Federated High Yield Trust N-CSRS Certified semi-annual shareholder report (management investment company)

                                  United States
                       Securities and Exchange Commission
                             Washington, D.C. 20549

                                   Form N-CSR
   Certified Shareholder Report of Registered Management Investment Companies


                                    811- 4018
                      (Investment Company Act File Number)


                           Federated High Yield Trust

               (Exact Name of Registrant as Specified in Charter)


                            Federated Investors Funds
                              5800 Corporate Drive
                       Pittsburgh, Pennsylvania 15237-7000


                                 (412) 288-1900
                         (Registrant's Telephone Number)


                           John W. McGonigle, Esquire
                            Federated Investors Tower
                               1001 Liberty Avenue
                       Pittsburgh, Pennsylvania 15222-3779
                     (Name and Address of Agent for Service)
                (Notices should be sent to the Agent for Service)


                        Date of Fiscal Year End: 2/28/04

               Date of Reporting Period: Six months ended 8/31/03



Item 1.     Reports to Stockholders

Federated Investors
World-Class Investment Manager

Federated High Yield Trust

SEMI-ANNUAL SHAREHOLDER REPORT

August 31, 2003

FINANCIAL HIGHLIGHTS

FINANCIAL STATEMENTS

NOT FDIC INSURED * MAY LOSE VALUE * NO BANK GUARANTEE

Financial Highlights

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited)			Year Ended February 28 or 29,
	8/31/2003			2003			2002			2001			2000			1999
Net Asset Value, Beginning of Period	$5.43			$5.81			$7.02			$8.03			$8.92			$9.73
Income From Investment Operations:
Net investment income	0.24			0.52			0.66	1,2		0.79			0.84			0.83
Net realized and unrealized gain (loss) on investments	0.34			(0.38	)		(1.20	)1		(0.98	)		(0.89	)		(0.81	)
TOTAL FROM INVESTMENT OPERATIONS	0.58			0.14			(0.54	)		(0.19	)		(0.05	)		0.02
Less Distributions:
Distributions from net investment income	(0.24	)		(0.52	)		(0.67	)		(0.82	)		(0.84	)		(0.83	)
Net Asset Value, End of Period	$5.77			$5.43			$5.81			$7.02			$8.03			$8.92
Total Return3	10.76	%		2.73	%		(7.84	)%		(2.27	)%		(0.69	)%		0.33	%
Ratios to Average Net Assets:
Expenses	0.96	%4		0.95	%		0.91	%		0.88	%		0.88	%		0.88	%
Net investment income	8.17	%4		9.08	%		10.59	%1		10.65	%		9.67	%		9.02	%
Expense waiver/reimbursement5	0.19	%4		0.22	%		0.26	%		0.26	%		0.28	%		0.26	%
Supplemental Data:
Net assets, end of period (000 omitted)	$568,198		$519,838			$531,559			$680,130			$773,612			$1,069,840
Portfolio turnover	41	%		64	%		59	%		38	%		52	%		47	%

1 Effective March 1, 2001, the Fund adopted the provisions of the American Institute of Certified Public Accountants (AICPA) Audit and Accounting Guide for Investment Companies and began accreting discount/amortizing premium on long-term debt securities. For the year ended February 28, 2002, this change had no effect on the net investment income per share or net realized and unrealized gain (loss) on investments per share, but increased the ratio of net investment income to average net assets from 10.55% to 10.59%. Per share, ratios and supplemental data for the periods prior to February 28, 2002 have not been restated to reflect this change in presentation.

2 Per share information is based on average shares outstanding.

3 Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.

4 Computed on an annualized basis.

5 This voluntary expense decrease is reflected in both the expense and the net investment income ratios shown above.

See Notes which are an integral part of the Financial Statements

Portfolio of Investments

August 31, 2003 (unaudited)

