Fisher, along with John F. (“Jack”) Donahue and Thomas J. Donnelly, Esq., co-founded Federated in 1955 and served as a leader, particularly for Federated's sales division, and an officer of the Federated Funds. Mr. Fisher was a family man of deep faith, with exemplary character, prodigious generosity, immeasurable devotion, undeniable charm and a good sense of humor. He served his religion, family, community, and the Federated Funds and Federated, as well as their shareholders, officers and employees, with distinction. His integrity, intelligence, and keen sense of duty to shareholders, coupled with his faith and devotion to family, allowed him to become the consummate gentleman and salesman par excellence who will be greatly missed. Among his many achievements, Mr. Fisher led the sales strategy and execution for Federated's Fund for U.S. Government Securities, the first fund to invest exclusively in government bonds, and spearheaded the campaign for sales of Federated's Government Income Securities Fund, the first of what would become Federated's Fortress family of funds. Federated expresses deep gratitude to Mr. Fisher for his inspiring leadership, distinguished service and contributions as a husband, father, co-founder, officer, colleague and friend.

Semi-Annual Shareholder Report

Portfolio of Investments Summary Table (unaudited)

At September 30, 2018, the Fund's index composition¹ was as follows:

Index Classification	Percentage of Total Net Assets
Health Care	11.4%
Technology	8.8%
Cable Satellite	8.7%
Independent Energy	6.2%
Packaging	5.8%
Media Entertainment	5.7%
Midstream	5.5%
Gaming	4.6%
Pharmaceuticals	4.4%
Wireless Communications	4.1%
Other²	31.0%
Cash Equivalents³	2.6%
Other Assets and Liabilities—Net⁴	1.2%
TOTAL	100.0%

1	Index classifications are based upon, and individual portfolio securities are assigned to, the classifications and sub-classifications of the Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index (BBHY2%ICI). Individual portfolio securities that are not included in the BBHY2%ICI are assigned to an index classification by the Fund's Adviser.
2	For purposes of this table, index classifications which constitute less than 3.5% of the Fund's total net assets have been aggregated under the designation “Other.”
3	Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements.
4	Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.

Semi-Annual Shareholder Report

Portfolio of Investments

September 30, 2018 (unaudited)

Principal Amount or Shares		Value
	CORPORATE BONDS—96.2%
	Aerospace/Defense—1.1%
$950,000	Engility Corp., Sr. Unsecd. Note, 8.875%, 9/1/2024	$1,036,687
200,000	TransDigm UK Holdings PLC, Sr. Sub., Series 144A, 6.875%, 5/15/2026	205,750
900,000	TransDigm, Inc., 5.50%, 10/15/2020	902,250
2,300,000	TransDigm, Inc., Sr. Sub. Note, 6.00%, 7/15/2022	2,343,125
400,000	TransDigm, Inc., Sr. Sub. Note, 6.50%, 5/15/2025	408,500
1,975,000	TransDigm, Inc., Sr. Sub. Note, 6.50%, 7/15/2024	2,028,325
575,000	TransDigm, Inc., Sr. Sub. Note, 6.375%, 6/15/2026	582,188
	TOTAL	7,506,825
	Automotive—2.0%
2,650,000	Adient Global Holdings Ltd., Sr. Unsecd. Note, Series 144A, 4.875%, 8/15/2026	2,368,437
2,250,000	American Axle & Manufacturing, Inc., Sr. Unsecd. Note, Series WI, 6.50%, 4/1/2027	2,235,892
1,225,000	BCD Acquisition, Inc., Series 144A, 9.625%, 9/15/2023	1,312,281
1,750,000	Dana Financing Lux Sarl, Series 144A, 6.50%, 6/1/2026	1,787,713
650,000	Dana Financing Lux Sarl, Sr. Unsecd. Note, Series 144A, 5.75%, 4/15/2025	640,055
550,000	Goodyear Tire & Rubber Co., Sr. Unsecd. Note, 4.875%, 3/15/2027	506,688
900,000	Goodyear Tire & Rubber Co., Sr. Unsecd. Note, 5.00%, 5/31/2026	849,600
150,000	Goodyear Tire & Rubber Co., Sr. Unsecd. Note, 5.125%, 11/15/2023	150,375
800,000	J.B. Poindexter & Co., Inc., Sr. Unsecd. Note, Series 144A, 7.125%, 4/15/2026	834,000
3,150,000	Schaeffler Verwaltung Zw, Series 144A, 4.75%, 9/15/2026	2,976,750
	TOTAL	13,661,791
	Banking—0.5%
2,850,000	Ally Financial, Inc., Sr. Sub. Note, 5.75%, 11/20/2025	2,953,312
425,000	Ally Financial, Inc., Sr. Unsecd. Note, 5.125%, 9/30/2024	438,813
	TOTAL	3,392,125
	Building Materials—1.8%
150,000	American Builders & Contractors Supply Co., Inc., Sr. Unsecd. Note, Series 144A, 5.75%, 12/15/2023	153,563
2,075,000	American Builders & Contractors Supply Co., Inc., Sr. Unsecd. Note, Series 144A, 5.875%, 5/15/2026	2,087,969
500,000	Beacon Roofing Supply, Inc., 6.375%, 10/1/2023	520,000
1,425,000	Building Materials Corp. of America, Sr. Unsecd. Note, Series 144A, 6.00%, 10/15/2025	1,462,406

Semi-Annual Shareholder Report

Principal Amount or Shares		Value
	CORPORATE BONDS—continued
	Building Materials—continued
$1,175,000	CD&R Waterworks Merger Subsidiary LLC, Sr. Unsecd. Note, Series 144A, 6.125%, 8/15/2025	$1,135,332
675,000	HD Supply, Inc., Sr. Unsecd. Note, Series 144A, 5.75%, 4/15/2024	711,281
720,000	Masonite International Corp., Sr. Unsecd. Note, Series 144A, 5.625%, 3/15/2023	738,900
500,000	Masonite International Corp., Sr. Unsecd. Note, Series 144A, 5.75%, 9/15/2026	502,500
1,675,000	Pisces Midco, Inc., Sec. Fac. Bond, Series 144A, 8.00%, 4/15/2026	1,691,750
2,850,000	Standard Industries, Inc., Sr. Unsecd. Note, Series 144A, 5.00%, 2/15/2027	2,689,687
350,000	USG Corp., Sr. Unsecd. Note, Series 144A, 4.875%, 6/1/2027	354,729
	TOTAL	12,048,117
	Cable Satellite—8.7%
600,000	Altice US Finance I Corp., Series 144A, 5.375%, 7/15/2023	608,250
525,000	Altice US Finance I Corp., Series 144A, 5.50%, 5/15/2026	524,738
1,375,000	Altice US Finance I Corp., Sr. Unsecd. Note, Series 144A, 7.75%, 7/15/2025	1,471,250
2,550,000	CCO Holdings LLC/Cap Corp., 5.75%, 9/1/2023	2,597,787
425,000	CCO Holdings LLC/Cap Corp., Series 144A, 5.375%, 5/1/2025	422,875
1,700,000	CCO Holdings LLC/Cap Corp., Series 144A, 5.75%, 2/15/2026	1,710,625
975,000	CCO Holdings LLC/Cap Corp., Sr. Sub. Secd. Note, Series 144A, 5.50%, 5/1/2026	966,469
2,325,000	CCO Holdings LLC/Cap Corp., Sr. Unsecd. Note, Series 144A, 5.00%, 2/1/2028	2,191,080
1,550,000	CCO Holdings LLC/Cap Corp., Sr. Unsecd. Note, Series 144A, 5.125%, 5/1/2027	1,473,445
150,000	CCO Holdings LLC/Cap Corp., Sr. Unsecd. Note, Series 144A, 5.875%, 4/1/2024	153,563
1,125,000	CCO Holdings LLC/Cap Corp., Sr. Unsecd. Note, Series 144A, 5.875%, 5/1/2027	1,117,969
925,000	CSC Holdings, Inc., Sr. Unsecd. Note, 5.25%, 6/1/2024	906,500
2,325,000	CSC Holdings, Inc., Sr. Unsecd. Note, Series 144A, 5.50%, 4/15/2027	2,267,758
2,025,000	Cablevision Systems Corp., Sr. Unsecd. Note, 5.875%, 9/15/2022	2,069,297
1,350,000	Cequel Communications Holdings, Sr. Unsecd. Note, Series 144A, 5.125%, 12/15/2021	1,360,422
2,325,000	Cequel Communications Holdings, Sr. Unsecd. Note, Series 144A, 5.125%, 12/15/2021	2,351,156
875,000	Cequel Communications Holdings, Sr. Unsecd. Note, Series 144A, 7.50%, 4/1/2028	920,938
900,000	Charter Communications Holdings II, 5.125%, 2/15/2023	905,625
1,050,000	Charter Communications Holdings II, 5.75%, 1/15/2024	1,069,687

Semi-Annual Shareholder Report

Principal Amount or Shares		Value
	CORPORATE BONDS—continued
	Cable Satellite—continued
$1,075,000	DISH DBS Corp., 5.00%, 3/15/2023	$979,518
525,000	DISH DBS Corp., 5.875%, 7/15/2022	514,172
3,125,000	DISH DBS Corp., Sr. Unsecd. Note, 5.875%, 11/15/2024	2,820,312
1,000,000	DISH DBS Corp., Sr. Unsecd. Note, 7.75%, 7/1/2026	951,250
800,000	Intelsat Jackson Holdings S.A., Series 144A, 8.00%, 2/15/2024	843,768
1,925,000	Intelsat Jackson Holdings S.A., Sr. Unsecd. Note, 5.50%, 8/1/2023	1,779,662
1,000,000	Intelsat Jackson Holdings S.A., Sr. Unsecd. Note, 7.50%, 4/1/2021	1,017,500
1,075,000	Intelsat Jackson Holdings S.A., Sr. Unsecd. Note, Series 144A, 8.50%, 10/15/2024	1,085,750
650,000	Intelsat Jackson Holdings S.A., Sr. Unsecd. Note, Series 144A, 9.75%, 7/15/2025	689,813
875,000	Neptune Finco Corp., Sr. Unsecd. Note, Series 144A, 10.125%, 1/15/2023	959,438
1,075,000	Neptune Finco Corp., Sr. Unsecd. Note, Series 144A, 6.625%, 10/15/2025	1,135,469
1,975,000	Sirius XM Radio, Inc., Series 144A, 4.625%, 5/15/2023	1,960,385
2,700,000	Sirius XM Radio, Inc., Series 144A, 6.00%, 7/15/2024	2,808,540
1,000,000	Sirius XM Radio, Inc., Sr. Unsecd. Note, Series 144A, 5.375%, 4/15/2025	1,006,250
3,600,000	Telenet Finance Luxembourg, Sec. Fac. Bond, Series 144A, 5.50%, 3/1/2028	3,402,000
300,000	Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH, Series 144A, 5.00%, 1/15/2025	306,117
1,625,000	Unitymedia KabelBW GmbH, Series 144A, 6.125%, 1/15/2025	1,714,375
3,000,000	Virgin Media Secured Finance PLC, Series 144A, 5.25%, 1/15/2026	2,944,620
1,209,000	Virgin Media Secured Finance PLC, Series 144A, 6.375%, 4/15/2023	1,243,759
1,225,000	Virgin Media, Inc., Sr. Unsecd. Note, Series 144A, 5.75%, 1/15/2025	1,215,959
200,000	Virgin Media, Inc., Sr. Unsecd. Note, Series 144A, 6.00%, 10/15/2024	200,990
2,675,000	Ziggo Finance BV, Sec. Fac. Bond, Series 144A, 5.50%, 1/15/2027	2,516,506
1,725,000	Ziggo Finance BV, Sr. Unsecd. Note, Series 144A, 6.00%, 1/15/2027	1,576,219
	TOTAL	58,761,806
	Chemicals—2.1%
925,000	Alpha 2 BV, Sr. Unsecd. Note, Series 144A, 8.75%, 6/1/2023	942,344
1,950,000	Alpha 3 BV, Sr. Unsecd. Note, Series 144A, 6.25%, 2/1/2025	1,950,585
2,225,000	Compass Minerals International, Inc., Series 144A, 4.875%, 7/15/2024	2,072,031
2,675,000	Hexion U.S. Finance Corp., 6.625%, 4/15/2020	2,521,187
850,000	Koppers, Inc., Sr. Unsecd. Note, Series 144A, 6.00%, 2/15/2025	852,125
325,000	PQ Corp., Sr. Unsecd. Note, Series 144A, 5.75%, 12/15/2025	323,375

Semi-Annual Shareholder Report

Principal Amount or Shares		Value
	CORPORATE BONDS—continued
	Chemicals—continued
$800,000	Platform Specialty Products Corp., Sr. Unsecd. Note, Series 144A, 5.875%, 12/1/2025	$793,416
4,700,000	Platform Specialty Products Corp., Sr. Unsecd. Note, Series 144A, 6.50%, 2/1/2022	4,823,375
250,000	Starfruit Finco BV, Sr. Unsecd. Note, Series 144A, 8.00%, 10/1/2026	253,750
	TOTAL	14,532,188
	Construction Machinery—0.5%
1,150,000	United Rentals North America, Inc., Sr. Unsecd. Note, 4.875%, 1/15/2028	1,081,000
575,000	United Rentals, Inc., 5.75%, 11/15/2024	592,681
575,000	United Rentals, Inc., Sr. Unsecd. Note, 5.50%, 5/15/2027	569,969
625,000	United Rentals, Inc., Sr. Unsecd. Note, 5.50%, 7/15/2025	639,844
600,000	United Rentals, Inc., Sr. Unsecd. Note, 5.875%, 9/15/2026	618,000
	TOTAL	3,501,494
	Consumer Cyclical Services—0.5%
1,925,000	GW Honos Security Corp., Sr. Unsecd. Note, Series 144A, 8.75%, 5/15/2025	1,891,313
850,000	Matthews International Corp., Sr. Unsecd. Note, Series 144A, 5.25%, 12/1/2025	824,500
525,000	ServiceMaster Co. LLC, Sr. Unsecd. Note, 7.45%, 8/15/2027	554,531
	TOTAL	3,270,344
	Consumer Products—1.4%
275,000	Energizer Gamma Acquisition, Inc., Sr. Unsecd. Note, Series 144A, 6.375%, 7/15/2026	284,969
1,425,000	First Quality Finance Co., Inc., Series 144A, 4.625%, 5/15/2021	1,430,344
275,000	First Quality Finance Co., Inc., Sr. Unsecd. Note, Series 144A, 5.00%, 7/1/2025	257,813
2,900,000	Prestige Brands Holdings, Inc., Series 144A, 5.375%, 12/15/2021	2,918,125
2,450,000	Prestige Brands, Inc., Sr. Unsecd. Note, Series 144A, 6.375%, 3/1/2024	2,489,812
1,550,000	Spectrum Brands, Inc., 5.75%, 7/15/2025	1,573,250
525,000	Spectrum Brands, Inc., 6.125%, 12/15/2024	538,125
	TOTAL	9,492,438
	Diversified Manufacturing—1.1%
400,000	Entegris, Inc., Sr. Unsecd. Note, Series 144A, 4.625%, 2/10/2026	382,460
1,919,000	Gates Global LLC, Series 144A, 6.00%, 7/15/2022	1,935,791
425,000	JPW Industries Holding Corp., Sr. Secd. Note, Series 144A, 9.00%, 10/1/2024	433,500
1,475,000	Titan Acquisition Ltd., Sr. Unsecd. Note, Series 144A, 7.75%, 4/15/2026	1,283,250

