Schedule of Investments(a)
May 31, 2023
(Unaudited)
Principal Amount | Value | |||
U.S. Dollar Denominated Bonds & Notes–124.29%(b) | ||||
Advertising–0.70% | ||||
Lamar Media Corp., | ||||
4.00%, 02/15/2030 | $25,000 | $21,913 | ||
3.63%, 01/15/2031 | 586,000 | 489,943 | ||
511,856 | ||||
Aerospace & Defense–1.80% | ||||
TransDigm UK Holdings PLC, 6.88%, 05/15/2026 | 1,071,000 | 1,064,622 | ||
TransDigm, Inc., 6.75%, 08/15/2028(c) | 253,000 | 253,608 | ||
1,318,230 | ||||
Aluminum–1.06% | ||||
Novelis Corp., 3.25%, 11/15/2026(c) | 862,000 | 779,410 | ||
Apparel Retail–1.07% | ||||
Gap, Inc. (The), 3.63%, 10/01/2029(c) | 1,117,000 | 787,424 | ||
Application Software–1.47% | ||||
NCR Corp., 5.75%, 09/01/2027(c) | 555,000 | 552,709 | ||
SS&C Technologies, Inc., 5.50%, 09/30/2027(c) | 554,000 | 529,312 | ||
1,082,021 | ||||
Asset Management & Custody Banks–0.30% | ||||
Bank of New York Mellon Corp. (The), Series I, 3.75%(d)(e) | 267,000 | 217,098 | ||
Automobile Manufacturers–4.83% | ||||
Allison Transmission, Inc., | ||||
4.75%, 10/01/2027(c) | 1,144,000 | 1,085,416 | ||
3.75%, 01/30/2031(c) | 924,000 | 781,036 | ||
Ford Motor Co., 3.25%, 02/12/2032 | 272,000 | 206,930 | ||
Ford Motor Credit Co. LLC, | ||||
4.13%, 08/04/2025 | 677,000 | 641,732 | ||
4.39%, 01/08/2026 | 887,000 | 835,360 | ||
3,550,474 | ||||
Automotive Parts & Equipment–2.48% | ||||
Clarios Global L.P./Clarios US Finance Co., 8.50%, 05/15/2027(c) | 513,000 | 515,282 | ||
NESCO Holdings II, Inc., 5.50%, 04/15/2029(c) | 583,000 | 515,973 | ||
ZF North America Capital, Inc. (Germany), 6.88%, 04/14/2028(c) | 784,000 | 788,167 | ||
1,819,422 | ||||
Automotive Retail–5.15% | ||||
Group 1 Automotive, Inc., 4.00%, 08/15/2028(c) | 1,272,000 | 1,115,182 | ||
LCM Investments Holdings II LLC, 4.88%, 05/01/2029(c) | 1,592,000 | 1,329,536 | ||
Lithia Motors, Inc., 3.88%, 06/01/2029(c) | 939,000 | 810,229 | ||
Sonic Automotive, Inc., 4.63%, 11/15/2029(c) | 635,000 | 526,141 | ||
3,781,088 |
Principal Amount | Value | |||
Broadline Retail–0.07% | ||||
B2W Digital Lux S.a.r.l. (Brazil), 4.38%, 12/31/2049(c)(f) | $309,000 | $55,002 | ||
Cable & Satellite–5.06% | ||||
CCO Holdings LLC/CCO Holdings Capital Corp., | ||||
5.50%, 05/01/2026(c) | 881,000 | 863,787 | ||
5.13%, 05/01/2027(c) | 620,000 | 575,151 | ||
5.00%, 02/01/2028(c) | 123,000 | 111,936 | ||
4.75%, 03/01/2030(c) | 308,000 | 260,127 | ||
CSC Holdings LLC, | ||||
4.50%, 11/15/2031(c) | 1,456,000 | 1,013,642 | ||
5.00%, 11/15/2031(c) | 948,000 | 411,058 | ||
DISH Network Corp., Conv., 3.38%, 08/15/2026 | 1,053,000 | 477,851 | ||
3,713,552 | ||||
Casinos & Gaming–4.20% | ||||
CCM Merger, Inc., 6.38%, 05/01/2026(c) | 555,000 | 537,090 | ||