Principal Amount				Value
			CORPORATE BONDS--85.3%
			Aerospace & Defense--0.9%
$	1,700,000		Alliant Techsystems, Inc., Sr. Sub. Note, 8.50%, 5/15/2011	$	1,840,250
	1,744,000		Anteon Corp., Sr. Sub. Note, 12.00%, 5/15/2009		1,944,560
	775,000	4	Condor Systems, Inc., Sr. Sub. Note, (Series B), 11.875%, 5/1/2009		213,125
	300,000	1,2	GenCorp, Inc., Sr. Sub. Note, 9.50%, 8/15/2013		310,500
	650,000	1,2	TransDigm, Inc., Sr. Sub. Note, 8.375%, 7/15/2011		680,875
			TOTAL		4,989,310
			Automotive--2.8%
	850,000		Accuride Corp., Sr. Sub. Note, (Series B), 9.25%, 2/1/2008		807,500
	1,625,000	1,2	Advanced Accessory Systems LLC, Sr. Note, 10.75%, 6/15/2011		1,698,125
	1,450,000		American Axle & Manufacturing, Inc., Company Guarantee, 9.75%, 3/1/2009		1,566,000
	1,400,000		Arvin Industries, Inc., Note, 7.125%, 3/15/2009		1,366,750
	900,000		ArvinMeritor, Inc., Note, 8.75%, 3/1/2012		933,750
	2,675,000		Lear Corp., Company Guarantee, 8.11%, 5/15/2009		2,999,344
	2,325,000		Stoneridge, Inc., Company Guarantee, 11.50%, 5/1/2012		2,627,250
	2,525,000	1,2	TRW Automotive, Inc., Sr. Sub. Note, 11.00%, 2/15/2013		2,903,750
	1,200,000	1,2	United Components, Inc., Sr. Sub. Note, 9.375%, 6/15/2013		1,221,000
			TOTAL		16,123,469
			Beverage & Tobacco--0.7%
	1,300,000	1,2	Commonwealth Brands, Inc., Sr. Sub. Secd. Note, 10.625%, 9/1/2008		1,352,000
	1,850,000		Constellation Brands, Inc., Sr. Sub. Note, 8.125%, 1/15/2012		1,937,875
	475,000		Dimon, Inc., Sr. Note, (Series B), 9.625%, 10/15/2011		527,250
			TOTAL		3,817,125
			Broadcast Radio & Television--2.3%
	525,000		Lodgenet Entertainment, Sr. Sub. Note, 9.50%, 6/15/2013		548,625
	1,050,000	1,2	Muzak LLC, Sr. Note, 10.00%, 2/15/2009		1,107,750
	3,500,000		PanAmSat Corp., Sr. Note, 8.50%, 2/1/2012		3,631,250
��	1,500,000	1,2	Sinclair Broadcast Group, Inc., Sr. Sub. Note, 8.00%, 3/15/2012		1,571,250
	1,175,000	1,2	Vivendi Universal SA, Sr. Note, 6.25%, 7/15/2008		1,180,875
	2,050,000	1,2	Vivendi Universal SA, Sr. Note, 9.25%, 4/15/2010		2,296,000
	1,734,000	3	XM Satellite Radio, Inc., Sec. Fac. Bond, 0/14.00%, 12/31/2009		1,278,825
	1,500,000	1,2	XM Satellite Radio, Inc., Sr. Secd. Note, 12.00%, 6/15/2010		1,496,250
			TOTAL		13,110,825
Principal Amount				Value
			CORPORATE BONDS--continued
			Building & Development--1.7%
$	1,100,000		Associated Materials, Inc., Company Guarantee, 9.75%, 4/15/2012	$	1,157,750
	1,900,000		Brand Services, Inc., Company Guarantee, 12.00%, 10/15/2012		2,123,250
	975,000		Collins & Aikman Floorcoverings, Inc., Company Guarantee, 9.75%, 2/15/2010		1,014,000
	1,075,000	1,2	Interline Brands, Inc., Sr. Sub. Note, 11.50%, 5/15/2011		1,118,000
	575,000	1,2	Jacuzzi Brands, Inc., Sr. Secd. Note, 9.625%, 7/1/2010		606,625
	1,050,000	1,2	Legrand SA, Sr. Note, 10.50%, 2/15/2013		1,149,099
	2,200,000		NCI Building System, Inc., Sr. Sub. Note, (Series B), 9.25%, 5/1/2009		2,332,000
	425,000	1,2	Shaw Group, Inc., Sr. Note, 10.75%, 3/15/2010		371,875
			TOTAL		9,872,599
			Business Equipment & Services--1.9%
	3,300,000		Buhrmann US, Inc., Company Guarantee, 12.25%, 11/1/2009		3,555,750
	1,300,000	1,2	Danka Business Systems PLC, Sr. Note, 11.00%, 6/15/2010		1,183,000
	3,650,000	1,2	Xerox Corp., Sr. Note, 9.75%, 1/15/2009		4,005,875
	2,100,000		Xerox Corp., Sr. Note, 7.625%, 6/15/2013		2,058,840
			TOTAL		10,803,465
			Cable Television--4.0%
	2,450,000		CSC Holdings, Inc., Sr. Note, 7.875%, 12/15/2007		2,511,250
	1,650,000		CSC Holdings, Inc., Sr. Note, 8.125%, 7/15/2009		1,707,750
	825,000		CSC Holdings, Inc., Sr. Sub. Note, 10.50%, 5/15/2016		899,250
	6,925,000	3	Charter Communications Holdings Capital Corp., Discount Bond, 0/11.75%, 5/15/2011		3,981,875
	4,925,000	3	Charter Communications Holdings Capital Corp., Sr. Disc. Note, 0/13.50%, 1/15/2011		2,881,125
	2,100,000	1,2	DIRECTV Holdings LLC, Sr. Note, 8.375%, 3/15/2013		2,304,750
	3,250,000		Echostar DBS Corp., Sr. Note, 10.375%, 10/1/2007		3,611,562
	1,125,000	3	Quebecor Media Inc., Sr. Disc. Note, 0/13.75%, 7/15/2011		939,375
	1,925,000		Quebecor Media Inc., Sr. Note, 11.125%, 7/15/2011		2,146,375
	1,800,000		Rogers Cablesystems Ltd., Sr. Sub. Gtd. Note, 11.00%, 12/1/2015		1,989,000
			TOTAL		22,972,312
			Capital Goods - Diversified Manufacturing--1.7%
	8,000,000		Tyco International Group, Company Guaranteed, 6.375%, 10/15/2011		7,980,000
	1,500,000		Tyco International Group, Sr. Note, 6.375%, 6/15/2005		1,558,125
			TOTAL		9,538,125
Principal Amount				Value
			CORPORATE BONDS--continued
			Chemicals & Plastics--3.4%
$	850,000		Compass Minerals Group, Inc., Sr. Sub. Note, 10.00%, 8/15/2011	$	939,250
	1,550,000		Equistar Chemicals LP, Sr. Note, 10.125%, 9/1/2008		1,557,750
	1,400,000		FMC Corp., Sr. Secd. Note, 10.25%, 11/1/2009		1,589,000
	1,125,000		Foamex LP, Company Guarantee, 10.75%, 4/1/2009		1,040,625
	800,000		Foamex LP, Sr. Sub. Note, 13.50%, 8/15/2005		684,000
	1,050,000		Foamex LP, Sr. Sub. Note, 9.875%, 6/15/2007		698,250
	1,100,000	1,4	General Chemical Industrial Products, Inc., Sr. Sub. Note, 10.625%, 5/1/2009		335,500
	600,000	1,2	Huntsman Advanced Materials, Inc., Sr. Secd. Note, 11.00%, 7/15/2010		639,000
	3,100,000		Huntsman ICI Chemicals LLC, Sr. Sub. Note, 10.125%, 7/1/2009		2,945,000
	2,700,000		Lyondell Chemical Co., Sr. Secd. Note, 9.50%, 12/15/2008		2,619,000
	1,500,000		Lyondell Chemical Co., Sr. Sub. Note, 10.875%, 5/1/2009		1,425,000
	400,000	1,2	Rhodia SA, Sr. Note, 7.625%, 6/1/2010		410,000
	900,000	1,2	Rhodia SA, Sr. Sub. Note, 8.875%, 6/1/2011		909,000
	1,600,000	1,2,3	Salt Holdings Corp., Sr. Disc. Note, 0/12.75%, 12/15/2012		1,112,000
	2,925,000	1,2,3	Salt Holdings Corp., Sr. Sub. Disc. Note, 0/12.00%, 6/1/2013		1,769,625