Semi-Annual Shareholder Report

Principal Amount or Shares		Value
	CORPORATE BONDS—continued
	Diversified Manufacturing—continued
$1,625,000	WESCO Distribution, Inc., Sr. Unsecd. Note, 5.375%, 12/15/2021	$1,648,920
1,550,000	WESCO Distribution, Inc., Sr. Unsecd. Note, 5.375%, 6/15/2024	1,540,313
	TOTAL	7,224,234
	Environmental—0.5%
2,200,000	Tervita Escrow Corp., Series 144A, 7.625%, 12/1/2021	2,279,750
1,175,000	Wrangler Buyer Corp., Sr. Unsecd. Note, Series 144A, 6.00%, 10/1/2025	1,145,143
	TOTAL	3,424,893
	Finance Companies—2.6%
375,000	Avolon Holdings Ltd., Sr. Unsecd. Note, Series 144A, 5.125%, 10/1/2023	379,219
275,000	Navient Corp., Sr. Unsecd. Note, 5.50%, 1/25/2023	275,344
2,650,000	Navient Corp., Sr. Unsecd. Note, 5.875%, 10/25/2024	2,600,259
275,000	Navient Corp., Sr. Unsecd. Note, 6.75%, 6/15/2026	272,938
325,000	Navient Corp., Sr. Unsecd. Note, 6.75%, 6/25/2025	327,844
1,475,000	Navient Corp., Sr. Unsecd. Note, 7.25%, 9/25/2023	1,570,875
1,175,000	Navient Corp., Sr. Unsecd. Note, Series MTN, 6.125%, 3/25/2024	1,177,938
500,000	Park Aerospace Holdings Ltd., Sr. Unsecd. Note, Series 144A, 4.50%, 3/15/2023	489,375
275,000	Park Aerospace Holdings Ltd., Sr. Unsecd. Note, Series 144A, 5.25%, 8/15/2022	278,781
5,025,000	Park Aerospace Holdings Ltd., Sr. Unsecd. Note, Series 144A, 5.50%, 2/15/2024	5,156,906
4,050,000	Quicken Loans, Inc., Series 144A, 5.75%, 5/1/2025	4,065,187
850,000	Quicken Loans, Inc., Sr. Unsecd. Note, Series 144A, 5.25%, 1/15/2028	792,625
	TOTAL	17,387,291
	Food & Beverage—2.5%
2,550,000	Anna Merger Subsidiary, Inc., Series 144A, 7.75%, 10/1/2022	879,750
1,625,000	Aramark Services, Inc., Sr. Unsecd. Note, 5.125%, 1/15/2024	1,646,531
1,175,000	Aramark Services, Inc., Sr. Unsecd. Note, Series 144A, 5.00%, 2/1/2028	1,154,438
1,450,000	Aramark Services, Inc., Sr. Unsecd. Note, Series 144A, 5.00%, 4/1/2025	1,459,062
2,250,000	B&G Foods, Inc., Sr. Unsecd. Note, 5.25%, 4/1/2025	2,162,385
650,000	Lamb Weston Holdings, Inc., Sr. Unsub., Series 144A, 4.875%, 11/1/2026	639,438
2,200,000	Post Holdings, Inc., Sr. Unsecd. Note, Series 144A, 5.00%, 8/15/2026	2,088,460
975,000	Post Holdings, Inc., Sr. Unsecd. Note, Series 144A, 5.50%, 3/1/2025	970,856
1,000,000	Post Holdings, Inc., Sr. Unsecd. Note, Series 144A, 5.625%, 1/15/2028	965,000

Semi-Annual Shareholder Report

Principal Amount or Shares		Value
	CORPORATE BONDS—continued
	Food & Beverage—continued
$3,000,000	Post Holdings, Inc., Sr. Unsecd. Note, Series 144A, 5.75%, 3/1/2027	$2,958,750
2,225,000	U.S. Foodservice, Inc., Sr. Unsecd. Note, Series 144A, 5.875%, 6/15/2024	2,247,250
	TOTAL	17,171,920
	Gaming—4.6%
450,000	Boyd Gaming Corp., Sr. Unsecd. Note, 6.375%, 4/1/2026	464,400
1,925,000	Boyd Gaming Corp., Sr. Unsecd. Note, 6.875%, 5/15/2023	2,029,431
275,000	Boyd Gaming Corp., Sr. Unsecd. Note, Series WI, 6.00%, 8/15/2026	278,438
4,000,000	CRC Escrow Issuer LLC, Sr. Unsecd. Note, Series 144A, 5.25%, 10/15/2025	3,820,000
350,000	Delta Merger Sub, Inc., Sr. Unsecd. Note, Series 144A, 6.00%, 9/15/2026	355,250
1,325,000	Eldorado Resorts, Inc., Sr. Unsecd. Note, 6.00%, 4/1/2025	1,346,531
225,000	MGM Growth Properties LLC, Sr. Unsecd. Note, 5.625%, 5/1/2024	231,469
700,000	MGM Mirage, Inc., 7.75%, 3/15/2022	769,146
400,000	MGM Mirage, Inc., Sr. Unsecd. Note, 6.75%, 10/1/2020	421,500
975,000	MGM Resorts International, 6.00%, 3/15/2023	1,011,563
625,000	MGM Resorts International, Sr. Unsecd. Note, 4.625%, 9/1/2026	585,750
1,650,000	MGM Resorts International, Sr. Unsecd. Note, 5.75%, 6/15/2025	1,661,550
1,725,000	Mohegan Tribal Gaming Authority, Sr. Unsecd. Note, Series 144A, 7.875%, 10/15/2024	1,696,969
1,175,000	Penn National Gaming, Inc., Sr. Unsecd. Note, Series 144A, 5.625%, 1/15/2027	1,136,460
2,150,000	Pinnacle Entertainment, Inc., Sr. Unsecd. Note, 5.625%, 5/1/2024	2,281,687
1,950,000	Rivers Pittsburgh LP, Series 144A, 6.125%, 8/15/2021	1,950,000
4,075,000	Seminole Hard Rock Entertainment, Inc./Seminole Hard Rock International LLC, Series 144A, 5.875%, 5/15/2021	4,110,656
1,755,000	Seminole Tribe of Florida, Inc., Bond, Series 144A, 7.804%, 10/1/2020	1,772,550
1,150,000	Star Group Holdings BV, Sr. Unsecd. Note, Series 144A, 7.00%, 7/15/2026	1,189,318
1,800,000	Station Casinos, Inc., Sr. Unsecd. Note, Series 144A, 5.00%, 10/1/2025	1,728,540
1,250,000	Sugarhouse HSP Gaming Finance Corp., Sec. Fac. Bond, Series 144A, 5.875%, 5/15/2025	1,184,000
775,000	Wynn Las Vegas LLC, Sr. Unsecd. Note, Series 144A, 5.25%, 5/15/2027	720,750
	TOTAL	30,745,958
	Health Care—11.4%
925,000	Acadia Healthcare Co., Inc., Sr. Unsecd. Note, 5.625%, 2/15/2023	934,250
2,375,000	Acadia Healthcare Co., Inc., Sr. Unsecd. Note, 6.50%, 3/1/2024	2,467,031

Semi-Annual Shareholder Report

Principal Amount or Shares		Value
	CORPORATE BONDS—continued
	Health Care—continued
$2,950,000	Air Medical Group Holdings, Inc., Sr. Unsecd. Note, Series 144A, 6.375%, 5/15/2023	$2,662,375
1,225,000	Amsurg Corp., Sr. Unsecd. Note, 5.625%, 7/15/2022	1,260,158
800,000	Avantor, Inc., Series 144A, 6.00%, 10/1/2024	814,000
2,225,000	Avantor, Inc., Sr. Unsecd. Note, Series 144A, 9.00%, 10/1/2025	2,300,094
325,000	CHS/Community Health Systems, Inc., 5.125%, 8/1/2021	317,688
1,650,000	CHS/Community Health Systems, Inc., 6.25%, 3/31/2023	1,573,687
600,000	CHS/Community Health Systems, Inc., Sec. Fac. Bond, Series 144A, 8.625%, 1/15/2024	623,250
2,050,000	CHS/Community Health Systems, Inc., Sr. Unsecd. Note, 6.875%, 2/1/2022	1,158,865
525,000	Charles River Laboratories International, Inc., Sr. Unsecd. Note, Series 144A, 5.50%, 4/1/2026	534,188
1,050,000	Enterprise Merger Sub, Inc., Sr. Unsecd. Note, Series 144A, 8.75%, 10/15/2026	1,050,000
1,325,000	Envision Healthcare Holdings, Inc., Series 144A, 5.125%, 7/1/2022	1,364,087
275,000	HCA, Inc., 4.75%, 5/1/2023	280,844
5,025,000	HCA, Inc., 5.00%, 3/15/2024	5,163,187
2,400,000	HCA, Inc., 5.875%, 5/1/2023	2,535,000
650,000	HCA, Inc., Bond, 5.875%, 3/15/2022	690,625
1,550,000	HCA, Inc., Sr. Secd. Note, 5.25%, 4/15/2025	1,602,312
2,375,000	HCA, Inc., Sr. Unsecd. Note, 5.375%, 2/1/2025	2,428,437
900,000	HCA, Inc., Sr. Unsecd. Note, 5.375%, 9/1/2026	913,050
325,000	HCA, Inc., Sr. Unsecd. Note, 7.50%, 2/15/2022	356,688
725,000	Hologic, Inc., Sr. Unsecd. Note, Series 144A, 4.375%, 10/15/2025	694,188
1,325,000	IMS Health, Inc., Sr. Unsecd. Note, Series 144A, 5.00%, 10/15/2026	1,302,806
1,500,000	LifePoint Health, Inc., Sr. Unsecd. Note, 5.50%, 12/1/2021	1,528,125
5,350,000	MPH Acquisition Holdings LLC, Series 144A, 7.125%, 6/1/2024	5,574,700
1,325,000	New Amethyst Corp., Sr. Unsecd. Note, Series 144A, 6.25%, 12/1/2024	1,431,000
7,075,000	Ortho-Clinical Diagnostics, Inc., Series 144A, 6.625%, 5/15/2022	6,947,650
1,600,000	Polaris Intermediate Corp., Sr. Unsecd. Note, Series 144A, 8.50%, 12/1/2022	1,659,184
2,525,000	SteriGenics Nordion Topc, Sr. Unsecd. Note, Series 144A, 8.125%, 11/1/2021	2,556,562
3,850,000	SteriGenics-Nordion Holdings LLC, Sr. Unsecd. Note, Series 144A, 6.50%, 5/15/2023	3,975,125
2,350,000	Surgery Center Holdings, Inc., Sr. Unsecd. Note, Series 144A, 6.75%, 7/1/2025	2,261,875
4,900,000	Team Health Holdings, Inc., Sr. Unsecd. Note, Series 144A, 6.375%, 2/1/2025	4,263,000

Semi-Annual Shareholder Report

Principal Amount or Shares		Value
	CORPORATE BONDS—continued
	Health Care—continued
$375,000	Teleflex, Inc., Sr. Unsecd. Note, 4.625%, 11/15/2027	$357,656
700,000	Teleflex, Inc., Sr. Unsecd. Note, 4.875%, 6/1/2026	696,500
750,000	Teleflex, Inc., Sr. Unsecd. Note, 5.25%, 6/15/2024	775,163
350,000	Tenet Healthcare Corp., 8.125%, 4/1/2022	370,143
1,925,000	Tenet Healthcare Corp., Series 144A, 5.125%, 5/1/2025	1,900,937
475,000	Tenet Healthcare Corp., Series 144A, 7.50%, 1/1/2022	497,563
875,000	Tenet Healthcare Corp., Sr. Secd. Note, Series 144A, 4.625%, 7/15/2024	852,688
1,350,000	Tenet Healthcare Corp., Sr. Unsecd. Note, 6.75%, 6/15/2023	1,350,000
1,475,000	Tenet Healthcare Corp., Sr. Unsecd. Note, Series 144A, 7.00%, 8/1/2025	1,463,200
2,675,000	Vizient, Inc., Sr. Unsecd. Note, Series 144A, 10.375%, 3/1/2024	2,939,156
2,175,000	West Street Merger Subsidiary, Inc., Sr. Unsecd. Note, Series 144A, 6.375%, 9/1/2025	2,071,687
	TOTAL	76,498,724
	Health Insurance—0.2%
1,050,000	Centene Escrow Corp., Sr. Unsecd. Note, Series 144A, 5.375%, 6/1/2026	1,078,875
525,000	Wellcare Health Plans, Inc., Sr. Unsecd. Note, Series 144A, 5.375%, 8/15/2026	535,500
	TOTAL	1,614,375
	Independent Energy—6.2%
1,750,000	Antero Resources Corp., Sr. Unsecd. Note, 5.00%, 3/1/2025	1,769,687
1,800,000	Ascent Resources Utica Holdings LLC/ARU Finance Corp., Sr. Unsecd. Note, Series 144A, 10.00%, 4/1/2022	2,038,500
750,000	Berry Petroleum Co., Sr. Unsecd. Note, Series 144A, 7.00%, 2/15/2026	780,000
1,585,000	Callon Petroleum Corp., Sr. Unsecd. Note, 6.125%, 10/1/2024	1,620,662
350,000	Callon Petroleum Corp., Sr. Unsecd. Note, Series WI, 6.375%, 7/1/2026	357,875
400,000	Carrizo Oil & Gas, Inc., 6.25%, 4/15/2023	410,500
319,000	Carrizo Oil & Gas, Inc., Sr. Unsecd. Note, 7.50%, 9/15/2020	319,399
850,000	Carrizo Oil & Gas, Inc., Sr. Unsecd. Note, 8.25%, 7/15/2025	918,000
250,000	Chesapeake Energy Corp., 5.75%, 3/15/2023	244,688
687,000	Chesapeake Energy Corp., Series 144A, 8.00%, 12/15/2022	721,350
800,000	Chesapeake Energy Corp., Sr. Unsecd. Note, 7.00%, 10/1/2024	801,000
425,000	Chesapeake Energy Corp., Sr. Unsecd. Note, Series WI, 8.00%, 1/15/2025	439,663
2,275,000	Chesapeake Energy Corp., Sr. Unsecd. Note, Series WI, 8.00%, 6/15/2027	2,325,050
2,525,000	Crownrock LP/Crownrock F, Series 144A, 5.625%, 10/15/2025	2,477,656