Codere Finance 2 (Luxembourg) S.A. (Spain), 11.63% PIK Rate, 2.00% Cash Rate, 11/30/2027(c)(g) | 64,572 | 30,349 | ||
Everi Holdings, Inc., 5.00%, 07/15/2029(c) | 626,000 | 555,783 | ||
Melco Resorts Finance Ltd. (Hong Kong), 5.38%, 12/04/2029(c) | 1,248,000 | 1,002,328 | ||
Studio City Finance Ltd. (Macau), 5.00%, 01/15/2029(c) | 1,320,000 | 962,181 | ||
3,087,731 | ||||
Commodity Chemicals–1.13% | ||||
Mativ Holdings, Inc., 6.88%, 10/01/2026(c) | 947,000 | 832,238 | ||
Construction & Engineering–1.12% | ||||
Howard Midstream Energy Partners LLC, 6.75%, 01/15/2027(c) | 891,000 | 825,458 | ||
Consumer Finance–1.47% | ||||
FirstCash, Inc., 5.63%, 01/01/2030(c) | 587,000 | 533,774 | ||
OneMain Finance Corp., | ||||
7.13%, 03/15/2026 | 330,000 | 315,911 | ||
3.88%, 09/15/2028 | 37,000 | 29,137 | ||
5.38%, 11/15/2029 | 245,000 | 200,584 | ||
1,079,406 | ||||
Copper–0.78% | ||||
First Quantum Minerals Ltd. (Zambia), 8.63%, 06/01/2031(c) | 582,000 | 574,725 | ||
Diversified Banks–0.86% | ||||
Citigroup, Inc., | ||||
3.88%(d)(e) | 126,000 | 105,223 | ||
7.38%(d)(e) | 113,000 | 112,435 | ||
JPMorgan Chase & Co., Series FF, 5.00%(d)(e) | 217,000 | 207,777 |
See accompanying notes which are an integral part of this schedule.
Invesco High Income Trust II
Principal Amount | Value | |||
Diversified Banks–(continued) | ||||
PNC Financial Services Group, Inc. (The), Series W, 6.25%(d)(e) | $227,000 | $206,570 | ||
632,005 | ||||
Diversified Financial Services–2.83% | ||||
Jane Street Group/JSG Finance, Inc., 4.50%, 11/15/2029(c) | 606,000 | 517,472 | ||
Jefferies Finance LLC/JFIN Co-Issuer Corp., 5.00%, 08/15/2028(c) | 622,000 | 506,784 | ||
Pactiv Evergreen Group Issuer, Inc./Pactiv Evergreen Group Issuer LLC, 4.00%, 10/15/2027(c) | 591,000 | 521,522 | ||
Scientific Games Holdings L.P./Scientific Games US FinCo, Inc., 6.63%, 03/01/2030(c) | 608,000 | 535,143 | ||
2,080,921 | ||||
Diversified Metals & Mining–0.73% | ||||
Hudbay Minerals, Inc. (Canada), | ||||
4.50%, 04/01/2026(c) | 304,000 | 278,944 | ||
6.13%, 04/01/2029(c) | 288,000 | 259,024 | ||
537,968 | ||||
Diversified Support Services–1.12% | ||||
Ritchie Bros. Holdings, Inc. (Canada), | ||||
6.75%, 03/15/2028(c) | 530,000 | 536,964 | ||
7.75%, 03/15/2031(c) | 274,000 | 285,925 | ||
822,889 | ||||
Electric Utilities–3.62% | ||||
NRG Energy, Inc., 4.45%, 06/15/2029(c) | 623,000 | 557,338 | ||
Talen Energy Supply LLC, 8.63%, 06/01/2030(c) | 519,000 | 528,705 | ||
Vistra Operations Co. LLC, | ||||
5.13%, 05/13/2025(c) | 787,000 | 769,114 | ||
5.63%, 02/15/2027(c) | 220,000 | 211,825 | ||
5.00%, 07/31/2027(c) | 625,000 | 587,993 | ||
2,654,975 | ||||
Electrical Components & Equipment–0.95% | ||||
EnerSys, 4.38%, 12/15/2027(c) | 561,000 | 522,443 | ||