	2,900,000	1,4	Texas Petrochemicals Corp., Sr. Sub. Note, 11.125%, 7/1/2006		761,250
			TOTAL		19,434,250
			Clothing & Textiles--2.0%
	3,850,000	4	Dyersburg Corp., Sr. Sub. Note, 9.75%, 9/1/2007		19,635
	2,675,000		GFSI, Inc., Sr. Sub. Note, 9.625%, 3/1/2007		2,287,125
	3,100,000		Levi Strauss & Co., Sr. Note, 11.625%, 1/15/2008		2,983,750
	825,000	1,2	Phillips Van Heusen Corp., Sr. Note, 8.125%, 5/1/2013		847,688
	1,650,000		Russell Corp., Company Guarantee, 9.25%, 5/1/2010		1,761,375
	1,475,000	1,2	Warnaco Group, Inc., Sr. Note, 8.875%, 6/15/2013		1,541,375
	1,650,000		William Carter Co., Sr. Sub. Note, (Series B), 10.875%, 8/15/2011		1,823,250
			TOTAL		11,264,198
			Conglomerates--0.4%
	2,525,000	1,2	Eagle Picher Industries, Inc., Sr. Note, 9.75%, 9/1/2013		2,575,500
			Consumer Cyclical - Automotive--1.0%
	2,875,000		General Motors Corp., Note, 7.125%, 7/15/2013		2,894,866
	2,875,000		General Motors Corp., Note, 8.375%, 7/15/2033		2,818,707
			TOTAL		5,713,573
Principal Amount				Value
			CORPORATE BONDS--continued
			Consumer Products--5.6%
$	1,225,000		Alltrista Corp., Unsecd. Note, 9.75%, 5/1/2012	$	1,286,250
	2,450,000		American Achievement Corp., Sr. Note, (Series W.I.), 11.625%, 1/1/2007		2,652,125
	2,275,000		American Greetings Corp., Sr. Sub. Note, 11.75%, 7/15/2008		2,593,500
	1,250,000		American Safety Razor Co., Sr. Note, 9.875%, 8/1/2005		1,246,875
	1,500,000		Amscan Holdings, Inc., Sr. Sub. Note, 9.875%, 12/15/2007		1,560,000
	950,000		Chattem, Inc., Sr. Sub. Note, 8.875%, 4/1/2008		926,250
	375,000		Commemorative Brands, Inc., Sr. Sub. Note, 11.00%, 1/15/2007		376,875
	1,450,000	4	Diamond Brands, Inc., Sr. Disc. Deb., 12.875%, 4/15/2009		145
	850,000	4	Diamond Brands Operating Corp., Sr. Sub. Note, 10.125%, 4/15/2008		10,625
	1,325,000		ICON Health & Fitness, Inc., Company Guarantee, 11.25%, 4/1/2012		1,411,125
	1,125,000		Jarden Corp., Sr. Sub. Note, 9.75%, 5/1/2012		1,181,250
	2,325,000		Jostens, Inc., Sr. Sub. Note, 12.75%, 5/1/2010		2,720,250
	775,000	1,2	Le-Nature's, Inc, Sr. Sub. Note, 9.00%, 6/15/2013		817,625
	2,175,000		PCA International, Inc., Sr. Note, 11.875%, 8/1/2009		2,381,625
	2,525,000		Playtex Products, Inc., Company Guarantee, 9.375%, 6/1/2011		2,512,375
	925,000	1,2	Reddy Ice Group, Inc., Sr. Sub. Note, 8.875%, 8/1/2011		964,313
	1,825,000		Sealy Mattress Co., Company Guarantee, 10.875%, 12/15/2007		1,852,375
	725,000		Sealy Mattress Co., Sr. Sub. Note, 9.875%, 12/15/2007		712,313
	325,000		Sealy Mattress Co., Sr. Sub. Note, 9.875%, 12/15/2007		320,125
	950,000	1,4	Sleepmaster LLC, Company Guarantee, (Series B), 11.00%, 5/15/2009		263,625
	500,000	1,2	Tempur World, Sr. Sub. Note, 10.25%, 8/15/2010		517,500
	1,800,000		True Temper Sports, Inc., Sr. Sub. Note, (Series B), 10.875%, 12/1/2008		1,930,500
	2,700,000		United Industries Corp., Sr. Sub. Note, (Series D), 9.875%, 4/1/2009		2,787,750
	1,000,000		Volume Services America, Inc., Sr. Sub. Note, 11.25%, 3/1/2009		1,000,000
			TOTAL		32,025,396
			Container & Glass Products--4.0%
	1,475,000		Berry Plastics Corp., Company Guarantee, 10.75%, 7/15/2012		1,626,187
	1,400,000		Graham Packaging Co., Sr. Sub. Note, 8.75%, 1/15/2008		1,407,000
	500,000	1,2	Graham Packaging Co., Sr. Sub. Note, 8.75%, 1/15/2008		502,500
	1,275,000		Graham Packaging Co., Sub. Note, 4.735%, 1/15/2008		1,166,625
	350,000		Graham Packaging Holdings Co., Sr. Note, 10.75%, 1/15/2009		362,250
Principal Amount				Value
			CORPORATE BONDS--continued
			Container & Glass Products--continued
$	1,500,000		Greif Brothers Corp., Sr. Sub. Note, 8.875%, 8/1/2012	$	1,612,500
	2,300,000		Huntsman Packaging Corp., Company Guarantee, 13.00%, 6/1/2010		2,012,500
	925,000		Owens-Brockway Glass Container, Inc., Sr. Secd. Note, 8.875%, 2/15/2009		975,875
	4,850,000		Owens-Illinois, Inc., Sr. Note, 7.35%, 5/15/2008		4,704,500
	775,000		Owens-Illinois, Inc., Sr. Note, 8.10%, 5/15/2007		782,750
	1,625,000		Plastipak Holdings, Company Guarantee, 10.75%, 9/1/2011		1,795,625
	425,000	1,2	Pliant Corp., Sr. Secd. Note, 11.125%, 9/1/2009		438,813
	1,550,000		Pliant Corp., Sr. Sub. Note, 13.00%, 6/1/2010		1,356,250
	344,034	1,2	Russell Stanley Holdings, Inc., Sr. Sub. PIK Note, 9.00%, 11/30/2008		138,474
	3,825,000		Tekni-Plex, Inc., Company Guarantee, (Series B), 12.75%, 6/15/2010		3,729,375
			TOTAL		22,611,224
			Ecological Services & Equipment--1.1%
	1,150,000		Allied Waste North America, Inc., Company Guarantee, 7.875%, 1/1/2009		1,184,500
	1,600,000		Allied Waste North America, Inc., Company Guarantee, (Series B), 9.25%, 9/1/2012		1,736,000
	1,625,000		Allied Waste North America, Inc., Sr. Sub. Note, 10.00%, 8/1/2009		1,771,250
	1,375,000		Synagro Technologies, Inc., Sr. Sub. Note, 9.50%, 4/1/2009		1,471,250
			TOTAL		6,163,000
			Food Products--4.8%
	2,175,000		Agrilink Foods, Inc., Company Guarantee, 11.875%, 11/1/2008		2,370,750
	2,425,000		American Seafoods Group LLC, Company Guarantee, 10.125%, 4/15/2010		2,709,937
	1,300,000		B&G Foods, Inc., Company Guarantee, (Series D), 9.625%, 8/1/2007		1,345,500
	2,925,000		Del Monte Corp., Company Guarantee, (Series B), 9.25%, 5/15/2011		3,129,750
	300,000	1,2	Del Monte Corp., Sr. Sub. Note, 8.625%, 12/15/2012		315,000
	1,300,000	1,2	Dole Food, Inc., Sr. Note, 7.25%, 6/15/2010		1,267,500
	1,700,000		Dole Food, Inc., Sr. Note, 8.625%, 5/1/2009		1,780,750
	3,625,000		Eagle Family Foods, Inc., Sr. Sub. Note, 8.75%, 1/15/2008		2,483,125
	1,400,000		Land O'Lakes, Inc., Sr. Note, 8.75%, 11/15/2011		1,134,000
	1,200,000		Michael Foods, Inc., Sr. Sub. Note, (Series B), 11.75%, 4/1/2011		1,386,000
	1,000,000	1,2	National Beef Packaging Co. LLC, Sr. Note, 10.50%, 8/1/2011		1,065,000
	1,775,000		New World Pasta Co., Sr. Sub. Note, 9.25%, 2/15/2009		523,625