Semi-Annual Shareholder Report

Principal Amount or Shares		Value
	CORPORATE BONDS—continued
	Independent Energy—continued
$325,000	Diamondback Energy, Inc., Sr. Unsecd. Note, 5.375%, 5/31/2025	$333,531
1,325,000	EP Energy LLC/Everest Acquisition Finance, Inc., Sec. Fac. Bond, Series 144A, 8.00%, 11/29/2024	1,341,562
125,000	Endeavor Energy Resources LP, Sr. Unsecd. Note, Series 144A, 5.50%, 1/30/2026	125,625
725,000	Endeavor Energy Resources LP, Sr. Unsecd. Note, Series 144A, 5.75%, 1/30/2028	727,719
550,000	Gulfport Energy Corp., Sr. Unsecd. Note, 6.00%, 10/15/2024	539,000
825,000	Gulfport Energy Corp., Sr. Unsecd. Note, 6.375%, 5/15/2025	814,688
1,050,000	Gulfport Energy Corp., Sr. Unsecd. Note, 6.625%, 5/1/2023	1,073,625
175,000	Gulfport Energy Corp., Sr. Unsecd. Note, Series WI, 6.375%, 1/15/2026	170,625
650,000	Jagged Peak Energy, Inc., Sr. Unsecd. Note, Series 144A, 5.875%, 5/1/2026	648,375
725,000	Laredo Petroleum, 5.625%, 1/15/2022	723,188
800,000	Laredo Petroleum, Sr. Unsecd. Note, 6.25%, 3/15/2023	804,000
1,350,000	Oasis Petroleum, Inc., 6.875%, 1/15/2023	1,375,312
550,000	Oasis Petroleum, Inc., Sr. Unsecd. Note, Series 144A, 6.25%, 5/1/2026	562,100
625,000	PDC Energy, Inc., Sr. Unsecd. Note, 6.125%, 9/15/2024	617,969
675,000	PDC Energy, Inc., Sr. Unsecd. Note, Series WI, 5.75%, 5/15/2026	643,781
450,000	Parsley Energy LLC/Parsley Finance Corp., Sr. Unsecd. Note, Series 144A, 5.25%, 8/15/2025	450,000
475,000	Parsley Energy LLC/Parsley Finance Corp., Sr. Unsecd. Note, Series 144A, 5.375%, 1/15/2025	478,563
1,225,000	Parsley Energy LLC/Parsley Finance Corp., Sr. Unsecd. Note, Series 144A, 5.625%, 10/15/2027	1,231,125
875,000	QEP Resources, Inc., Sr. Unsecd. Note, 5.25%, 5/1/2023	856,406
525,000	QEP Resources, Inc., Sr. Unsecd. Note, 5.625%, 3/1/2026	504,000
1,425,000	Range Resources Corp., Sr. Unsecd. Note, 4.875%, 5/15/2025	1,355,531
550,000	Range Resources Corp., Sr. Unsecd. Note, 5.00%, 3/15/2023	543,125
1,100,000	SM Energy Co., Sr. Unsecd. Note, 5.00%, 1/15/2024	1,080,750
475,000	SM Energy Co., Sr. Unsecd. Note, 5.625%, 6/1/2025	475,594
50,000	SM Energy Co., Sr. Unsecd. Note, 6.625%, 1/15/2027	51,750
575,000	SM Energy Co., Sr. Unsecd. Note, 6.75%, 9/15/2026	600,156
1,900,000	SRC Energy, Inc., Sr. Unsecd. Note, Series WI, 6.25%, 12/1/2025	1,795,500
275,000	Southwestern Energy Co., Sr. Unsecd. Note, 7.50%, 4/1/2026	289,438
1,675,000	Southwestern Energy Co., Sr. Unsecd. Note, 7.75%, 10/1/2027	1,775,500
350,000	Ultra Resources, Inc., Sr. Unsecd. Note, Series 144A, 6.875%, 4/15/2022	168,000

Semi-Annual Shareholder Report

Principal Amount or Shares		Value
	CORPORATE BONDS—continued
	Independent Energy—continued
$1,150,000	Ultra Resources, Inc., Sr. Unsecd. Note, Series 144A, 7.125%, 4/15/2025	$471,500
950,000	WPX Energy, Inc., Sr. Unsecd. Note, 5.25%, 9/15/2024	961,229
225,000	WPX Energy, Inc., Sr. Unsecd. Note, 5.75%, 6/1/2026	228,656
84,000	WPX Energy, Inc., Sr. Unsecd. Note, 6.00%, 1/15/2022	87,465
375,000	WPX Energy, Inc., Sr. Unsecd. Note, 8.25%, 8/1/2023	427,500
1,625,000	Whiting Petroleum Corp., Sr. Unsecd. Note, 6.25%, 4/1/2023	1,685,125
475,000	Whiting Petroleum Corp., Sr. Unsecd. Note, Series WI, 6.625%, 1/15/2026	495,781
	TOTAL	41,737,824
	Industrial - Other—0.5%
2,425,000	Hillman Group, Inc., Unsecd. Note, Series 144A, 6.375%, 7/15/2022	2,194,625
1,200,000	KAR Auction Services, Inc., Sr. Unsecd. Note, Series 144A, 5.125%, 6/1/2025	1,167,000
375,000	Stevens Holding Company, Inc., Sr. Unsecd. Note, Series 144A, 6.125%, 10/1/2026	382,031
	TOTAL	3,743,656
	Insurance - P&C—2.7%
2,225,000	Acrisure LLC, Sr. Unsecd. Note, Series 144A, 7.00%, 11/15/2025	2,079,663
1,600,000	AmWINS Group, Inc., Sr. Unsecd. Note, Series 144A, 7.75%, 7/1/2026	1,668,000
2,300,000	AssuredPartners, Inc., Sr. Unsecd. Note, Series 144A, 7.00%, 8/15/2025	2,282,750
4,650,000	Hub International Ltd., Sr. Unsecd. Note, Series 144A, 7.00%, 5/1/2026	4,667,716
1,950,000	Kirs Midco 3 PLC, Sec. Fac. Bond, Series 144A, 8.625%, 7/15/2023	1,935,375
2,750,000	NFP Corp., Sr. Unsecd. Note, Series 144A, 6.875%, 7/15/2025	2,763,750
2,525,000	USIS Merger Subsidiary, Inc., Sr. Unsecd. Note, Series 144A, 6.875%, 5/1/2025	2,525,000
	TOTAL	17,922,254
	Leisure—0.7%
200,000	Live Nation Entertainment, Inc., Sr. Unsecd. Note, Series 144A, 5.625%, 3/15/2026	202,500
625,000	Six Flags Entertainment Corp., Sr. Unsecd. Note, Series 144A, 4.875%, 7/31/2024	613,750
3,000,000	Six Flags Entertainment Corp., Sr. Unsecd. Note, Series 144A, 5.50%, 4/15/2027	2,977,500
775,000	Voc Escrow Ltd., Series 144A, 5.00%, 2/15/2028	748,681
	TOTAL	4,542,431
	Lodging—0.4%
1,600,000	Hilton Domestic Operations, Sr. Unsecd. Note, Series 144A, 5.125%, 5/1/2026	1,598,000

Semi-Annual Shareholder Report

Principal Amount or Shares			Value
		CORPORATE BONDS—continued
		Lodging—continued
$1,100,000		Wyndham Hotels & Resorts, Inc., Sr. Unsecd. Note, Series 144A, 5.375%, 4/15/2026	$1,095,875
		TOTAL	2,693,875
		Media Entertainment—5.7%
1,550,000		AMC Networks, Inc., Sr. Unsecd. Note, 4.75%, 8/1/2025	1,491,208
1,325,000		AMC Networks, Inc., Sr. Unsecd. Note, 5.00%, 4/1/2024	1,308,437
1,575,000		CBS Radio, Inc., Sr. Unsecd. Note, Series 144A, 7.25%, 11/1/2024	1,521,418
2,425,000	^1,2	Clear Channel Communications, Inc., Company Guarantee, 9.00%, 3/1/2021	1,818,750
825,000		Clear Channel Worldwide, Series A, 6.50%, 11/15/2022	844,594
1,175,000		Clear Channel Worldwide, Series B, 6.50%, 11/15/2022	1,204,810
1,025,000		EMI Music Publishing Group North America Holdings, Inc., Series 144A, 7.625%, 6/15/2024	1,105,719
2,300,000		Gannett Co., Inc., 6.375%, 10/15/2023	2,383,237
625,000		Gray Television, Inc., Sr. Unsecd. Note, Series 144A, 5.125%, 10/15/2024	605,469
2,325,000		Gray Television, Inc., Sr. Unsecd. Note, Series 144A, 5.875%, 7/15/2026	2,310,469
1,175,000		Lin Television Corp., Sr. Unsecd. Note, 5.875%, 11/15/2022	1,198,500
2,425,000		Match Group, Inc., Sr. Unsecd. Note, Series 144A, 5.00%, 12/15/2027	2,425,242
2,000,000		Nexstar Broadcasting, Inc., Sr. Unsecd. Note, Series 144A, 6.125%, 2/15/2022	2,042,500
1,500,000		Nexstar Escrow Corp., Sr. Unsecd. Note, Series 144A, 5.625%, 8/1/2024	1,471,875
4,225,000		Nielsen Finance LLC/Nielsen Finance Co., Series 144A, 5.00%, 4/15/2022	4,134,120
500,000		Nielsen Finance LLC/Nielsen Finance Co., Sr. Unsecd. Note, Series 144A, 5.00%, 2/1/2025	492,500
1,050,000		Outfront Americas Capital LLC/Outfront Media Capital Corp., Sr. Unsecd. Note, 5.875%, 3/15/2025	1,064,438
2,175,000		Sinclair Television Group, Series 144A, 5.625%, 8/1/2024	2,150,314
375,000		Sinclair Television Group, Sr. Unsecd. Note, Series 144A, 5.125%, 2/15/2027	346,875
1,775,000		Sinclair Television Group, Sr. Unsecd. Note, Series 144A, 5.875%, 3/15/2026	1,737,459
2,975,000		Tribune Media Co., Sr. Unsecd. Note, 5.875%, 7/15/2022	3,053,094
1,300,000		Urban One, Inc., Series 144A, 7.375%, 4/15/2022	1,293,500
1,900,000		Urban One, Inc., Series 144A, 9.25%, 2/15/2020	1,885,750
275,000		WMG Acquisition Corp., Sec. Fac. Bond, Series 144A, 4.875%, 11/1/2024	269,500

Semi-Annual Shareholder Report

Principal Amount or Shares		Value
	CORPORATE BONDS—continued
	Media Entertainment—continued
$550,000	WMG Acquisition Corp., Sr. Unsecd. Note, Series 144A, 5.50%, 4/15/2026	$547,250
	TOTAL	38,707,028
	Metals & Mining—1.8%
1,675,000	Coeur Mining, Inc., Sr. Unsecd. Note, 5.875%, 6/1/2024	1,601,719
2,325,000	Freeport-McMoRan, Inc., Sr. Unsecd. Note, 3.875%, 3/15/2023	2,255,064
2,700,000	Freeport-McMoRan, Inc., Sr. Unsecd. Note, 5.40%, 11/14/2034	2,551,500
575,000	HudBay Minerals, Inc., Sr. Unsecd. Note, Series 144A, 7.25%, 1/15/2023	593,751
1,000,000	HudBay Minerals, Inc., Sr. Unsecd. Note, Series 144A, 7.625%, 1/15/2025	1,037,500
775,000	Steel Dynamics, Inc., Sr. Unsecd. Note, 5.125%, 10/1/2021	784,493
425,000	Steel Dynamics, Inc., Sr. Unsecd. Note, 5.25%, 4/15/2023	432,884
875,000	Teck Resources Ltd., Sr. Unsecd. Note, 6.00%, 8/15/2040	896,875
1,200,000	Teck Resources Ltd., Sr. Unsecd. Note, 6.125%, 10/1/2035	1,269,000
500,000	Teck Resources Ltd., Sr. Unsecd. Note, Series 144A, 8.50%, 6/1/2024	547,875
	TOTAL	11,970,661
	Midstream—5.5%
150,000	AmeriGas Partners LP, Sr. Unsecd. Note, 5.50%, 5/20/2025	148,125
275,000	AmeriGas Partners LP, Sr. Unsecd. Note, 5.625%, 5/20/2024	274,313
625,000	AmeriGas Partners LP, Sr. Unsecd. Note, 5.75%, 5/20/2027	615,625
2,425,000	AmeriGas Partners LP, Sr. Unsecd. Note, 5.875%, 8/20/2026	2,418,937
1,525,000	Antero Midstream Partners LP, Sr. Unsecd. Note, 5.375%, 9/15/2024	1,542,156
1,525,000	CNX Midstream Partners LP/CNX Midstream Finance Corp, Sr. Unsecd. Note, Series 144A, 6.50%, 3/15/2026	1,521,187
400,000	Cheniere Corpus Christi Holdings LLC, 5.125%, 6/30/2027	402,500
1,850,000	Cheniere Corpus Christi Holdings LLC, Sr. Secd. Note, 5.875%, 3/31/2025	1,947,125
625,000	Cheniere Corpus Christi Holdings LLC, Sr. Secd. Note, 7.00%, 6/30/2024	685,938
2,750,000	Cheniere Energy Partners, LP, Series WI, 5.25%, 10/1/2025	2,756,875
500,000	Cheniere Energy Partners, LP, Sr. Unsecd. Note, Series 144A, 5.625%, 10/1/2026	504,225
1,625,000	Energy Transfer Equity LP, 5.875%, 1/15/2024	1,714,375
1,450,000	Ferrellgas LP/Ferrellgas Finance Corp., Sr. Unsecd. Note, 6.75%, 6/15/2023	1,218,000
1,000,000	Ferrellgas, LP, Sr. Unsecd. Note, 6.50%, 5/1/2021	900,000
1,775,000	Ferrellgas, LP, Sr. Unsecd. Note, 6.75%, 1/15/2022	1,557,562
2,500,000	Holly Energy Partners LP, Series 144A, 6.00%, 8/1/2024	2,568,750