Sensata Technologies B.V., 4.00%, 04/15/2029(c) | 200,000 | 178,400 | ||
700,843 | ||||
Electronic Components–1.18% | ||||
Sensata Technologies, Inc., | ||||
4.38%, 02/15/2030(c) | 178,000 | 159,196 | ||
3.75%, 02/15/2031(c) | 834,000 | 708,130 | ||
867,326 | ||||
Electronic Manufacturing Services–0.71% | ||||
Emerald Debt Merger Sub LLC, 6.63%, 12/15/2030(c) | 527,000 | 523,443 | ||
Gold–0.73% | ||||
New Gold, Inc. (Canada), 7.50%, 07/15/2027(c) | 573,000 | 538,127 | ||
Health Care Facilities–2.99% | ||||
Encompass Health Corp., 4.50%, 02/01/2028 | 612,000 | �� 564,581 | ||
HCA, Inc., 3.50%, 09/01/2030 | 604,000 | 534,370 |
Principal Amount | Value | |||
Health Care Facilities–(continued) | ||||
Tenet Healthcare Corp., 4.88%, 01/01/2026 | $1,130,000 | $1,094,089 | ||
2,193,040 | ||||
Health Care REITs–3.47% | ||||
CTR Partnership L.P./CareTrust Capital Corp., 3.88%, 06/30/2028(c) | 642,000 | 552,849 | ||
Diversified Healthcare Trust, | ||||
4.75%, 05/01/2024 | 304,000 | 277,700 | ||
4.38%, 03/01/2031 | 953,000 | 683,118 | ||
MPT Operating Partnership L.P./MPT Finance Corp., 3.50%, 03/15/2031 | 1,530,000 | 1,034,645 | ||
2,548,312 | ||||
Health Care Services–2.72% | ||||
Community Health Systems, Inc., | ||||
8.00%, 03/15/2026(c) | 584,000 | 545,953 | ||
5.25%, 05/15/2030(c) | 502,000 | 377,513 | ||
4.75%, 02/15/2031(c) | 335,000 | 241,157 | ||
DaVita, Inc., 3.75%, 02/15/2031(c) | 367,000 | 291,690 | ||
Select Medical Corp., 6.25%, 08/15/2026(c) | 554,000 | 539,358 | ||
1,995,671 | ||||
Health Care Supplies–1.07% | ||||
Medline Borrower L.P., | ||||
3.88%, 04/01/2029(c) | 628,000 | 542,303 | ||
5.25%, 10/01/2029(c) | 281,000 | 240,726 | ||
783,029 | ||||
Hotel & Resort REITs–2.46% | ||||
Service Properties Trust, | ||||
7.50%, 09/15/2025 | 190,000 | 186,495 | ||
5.50%, 12/15/2027 | 1,097,000 | 954,796 | ||
4.95%, 10/01/2029 | 421,000 | 319,409 | ||
4.38%, 02/15/2030 | 473,000 | 343,927 | ||
1,804,627 | ||||
Hotels, Resorts & Cruise Lines–2.16% | ||||
Carnival Corp., 4.00%, 08/01/2028(c) | 622,000 | 543,062 | ||
Hilton Domestic Operating Co., Inc., 5.75%, 05/01/2028(c) | 122,000 | 120,463 | ||
Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp., 4.88%, 04/01/2027 | 416,000 | 404,305 | ||
Royal Caribbean Cruises Ltd., 4.25%, 07/01/2026(c) | 562,000 | 515,577 | ||
1,583,407 | ||||
Household Products–0.71% | ||||
Prestige Brands, Inc., 3.75%, 04/01/2031(c) | 632,000 | 521,147 | ||
Independent Power Producers & Energy Traders–1.88% | ||||
Clearway Energy Operating LLC, 4.75%, 03/15/2028(c) | 589,000 | 549,031 | ||
TransAlta Corp. (Canada), 7.75%, 11/15/2029 | 796,000 | 828,914 | ||
1,377,945 |
See accompanying notes which are an integral part of this schedule.