Principal Amount				Value
			CORPORATE BONDS--continued
			Food Products--continued
$	1,600,000		Pilgrim's Pride Corp., Sr. Note, 9.625%, 9/15/2011	$	1,696,000
	1,950,000	1,2	Smithfield Foods, Inc., Note, 7.75%, 5/15/2013		2,008,500
	1,325,000		Smithfield Foods, Inc., Sr. Note, (Series B), 8.00%, 10/15/2009		1,397,875
	700,000		Smithfield Foods, Inc., Sr. Sub. Note, 7.625%, 2/15/2008		700,000
	1,025,000		Swift & Co., Sr. Note, 10.125%, 10/1/2009		1,101,875
	600,000	1,2	Swift & Co., Sr. Sub. Note, 12.50%, 1/1/2010		627,000
			TOTAL		27,042,187
			Food Services--0.9%
	1,275,000		Advantica Restaurant Group, Sr. Note, 11.25%, 1/15/2008		586,500
	1,325,000		Buffets, Inc., Sr. Sub. Note, 11.25%, 7/15/2010		1,334,937
	2,550,000		Carrols Corp., Company Guarantee, 9.50%, 12/1/2008		2,460,750
	625,000	1,2	Domino's, Inc., Sr. Sub. Note, 8.25%, 7/1/2011		659,375
			TOTAL		5,041,562
			Forest Products--2.6%
	3,895,000		Georgia-Pacific Corp., Note, 7.50%, 5/15/2006		3,953,425
	2,800,000	1,2	Georgia-Pacific Corp., Sr. Note, 9.375%, 2/1/2013		3,010,000
	300,000	1,2	Graphic Packaging International Corp., Sr. Sub. Note, 9.50%, 8/15/2013		315,000
	1,600,000		Jefferson Smurfit Corp., Company Guarantee, 8.25%, 10/1/2012		1,690,000
	2,425,000		MDP Acquisitions PLC, Sr. Note, 9.625%, 10/1/2012		2,631,125
	1,008,312		MDP Acquisitions PLC, Sub. PIK Note, 15.50%, 10/1/2013		1,104,102
	1,650,000		Stone Container Corp., Sr. Note, 9.75%, 2/1/2011		1,823,250
			TOTAL		14,526,902
			Gaming--4.3%
	1,350,000		Boyd Gaming Corp., Sr. Sub. Note, 8.75%, 4/15/2012		1,458,000
	1,550,000		Coast Hotels & Casinos, Inc., Company Guarantee, 9.50%, 4/1/2009		1,666,250
	1,125,000		Harrah's Operations, Inc., Company Guarantee, 7.875%, 12/15/2005		1,223,437
	1,000,000		Isle of Capri Casinos, Inc., Company Guarantee, 9.00%, 3/15/2012		1,085,000
	900,000		Isle of Capri Casinos, Inc., Sr. Sub. Note, 8.75%, 4/15/2009		958,500
	400,000		MGM Grand, Inc., Sr. Sub. Note, 8.375%, 2/1/2011		442,000
	1,200,000		MGM Grand, Inc., Sr. Sub. Note, 9.75%, 6/1/2007		1,347,000
Principal Amount				Value
			CORPORATE BONDS--continued
			Gaming--continued
$	1,225,000	1,2	MTR Gaming Group, Inc., Sr. Note, 9.75%, 4/1/2010	$	1,286,250
	875,000		Mandalay Resort Group, Sr. Note, 9.50%, 8/1/2008		988,750
	50,000		Mandalay Resort Group, Sr. Sub. Note, 9.375%, 2/15/2010		55,750
	1,175,000		Mandalay Resort Group, Sr. Sub. Note, (Series B), 10.25%, 8/1/2007		1,313,062
	850,000	1,2	Mohegan Tribal Gaming Authority, Sr. Sub. Note, 6.375%, 7/15/2009		850,000
	1,400,000		Mohegan Tribal Gaming Authority, Sr. Sub. Note, 8.00%, 4/1/2012		1,505,000
	500,000		Mohegan Tribal Gaming Authority, Sr. Sub. Note, 8.375%, 7/1/2011		542,500
	900,000		Park Place Entertainment Corp., Sr. Sub. Note, 7.875%, 3/15/2010		965,250
	725,000		Park Place Entertainment Corp., Sr. Sub. Note, 9.375%, 2/15/2007		799,312
	1,225,000		Penn National Gaming, Inc., Company Guarantee, 8.875%, 3/15/2010		1,319,938
	1,025,000		Penn National Gaming, Inc., Company Guarantee, (Series B), 11.125%, 3/1/2008		1,148,000
	1,850,000		Sun International Hotels Ltd., Sr. Sub. Note, 8.875%, 8/15/2011		1,993,375
	2,000,000		Venetian Casino/LV Sands, Company Guarantee, 11.00%, 6/15/2010		2,285,000
	1,050,000		Wynn Las Vegas LLC, Second Mortgage Notes, 12.00%, 11/1/2010		1,197,000
			TOTAL		24,429,374
			Healthcare--3.1%
	1,675,000		AmeriPath, Inc., Company Guarantee, 10.50%, 4/1/2013		1,742,000
	300,000	1,2	Ardent Health Services, Sr. Sub. Note, 10.00%, 8/15/2013		307,500
	500,000		Fisher Scientific International, Inc., Sr. Note, 7.125%, 12/15/2005		513,750
	300,000		HCA - The Healthcare Corp., Sr. Note, 6.91%, 6/15/2005		313,188
	4,450,000		HCA - The Healthcare Corp., Sr. Note, 7.875%, 2/1/2011		4,759,586
	2,825,000		Hanger Orthopedic Group, Inc., Sr. Sub. Note, 11.25%, 6/15/2009		3,093,375
	1,200,000		Hudson Respiratory Care, Inc., Sr. Sub. Note, 9.125%, 4/15/2008		882,000
	550,000	1,2	Kinetic Concepts, Inc., Sr. Sub. Note, 7.375%, 5/15/2013		563,750
	1,375,000	1,2,4	Magellan Health Services, Inc., Sr. Note, 9.375%, 11/15/2007		1,443,750
	300,000		Manor Care, Inc., Sr. Note, 7.50%, 6/15/2006		321,681
	575,000		Sybron Dental Specialties, Inc., Company Guarantee, 8.125%, 6/15/2012		600,875
	1,050,000		Tenet Healthcare Corp., Sr. Note, 5.375%, 11/15/2006		1,026,375
	350,000		Tenet Healthcare Corp., Sr. Note, 6.375%, 12/1/2011		326,375
	1,525,000		Vanguard Health Systems, Company Guarantee, 9.75%, 8/1/2011		1,563,125
			TOTAL		17,457,330
Principal Amount				Value
			CORPORATE BONDS--continued
			Hotels, Motels & Inns--2.3%
$	1,100,000		Courtyard by Marriott II LP, Sr. Note, 10.75%, 2/1/2008	$	1,083,500
	600,000		Felcor Lodging LP, Company Guarantee, 9.50%, 9/15/2008		625,500
	2,300,000		Florida Panthers Holdings, Inc., Company Guarantee, 9.875%, 4/15/2009		2,443,750
	3,375,000		HMH Properties, Inc., Sr. Note, (Series B), 7.875%, 8/1/2008		3,442,500
	350,000		Hilton Hotels Corp., Sr. Note, 8.25%, 2/15/2011		378,875
	1,125,000		MeriStar Hospitality Corp., Company Guarantee, 9.125%, 1/15/2011		1,125,000
	3,250,000		Starwood Hotels & Resorts Worldwide, Inc., Note, 7.375%, 5/1/2007		3,436,875
	425,000		Starwood Hotels & Resorts Worldwide, Inc., Unsecd. Note, 6.75%, 11/15/2005		447,313
			TOTAL		12,983,313
			Industrial Products & Equipment--3.1%
	400,000	1,2	Amsted Industries, Inc., Sr. Note, 10.25%, 10/15/2011		418,000
	3,400,000		Cabot Safety Acquisition Corp., Sr. Sub. Note, 12.50%, 7/15/2005		3,485,000
	2,100,000		Continental Global Group, Inc., Sr. Note, 11.00%, 4/1/2007		640,500
	2,100,000	1,2	Euramax International PLC, Sr. Sub. Note, 8.50%, 8/15/2011		2,131,500
	800,000	1,2	Hexcel Corp., Sr. Secd. Note, 9.875%, 10/1/2008		879,000