Semi-Annual Shareholder Report

Principal Amount or Shares		Value
	CORPORATE BONDS—continued
	Midstream—continued
$2,000,000	NuStar Logistics, LP, Sr. Unsecd. Note, 5.625%, 4/28/2027	$1,985,000
1,350,000	Suburban Propane Partners LP, 5.50%, 6/1/2024	1,333,125
2,500,000	Suburban Propane Partners LP, Sr. Unsecd. Note, 5.875%, 3/1/2027	2,387,500
2,650,000	Summit Midstream Holdings LLC, 5.50%, 8/15/2022	2,661,421
1,875,000	Summit Midstream Holdings LLC, Sr. Unsecd. Note, 5.75%, 4/15/2025	1,814,062
125,000	Sunoco LP/Finance Corp., Sr. Unsecd. Note, Series 144A, 4.875%, 1/15/2023	124,063
525,000	Sunoco LP/Finance Corp., Sr. Unsecd. Note, Series 144A, 5.50%, 2/15/2026	508,463
825,000	Sunoco LP/Finance Corp., Sr. Unsecd. Note, Series 144A, 5.875%, 3/15/2028	794,063
500,000	Targa Resources Partners LP/Targa Resources Partners Finance Corp., Sr. Unsecd. Note, 5.25%, 5/1/2023	508,125
1,200,000	Targa Resources Partners LP/Targa Resources Partners Finance Corp., Sr. Unsecd. Note, Series 144A, 5.00%, 1/15/2028	1,172,400
500,000	Targa Resources Partners LP/Targa Resources Partners Finance Corp., Sr. Unsecd. Note, Series 144A, 5.125%, 2/1/2025	505,000
1,650,000	Targa Resources Partners LP/Targa Resources Partners Finance Corp., Sr. Unsecd. Note, Series 144A, 5.375%, 2/1/2027	1,658,250
500,000	Targa Resources Partners LP/Targa Resources Partners Finance Corp., Sr. Unsecd. Note, Series 144A, 5.875%, 4/15/2026	518,125
250,000	TransMontaigne Partners LP/TLP Finance Corp., Sr. Unsecd. Note, 6.125%, 2/15/2026	236,875
	TOTAL	36,982,165
	Oil Field Services—1.6%
275,000	Apergy Corp., Series 144A, 6.375%, 5/1/2026	283,594
175,000	Precision Drilling Corp., Sr. Unsecd. Note, 5.25%, 11/15/2024	168,000
81,487	Precision Drilling Corp., Sr. Unsecd. Note, 6.50%, 12/15/2021	83,117
1,075,000	Precision Drilling Corp., Sr. Unsecd. Note, 7.75%, 12/15/2023	1,142,187
675,000	Precision Drilling Corp., Sr. Unsecd. Note, Series 144A, 7.125%, 1/15/2026	695,250
825,000	Sesi LLC, 7.125%, 12/15/2021	838,613
2,350,000	Sesi LLC, Sr. Unsecd. Note, Series WI, 7.75%, 9/15/2024	2,405,812
1,375,000	Shelf Drilling Holdings Ltd., Sr. Unsecd. Note, Series 144A, 8.25%, 2/15/2025	1,421,406
1,400,000	USA Compression Partners LP, Sr. Unsecd. Note, Series 144A, 6.875%, 4/1/2026	1,450,750
1,275,000	Weatherford International Ltd., 7.00%, 3/15/2038	994,500
1,025,000	Weatherford International Ltd., Sr. Unsecd. Note, 8.25%, 6/15/2023	973,750

Semi-Annual Shareholder Report

Principal Amount or Shares		Value
	CORPORATE BONDS—continued
	Oil Field Services—continued
$425,000	Weatherford International, Inc., Sr. Unsecd. Note, 6.80%, 6/15/2037	$325,125
	TOTAL	10,782,104
	Packaging—5.8%
2,300,000	ARD Finance SA, Sec. Fac. Bond, 7.125%, 9/15/2023	2,334,500
1,075,000	Ardagh Packaging Finance PLC/Ardagh Holdings, Sr. Unsecd. Note, Series 144A, 6.00%, 2/15/2025	1,058,337
3,725,000	Ardagh Packaging Finance PLC/Ardagh Holdings, Sr. Unsecd. Note, Series 144A, 7.25%, 5/15/2024	3,911,250
4,650,000	Berry Plastics Corp., 5.50%, 5/15/2022	4,731,840
2,125,000	Bway Holding Co., Sec. Fac. Bond, Series 144A, 5.50%, 4/15/2024	2,094,379
4,725,000	Bway Holding Co., Sr. Unsecd. Note, Series 144A, 7.25%, 4/15/2025	4,618,215
1,075,000	Crown Americas LLC, Sr. Unsecd. Note, Series 144A, 4.75%, 2/1/2026	1,032,000
4,550,000	Flex Acquisition Co., Inc., Sr. Unsecd. Note, Series 144A, 6.875%, 1/15/2025	4,368,000
1,225,000	Flex Acquisition Co., Inc., Sr. Unsecd. Note, Series 144A, 7.875%, 7/15/2026	1,212,750
2,775,000	Multi-Color Corp., Series 144A, 6.125%, 12/1/2022	2,851,312
475,000	Multi-Color Corp., Sr. Unsecd. Note, Series 144A, 4.875%, 11/1/2025	445,313
975,000	Owens-Brockway Glass Container, Inc., Series 144A, 5.375%, 1/15/2025	968,906
550,000	Owens-Brockway Glass Container, Inc., Series 144A, 5.875%, 8/15/2023	567,875
775,000	Owens-Brockway Glass Container, Inc., Series 144A, 6.375%, 8/15/2025	800,188
2,761,957	Reynolds Group Issuer, Inc./LLC/LU, 5.75%, 10/15/2020	2,772,314
1,800,000	Reynolds Group Issuer, Inc./LLC/LU, Series 144A, 7.00%, 7/15/2024	1,834,875
575,000	Reynolds Group, Sr. Unsecd. Note, 7.95%, 12/15/2025	618,125
650,000	Sealed Air Corp., Series 144A, 4.875%, 12/1/2022	658,938
500,000	Sealed Air Corp., Sr. Unsecd. Note, Series 144A, 5.50%, 9/15/2025	511,875
1,725,000	Trident Merger Subsidiary, Inc., Sr. Unsecd. Note, Series 144A, 6.625%, 11/1/2025	1,638,750
	TOTAL	39,029,742
	Paper—0.5%
575,000	Clearwater Paper Corp., Sr. Note, 4.50%, 2/1/2023	537,625
2,950,000	Clearwater Paper Corp., Sr. Unsecd. Note, Series 144A, 5.375%, 2/1/2025	2,750,875
	TOTAL	3,288,500
	Pharmaceuticals—4.4%
650,000	Bausch Health Cos, Inc., Sec. Fac. Bond, Series 144A, 5.50%, 11/1/2025	651,300

Semi-Annual Shareholder Report

Principal Amount or Shares		Value
	CORPORATE BONDS—continued
	Pharmaceuticals—continued
$900,000	Bausch Health Cos, Inc., Sr. Secd. Note, Series 144A, 7.00%, 3/15/2024	$953,100
550,000	Bausch Health Cos, Inc., Sr. Unsecd. Note, Series 144A, 5.50%, 3/1/2023	531,162
3,200,000	Bausch Health Cos, Inc., Sr. Unsecd. Note, Series 144A, 5.875%, 5/15/2023	3,118,400
4,925,000	Bausch Health Cos, Inc., Sr. Unsecd. Note, Series 144A, 6.125%, 4/15/2025	4,696,234
1,275,000	Bausch Health Cos, Inc., Sr. Unsecd. Note, Series 144A, 7.50%, 7/15/2021	1,302,094
375,000	Bausch Health Cos, Inc., Sr. Unsecd. Note, Series 144A, 8.50%, 1/31/2027	394,688
1,375,000	Bausch Health Cos, Inc., Sr. Unsecd. Note, Series 144A, 9.00%, 12/15/2025	1,485,055
900,000	Eagle Holding Co. II LLC, Sr. Unsecd. Note, Series 144A, 7.625%, 5/15/2022	913,500
1,975,000	Endo Dac/Endo Finance LLC/Endo Finco, Inc., Sr. Unsecd. Note, Series 144A, 6.00%, 7/15/2023	1,762,687
400,000	Endo Finance LLC/Endo Finco, Inc., Sr. Unsecd. Note, Series 144A, 5.375%, 1/15/2023	354,000
2,325,000	Endo Finance LLC/Endo Finco, Inc., Sr. Unsecd. Note, Series 144A, 6.00%, 2/1/2025	2,015,775
6,275,000	Jaguar Holding Co. II/Pharmaceutical Product Development LLC, Sr. Unsecd. Note, Series 144A, 6.375%, 8/1/2023	6,337,750
3,450,000	Mallinckrodt International Finance SA/Mallinckrodt CB LLC, Sr. Unsecd. Note, Series 144A, 5.50%, 4/15/2025	2,930,775
2,350,000	Mallinckrodt International Finance SA/Mallinckrodt CB LLC, Sr. Unsecd. Note, Series 144A, 5.625%, 10/15/2023	2,091,500
	TOTAL	29,538,020
	Refining—0.5%
3,025,000	CVR Refining LLC/Coffeyville Finance, Inc., 6.50%, 11/1/2022	3,085,500
	Restaurants—1.1%
4,275,000	1011778 BC Unltd. Liability Co./New Red Finance, Inc., Series 144A, 5.00%, 10/15/2025	4,104,043
350,000	1011778 BC Unltd. Liability Co./New Red Finance, Inc., Sr. Secd. Note, Series 144A, 4.25%, 5/15/2024	333,071
350,000	Performance Food Group, Inc., Series 144A, 5.50%, 6/1/2024	348,250
925,000	Yum! Brands, Inc., Sr. Unsecd. Note, Series 144A, 5.00%, 6/1/2024	919,801
1,475,000	Yum! Brands, Inc., Sr. Unsecd. Note, Series 144A, 5.25%, 6/1/2026	1,476,106
	TOTAL	7,181,271

Semi-Annual Shareholder Report

Principal Amount or Shares		Value
	CORPORATE BONDS—continued
	Retailers—1.4%
$1,550,000	Argos Merger Subsidiary, Inc., Sr. Unsecd. Note, Series 144A, 7.125%, 3/15/2023	$1,121,813
1,225,000	Michaels Stores, Inc., Series 144A, 5.875%, 12/15/2020	1,232,350
2,500,000	Party City Holdings, Inc., Sr. Unsecd. Note, Series 144A, 6.125%, 8/15/2023	2,543,750
675,000	Party City Holdings, Inc., Sr. Unsecd. Note, Series 144A, 6.625%, 8/1/2026	685,125
1,800,000	Rite Aid Corp., Sr. Unsecd. Note, Series 144A, 6.125%, 4/1/2023	1,622,250
2,150,000	Sally Hldgs. LLC/Sally Capital, Inc., 5.625%, 12/1/2025	2,058,625
	TOTAL	9,263,913
	Supermarkets—0.6%
2,625,000	Albertsons Cos. LLC/SAFEW, Sr. Unsecd. Note, 5.75%, 3/15/2025	2,362,500
1,775,000	Albertsons Cos. LLC/SAFEW, Sr. Unsecd. Note, 6.625%, 6/15/2024	1,715,094
	TOTAL	4,077,594
	Technology—8.8%
3,450,000	BMC Software, Inc., Series 144A, 8.125%, 7/15/2021	3,530,557
2,125,000	Banff Merger Subsidiary, Inc., Sr. Unsecd. Note, Series 144A, 9.75%, 9/1/2026	2,161,125
375,000	CDK Global, Inc., Sr. Unsecd. Note, 5.875%, 6/15/2026	388,268
625,000	CDW LLC/CDW Finance, Sr. Unsecd. Note, 5.00%, 9/1/2023	638,750
1,475,000	CDW LLC/CDW Finance, Sr. Unsecd. Note, 5.50%, 12/1/2024	1,534,000
1,350,000	CommScope, Inc., Series 144A, 5.50%, 6/15/2024	1,365,187
2,900,000	Diamond 1 Finance Corp./Diamond 2 Finance Corp., Sr. Unsecd. Note, Series 144A, 7.125%, 6/15/2024	3,115,425
1,750,000	Ensemble S Merger Subsidiary, Inc., Sr. Unsecd. Note, Series 144A, 9.00%, 9/30/2023	1,833,125
475,000	Financial & Risk US Holdings, Inc., Series 144A, 6.25%, 5/15/2026	475,297
725,000	Financial & Risk US Holdings, Inc., Sr. Unsecd. Note, Series 144A, 8.25%, 11/15/2026	722,419
6,575,000	First Data Corp., Series 144A, 5.75%, 1/15/2024	6,683,487
950,000	First Data Corp., Sr. Unsecd. Note, Series 144A, 7.00%, 12/1/2023	991,562
925,000	Gartner, Inc., Sr. Unsecd. Note, Series 144A, 5.125%, 4/1/2025	932,280
3,425,000	Inception Merger Subsidiary, Inc., Sr. Unsecd. Note, Series 144A, 8.625%, 11/15/2024	3,343,656
3,900,000	Infor Software Parent, Inc., Series 144A, 7.125%, 5/1/2021	3,961,425
3,325,000	Infor US, Inc., 6.50%, 5/15/2022	3,386,679
2,500,000	Italics Merger Subsidiary, Inc., Sr. Unsecd. Note, Series 144A, 7.125%, 7/15/2023	2,571,450
2,850,000	JDA Escrow LLC/JDA Bond Finance, Inc., Series 144A, 7.375%, 10/15/2024	2,964,000