Invesco High Income Trust II
Principal Amount | Value | |||
Industrial Conglomerates–0.78% | ||||
Icahn Enterprises L.P./Icahn Enterprises Finance Corp., 4.38%, 02/01/2029 | $747,000 | $572,490 | ||
Industrial Machinery & Supplies & Components–1.88% | ||||
EnPro Industries, Inc., 5.75%, 10/15/2026 | 855,000 | 837,767 | ||
Roller Bearing Co. of America, Inc., 4.38%, 10/15/2029(c) | 615,000 | 545,044 | ||
1,382,811 | ||||
Integrated Oil & Gas–0.39% | ||||
Occidental Petroleum Corp., 6.20%, 03/15/2040 | 292,000 | 285,395 | ||
Integrated Telecommunication Services–4.95% | ||||
Altice France S.A. (France), 8.13%, 02/01/2027(c) | 577,000 | 497,837 | ||
Iliad Holding S.A.S. (France), 6.50%, 10/15/2026(c) | 614,000 | 578,671 | ||
Iliad Holding S.A.S.U. (France), 7.00%, 10/15/2028(c) | 789,000 | 736,391 | ||
Level 3 Financing, Inc., | ||||
3.63%, 01/15/2029(c) | 129,000 | 69,820 | ||
3.75%, 07/15/2029(c) | 1,313,000 | 712,469 | ||
Telecom Italia S.p.A. (Italy), 5.30%, 05/30/2024(c) | 1,063,000 | 1,036,594 | ||
3,631,782 | ||||
Interactive Media & Services–0.74% | ||||
Match Group Holdings II LLC, 4.63%, 06/01/2028(c) | 591,000 | 540,192 | ||
Investment Banking & Brokerage–0.71% | ||||
Charles Schwab Corp. (The), Series G, 5.38%(d)(e) | 537,000 | 518,887 | ||
IT Consulting & Other Services–1.34% | ||||
Gartner, Inc., | ||||
4.50%, 07/01/2028(c) | 572,000 | 539,274 | ||
3.63%, 06/15/2029(c) | 306,000 | 272,265 | ||
3.75%, 10/01/2030(c) | 195,000 | 171,290 | ||
982,829 | ||||
Leisure Facilities–4.30% | ||||
Carnival Holdings Bermuda Ltd., 10.38%, 05/01/2028(c) | 948,000 | 1,027,039 | ||
NCL Corp. Ltd., | ||||
5.88%, 03/15/2026(c) | 587,000 | 533,141 | ||
5.88%, 02/15/2027(c) | 275,000 | 262,167 | ||
NCL Finance Ltd., 6.13%, 03/15/2028(c) | 311,000 | 265,443 | ||
Viking Cruises Ltd., 5.88%, 09/15/2027(c) | 300,000 | 264,729 | ||
Viking Ocean Cruises Ship VII Ltd., 5.63%, 02/15/2029(c) | 615,000 | 537,322 | ||
VOC Escrow Ltd., 5.00%, 02/15/2028(c) | 296,000 | 266,825 | ||
3,156,666 | ||||
Life Sciences Tools & Services–0.21% | ||||
Syneos Health, Inc., 3.63%, 01/15/2029(c) | 159,000 | 153,977 |
Principal Amount | Value | |||
Mortgage REITs–0.69% | ||||
Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp., 4.75%, 06/15/2029(c) | $647,000 | $506,410 | ||
Movies & Entertainment–1.07% | ||||
Cinemark USA, Inc., | ||||
5.88%, 03/15/2026(c) | 373,000 | 354,939 | ||
5.25%, 07/15/2028(c) | 495,000 | 433,932 | ||
788,871 | ||||
Oil & Gas Drilling–6.15% | ||||
Delek Logistics Partners L.P./Delek Logistics Finance Corp., 7.13%, 06/01/2028(c) | 906,000 | 825,506 | ||
Noble Finance II LLC, 8.00%, 04/15/2030(c) | 533,000 | 540,630 | ||
Rockies Express Pipeline LLC, | ||||
4.95%, 07/15/2029(c) | 259,000 | 232,779 | ||
4.80%, 05/15/2030(c) | 80,000 | 69,203 | ||
6.88%, 04/15/2040(c) | 268,000 | 230,795 | ||
Transocean, Inc., | ||||
7.25%, 11/01/2025(c) | 282,000 | 265,382 | ||