	2,100,000		Hexcel Corp., Sr. Sub. Note, (Series B), 9.75%, 1/15/2009		2,186,625
	3,350,000		MMI Products, Inc., Sr. Sub. Note, 11.25%, 4/15/2007		2,127,250
	2,775,000	4	Neenah Corp., Sr. Sub. Note, (Series B), 11.125%, 5/1/2007		1,456,875
	2,200,000	4	Neenah Corp., Sr. Sub. Note, (Series F), 11.125%, 5/1/2007		1,155,000
	500,000	1,2	Norcross Safety Products, Sr. Sub. Note, 9.875%, 8/15/2011		508,750
	1,750,000		Rexnord Corp., Company Guarantee, 10.125%, 12/15/2012		1,907,500
	925,000		WESCO Distribution, Inc., Sr. Sub. Note, 9.125%, 6/1/2008		881,063
			TOTAL		17,777,063
			Leisure & Entertainment--2.9%
	1,400,000		AMC Entertainment, Inc., Sr. Sub. Note, 9.50%, 3/15/2009		1,463,000
	1,700,000		AMC Entertainment, Inc., Sr. Sub. Note, 9.875%, 2/1/2012		1,827,500
	1,350,000	1,2	AMF Bowling Worldwide, Inc., Sr. Sub. Note, 13.00%, 2/28/2008		1,512,000
	875,000		Cinemark USA, Sr. Sub. Note, 9.00%, 2/1/2013		931,875
	1,750,000		Intrawest Corp., Company Guarantee, 10.50%, 2/1/2010		1,894,375
	2,100,000		Regal Cinemas, Inc., Company Guarantee, (Series B), 9.375%, 2/1/2012		2,336,250
	1,125,000		Royal Caribbean Cruises Ltd., Sr. Note, 8.00%, 5/15/2010		1,175,625
	1,775,000	1,2	Six Flags, Inc., Sr. Note, 9.75%, 4/15/2013		1,659,625
	3,075,000	1,2	Universal City Development Partners Ltd., Sr. Note, 11.75%, 4/1/2010		3,428,625
			TOTAL		16,228,875
Principal Amount				Value
			CORPORATE BONDS--continued
			Machinery & Equipment--2.6%
$	1,500,000		AGCO Corp., Sr. Note, 9.50%, 5/1/2008	$	1,635,000
	2,250,000		Briggs & Stratton Corp., Company Guarantee, 8.875%, 3/15/2011		2,497,500
	775,000		Case Corp., Unsecd. Note, 7.25%, 8/1/2005		794,375
	2,200,000	1,2	Case New Holland, Sr. Note, 9.25%, 8/1/2011		2,326,500
	5,525,000	1,4	Clark Material Handling Corp., Sr. Note, 10.75%, 11/15/2006		552
	300,000	1,2	Columbus McKinnon Corp., Sr. Secd. Note, 10.00%, 8/1/2010		311,250
	2,825,000		Columbus McKinnon Corp., Sr. Sub. Note, 8.50%, 4/1/2008		2,288,250
	975,000	1,4	Simonds Industries, Inc., Sr. Sub. Note, 10.25%, 7/1/2008		294,938
	4,050,000		United Rentals, Inc., Company Guarantee, (Series B), 10.75%, 4/15/2008		4,465,125
			TOTAL		14,613,490
			Oil & Gas--3.3%
	1,825,000	1,2	CITGO Petroleum Corp., Sr. Note, 11.375%, 2/1/2011		2,044,000
	1,775,000		Compton Petroleum Corp., Sr. Note, 9.90%, 5/15/2009		1,908,125
	2,350,000		Continental Resources, Inc., Sr. Sub. Note, 10.25%, 8/1/2008		2,338,250
	775,000		Dresser, Inc., Company Guarantee, 9.375%, 4/15/2011		794,375
	1,575,000	1,2	El Paso Production Holding Co., Sr. Note, 7.75%, 6/1/2013		1,519,875
	2,300,000		Lone Star Technologies, Inc., Company Guarantee, (Series B), 9.00%, 6/1/2011		2,196,500
	1,175,000		Magnum Hunter Resources, Inc., Sr. Note, 9.60%, 3/15/2012		1,280,750
	1,225,000		Petroleum Helicopters, Inc., Company Guarantee, (Series B), 9.375%, 5/1/2009		1,341,375
	650,000		Pogo Producing Co., Sr. Sub. Note, (Series B), 10.375%, 2/15/2009		711,750
	2,100,000		Swift Energy Co., Sr. Sub. Note, 9.375%, 5/1/2012		2,241,750
	1,575,000		Tesoro Petroleum Corp., Company Guarantee, (Series B), 9.625%, 11/1/2008		1,582,875
	475,000		Tesoro Petroleum Corp., Sr. Secd. Note, 8.00%, 4/15/2008		491,625
	275,000		Tesoro Petroleum Corp., Sr. Sub. Note, 9.00%, 7/1/2008		273,625
			TOTAL		18,724,875
			Printing & Publishing--3.9%
	2,325,000		Advanstar Communications, Company Guarantee, (Series B), 12.00%, 2/15/2011		2,092,500
	1,375,000	3	Advanstar, Inc., Company Guarantee, (Series B), 0/15.00%, 10/15/2011		745,937
	1,775,000		American Media Operations, Inc., Company Guarantee, (Series B), 10.25%, 5/1/2009		1,908,125
	1,100,000		Block Communications, Inc., Company Guarantee, 9.25%, 4/15/2009		1,171,500
	3,825,000		Dex Media East LLC, Company Guarantee, 12.125%, 11/15/2012		4,637,812
Principal Amount				Value
			CORPORATE BONDS--continued
			Printing & Publishing--continued
$	2,000,000	1,2	Dex Media West LLC, Sr. Sub. Note, 9.875%, 8/15/2013	$	2,240,000
	2,150,000	1,2	R.H. Donnelly Finance Corp., Sr. Sub. Note, 10.875%, 12/15/2012		2,526,250
	3,600,000		Vertis, Inc., Sr. Note, (Series B), 10.875%, 6/15/2009		3,636,000
	500,000	1,2	Vertis, Inc., Sr. Secd. 2nd Priority Note, 9.75%, 4/1/2009		532,500
	2,080,000	3	Yell Finance BV, Sr. Disc. Note, 0/13.50%, 8/1/2011		1,809,600
	650,000		Yell Finance BV, Sr. Note, 10.75%, 8/1/2011		747,500
	431,005		Ziff Davis Media, Inc., Company Guarantee, (Series B), 12.00%, 8/12/2009		216,580
			TOTAL		22,264,304
			Real Estate--0.1%
	500,000	1,2	CBRE Escrow, Inc., Sr. Note, 9.75%, 5/15/2010		532,500
			Retailers--2.1%
	900,000		Michaels Stores, Inc., Sr. Note, 9.25%, 7/1/2009		981,000
	1,125,000		Mothers Work, Inc., Sr. Note, 11.25%, 8/1/2010		1,231,875
	3,518,000		Penney (J.C.) Co., Inc., Note, 9.00%, 8/1/2012		3,799,440
	1,325,000		Rite Aid Corp., Sr. Deb., 6.875%, 8/15/2013		1,159,375
	900,000	1,2	Rite Aid Corp., Sr. Secd. Note, 8.125%, 5/1/2010		927,000
	1,650,000	1,2	Rite Aid Corp., Sr. Secd. Note, 9.50%, 2/15/2011		1,773,750
	1,775,000		United Auto Group, Inc., Company Guarantee, 9.625%, 3/15/2012		1,908,125
			TOTAL		11,780,565
			Services--0.7%
	2,150,000		SITEL Corp., Sr. Sub. Note, 9.25%, 3/15/2006		2,058,625
	1,775,000		The Brickman Group Ltd., Sr. Sub. Note, (Series B), 11.75%, 12/15/2009		1,939,187
			TOTAL		3,997,812
			Steel--0.6%
	1,925,000		Ryerson Tull, Inc., Sr. Note, 9.125%, 7/15/2006		1,915,375
	1,750,000		United States Steel Corp., Sr. Note, 9.75%, 5/15/2010		1,785,000
			TOTAL		3,700,375
Principal Amount				Value
			CORPORATE BONDS--continued
			Surface Transportation--1.2%
$	2,875,000		Allied Holdings, Inc., Sr. Note, 8.625%, 10/1/2007	$	2,601,875
	4,950,000	1,4	AmeriTruck Distribution Corp., Sr. Sub. Note, 12.25%, 11/15/2005		0