Semi-Annual Shareholder Report

Principal Amount or Shares		Value
	CORPORATE BONDS—continued
	Technology—continued
$650,000	MSCI, Inc., Series 144A, 5.75%, 8/15/2025	$684,268
475,000	MSCI, Inc., Sr. Unsecd. Note, Series 144A, 5.25%, 11/15/2024	488,775
700,000	NCR Corp., 6.375%, 12/15/2023	714,875
325,000	NCR Corp., Sr. Unsecd. Note, 4.625%, 2/15/2021	322,563
1,025,000	NCR Corp., Sr. Unsecd. Note, 5.00%, 7/15/2022	1,021,797
550,000	NCR Corp., Sr. Unsecd. Note, 5.875%, 12/15/2021	557,562
700,000	Nuance Communications, Inc., Sr. Unsecd. Note, 6.00%, 7/1/2024	724,500
2,475,000	Nuance Communications, Inc., Sr. Unsecd. Note, Series 144A, 5.625%, 12/15/2026	2,493,414
2,500,000	Riverbed Technology, Inc., Sr. Unsecd. Note, Series 144A, 8.875%, 3/1/2023	2,365,625
600,000	Sabre GLBL, Inc., Series 144A, 5.375%, 4/15/2023	604,410
400,000	Sensata Technologies B.V., Sr. Unsecd. Note, Series 144A, 5.00%, 10/1/2025	401,488
225,000	Sensata Technologies UK Financing Co. PLC, Sr. Unsecd. Note, Series 144A, 6.25%, 2/15/2026	237,938
1,625,000	Solera LLC/Solera Finance, Inc., Series 144A, 10.50%, 3/1/2024	1,788,800
1,475,000	TTM Technologies, Sr. Unsecd. Note, Series 144A, 5.625%, 10/1/2025	1,482,375
4,350,000	Tempo Acquisition LLC, Sr. Unsecd. Note, Series 144A, 6.75%, 6/1/2025	4,241,250
325,000	Vantiv LLC, Sr. Unsecd. Note, Series 144A, 4.375%, 11/15/2025	309,969
	TOTAL	59,038,301
	Transportation Services—0.1%
175,000	Avis Budget Group, Inc., Sr. Unsecd. Note, Series 144A, 5.25%, 3/15/2025	164,938
550,000	Hertz Corp., Sr. Unsecd. Note, Series 144A, 5.50%, 10/15/2024	459,250
	TOTAL	624,188
	Utility - Electric—2.3%
3,175,000	Calpine Corp., 5.75%, 1/15/2025	2,821,781
300,000	Calpine Corp., Series 144A, 5.25%, 6/1/2026	279,000
950,000	Calpine Corp., Series 144A, 5.875%, 1/15/2024	959,500
2,750,000	Enviva Partners LP/Enviva Partners Finance Corp., Sr. Unsecd. Note, 8.50%, 11/1/2021	2,854,555
2,425,000	NRG Energy, Inc., 6.25%, 5/1/2024	2,534,125
850,000	NRG Energy, Inc., Sr. Unsecd. Note, 6.625%, 1/15/2027	896,325
1,150,000	NRG Energy, Inc., Sr. Unsecd. Note, 7.25%, 5/15/2026	1,257,145
575,000	NRG Energy, Inc., Sr. Unsecd. Note, Series 144A, 5.75%, 1/15/2028	582,188
225,000	TerraForm Power Operating LLC, Sr. Unsecd. Note, Series 144A, 4.25%, 1/31/2023	220,500

Semi-Annual Shareholder Report

Principal Amount or Shares		Value
	CORPORATE BONDS—continued
	Utility - Electric—continued
$2,350,000	TerraForm Power Operating LLC, Sr. Unsecd. Note, Series 144A, 5.00%, 1/31/2028	$2,194,312
550,000	TerraForm Power Operating LLC, Sr. Unsecd. Note, Series 144A, 6.625%, 6/15/2025	585,063
550,000	Vistra Operations Co., LLC, Sr. Unsecd. Note, Series 144A, 5.50%, 9/1/2026	556,875
	TOTAL	15,741,369
	Wireless Communications—4.1%
525,000	Altice France SA, Series 144A, 8.125%, 2/1/2027	540,750
800,000	Altice Luxembourg SA, Series 144A, 7.75%, 5/15/2022	781,600
3,025,000	Altice Luxembourg SA, Sr. Unsecd. Note, Series 144A, 7.625%, 2/15/2025	2,752,750
400,000	Digicel Ltd., Sr. Unsecd. Note, Series 144A, 8.25%, 9/30/2020	306,500
750,000	Numericable Group SA, Series 144A, 6.25%, 5/15/2024	744,000
4,825,000	Numericable-SFR SAS, Series 144A, 7.375%, 5/1/2026	4,848,160
1,900,000	Sprint Capital Corp., Company Guarantee, 6.875%, 11/15/2028	1,913,661
2,125,000	Sprint Corp., 7.125%, 6/15/2024	2,212,656
2,425,000	Sprint Corp., 7.875%, 9/15/2023	2,618,660
3,125,000	Sprint Corp., Sr. Unsecd. Note, 7.625%, 2/15/2025	3,321,875
600,000	Sprint Corp., Sr. Unsecd. Note, 7.625%, 3/1/2026	636,450
900,000	Sprint Nextel Corp., Sr. Unsecd. Note, 6.00%, 11/15/2022	920,250
800,000	T-Mobile USA, Inc., Sr. Unsecd. Note, 4.75%, 2/1/2028	754,000
1,700,000	T-Mobile USA, Inc., Sr. Unsecd. Note, 5.125%, 4/15/2025	1,717,000
425,000	T-Mobile USA, Inc., Sr. Unsecd. Note, 5.375%, 4/15/2027	424,469
350,000	T-Mobile USA, Inc., Sr. Unsecd. Note, 6.00%, 3/1/2023	361,638
475,000	T-Mobile USA, Inc., Sr. Unsecd. Note, 6.375%, 3/1/2025	496,042
1,700,000	T-Mobile USA, Inc., Sr. Unsecd. Note, 6.50%, 1/15/2024	1,770,125
625,000	T-Mobile USA, Inc., Sr. Unsecd. Note, 6.50%, 1/15/2026	656,375
	TOTAL	27,776,961
	TOTAL CORPORATE BONDS (IDENTIFIED COST $653,741,295)	647,961,880
	INVESTMENT COMPANY—2.6%
17,204,206	Federated Institutional Prime Value Obligations Fund, Institutional Shares, 2.18%³ (IDENTIFIED COST $17,207,975)	17,207,647
	TOTAL INVESTMENT IN SECURITIES—98.8% (IDENTIFIED COST $670,949,270)⁴	665,169,527
	OTHER ASSETS AND LIABILITIES - NET—1.2%⁵	8,213,368
	TOTAL NET ASSETS—100%	$673,382,895

Semi-Annual Shareholder Report

Affiliated fund holdings are investment companies which are managed by the Adviser or an affiliate of the Adviser. Transactions with affiliated fund holdings during the period ended September 30, 2018, were as follows:

	Federated Institutional Prime Value Obligations Fund, Institutional Shares
Balance of Shares Held 3/31/2018	16,674,574
Purchases/Additions	61,675,966
Sales/Reductions	(61,146,334)
Balance of Shares Held 9/30/2018	17,204,206
Value	$17,207,647
Change in Unrealized Appreciation/Depreciation	$3,037
Net Realized Gain/(Loss)	$3,403
Dividend Income	$235,965

1	Issuer in default.
2	Non-income-producing security.
3	7-day net yield.
4	The cost of investments for federal tax purposes amounts to $671,342,720.
5	Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.

Note: The categories of investments are shown as a percentage of total net assets at September 30, 2018.

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:

Level 1—quoted prices in active markets for identical securities.

Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.

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

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

Semi-Annual Shareholder Report

Financial Highlights–Class A Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited) 9/30/2018	Year Ended March 31,
	Six Months Ended (unaudited) 9/30/2018	2018	2017	2016	2015	2014
Net Asset Value, Beginning of Period	$7.39	$7.59	$7.06	$7.65	$7.94	$7.91
Income From Investment Operations:
Net investment income	0.19¹	0.39¹	0.38¹	0.39¹	0.41¹	0.45¹
Net realized and unrealized gain (loss)	0.03	(0.19)	0.53	(0.57)	(0.27)	0.05
TOTAL FROM INVESTMENT OPERATIONS	0.22	0.20	0.91	(0.18)	0.14	0.50
Less Distributions:
Distributions from net investment income	(0.20)	(0.40)	(0.38)	(0.41)	(0.43)	(0.47)
Redemption Fees	—	0.00²	0.00²	0.00²	0.00²	0.00²
Regulatory Settlement Proceeds³	—	—	—	—	—	0.00²
Net Asset Value, End of Period	$7.41	$7.39	$7.59	$7.06	$7.65	$7.94
Total Return⁴	3.02%	2.63%	13.23%	(2.42)%	1.89%	6.64%³
Ratios to Average Net Assets:
Net expenses	0.89%⁵	0.89%	1.14%	1.24%	1.23%	1.23%
Net investment income	5.24%⁵	5.16%	5.14%	5.34%	5.33%	5.78%
Expense waiver/reimbursement⁶	0.10%⁵	0.10%	0.04%	0.00%⁷	0.00%⁷	0.00%⁷
Supplemental Data:
Net assets, end of period (000 omitted)	$441,830	$457,942	$626,760	$609,393	$753,815	$904,021
Portfolio turnover	8%	23%	34%	23%	31%	28%

1	Per share numbers have been calculated using the average shares method.
2	Represents less than $0.01.
3	On September 9, 2013, the Fund received a residual distribution from a regulatory settlement which had an impact of 0.13%.
4	Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized.
5	Computed on an annualized basis.
6	This expense decrease is reflected in both the net expense and the net investment income ratios shown above.
7	Represents less than 0.01%.

See Notes which are an integral part of the Financial Statements

Semi-Annual Shareholder Report

Financial Highlights–Class B Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited) 9/30/2018	Year Ended March 31,
	Six Months Ended (unaudited) 9/30/2018	2018	2017	2016	2015	2014
Net Asset Value, Beginning of Period	$7.38	$7.58	$7.04	$7.64	$7.92	$7.90
Income From Investment Operations:
Net investment income	0.16¹	0.33¹	0.32¹	0.33¹	0.36¹	0.39¹
Net realized and unrealized gain (loss)	0.02	(0.19)	0.55	(0.58)	(0.26)	0.04
TOTAL FROM INVESTMENT OPERATIONS	0.18	0.14	0.87	(0.25)	0.10	0.43
Less Distributions:
Distributions from net investment income	(0.17)	(0.34)	(0.33)	(0.35)	(0.38)	(0.41)
Redemption Fees	—	0.00²	0.00²	0.00²	0.00²	0.00²
Regulatory Settlement Proceeds³	—	—	—	—	—	0.00²
Net Asset Value, End of Period	$7.39	$7.38	$7.58	$7.04	$7.64	$7.92
Total Return⁴	2.45%	1.78%	12.53%	(3.28)%	1.25%	5.71%³
Ratios to Average Net Assets:
Net expenses	1.74%⁵	1.74%	1.92%	1.99%	1.98%	1.98%
Net investment income	4.40%⁵	4.30%	4.36%	4.58%	4.58%	5.03%
Expense waiver/reimbursement⁶	0.04%⁵	0.03%	0.03%	0.00%⁷	0.00%⁷	0.00%⁷
Supplemental Data:
Net assets, end of period (000 omitted)	$19,345	$23,665	$34,013	$36,968	$53,705	$69,465
Portfolio turnover	8%	23%	34%	23%	31%	28%

1	Per share numbers have been calculated using the average shares method.
2	Represents less than $0.01.
3	On September 9, 2013, the Fund received a residual distribution from a regulatory settlement which had an impact of 0.00%.
4	Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized.
5	Computed on an annualized basis.
6	This expense decrease is reflected in both the net expense and the net investment income ratios shown above.
7	Represents less than 0.01%.

See Notes which are an integral part of the Financial Statements

Semi-Annual Shareholder Report

Financial Highlights–Class C Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited) 9/30/2018	Year Ended March 31,
	Six Months Ended (unaudited) 9/30/2018	2018	2017	2016	2015	2014
Net Asset Value, Beginning of Period	$7.37	$7.57	$7.04	$7.64	$7.92	$7.89
Income From Investment Operations:
Net investment income	0.16¹	0.33¹	0.32¹	0.33¹	0.36¹	0.39¹
Net realized and unrealized gain (loss)	0.03	(0.19)	0.54	(0.58)	(0.26)	0.05
TOTAL FROM INVESTMENT OPERATIONS	0.19	0.14	0.86	(0.25)	0.10	0.44
Less Distributions:
Distributions from net investment income	(0.17)	(0.34)	(0.33)	(0.35)	(0.38)	(0.41)
Redemption Fees	—	0.00²	0.00²	0.00²	0.00²	0.00²
Regulatory Settlement Proceeds³	—	—	—	—	—	0.00²
Net Asset Value, End of Period	$7.39	$7.37	$7.57	$7.04	$7.64	$7.92
Total Return⁴	2.61%	1.81%	12.40%	(3.28)%	1.26%	5.85%³
Ratios to Average Net Assets:
Net expenses	1.71%⁵	1.70%	1.91%	1.99%	1.99%	1.98%
Net investment income	4.42%⁵	4.34%	4.37%	4.59%	4.58%	5.03%
Expense waiver/reimbursement⁶	0.04%⁵	0.03%	0.03%	0.00%⁷	0.00%⁷	0.00%⁷
Supplemental Data:
Net assets, end of period (000 omitted)	$79,469	$119,868	$148,083	$149,649	$185,912	$212,735
Portfolio turnover	8%	23%	34%	23%	31%	28%

1	Per share numbers have been calculated using the average shares method.
2	Represents less than $0.01.
3	On September 9, 2013, the Fund received a residual distribution from a regulatory settlement which had an impact of 0.00%.
4	Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized.
5	Computed on an annualized basis.
6	This expense decrease is reflected in both the net expense and the net investment income ratios shown above.
7	Represents less than 0.01%.

See Notes which are an integral part of the Financial Statements

Semi-Annual Shareholder Report

Financial Highlights–Institutional Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited) 9/30/2018	Year Ended 3/31/2018	Period Ended 3/31/2017¹
Net Asset Value, Beginning of Period	$7.39	$7.59	$7.55
Income From Investment Operations:
Net investment income	0.20²	0.41²	0.07²
Net realized and unrealized gain (loss)	0.03	(0.19)	0.03
TOTAL FROM INVESTMENT OPERATIONS	0.23	0.22	0.10
Less Distributions:
Distributions from net investment income	(0.21)	(0.42)	(0.06)
Redemption Fees	—	0.00³	—
Net Asset Value, End of Period	$7.41	$7.39	$7.59
Total Return	3.15%	2.90%	1.37%
Ratios to Average Net Assets:
Net expenses	0.64%⁴	0.64%	0.64%⁴
Net investment income	5.49%⁴	5.35%	5.35%⁴
Expense waiver/reimbursement⁵	0.09%⁴	0.09%	0.10%⁴
Supplemental Data:
Net assets, end of period (000 omitted)	$75,704	$53,084	$13,971
Portfolio turnover	8%	23%	34%⁶

1	Reflects operations for the period from January 27, 2017 (date of initial investment) to March 31, 2017.
2	Per share numbers have been calculated using the average shares method.
3	Represents less than $0.01.
4	Computed on an annualized basis.
5	This expense decrease is reflected in both the net expense and the net investment income ratios shown above.
6	Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the year ended March 31, 2017.