7.50%, 01/15/2026(c) | 877,000 | 813,273 | ||
8.75%, 02/15/2030(c) | 269,000 | 269,174 | ||
7.50%, 04/15/2031 | 625,000 | 472,584 | ||
Valaris Ltd., 8.38%, 04/30/2030(c) | 800,000 | 795,244 | ||
4,514,570 | ||||
Oil & Gas Equipment & Services–0.70% | ||||
Enerflex Ltd. (Canada), 9.00%, 10/15/2027(c) | 525,000 | 511,324 | ||
Oil & Gas Exploration & Production–9.34% | ||||
Aethon United BR L.P./Aethon United Finance Corp., 8.25%, 02/15/2026(c) | 2,129,000 | 2,062,847 | ||
Apache Corp., | ||||
7.75%, 12/15/2029 | 525,000 | 543,847 | ||
4.25%, 01/15/2030 | 297,000 | 267,027 | ||
Ascent Resources Utica Holdings LLC/ARU Finance Corp., 7.00%, 11/01/2026(c) | 526,000 | 504,811 | ||
Baytex Energy Corp. (Canada), 8.50%, 04/30/2030(c) | 528,000 | 516,678 | ||
Callon Petroleum Co., | ||||
8.00%, 08/01/2028(c) | 280,000 | 274,134 | ||
7.50%, 06/15/2030(c) | 247,000 | 229,328 | ||
Hilcorp Energy I L.P./Hilcorp Finance Co., | ||||
6.00%, 04/15/2030(c) | 421,000 | 379,972 | ||
6.25%, 04/15/2032(c) | 159,000 | 142,410 | ||
SM Energy Co., 6.75%, 09/15/2026 | 795,000 | 768,717 | ||
Strathcona Resources Ltd. (Canada), 6.88%, 08/01/2026(c) | 759,000 | 640,247 | ||
Venture Global LNG, Inc., 8.13%, 06/01/2028(c) | 526,000 | 529,230 | ||
6,859,248 | ||||
Oil & Gas Refining & Marketing–0.74% | ||||
Parkland Corp. (Canada), 4.50%, 10/01/2029(c) | 629,000 | 544,647 |
See accompanying notes which are an integral part of this schedule.
Invesco High Income Trust II
Principal Amount | Value | |||
Oil & Gas Storage & Transportation–4.55% | ||||
Crestwood Midstream Partners L.P./Crestwood Midstream Finance Corp., 8.00%, 04/01/2029(c) | $777,000 | $781,992 | ||
Genesis Energy L.P./Genesis Energy Finance Corp., | ||||
6.25%, 05/15/2026 | 430,000 | 409,079 | ||
8.00%, 01/15/2027 | 140,000 | 136,522 | ||
7.75%, 02/01/2028 | 231,000 | 222,289 | ||
Global Partners L.P./GLP Finance Corp., 7.00%, 08/01/2027 | 576,000 | 553,570 | ||
Martin Midstream Partners L.P./Martin Midstream Finance Corp., 11.50%, 02/15/2028(c) | 541,000 | 510,336 | ||
NGL Energy Partners L.P./NGL Energy Finance Corp., | ||||
6.13%, 03/01/2025 | 116,000 | 108,007 | ||
7.50%, 04/15/2026 | 175,000 | 158,210 | ||
Summit Midstream Holdings LLC/Summit Midstream Finance Corp., | ||||
5.75%, 04/15/2025 | 241,000 | 199,129 | ||
9.00%, 10/15/2026(c)(h) | 273,000 | 260,426 | ||
3,339,560 | ||||
Passenger Airlines–1.43% | ||||
American Airlines, Inc./AAdvantage Loyalty IP Ltd., 5.50%, 04/20/2026(c) | 1,070,000 | 1,051,072 | ||
Pharmaceuticals–2.34% | ||||
Bausch Health Cos., Inc., 4.88%, 06/01/2028(c) | 1,709,000 | 1,032,236 | ||
Catalent Pharma Solutions, Inc., 3.50%, 04/01/2030(c) | 123,000 | 99,292 | ||
Par Pharmaceutical, Inc., 7.50%, 12/31/2049(c) | 797,000 | 589,788 | ||
1,721,316 | ||||
Research & Consulting Services–2.56% | ||||
Clarivate Science Holdings Corp., 4.88%, 07/01/2029(c) | 996,000 | 856,560 | ||