	3,600,000		Stena AB, Sr. Note, 9.625%, 12/1/2012		3,933,000
	3,125,000	4	The Holt Group, Inc., Company Guarantee, 9.75%, 1/15/2006		109,375
			TOTAL		6,644,250
			Technology--1.3%
	1,425,000		AMI Semiconductor, Inc., Sr. Sub. Note, 10.75%, 2/1/2013		1,603,125
	825,000	1,2	Cooperative Computing, Inc., Sr. Note, 10.50%, 6/15/2011		837,375
	2,600,000		Ingram Micro, Inc., Sr. Sub. Note, 9.875%, 8/15/2008		2,782,000
	1,000,000		Seagate Technology HDD Holdings, Sr. Note, 8.00%, 5/15/2009		1,080,000
	875,000		Unisys Corp., Sr. Note, 6.875%, 3/15/2010		857,500
	450,000	1,2	Worldspan LP, Sr. Note, 9.625%, 6/15/2011		468,000
			TOTAL		7,628,000
			Telecommunications & Cellular--5.8%
	600,000	3	AirGate PCS, Inc., Sr. Sub. Note, 0/13.50%, 10/1/2009		366,000
	2,025,000	3	Alamosa PCS Holdings, Inc., Sr. Disc. Note, 0/12.875%, 2/15/2010		1,508,625
	1,200,000	1,2	Alaska Communications Systems Holdings, Inc., Sr. Note, 9.875%, 8/15/2011		1,212,000
	2,200,000	1,2	American Cellular Corp., Sr. Note, 10.00%, 8/1/2011		2,354,000
	700,000	1,2	Cincinnati Bell, Inc., Sr. Note, 7.25%, 7/15/2013		688,513
	1,000,000	1,2	Eircom Funding, Sr. Sub. Note, 8.25%, 8/15/2013		1,055,000
	1,750,000	4	Horizon PCS, Inc., Company Guarantee, 13.75%, 6/15/2011		280,000
	3,450,000		NEXTEL Communications, Inc., Sr. Note, 9.375%, 11/15/2009		3,726,000
	2,000,000		Nextel Partners, Inc., Sr. Note, 11.00%, 3/15/2010		2,160,000
	400,000		Nextel Partners, Inc., Sr. Note, 12.50%, 11/15/2009		452,000
	5,625,000	1,2	Qwest Communications International, Inc., Note, 8.875%, 3/15/2012		5,990,625
	1,000,000		Qwest Communications International, Inc., Sr. Note, (Series B), 7.50%, 11/1/2008		945,000
	7,900,000	1,2	Qwest Communications International, Inc., Sr. Sub. Note, 13.50%, 12/15/2010		9,045,500
	1,300,000		Rogers Cantel Mobile, Inc., Sr. Sub. Note, 8.80%, 10/1/2007		1,339,000
	1,800,000	1,2	Triton PCS, Inc., Sr. Note, 8.50%, 6/1/2013		1,935,000
			TOTAL		33,057,263
Principal Amount or Shares				Value
			CORPORATE BONDS--continued
			Utilities--6.2%
$	450,000		ANR Pipeline Co., Sr. Note, 8.875%, 3/15/2010	$	477,000
	4,025,000		CMS Energy Corp., Sr. Note, 7.50%, 1/15/2009		3,894,188
	200,000		CMS Energy Corp., Sr. Note, 8.50%, 4/15/2011		197,500
	250,000		CMS Energy Corp., Sr. Note, 8.90%, 7/15/2008		253,750
	2,815,086		Caithness Coso Funding Corp., Sr. Secd. Note, (Series B), 9.05%, 12/15/2009		2,962,878
	1,800,000		Calpine Canada Energy Finance Corp., Company Guarantee, 8.50%, 5/1/2008		1,404,000
	2,225,000		Calpine Corp., Note, 8.50%, 2/15/2011		1,691,000
	975,000		El Paso Corp., Note, 6.95%, 12/15/2007		882,375
	2,525,000		El Paso Corp., Sr. Note, 6.75%, 5/15/2009		2,171,500
	4,925,000		El Paso Corp., Sr. Note, 7.80%, 8/1/2031		3,767,625
	1,525,000		El Paso Corp., Sr. Note, 8.05%, 10/15/2030		1,197,125
	2,875,000	1,2	Illinois Power Co., Mtg. Bond, 11.50%, 12/15/2010		3,263,125
	3,100,000		PSEG Energy Holdings, Sr. Note, 10.00%, 10/1/2009		3,216,250
	1,075,000	1,2	Reliant Resources, Inc., Sr. Secd. Note, 9.25%, 7/15/2010		1,010,500
	1,325,000	1,2	Reliant Resources, Inc., Sr. Secd. Note, 9.50%, 7/15/2013		1,245,500
	800,000	1,2	Semco Energy, Inc., Sr. Note, 7.125%, 5/15/2008		796,000
	700,000		Tennessee Gas Pipeline, Bond, 8.375%, 6/15/2032		682,500
	850,000		Tennessee Gas Pipeline, Sr. Deb., 7.50%, 4/1/2017		816,000
	175,000		Transcontinental Gas Pipe Corp., Note, (Series B), 7.00%, 8/15/2011		172,594
	3,525,000		Williams Cos., Inc. (The), Note, 7.625%, 7/15/2019		3,251,813
	475,000		Williams Cos., Inc. (The), Note, 7.875%, 9/1/2021		444,125
	1,450,000		Williams Cos., Inc. (The), Sr. Note, 8.625%, 6/1/2010		1,529,750
			TOTAL		35,327,098
			TOTAL CORPORATE BONDS (IDENTIFIED COST $505,638,035)		484,771,509
			COMMON STOCKS/WARRANTS--0.2%
			Broadcast Radio & TV--0.0%
	2,200	4	XM Satellite Radio, Inc., Warrants		19,800
			Cable Television--0.0%
	5,008	4	NTL, Inc.		201,522
Shares				Value
			COMMON STOCKS/WARRANTS--continued
			Container & Glass Products--0.0%
	1,000	4	Pliant Corp., Warrants	$	175
	45,000	4	Russell Stanley Holdings, Inc.		450
			TOTAL		625
			Finance - Other--0.0%
	469	1,4	CVC Claims Litigation LLC, Class B Units		0
			Forest Products--0.0%
	900	1,2,4	MDP Acquisitions PLC, Warrants		5,850
			Leisure & Entertainment--0.1%
	7,921	4	AMF Bowling Worldwide, Inc.		213,867
	18,638	4	AMF Bowling Worldwide, Inc., Warrants		158,423
	18,210	4	AMF Bowling Worldwide, Inc., Warrants		81,945
			TOTAL		454,235
			Metal & Mining--0.0%
	138,395	4	Royal Oak Mines, Inc.		692
			Printing & Publishing--0.1%
	1,375	4	Advanstar, Inc., Warrants		14
	5,350	1,2,4	Medianews Group, Inc.		535,669
	22,000	4	Ziff Davis Media, Inc., Warrants		220
			TOTAL		535,903
			Telecommunications & Cellular--0.0%
	63,896	4	McLeodUSA, Inc., Warrants		23,642
	14,553	4	Viatel Holding (Bermuda) Ltd.		10,187
			TOTAL		33,829
			TOTAL COMMON STOCKS/WARRANTS (IDENTIFIED COST $17,733,272)		1,252,456
Shares				Value
			PREFERRED STOCKS--0.5%
			Healthcare--0.0%
	18,493		River Holding Corp., Sr. Exchangeable PIK, 11.50%	$	185
			Printing & Publishing--0.5%
	28,600		Primedia, Inc., Exchangeable Pfd. Stock, (Series G), $2.16 Annual Dividend		2,552,550
	120	4	Ziff Davis Media, Inc., PIK Pfd., (Series E-1)		1
			TOTAL		2,552,551
			Telecommunications & Cellular--0.0%
	28,835	4	McLeodUSA, Inc., Conv. Pfd., (Series A)		163,206
			TOTAL PREFERRED STOCKS (IDENTIFIED COST $10,400,303)		2,715,942
			MUTUAL FUND--12.8%
	72,907,352	5	Prime Value Obligations Fund, IS Shares (at net asset value)		72,907,352
			TOTAL INVESTMENTS--98.8% (IDENTIFIED COST $606,678,962)6		561,647,259
			OTHER ASSETS AND LIABILITIES -- NET--1.2%		6,550,931
			TOTAL NET ASSETS--100%	$	568,198,190