See Notes which are an integral part of the Financial Statements

Semi-Annual Shareholder Report

Financial Highlights–Class R6 Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited) 9/30/2018	Year Ended 3/31/2018	Period Ended 3/31/2017¹
Net Asset Value, Beginning of Period	$7.39	$7.60	$7.55
Income From Investment Operations:
Net investment income	0.20²	0.41²	0.07²
Net realized and unrealized gain (loss)	0.03	(0.20)	0.04
TOTAL FROM INVESTMENT OPERATIONS	0.23	0.21	0.11
Less Distributions:
Distributions from net investment income	(0.21)	(0.42)	(0.06)
Redemption Fees	—	0.00³	—
Net Asset Value, End of Period	$7.41	$7.39	$7.60
Total Return	3.15%	2.72%	1.46%
Ratios to Average Net Assets:
Net expenses	0.63%⁴	0.63%	0.63%⁴
Net investment income	5.50%⁴	5.33%	5.36%⁴
Expense waiver/reimbursement⁵	0.04%⁴	0.03%	0.06%⁴
Supplemental Data:
Net assets, end of period (000 omitted)	$57,035	$54,262	$0⁶
Portfolio turnover	8%	23%	34%⁷

1	Reflects operations for the period from January 27, 2017 (date of initial investment) to March 31, 2017.
2	Per share numbers have been calculated using the average shares method.
3	Represents less than $0.01.
4	Computed on an annualized basis.
5	This expense decrease is reflected in both the net expense and the net investment income ratios shown above.
6	Represents less than $1,000.
7	Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the year ended March 31, 2017.

See Notes which are an integral part of the Financial Statements

Semi-Annual Shareholder Report

Statement of Assets and Liabilities

September 30, 2018 (unaudited)

Assets:
Investment in securities, at value including $17,207,647 of investment in an affiliated holding (identified cost $670,949,270)		$665,169,527
Income receivable		11,671,407
Income receivable from an affiliated holding		63,735
Receivable for investments sold		374,375
Receivable for shares sold		216,640
TOTAL ASSETS		677,495,684
Liabilities:
Payable for investments purchased	$2,875,750
Payable for shares redeemed	774,486
Payable for investment adviser fee (Note 5)	25,173
Payable for administrative fees (Note 5)	4,436
Payable for Directors'/Trustees' fees (Note 5)	213
Payable for distribution services fee (Note 5)	61,504
Payable for other service fees (Notes 2 and 5)	169,112
Accrued expenses (Note 5)	202,115
TOTAL LIABILITIES		4,112,789
Net assets for 90,876,678 shares outstanding		$673,382,895
Net Assets Consist of:
Paid-in capital		$739,958,064
Net unrealized depreciation		(5,779,743)
Accumulated net realized loss		(61,408,952)
Undistributed net investment income		613,526
TOTAL NET ASSETS		$673,382,895

Semi-Annual Shareholder Report

Statement of Assets and Liabilities–continued

Net Asset Value, Offering Price and Redemption Proceeds Per Share
Class A Shares:
Net asset value per share ($441,829,924 ÷ 59,595,831 shares outstanding), $0.001 par value, 750,000,000 shares authorized		$7.41
Offering price per share (100/95.50 of $7.41)		$7.76
Redemption proceeds per share		$7.41
Class B Shares:
Net asset value per share ($19,345,097 ÷ 2,616,160 shares outstanding), $0.001 par value, 100,000,000 shares authorized		$7.39
Offering price per share		$7.39
Redemption proceeds per share (94.50/100 of $7.39)		$6.98
Class C Shares:
Net asset value per share ($79,468,576 ÷ 10,749,210 shares outstanding), $0.001 par value, 400,000,000 shares authorized		$7.39
Offering price per share		$7.39
Redemption proceeds per share (99.00/100 of $7.39)		$7.32
Institutional Shares:
Net asset value per share ($75,704,350 ÷ 10,219,783 shares outstanding), $0.001 par value, 4,000,000,000 shares authorized		$7.41
Offering price per share		$7.41
Redemption proceeds per share		$7.41
Class R6 Shares:
Net asset value per share ($57,034,948 ÷ 7,695,694 shares outstanding), $0.001 par value, 4,000,000,000 shares authorized		$7.41
Offering price per share		$7.41
Redemption proceeds per share		$7.41

See Notes which are an integral part of the Financial Statements

Semi-Annual Shareholder Report

Statement of Operations

Six Months Ended September 30, 2018 (unaudited)

Investment Income:
Interest			$21,010,958
Dividends received from an affiliated holding*			235,965
TOTAL INCOME			21,246,923
Expenses:
Investment adviser fee (Note 5)		$1,730,958
Administrative fee (Note 5)		277,528
Custodian fees		17,633
Transfer agent fee (Note 2)		347,768
Directors'/Trustees' fees (Note 5)		6,137
Auditing fees		18,059
Legal fees		4,928
Portfolio accounting fees		88,919
Distribution services fee (Note 5)		478,883
Other service fees (Notes 2 and 5)		716,238
Share registration costs		32,257
Printing and postage		35,403
Miscellaneous (Note 5)		12,450
TOTAL EXPENSES		3,767,161
Waiver and Reimbursements:
Waiver/reimbursement of investment adviser fee (Note 5)	$(126,810)
Reimbursement of other operating expenses (Notes 2 and 5)	(165,175)
TOTAL WAIVER AND REIMBURSEMENTS		(291,985)
Net expenses			3,475,176
Net investment income			17,771,747
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions:
Net realized gain on investments (including net realized gain of $3,403 on sales of investments in an affiliated holding*)			735,702
Net realized gain on foreign currency transactions			87
Net change in unrealized depreciation of investments (including net change in unrealized depreciation of $3,037 on investments in an affiliated holding*)			1,565,606
Net realized and unrealized gain on investments and foreign currency transactions			2,301,395
Change in net assets resulting from operations			$20,073,142

*	See information listed after the Fund's Portfolio of Investments

See Notes which are an integral part of the Financial Statements

Semi-Annual Shareholder Report

Statement of Changes in Net Assets

	Six Months Ended (unaudited) 9/30/2018	Year Ended 3/31/2018
Increase (Decrease) in Net Assets
Operations:
Net investment income	$17,771,747	$39,077,567
Net realized gain	735,789	2,910,097
Net change in unrealized appreciation/depreciation	1,565,606	(21,032,163)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS	20,073,142	20,955,501
Distributions to Shareholders:
Distributions from net investment income
Class A Shares	(12,063,245)	(27,525,331)
Class B Shares	(489,647)	(1,288,892)
Class C Shares	(2,453,072)	(6,098,327)
Institutional Shares	(1,786,334)	(2,696,993)
Class R6 Shares	(1,526,565)	(2,424,628)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS	(18,318,863)	(40,034,171)
Share Transactions:
Proceeds from sale of shares	95,699,235	207,583,170
Net asset value of shares issued to shareholders in payment of distributions declared	16,739,126	36,287,676
Cost of shares redeemed	(149,630,989)	(338,798,650)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS	(37,192,628)	(94,927,804)
Redemption Fees	—	733
Change in net assets	(35,438,349)	(114,005,741)
Net Assets:
Beginning of period	708,821,244	822,826,985
End of period (including undistributed net investment income of $613,526 and $1,160,642, respectively)	$673,382,895	$708,821,244

See Notes which are an integral part of the Financial Statements

Semi-Annual Shareholder Report

Notes to Financial Statements

September 30, 2018 (unaudited)

1. ORGANIZATION

Federated High Income Bond Fund, Inc. (the “Fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as a diversified, open-end management investment company. The Fund offers five classes of shares: Class A Shares, Class B Shares, Class C Shares, Institutional Shares and Class R6 Shares. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. The investment objective of the Fund is to seek high current income.

On March 30, 2017, the Fund's T Share Class became effective with the Securities and Exchange Commission (SEC), but is not yet offered for sale.

On December 1, 2017, Class B Shares closed to new accounts and to new investors.

On February 1, 2018, Class B Shares were closed to new purchases made by existing shareholders (excluding reinvestment of dividends and capital gains). In addition, on February 1, 2018, Class B Shares closed to inbound exchanges from Class B Shares of other Federated funds.

Effective June 18, 2018, Class B Shares of the Fund may be exchanged for Class B Shares of any other Federated fund.

Effective August 1, 2018, an automatic conversion feature for Class C Shares was implemented. Pursuant to this automatic conversion feature, after Class C Shares have been held for ten years from the date of purchase, they will automatically convert to Class A Shares on the next monthly conversion processing date.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with U.S. generally accepted accounting principles (GAAP).

Investment Valuation

In calculating its net asset value (NAV), the Fund generally values investments as follows:

■	Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by the Fund's Board of Directors (the “Directors”).
■	Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs.
■	Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.
■	Derivative contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean of closing bid and asked quotations.
■	Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Directors.
■	For securities that are fair valued in accordance with procedures established by and under the general supervision of the Directors, certain factors may be considered, such as: the last traded or purchase price of the security, information obtained by contacting the issuer or dealers, analysis of the issuer's financial statements or other available documents, fundamental analytical data, the nature and duration of restrictions on disposition, the movement of the market in which the security is normally traded, public trading in similar

Semi-Annual Shareholder Report

securities or derivative contracts of the issuer or comparable issuers, movement of a relevant index, or other factors including but not limited to industry changes and relevant government actions.

If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, if the Fund cannot obtain price evaluations from a pricing service or from more than one dealer for an investment within a reasonable period of time as set forth in the Fund's valuation policies and procedures, or if information furnished by a pricing service, in the opinion of the valuation committee (“Valuation Committee”), is deemed not representative of the fair value of such security, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share.

Fair Valuation and Significant Events Procedures

The Directors have ultimate responsibility for determining the fair value of investments for which market quotations are not readily available. The Directors have appointed a Valuation Committee comprised of officers of the Fund, Federated Investment Management Company (the “Adviser”) and certain of the Adviser's affiliated companies to assist in determining fair value and in overseeing the calculation of the NAV. The Directors have also authorized the use of pricing services recommended by the Valuation Committee to provide fair value evaluations of the current value of certain investments for purposes of calculating the NAV. The Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic reviews of third-party pricing services' policies, procedures and valuation methods (including key inputs, methods, models and assumptions), transactional back-testing, comparisons of evaluations of different pricing services, and review of price challenges by the Adviser based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Directors. The Directors periodically review and approve the fair valuations made by the Valuation Committee and any changes made to the procedures.

Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a “mid” evaluation). The Fund normally uses bid evaluations for any U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for any other types of fixed-income securities and any OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Directors.

The Directors also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment's value

Semi-Annual Shareholder Report

will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:

■	With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts;
■	Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded;
■	Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, or a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry.

The Directors have adopted procedures whereby the Valuation Committee uses a pricing service to determine the fair value of equity securities traded principally in foreign markets when the Adviser determines that there has been a significant trend in the U.S. equity markets or in index futures trading. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment in accordance with the fair valuation procedures approved by the Directors. The Directors have ultimate responsibility for any fair valuations made in response to a significant event.

Repurchase Agreements

The Fund may invest in repurchase agreements for short-term liquidity purposes. It is the policy of the Fund to require the other party to a repurchase agreement to transfer to the Fund's custodian or sub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian or sub-custodian in which the Fund holds a “securities entitlement” and exercises “control” as those terms are defined in the Uniform Commercial Code. The Fund has established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the other party to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.

The insolvency of the other party or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Fund to receive less than the full repurchase price. Under the terms of the repurchase agreement, any amounts received by the Fund in excess of the repurchase price and related transaction costs must be remitted to the other party.

The Fund may enter into repurchase agreements in which eligible securities are transferred into joint trading accounts maintained by the custodian or sub-custodian for investment companies and other clients advised by the Fund's Adviser and its affiliates. The Fund will participate on a pro rata basis with the other investment companies and clients in its share of the securities transferred under such repurchase agreements and in its share of proceeds from any repurchase or other disposition of such securities.

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Investment Income, Gains and Losses, Expenses and Distributions

Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified-cost basis. Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-dividend date or when the Fund is informed of the ex-dividend date. Distributions of net investment income, if any, are declared and paid monthly. Non-cash dividends included in dividend income, if any, are recorded at fair value. Amortization/accretion of premium and discount is included in investment income. Investment income, realized and unrealized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that select classes bear certain expenses unique to those classes. The detail of the total fund expense waiver and reimbursements of $291,985 is disclosed in various locations in this Note 2 and Note 5. For the six months ended September 30, 2018, transfer agent fees for the Fund were as follows:

	Transfer Agent Fees Incurred	Transfer Agent Fees Reimbursed
Class A Shares	$234,119	$(143,930)
Class B Shares	14,321	(18)
Class C Shares	60,611	(2,655)
Institutional Shares	30,829	(18,572)
Class R6 Shares	7,888	—
TOTAL	$347,768	$(165,175)

Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.

Other Service Fees

The Fund may pay other service fees up to 0.25% of the average daily net assets of the Fund's Class A Shares, Class B Shares and Class C Shares to financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. Subject to the terms described in the Expense Limitation note, FSSC may voluntarily reimburse the Fund for other service fees. For the six months ended September 30, 2018, other service fees for the Fund were as follows:

	Other Service Fees Incurred
Class A Shares	$556,611
Class B Shares	26,731
Class C Shares	132,896
TOTAL	$716,238

Federal Taxes

It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code (the “Code”) and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary. As of and during the six months ended September 30, 2018, the Fund did not have a liability for any uncertain tax positions.

Semi-Annual Shareholder Report

The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of September 30, 2018, tax years 2015 through 2018 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America, the state of Maryland and the Commonwealth of Pennsylvania.

When-Issued and Delayed-Delivery Transactions

The Fund may engage in when-issued or delayed-delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed-delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

Restricted Securities

The Fund may purchase securities which are considered restricted. Restricted securities are securities that either: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933; or (b) are subject to contractual restrictions on public sales. In some cases, when a security cannot be offered for public sale without first being registered, the issuer of the restricted security has agreed to register such securities for resale, at the issuer's expense, either upon demand by the Fund or in connection with another registered offering of the securities. Many such restricted securities may be resold in the secondary market in transactions exempt from registration. Restricted securities may be determined to be liquid under criteria established by the Directors. The Fund will not incur any registration costs upon such resales. The Fund's restricted securities, like other securities, are priced in accordance with procedures established by and under the general supervision of the Directors.

Other

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated. The Fund applies investment company accounting and reporting guidance.