Dun & Bradstreet Corp. (The), 5.00%, 12/15/2029(c) | 1,176,000 | 1,026,107 | ||
1,882,667 | ||||
Restaurants–2.14% | ||||
1011778 BC ULC/New Red Finance, Inc. (Canada), | ||||
3.88%, 01/15/2028(c) | 23,000 | 21,115 | ||
3.50%, 02/15/2029(c) | 597,000 | 529,578 | ||
Papa John’s International, Inc., 3.88%, 09/15/2029(c) | 604,000 | 506,551 | ||
Yum! Brands, Inc., 5.38%, 04/01/2032 | 544,000 | 515,940 | ||
1,573,184 | ||||
Retail REITs–1.40% | ||||
NMG Holding Co., Inc./Neiman Marcus Group LLC, 7.13%, 04/01/2026(c) | 1,140,000 | 1,027,085 | ||
Specialized Consumer Services–2.80% | ||||
Allwyn Entertainment Financing (UK) PLC (Czech Republic), 7.88%, 04/30/2029(c) | 785,000 | 779,795 |
Principal Amount | Value | |||
Specialized Consumer Services–(continued) | ||||
Carriage Services, Inc., 4.25%, 05/15/2029(c) | $1,572,000 | $1,279,176 | ||
2,058,971 | ||||
Specialty Chemicals–0.89% | ||||
Braskem Idesa S.A.P.I. (Mexico), | ||||
7.45%, 11/15/2029(c) | 538,000 | 410,093 | ||
6.99%, 02/20/2032(c) | 352,000 | 241,444 | ||
651,537 | ||||
Steel–0.72% | ||||
SunCoke Energy, Inc., 4.88%, 06/30/2029(c) | 639,000 | 526,795 | ||
Systems Software–3.62% | ||||
Black Knight InfoServ LLC, 3.63%, 09/01/2028(c) | 878,000 | 789,103 | ||
Camelot Finance S.A., 4.50%, 11/01/2026(c) | 1,390,000 | 1,306,108 | ||
Crowdstrike Holdings, Inc., 3.00%, 02/15/2029 | 649,000 | 566,297 | ||
2,661,508 | ||||
Telecom Tower REITs–1.11% | ||||
SBA Communications Corp., 3.88%, 02/15/2027 | 886,000 | 817,431 | ||
Trading Companies & Distributors–2.43% | ||||
Fortress Transportation and Infrastructure Investors LLC, | ||||
6.50%, 10/01/2025(c) | 455,000 | 442,575 | ||
5.50%, 05/01/2028(c) | 1,492,000 | 1,341,095 | ||
1,783,670 | ||||
Wireless Telecommunication Services–1.43% | ||||
Vodafone Group PLC (United Kingdom), 4.13%, 06/04/2081(d) | 1,315,000 | 1,047,430 | ||
Total U.S. Dollar Denominated Bonds & Notes (Cost $97,874,168) | 91,273,135 | |||
Non-U.S. Dollar Denominated Bonds & Notes–9.20%(i) | ||||
Airport Services–0.71% | ||||
Gatwick Airport Finance PLC (United Kingdom), 4.38%, 04/07/2026(c) | GBP | 453,000 | 517,909 | |
Automobile Manufacturers–0.53% | ||||
Ford Motor Credit Co. LLC, 4.87%, 08/03/2027 | EUR | 374,000 | 390,032 | |
Casinos & Gaming–0.16% | ||||
Codere Finance 2 (Luxembourg) S.A. (Spain), 3.00% PIK Rate, 8.00% Cash Rate, 09/30/2026(c)(g) | EUR | 138,521 | 119,192 | |
Diversified Banks–1.79% | ||||
Banco Bilbao Vizcaya Argentaria S.A. (Spain), 6.00%(c)(d)(e) | EUR | 200,000 | 199,761 | |
BNP Paribas S.A. (France), 6.88%(c)(d)(e) | EUR | 200,000 | 203,666 | |
CaixaBank S.A. (Spain), 6.75%(c)(d)(e) | EUR | 200,000 | 208,703 | |
Cooperatieve Rabobank U.A. (Netherlands), 4.38%(c)(d)(e) | EUR | 200,000 | 187,010 | |
Credit Agricole S.A. (France), 7.25%(c)(d)(e) | EUR | 100,000 | 105,526 |
See accompanying notes which are an integral part of this schedule.