1 Denotes a restricted security which is subject to restrictions on resale under federal securities laws. At August 31, 2003, these securities amounted to $110,829,284 which represents 19.5% of total net assets. Included in these amounts are restricted securities which have been deemed liquid (amounting to $109,173,419 and representing 19.2% of total net assets).

2 Denotes a restricted security that has been deemed liquid by criteria approved by the fund's Board of Trustees.

3 Denotes a Zero Coupon bond with effective rate at time of purchase.

4 Non-income producing security.

5 Affiliated company.

6 Cost for federal tax purposes is $606,378,682.

Note: The categories of investments are shown as a percentage of total net assets at August 31, 2003.

The following acronyms are used throughout this portfolio:

GTD	- --Guaranteed
PIK	- --Payment in Kind

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

August 31, 2003 (unaudited)

Assets:
Total investments in securities, at value including $72,907,352 of investments of affiliated issuers (identified cost $606,678,962)			$	561,647,259
Income receivable				10,922,642
Receivable for investments sold				1,753,381
Receivable for shares sold				14,717,039
Prepaid expenses				1,360
TOTAL ASSETS				589,041,681
Liabilities:
Payable for investments purchased	$	16,812,050
Payable for shares redeemed		2,834,984
Payable to bank		132,098
Payable for transfer and dividend disbursing agent fees and expenses (Note 5)		11,924
Payable for portfolio accounting fees (Note 5)		8,223
Payable for shareholder services fee (Note 5)		84,510
Income distribution payable		959,702
TOTAL LIABILITIES				20,843,491
Net assets for 98,413,257 shares outstanding			$	568,198,190
Net Assets Consist of:
Paid in capital			$	897,232,171
Net unrealized depreciation of investments				(45,031,703	)
Accumulated net realized loss on investments				(280,901,889	)
Distributions in excess of net investment income				(3,100,389	)
TOTAL NET ASSETS			$	568,198,190
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
$568,198,190 ÷ 98,413,257 shares outstanding				$5.77

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended August 31, 2003 (unaudited)

Investment Income:
Interest							$	26,297,567
Dividends (including $202,042 received from affiliated issuers)								533,136
TOTAL INCOME								26,830,703
Expenses:
Investment adviser fee (Note 5)				$	2,199,024
Administrative personnel and services fee (Note 5)					220,489
Custodian fees					15,351
Transfer and dividend disbursing agent fees and expenses (Note 5)					100,796
Directors'/Trustees' fees					6,873
Auditing fees					8,961
Legal fees					9,342
Portfolio accounting fees (Note 5)					54,435
Shareholder services fee (Note 5)					733,008
Share registration costs					22,992
Printing and postage					23,559
Insurance premiums					1,253
Miscellaneous					4,401
TOTAL EXPENSES					3,400,484
Waivers and Reimbursement (Note 5):
Waiver/Reimbursement of investment adviser fee	$	(418,357	)
Waiver of transfer and dividend disbursing agent fees and expenses		(6,978	)
Waiver of shareholder services fee		(146,601	)
TOTAL WAIVERS AND REIMBURSEMENT					(571,936	)
Net expenses								2,828,548
Net investment income								24,002,155
Realized and Unrealized Gain (Loss) on Investments:
Net realized loss on investments								(14,111,403	)
Net change in unrealized depreciation of investments								49,771,008
Net realized and unrealized gain on investments								35,659,605
Change in net assets resulting from operations							$	59,661,760

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

		Six Months Ended (unaudited) 8/31/2003			Year Ended 2/28/2003
Increase (Decrease) in Net Assets
Operations:
Net investment income	$	24,002,155		$	48,783,580
Net realized loss on investments		(14,111,403	)		(106,295,493	)
Net change in unrealized appreciation/depreciation of investments		49,771,008			77,686,778
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		59,661,760			20,174,865
Distributions to Shareholders:
Distributions from net investment income		(24,328,868	)		(50,612,943	)
Share Transactions:
Proceeds from sale of shares		414,728,569			699,494,157
Net asset value of shares issued to shareholders in payment of distributions declared		17,159,268			35,110,963
Cost of shares redeemed		(418,860,883	)		(715,887,528	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		13,026,954			18,717,592
Change in net assets		48,359,846			(11,720,486	)
Net Assets:
Beginning of period		519,838,344			531,558,830
End of period (including distributions in excess of net investment income of $(3,100,389) and $(2,773,676), respectively)	$	568,198,190		$	519,838,344

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

August 31, 2003 (unaudited)

1. ORGANIZATION

Federated High Yield Trust (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's investment objective is to seek high current income by investing primarily in a professionally managed, diversified portfolio of fixed income securities. The Fund's portfolio of investments consists primarily of lower-rated corporate debt obligations. These lower-rated obligations may be more susceptible to real or perceived adverse economic conditions than investment grade bonds. These lower-rated debt obligations are regarded as predominately speculative with respect to each issuer's continuing ability to make interest and principal payments (i.e. the obligations are subject to the risk of default).

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 generally accepted accounting principles ("GAAP") in the United States of America.

Investment Valuation

Listed corporate bonds, other fixed income and asset-backed securities, and unlisted securities and private placement securities are generally valued at the mean of the latest bid and asked price as furnished by an independent pricing service. Listed equity securities are valued at the last sale price reported on a national securities exchange. Short-term securities are valued at the prices provided by an independent pricing service. However, short-term securities with remaining maturities of 60 days or less at the time of purchase may be valued at amortized cost, which approximates fair market value. Investments in other open-end, regulated investment companies are valued at net asset value. Securities for which no quotations are readily available are valued at fair value as determined in good faith using methods approved by the Board of Trustees (the "Trustees").

Repurchase Agreements

It is the policy of the Fund to require the custodian bank to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian bank's vault, all securities held as collateral under repurchase agreement transactions. Additionally, procedures have been established by the Fund to monitor, on a daily basis, the market value of each repurchase agreement's collateral to ensure that the value of collateral at least equals the repurchase price to be paid under the repurchase agreement.

The Fund will only enter into repurchase agreements with banks and other recognized financial institutions, such as broker/dealers, which are deemed by the Fund's adviser to be creditworthy pursuant to the guidelines and/or standards reviewed or established by the Trustees. Risks may arise from potential inability of counterparties to honor the terms of the repurchase agreement. Accordingly, the Fund could receive less than the repurchase price on sale of collateral securities. The Fund, along with other affiliated investment companies, may utilize a joint trading account for the purpose of entering into one or more repurchase agreements.