3. Capital Stock

The following tables summarize share activity:

	Six Months Ended 9/30/2018		Year Ended 3/31/2018
Class A Shares:	Shares	Amount	Shares	Amount
Shares sold	6,291,896	$46,518,199	7,244,807	$55,252,678
Shares issued to shareholders in payment of distributions declared	1,462,018	10,787,611	3,247,457	24,640,006
Shares redeemed	(10,087,566)	(74,550,032)	(31,115,863)	(237,026,098)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	(2,333,652)	$(17,244,222)	(20,623,599)	$(157,133,414)

Semi-Annual Shareholder Report

	Six Months Ended 9/30/2018		Year Ended 3/31/2018
Class B Shares:	Shares	Amount	Shares	Amount
Shares sold	20,842	$153,521	129,925	$990,347
Shares issued to shareholders in payment of distributions declared	61,476	452,601	154,238	1,168,643
Shares redeemed	(674,559)	(4,971,818)	(1,565,342)	(11,902,527)
NET CHANGE RESULTING FROM CLASS B SHARE TRANSACTIONS	(592,241)	$(4,365,696)	(1,281,179)	$(9,743,537)

	Six Months Ended 9/30/2018		Year Ended 3/31/2018
Class C Shares:	Shares	Amount	Shares	Amount
Shares sold	398,613	$2,935,202	1,220,103	$9,277,361
Shares issued to shareholders in payment of distributions declared	316,667	2,331,249	762,580	5,773,864
Shares redeemed	(6,221,148)	(45,875,445)	(5,282,705)	(40,092,508)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	(5,505,868)	$(40,608,994)	(3,300,022)	$(25,041,283)

	Six Months Ended 9/30/2018		Year Ended 3/31/2018
Institutional Shares:	Shares	Amount	Shares	Amount
Shares sold	4,996,193	$36,888,126	10,341,164	$78,654,710
Shares issued to shareholders in payment of distributions declared	222,794	1,642,264	301,243	2,280,984
Shares redeemed	(2,184,003)	(16,129,475)	(5,299,376)	(39,893,409)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	3,034,984	$22,400,915	5,343,031	$41,042,285

	Six Months Ended 9/30/2018		Year Ended 3/31/2018
Class R6 Shares:	Shares	Amount	Shares	Amount
Shares sold	1,245,612	$9,204,187	8,323,749	$63,408,074
Shares issued to shareholders in payment of distributions declared	206,879	1,525,401	319,896	2,424,179
Shares redeemed	(1,097,510)	(8,104,219)	(1,302,945)	(9,884,108)
NET CHANGE RESULTING FROM CLASS R6 TRANSACTIONS	354,981	$2,625,369	7,340,700	$55,948,145
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS	(5,041,796)	$(37,192,628)	(12,521,069)	$(94,927,804)

Semi-Annual Shareholder Report

Redemption Fees

Effective December 30, 2016, the Directors approved the elimination of the Fund's 2.00% redemption fee. Prior to December 30, 2016, the Fund imposed a 2.00% redemption fee to shareholders of the Fund's Class A Shares, Class B Shares and Class C Shares who redeemed shares held for 90 days or less. Shares acquired by reinvestment of dividends or distributions of the Fund, or purchased pursuant to the Systematic Investment Program or withdrawn pursuant to the Systematic Withdrawal Program, were not subject to the redemption fee. All redemption fees were recorded by the Fund as additions to paid-in capital. For the year ended March 31, 2018, the redemption fees for Class A Shares, Class B Shares, Class C Shares, Institutional Shares and Class R6 Shares amounted to $480, $27, $128, $48 and $50, respectively.

4. FEDERAL TAX INFORMATION

At September 30, 2018, the cost of investments for federal tax purposes was $671,342,720. The net unrealized depreciation of investments for federal tax purposes was $6,173,193. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $11,317,409 and net unrealized depreciation from investments for those securities having an excess of cost over value of $17,490,602.

At March 31, 2018, the Fund had a capital loss carryforward of $61,816,645 which will reduce the Fund's taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Code, thereby reducing the amount of distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal income tax. Pursuant to the Code, a net capital loss incurred in taxable years beginning on or before December 22, 2010, is characterized as short-term and may be carried forward for a maximum of eight tax years (“Carryforward Limit”), whereas a net capital loss incurred in taxable years beginning after December 22, 2010, retains its character as either short-term or long-term, does not expire and is required to be utilized prior to the losses which have a Carryforward Limit.

The following schedule summarizes the Fund's capital loss carryforwards and expiration years:

Expiration Year	Short-Term	Long-Term	Total
No Expiration	$—	$32,014,435	$32,014,435
2019	$29,802,210	NA	$29,802,210

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 0.50% of the Fund's average daily net assets. Subject to the terms described in the Expense Limitation note, the Adviser may voluntarily choose to waive and/or reimburse any portion of its fee. For the six months ended September 30, 2018, the Adviser waived $120,397 of its fee and voluntarily reimbursed $165,175 of transfer agent fees.

The Adviser has agreed to reimburse the Fund for certain investment adviser fees as a result of transactions in other affiliated investment companies. For the six months ended September 30, 2018, the Adviser reimbursed $6,413.

Semi-Annual Shareholder Report

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services Agreement, provides the Fund with administrative personnel and services. For purposes of determining the appropriate rate breakpoint, “Investment Complex” is defined as all of the Federated Funds subject to a fee under the Administrative Services Agreement. The fee paid to FAS is based on the average daily net assets of the Investment Complex as specified below:

Administrative Fee	Average Daily Net Assets of the Investment Complex
0.100%	on assets up to $50 billion
0.075%	on assets over $50 billion

Subject to the terms described in the Expense Limitation note, FAS may voluntarily choose to waive any portion of its fee. For the six months ended September 30, 2018, the annualized fee paid to FAS was 0.080% of average daily net assets of the Fund.

Prior to September 1, 2017, the breakpoints of the Administrative Fee paid to FAS, described above, were:

Administrative Fee	Average Daily Net Assets of the Investment Complex
0.150%	on the first $5 billion
0.125%	on the next $5 billion
0.100%	on the next $10 billion
0.075%	on assets in excess of $20 billion

In addition, FAS may charge certain out-of-pocket expenses to the Fund.

Distribution Services Fee

The Fund has adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. (FSC), the principal distributor, from the daily net assets of the Fund's Class B Shares and Class C Shares to finance activities intended to result in the sale of these shares. The Plan provides that the Fund may incur distribution expenses at the following percentages of average daily net assets annually, to compensate FSC:

Share Class Name	Percentage of Average Daily Net Assets of Class
Class B Shares	0.75%
Class C Shares	0.75%

Semi-Annual Shareholder Report

Subject to the terms described in the Expense Limitation note, FSC may voluntarily choose to waive any portion of its fee. For the six months ended September 30, 2018, distribution services fees for the Fund were as follows:

	Distribution Services Fees Incurred
Class B Shares	$80,194
Class C Shares	398,689
TOTAL	$478,883

When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. For the six months ended September 30, 2018, FSC retained $97,951 of fees paid by the Fund.

Sales Charges

Front-end sales charges and contingent deferred sales charges (CDSC) do not represent expenses of the Fund. They are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. For the six months ended September 30, 2018, FSC retained $10,088 in sales charges from the sale of Class A Shares. FSC also retained $12,955 of CDSC relating to redemptions of Class A Shares, $41,871 of CDSC relating to redemptions of Class B Shares and $1,748 relating to redemptions of Class C Shares.

Other Service Fees

For the six months ended September 30, 2018, FSSC received $81,487 of the other service fees disclosed in Note 2.

Expense Limitation

The Adviser and certain of its affiliates (which may include FSC, FAS and FSSC) on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (as shown in the financial highlights, excluding interest expense, extraordinary expenses and proxy-related expenses paid by the Fund, if any) paid by the Fund's Class A Shares, Class B Shares, Class C Shares, Institutional Shares and Class R6 Shares (after the voluntary waivers and/or reimbursements) will not exceed 0.89%, 1.74%, 1.71%, 0.64% and 0.63% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) June 1, 2019; or (b) the date of the Fund's next effective Prospectus. While the Adviser and its applicable affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Directors.

Directors'/Trustees' and Miscellaneous Fees

Certain Officers and Directors of the Fund are Officers and Directors or Trustees of certain of the above companies. To efficiently facilitate payment, Directors'/Trustees' fees and certain expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses are paid by an affiliate of the Adviser which in due course are reimbursed by the Fund. These expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses may be included in Accrued and Miscellaneous Expenses on the Statement of Assets and Liabilities and Statement of Operations, respectively.

Semi-Annual Shareholder Report

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations, for the six months ended September 30, 2018, were as follows:

Purchases	$51,599,828
Sales	$86,725,724

7. LINE OF CREDIT

The Fund participates with certain other Federated Funds, on a several basis, in an up to $500,000,000 unsecured, 364-day, committed, revolving line of credit (LOC) agreement. The LOC was made available to finance temporarily the repurchase or redemption of shares of the Fund, failed trades, payment of dividends, settlement of trades and for other short-term, temporary or emergency general business purposes. The Fund cannot borrow under the LOC if an inter-fund loan is outstanding. The Fund's ability to borrow under the LOC also is subject to the limitations of the Act and various conditions precedent that must be satisfied before the Fund can borrow. Loans under the LOC are charged interest at a fluctuating rate per annum equal to the highest, on any day, of (a) (i) the federal funds effective rate, (ii) the one month London Interbank Offered Rate (LIBOR), and (iii) 0.0%, plus (b) a margin. The LOC also requires the Fund to pay, quarterly in arrears and at maturity, its pro rata share of a commitment fee based on the amount of the lenders' commitment that has not been utilized. As of September 30, 2018, the Fund had no outstanding loans. During the six months ended September 30, 2018, the Fund did not utilize the LOC.

8. INTERFUND LENDING

Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other funds advised by subsidiaries of Federated Investors, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from other participating affiliated funds. As of September 30, 2018, there were no outstanding loans. During the six months ended September 30, 2018, the program was not utilized.

Semi-Annual Shareholder Report

Shareholder Expense Example (unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase or redemption payments and redemption/exchange fees; and (2) ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or other service fees and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from April 1, 2018 to September 30, 2018.

ACTUAL EXPENSES

The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses attributable to your investment during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Semi-Annual Shareholder Report

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase or redemption payments, or redemption/exchange fees. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

	Beginning Account Value 4/1/2018	Ending Account Value 9/30/2018	Expenses Paid During Period¹
Actual:
Class A Shares	$1,000	$1,030.20	$4.53
Class B Shares	$1,000	$1,024.50	$8.83
Class C Shares	$1,000	$1,026.10	$8.69
Institutional Shares	$1,000	$1,031.50	$3.26
Class R6 Shares	$1,000	$1,031.50	$3.21
Hypothetical (assuming a 5% return before expenses):
Class A Shares	$1,000	$1,020.60	$4.51
Class B Shares	$1,000	$1,016.40	$8.80
Class C Shares	$1,000	$1,016.50	$8.64
Institutional Shares	$1,000	$1,021.90	$3.24
Class R6 Shares	$1,000	$1,021.90	$3.19

1	Expenses are equal to the Fund's annualized net expense ratios, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half-year period). The annualized net expense ratios are as follows:

Class A Shares	0.89%
Class B Shares	1.74%
Class C Shares	1.71%
Institutional Shares	0.64%
Class R6 Shares	0.63%

Semi-Annual Shareholder Report

Evaluation and Approval of Advisory Contract–May 2018

Federated High Income Bond Fund, Inc. (the “Fund”)

At its meetings in May 2018, the Fund's Board of Directors (the “Board”), including a majority of those Directors who are not “interested persons” of the Fund, as defined in the Investment Company Act of 1940 (the “Independent Directors”), reviewed and unanimously approved the continuation of the Fund's investment advisory contract for an additional one-year term. The Board's decision regarding the contract reflects the exercise of its business judgment after considering all of the information received on whether to continue the existing arrangements.

The Board had previously appointed a Senior Officer, whose duties included specified responsibilities relating to the process by which advisory fees are to be charged to a fund advised by Federated Investment Management Company (the “Adviser”) or its affiliates (collectively, “Federated”) (each, a “Federated fund”). The Senior Officer's responsibilities included preparing and furnishing to the Board an annual independent written evaluation that covered topics discussed below. In December 2017, the Senior Officer position was eliminated. Notwithstanding the elimination of the Senior Officer position, at the request of the Independent Directors, the Fund's Chief Compliance Officer (the CCO) furnished to the Board in advance of its May 2018 meetings an independent written evaluation covering substantially the same topics that had been covered in the Senior Officer's written evaluation in prior years. The Board considered the CCO's independent written evaluation (the “CCO Fee Evaluation Report”), along with other information, in evaluating the reasonableness of the Fund's management fee and in deciding to approve the continuation of the investment advisory contract. Consistent with the former Senior Officer position, the CCO, in preparing the CCO Fee Evaluation Report, has the authority to retain consultants, experts or staff as reasonably necessary to assist in the performance of his duties, reports directly to the Board, and can be terminated only with the approval of a majority of the Independent Directors.

The Board also considered judicial decisions concerning allegedly excessive investment advisory fees in making its decision. Using these judicial decisions as a guide, the Board observed that the following factors may be relevant to an adviser's fiduciary duty with respect to its receipt of compensation from a fund: (1) the nature and quality of the services provided by an adviser to a fund and its shareholders (including the performance of the fund, its benchmark, and comparable funds); (2) an adviser's cost of providing the services (including the profitability to an adviser of providing advisory services to a fund); (3) the extent to which an adviser may realize “economies of scale” as a fund grows larger and, if such economies of scale exist, whether they have been shared with a fund and its shareholders or the family of funds; (4) any “fall-out” financial benefits that accrue to an adviser because of its relationship with a fund (including

Semi-Annual Shareholder Report

research services received from brokers that execute fund trades and any fees paid to affiliates of an adviser for services rendered to a fund); (5) comparative fee and expense structures (including a comparison of fees paid to an adviser with those paid by similar funds both internally and externally as well as management fees charged to institutional and other advisory clients of the Adviser or its affiliates for what might be viewed as like services); and (6) the extent of care, conscientiousness and independence with which the fund's board members perform their duties and their expertise (including whether they are fully informed about all facts the board deems relevant to its consideration of an adviser's services and fees). The Board noted that the Securities and Exchange Commission (SEC) disclosure requirements regarding the basis for the Board's approval of the Fund's investment advisory contract generally align with the factors listed above. The Board was aware of these factors and was guided by them in its review of the Fund's investment advisory contract to the extent it considered them to be appropriate and relevant, as discussed further below.

The Board considered and weighed these factors in light of its substantial accumulated experience in governing the Fund and working with Federated on matters relating to the Federated funds. The Independent Directors were assisted in their deliberations by independent legal counsel.

In addition to the extensive materials that comprise and accompany the CCO Fee Evaluation Report, the Board received detailed information about the Fund and the Federated organization throughout the year, and in connection with its May meetings at which the Board's formal approval of the advisory and subadvisory contracts occurred. In this regard, Federated provided much of this information at each regular meeting of the Board, and furnished additional information specifically in connection with the May meetings. In the months preceding the May meetings, the Board requested and reviewed written materials prepared by Federated in response to requests on behalf of the Independent Directors encompassing a wide variety of topics. At the May meetings, in addition to meeting in separate sessions of the Independent Directors without management present, senior management of the Adviser also met with the Independent Directors and their counsel to discuss the materials presented and such additional matters as the Independent Directors deemed reasonably necessary to evaluate the advisory and subadvisory contracts. Between regularly scheduled meetings, the Board also received information on particular matters as the need arose.