Investment Income, Expenses and Distributions

Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at fair value.

Premium and Discount Amortization

All premiums and discount on fixed income securities are amortized/accreted for financial statement purposes.

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 their income. Accordingly, no provision for federal tax is necessary.

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

Restricted securities are securities that may only be resold upon registration under federal securities laws or in transactions exempt from such registration. In some cases, the issuer of restricted securities 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 restricted securities may be resold in the secondary market in transactions exempt from registration. Such restricted securities may be determined to be liquid under criteria established by the Board of Trustees. The Fund will not incur any registration costs upon such resales. The Fund's restricted securities are valued at the price provided by dealers in the secondary market or, if no market prices are available, at the fair value as determined in good faith using methods approved by the Trustees.

Additional information on each restricted illiquid security held at August 31, 2003, is as follows:

Security	Acquisition Date	Acquisition Cost
AmeriTruck Distribution Corp., Sr. Sub. Note, 12.25%, 11/15/2005	11/15/1995 - 10/22/1997	$ 4,935,278
Clark Material Handling Corp., Sr. Note, 10.75%, 11/15/2006	11/12/1996 - 07/21/1997	$ 5,716,875
CVC Claims Litigation LLC, Class B Units	03/26/1997 - 08/19/1997	$ 4,646,903
General Chemical Industrial Products, Inc., Sr. Sub Note, 10.625%, 5/1/2009	08/23/2002 - 11/07/2002	$  810,125
Simonds Industries, Inc., Sr. Sub. Note, 10.25%, 7/1/2008	03/08/2001	$  689,813
Sleepmaster LLC, Company Guarantee, (Series B), 11.000%, 5/15/2009	01/10/2001 - 02/20/2001	$  759,563
Texas Petrochemicals Corp., Sr. Sub. Note, 11.125%, 7/1/2006	03/09/1999 - 05/10/2001	$ 2,676,000

Use of Estimates

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.

Other

Investment transactions are accounted for on a trade date basis.

3. SHARES OF BENEFICIAL INTEREST

The Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value). Transactions in capital stock were as follows:

	Six Months Ended 8/31/2003		Year Ended 2/28/2003
Shares sold	72,718,364		127,787,878
Shares issued to shareholders in payment of distributions declared	3,001,432		6,387,646
Shares redeemed	(73,037,179	)	(129,988,136	)
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	2,682,617		4,187,388

4. FEDERAL TAX INFORMATION

At August 31, 2003, the cost of investments for federal tax purposes was $606,378,682. The net unrealized depreciation of investments for federal tax purposes was $44,731,423. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $23,544,819 and net unrealized depreciation from investments for those securities having an excess of cost over value of $68,276,242.

At February 28, 2003, the Fund had a capital loss carryforward of $233,006,798 which will reduce the Fund's taxable income arising from future net realized gain on investments, if any, to the extent permitted by the Code, and thus will reduce the amount of the distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability of federal tax. Pursuant to the Code, such capital loss carryforward will expire as follows:

Expiration Year	Expiration Amount
2008	$ 9,874,031
2009	$35,176,615
2010	$92,960,310
2011	$94,995,842

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated Investment Management Company, the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to 0.75% of the Fund's average daily net assets. The Adviser may voluntarily choose to waive any portion of its fee. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion.

Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the Fund may invest in Prime Value Obligations Fund, which is managed by the Adviser. The Adviser has agreed to reimburse certain investment adviser fees as a result of these transactions. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $202,042 for the period.

Administrative Fee

Federated Services Company ("FServ"), under the Administrative Services Agreement ("Agreement"), provides the Fund with administrative personnel and services. The fee paid to FServ is based on the aggregate daily net assets of all Federated funds as specified below:

Maximum Administrative Fee	Average Aggregate Daily Net Assets of the Federated Funds
0.150%	on the first $250 million
0.125%	on the next $250 million
0.100%	on the next $250 million
0.075%	on assets in excess of $750 million

The administrative fee received during any fiscal year shall be at least $125,000 per portfolio and $30,000 per each additional class of Shares.

On August 22, 2003 the Directors'/Trustees' approved a new Agreement. Effective November 1, 2003, the fee paid to FServ will be based on the aggregate daily net assets of all Federated funds as specified below:

Maximum Administrative Fee	Average Aggregate Daily Net Assets of the Federated Funds
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

The administrative fee received during any fiscal year shall be at least $150,000 per portfolio and $40,000 per each additional class of Shares.

FServ may voluntarily choose to waive any portion of its fee. FServ can modify or terminate this voluntary waiver at any time at its sole discretion.

Shareholder Services Fee

Under the terms of a Shareholder Services Agreement with Federated Shareholder Services Company ("FSSC"), the Fund will pay FSSC up to 0.25% of average daily net assets of the Fund for the period. The fee paid to FSSC is used to finance certain services for shareholders and to maintain shareholder accounts. FSSC may voluntarily choose to waive any portion of its fee. FSSC can modify or terminate this voluntary waiver at any time at its sole discretion.

Transfer and Dividend Disbursing Agent Fees and Expenses

FServ, through its subsidiary FSSC, serves as transfer and dividend disbursing agent for the Fund. The fee paid to FSSC is based on the size, type, and number of accounts and transactions made by shareholders. FSSC may voluntarily choose to waive any portion of its fee. FSSC can modify or terminate this voluntary waiver at any time at its sole discretion.

Portfolio Accounting Fees

FServ maintains the Fund's accounting records for which it receives a fee. The fee is based on the level of the Fund's average daily net assets for the period, plus out-of-pocket expenses. FServ may voluntarily choose to waive any portion of its fee. FServ can modify or terminate this voluntary waiver at any time at its sole discretion.

General

Certain of the Officers and Trustees of the Fund are Officers and Directors or Trustees of the above companies.

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations (and in-kind contributions), for the six months ended August 31, 2003, were as follows:

Purchases	$221,323,273
Sales	$246,141,463

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 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 by calling 1-800-341-7400.

Federated Investors
World-Class Investment Manager

Federated High Yield Trust
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
www.federatedinvestors.com

Contact us at 1-800-341-7400 or
www.federatedinvestors.com/contact

Federated Securities Corp., Distributor

Cusip 314197104

Federated is a registered mark of Federated Investors, Inc. 2003 ©Federated Investors, Inc.

8092705 (10/03)

Item 2.     Code of Ethics

            Not Applicable

Item 3.     Audit Committee Financial Expert

            Not Applicable

Item 4.     Principal Accountant Fees and Services

            Not Applicable

Item 5      Audit Committee of Listed Registrants

            Not Applicable

Item 6      [Reserved]

Item 7.     Disclosure of Proxy Voting Policies and Procedures for
            Closed-End Management Investment Companies

            Not Applicable

Item 8.     [Reserved]

Item 9.     Controls and Procedures

     (a)  The  registrant's  President and  Treasurer  have  concluded  that the
          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), or
          the internal control over financial reporting of its service providers
          during the last fiscal half year (the registrant's second half year in
          the case of an annual report) that have  materially  affected,  or are
          reasonably  likely to materially  affect,  the  registrant's  internal
          control over financial reporting.

Item 10.    Exhibits


                                   SIGNATURES

Pursuant to the  requirements  of the  Securities  Exchange  Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.

Registrant  Federated High Yield Trust

By          /S/ Richard J. Thomas, Principal Financial Officer

Date        October 23, 2003


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


By          /S/ J. Christopher Donahue, Principal Executive Officer

Date        October 23, 2003

By          /S/ Richard J. Thomas, Principal Financial Officer

Date        October 23, 2003