The Board's consideration of the investment advisory contract included review of the CCO Fee Evaluation Report, accompanying data and additional information covering the following matters, among others: the Adviser's investment philosophy, revenue, profitability, personnel and processes; investment and operating strategies; the Fund's short-term and long-term performance (in absolute terms, both on a gross basis and net of expenses, as well as in terms relative to its particular investment program and certain competitor or “peer group” funds and/or other benchmarks, as appropriate) and comments on the

Semi-Annual Shareholder Report

reasons for performance; the Fund's investment objectives; the Fund's expenses, including the advisory fee and the overall expense structure of the Fund (both in absolute terms and relative to similar and/or competing funds), with due regard for contractual or voluntary expense limitations; the use and allocation of brokerage commissions derived from trading the Fund's portfolio securities (if any); and the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates. The Board also considered the preferences and expectations of Fund shareholders; the entrepreneurial and other risks assumed by the Adviser in sponsoring the Fund; the continuing state of competition in the mutual fund industry and market practices; the range of comparable fees for similar funds in the mutual fund industry; the Fund's relationship to the Federated funds which include a comprehensive array of funds with different investment objectives, policies and strategies which are generally available for exchange without the incurrence of additional sales charges; compliance and audit reports concerning the Federated funds and the Federated companies that service them (including communications from regulatory agencies), as well as Federated's responses to any issues raised therein; and relevant developments in the mutual fund industry and how the Federated funds and/or Federated are responding to them. The Board's evaluation process is evolutionary. The criteria considered and the emphasis placed on relevant criteria change in recognition of changing circumstances in the mutual fund marketplace.

While mindful that courts have cautioned against giving too much weight to comparative information concerning fees charged by other advisers for managing funds with comparable investment programs, the Board has found the use of such comparisons to be relevant to its deliberations. In this regard, the Board was presented with, and considered, information regarding the contractual advisory fee rates, net advisory fee rates, total expense ratios and each element of the Fund's total expense ratio (i.e., gross and net advisory fees, custody fees, portfolio accounting fees and transfer agency fees) relative to an appropriate group of peer funds compiled by Federated using data supplied by independent fund ranking organizations (the “Peer Group”). The Board received a description of the composition and methodology used to select the Peer Group. The Board focused on comparisons with other similar mutual funds more heavily than non-mutual fund products or services because it is believed that they are more relevant. For example, other mutual funds are the products most like the Fund, in that they are readily available to Fund shareholders as alternative investment vehicles. Also, they are the type of investment vehicle, in fact, chosen and maintained by the Fund's investors. The range of their fees and expenses, therefore, appears to be a relevant indicator of what consumers have found to be reasonable in the marketplace in which the Fund competes.

Semi-Annual Shareholder Report

The Board reviewed the contractual advisory fee rate, net advisory fee rate and other expenses of the Fund and noted the position of the Fund's fee rates relative to its Peer Group. In this regard, the Board noted that the contractual advisory fee rate was below the median of the relevant Peer Group and the Board was satisfied that the overall expense structure of the Fund remained competitive.

For comparison, the CCO reviewed the fees charged by Federated for providing advisory services to products other than the Federated funds (e.g., institutional and separate accounts and third-party unaffiliated mutual funds for which Federated serves as sub-adviser) (referenced to as “Comparable Funds/Accounts”). With respect to Comparable Funds/Accounts other than third-party mutual funds, the CCO concluded that they are inherently different products. Those differences include, but are not limited to, different types of targeted investors; different applicable laws and regulations; different legal structures; different average account sizes and portfolio management techniques made necessary by different cash flows and different associated costs; and the time spent by portfolio managers and their teams, as well as personnel in the Funds Financial Services, Legal, Compliance and Risk Management departments, in reviewing securities pricing, addressing different administrative responsibilities, addressing different degrees of risk associated with management and a variety of different costs. The CCO also reviewed the differences in the nature of the services required for Federated to manage its proprietary mutual fund business versus managing a discrete pool of assets as a sub-adviser to another institution's mutual fund, and that Federated generally performs significant additional services and assumes substantially greater risk in managing the Fund and other Federated funds than in its role as sub-adviser to an unaffiliated third-party mutual fund. The CCO did not consider the fees for providing advisory services to Comparable Funds/Accounts to be determinative in judging the appropriateness of the Federated funds' advisory fees.

The CCO noted that the services, administrative responsibilities and risks associated with such relationships are quite different than serving as a primary adviser to a fund.

Following such evaluation, and full deliberations, the Board concluded that the fees and expenses of the Fund are reasonable and supported renewal of the Fund's investment advisory contract.

The Board considered the nature, extent and quality of the services provided to the Fund by the Adviser and the resources of the Adviser and its affiliates dedicated to the Fund. In this regard, the Board evaluated, among other things, the Adviser's personnel, experience, track record, overall reputation and willingness to invest in personnel and infrastructure that benefit the Fund. In addition, the Board reviewed the qualifications, backgrounds and responsibilities of the portfolio management team primarily responsible for the day-to-day management of the Fund and the Adviser's ability and experience in attracting and retaining qualified personnel to service the Fund. The Board noted the

Semi-Annual Shareholder Report

compliance program of the Adviser and the compliance-related resources provided to the Fund by the Adviser, including the Adviser's commitment to respond to rulemaking initiatives of the SEC. The Fund's ability to deliver competitive performance when compared to its Peer Group was also deemed to be relevant by the Board as a useful indicator of how the Adviser is executing the Fund's investment program. The Adviser's ability to execute this program was one of the Board's considerations in reaching a conclusion that the nature, extent and quality of the Adviser's investment management services warrant the continuation of the investment advisory contract.

In evaluating the Fund's investment performance, the Board considered performance results in light of the Fund's investment objective, strategies and risks, as disclosed in the Fund's prospectus. The Board considered detailed investment reports on the Fund's performance that were provided to the Board throughout the year and in connection with the May meetings. The CCO also reviewed information regarding the performance of other mutual funds in the Peer Group, noting the CCO's view that comparisons to fund peer groups may be helpful, though not conclusive, in evaluating the performance of the Adviser in managing the Fund. The Board considered, in evaluating such comparisons, that in some cases individual funds may exhibit significant and unique differences in their objectives and management techniques when compared to other funds within a Peer Group.

For the periods covered by the CCO Fee Evaluation Report, the Fund's performance for the three-year and five-year periods was above the median of the relevant Peer Group, and the Fund's performance fell below the median of the relevant Peer Group for the one-year period. The Board discussed the Fund's performance with the Adviser and recognized the efforts being taken by the Adviser in the context of other factors considered relevant by the Board.

Following such evaluation, and full deliberations, the Board concluded that the performance of the Fund supported renewal of the Fund's investment advisory contract.

The Board also received financial information about Federated, including information regarding the compensation and ancillary (or “fall-out”) benefits Federated derived from its relationships with the Federated funds. This information covered not only the fees under the investment advisory contracts, but also fees received by Federated's subsidiaries for providing other services to the Federated funds under separate contracts (e.g., for serving as the Federated funds' administrator and distributor). In this regard, the Board considered that certain Federated subsidiaries provide distribution and shareholder services to the Federated funds, for which they may be compensated through distribution and servicing fees paid pursuant to Rule 12b-1 plans or otherwise. The information also detailed any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades. In addition, the Board considered the fact that, in order for a Federated fund to be competitive in the marketplace, the Adviser and its affiliates frequently waived

Semi-Annual Shareholder Report

fees and/or reimbursed expenses and have disclosed to Federated fund investors and/or indicated to the Board their intention to do so in the future. Moreover, the Board receives regular reporting as to the institution, adjustment or elimination of these voluntary waivers. The Board considered Federated's previous reductions in contractual management fees to certain Federated funds in response to the CCO's recommendations.

In 2016, the Board approved a reduction of 25 basis points in the contractual advisory fee.

Federated furnished information, requested by the CCO, that reported revenues on a fund-by-fund basis and made estimates of the allocation of expenses on a fund-by-fund basis, using allocation methodologies specified by the CCO. The CCO noted that, while these cost allocation reports apply consistent allocation processes, the inherent difficulties in allocating costs continues to cause the CCO to question the precision of the process and to conclude that such reports may be unreliable, since a single change in an allocation estimate may dramatically alter the resulting estimate of cost and/or profitability of a Federated fund and may produce unintended consequences. The allocation information, including the CCO's view that fund-by-fund estimations may be unreliable, was considered in the evaluation by the Board.

The Board and the CCO also reviewed information compiled by Federated comparing its profitability information to other publicly held fund management companies, including information regarding profitability trends over time. In this regard, the CCO concluded that Federated's profit margins did not appear to be excessive. The CCO also noted that Federated appeared financially sound, with the resources necessary to fulfill its obligations under its contracts with the Fund.

The CCO Fee Evaluation Report also discussed the notion of possible realization of “economies of scale” as a fund grows larger. In this regard, the Board considered that the Adviser has made significant and long-term investments in areas that support all of the Federated funds, such as personnel and processes for the portfolio management, shareholder services, compliance, internal audit and risk management functions, as well as systems technology (including technology relating to cybersecurity) and that the benefits of these efforts (as well as any economies of scale, should they exist) were likely to be shared with the Federated fund family as a whole. The Board noted that the Adviser's investments in these areas are extensive. In addition, the Board considered that the Adviser and its affiliates have frequently waived fees and/or reimbursed expenses and that this has allowed fund shareholders to share potential economies of scale with shareholders. The Board also considered that such waivers and reimbursements can provide protection from an increase in expenses if a Federated fund's assets decline. Federated, as it does throughout the year, and specifically in connection with the Board's review of the advisory and subadvisory contracts, furnished information relative to revenue sharing or adviser-paid fees. Federated and the CCO noted that this information should be

Semi-Annual Shareholder Report

viewed to determine if there was an incentive to either not apply breakpoints, or to apply breakpoints at higher levels, and should not be viewed to determine the appropriateness of advisory fees because it would represent marketing and distribution expenses. The Board also noted the absence of any applicable regulatory or industry guidelines on this subject, which (as discussed in the CCO Fee Evaluation Report) is compounded by the lack of any common industry practice or general pattern with respect to structuring fund advisory fees with “breakpoints” that serve to reduce the fee as a fund attains a certain size.

The CCO stated that his observations and the information accompanying the CCO Fee Evaluation Report supported a finding by the Board that the management fee for the Fund was reasonable. Under these circumstances, no changes were recommended to, and no objection was raised to the continuation of, the Fund's investment advisory contract. The CCO also recognized that the Board's evaluation of the Federated funds' advisory and subadvisory arrangements is a continuing and on-going process that is informed by the information that the Board requests and receives from management throughout the course of the year and, in this regard, the CCO noted certain items for future reporting to the Board or further consideration by management as the Board continues its on-going oversight of the Federated funds.

In its decision to continue an existing investment advisory contract, the Board was mindful of the potential disruptions of the Fund's operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew an investment advisory contract. In particular, the Board recognized that many shareholders have invested in the Fund on the strength of the Adviser's industry standing and reputation and with the expectation that the Adviser will have a continuing role in providing advisory services to the Fund. Thus, the Board's approval of the investment advisory contract reflected the fact that it is the shareholders who have effectively selected the Adviser by virtue of having invested in the Fund. The Board concluded that, in light of the factors summarized above, including the nature, quality and scope of the services provided to the Fund by the Adviser and its affiliates, continuation of the investment advisory contract was appropriate.

The Board based its decision to approve the investment advisory contract on the totality of the circumstances and relevant factors and with a view to past and future long-term considerations. Not all of the factors and considerations identified above were necessarily relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were relevant, the Board's decision to approve the continuation of the contract reflects its view that Federated's performance and actions provided a satisfactory basis to support the decision to continue the existing arrangement.

Semi-Annual Shareholder Report

Voting Proxies on Fund Portfolio Securities

A description of the policies and procedures that the Fund uses to determine how to vote proxies, if any, relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. A report on “Form N-PX” of how the Fund voted any such proxies during the most recent 12-month period ended June 30 is available via the Proxy Voting Record (Form N-PX) link associated with the Fund and share class name at www.FederatedInvestors.com/FundInformation. Form N-PX filings are also available at the SEC's website at www.sec.gov.

Quarterly Portfolio Schedule

The Fund files with the SEC a complete schedule of its portfolio holdings, as of the close of the first and third quarters of its fiscal year, on “Form N-Q.” These filings are available on the SEC's website at www.sec.gov. You may also access this information via the link to the Fund and share class name at www.FederatedInvestors.com/FundInformation.

Semi-Annual Shareholder Report

Mutual funds are not bank deposits or obligations, are not guaranteed by any bank and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.

This Report is authorized for distribution to prospective investors only when preceded or accompanied by the Fund's Prospectus, which contains facts concerning its objective and policies, management fees, expenses and other information.

IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY

In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called “householding”), as permitted by applicable rules. The Fund's “householding” program covers its/their Prospectus and Statement of Additional Information, and supplements to each, as well as Semi-Annual and Annual Shareholder Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the “householding” program. The Fund is also permitted to treat a shareholder as having given consent (“implied consent”) if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to “household” at least sixty (60) days before it begins “householding” and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to “opt out” of “householding.” Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of “householding” at any time: shareholders who purchased shares through an intermediary should contact their representative; other shareholders may call the Fund at 1-800-341-7400.

Semi-Annual Shareholder Report

(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form.

(b) Not Applicable; Fund had no divestments during the reporting period covered since the previous Form N-CSR filing.

registrant’s disclosure controls and procedures (as defined in rule 30a-3(c) under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-(2) under the Act, based on their evaluation of these disclosure controls and procedures within 90 days of the filing date of this report on Form N-CSR.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in rule 30a-3(d) under the Act) during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

(a)(2) Certifications of Principal Executive Officer and Principal Financial Officer.

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.

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Share Class \| Ticker	A \| FHIIX	B \| FHBBX	C \| FHICX
	Institutional \| FHISX	R6 \| FHBRX

In Memoriam	1
Portfolio of Investments Summary Table	2
Portfolio of Investments	3
Financial Highlights	23
Statement of Assets and Liabilities	28
Statement of Operations	30
Statement of Changes in Net Assets	31
Notes to Financial Statements	32
Shareholder Expense Example	42
Evaluation and Approval of Advisory Contract–May 2018	44
Voting Proxies on Fund Portfolio Securities	51
Quarterly Portfolio Schedule	51

Valuation Inputs
	Level 1— Quoted Prices	Level 2— Other Significant Observable Inputs	Level 3— Significant Unobservable Inputs	Total
Debt Securities:
Corporate Bonds	$—	$647,961,880	$—	$647,961,880
Investment Company	17,207,647	—	—	17,207,647
TOTAL SECURITIES	$17,207,647	$647,961,880	$—	$665,169,527