Invesco High Income Trust II
Principal Amount | Value | ||
Diversified Banks–(continued) | |||
HSBC Holdings PLC (United Kingdom), 6.00%(c)(d)(e) | EUR | 200,000 | $211,739 |
Lloyds Banking Group PLC (United Kingdom), 4.95%(c)(d)(e) | EUR | 200,000 | 196,730 |
1,313,135 | |||
Diversified Capital Markets–0.28% | |||
Deutsche Bank AG (Germany), 10.00%(c)(d)(e) | EUR | 200,000 | 208,966 |
Food Retail–1.03% | |||
Bellis Acquisition Co. PLC (United Kingdom), 3.25%, 02/16/2026(c) | GBP | 554,000 | 587,600 |
Casino Guichard Perrachon S.A. (France), | |||
6.63%, 01/15/2026(c) | EUR | 451,000 | 104,538 |
3.99%(c)(d)(e) | EUR | 1,200,000 | 60,606 |
752,744 | |||
Integrated Telecommunication Services–0.70% | |||
Altice France S.A. (France), 3.38%, 01/15/2028(c) | EUR | 650,000 | 513,799 |
Passenger Airlines–2.12% | |||
Air France-KLM (France), 3.88%, 07/01/2026(c) | EUR | 500,000 | 502,156 |
Deutsche Lufthansa AG (Germany), 3.75%, 02/11/2028(c) | EUR | 500,000 | 502,237 |
International Consolidated Airlines Group S.A. (United Kingdom), | |||
1.50%, 07/04/2027(c) | EUR | 200,000 | 181,715 |
3.75%, 03/25/2029(c) | EUR | 400,000 | 370,224 |
1,556,332 | |||
Pharmaceuticals–0.84% | |||
Nidda Healthcare Holding GmbH (Germany), 7.50%, 08/21/2026(c) | EUR | 582,000 | 616,781 |
Wireless Telecommunication Services–1.04% | |||
VMED O2 UK Financing I PLC (United Kingdom), 3.25%, 01/31/2031(c) | EUR | 900,000 | 766,280 |
Total Non-U.S. Dollar Denominated Bonds & Notes (Cost $7,099,627) | 6,755,170 | ||
Variable Rate Senior Loan Interests–3.44%(j)(k) | |||
Advertising–0.73% | |||
Clear Channel Worldwide Holdings, Inc., Term Loan B, 8.81% (1 mo. USD LIBOR + 3.50%), 08/21/2026 | $570,561 | 538,110 |
Principal Amount | Value | ||
Commodity Chemicals–0.98% | |||
Mativ Holdings, Inc., Term Loan B, 8.94% (1 mo. USD LIBOR + 3.75%), 04/20/2028 | $751,064 | $721,491 | |
Hotels, Resorts & Cruise Lines–1.07% | |||
IRB Holding Corp., Term Loan, 8.25% (1 mo. SOFR + 3.10%), 12/15/2027 | 808,975 | 786,429 | |
Pharmaceuticals–0.66% | |||
Endo Luxembourg Finance Co. I S.a.r.l., Term Loan, 14.25% (1 mo. PRIME + 6.00%), 03/27/2028 | 627,062 | 479,508 | |
Total Variable Rate Senior Loan Interests (Cost $2,717,603) | 2,525,538 | ||
Shares | |||
Exchange-Traded Funds–0.36% | |||
Invesco AT1 Capital Bond UCITS ETF (Cost $258,648)(l) | 12,000 | 260,646 | |
Preferred Stocks–0.15% | |||
Diversified Banks–0.15% | |||
Bank of America Corp., 6.50%, Series Z, Pfd.(d) | 110,000 | 110,275 | |
Regional Banks–0.00% | |||
First Republic Bank, Series N, Pfd.(h) | 2,000 | 12 | |
Total Preferred Stocks (Cost $125,483) | 110,287 | ||
Common Stocks & Other Equity Interests–0.10% | |||
Cable & Satellite–0.10% | |||
Altice USA, Inc., Class A (Cost $332,202)(m) | 30,000 | 76,800 | |
Money Market Funds–1.79% | |||
Invesco Government & Agency Portfolio, Institutional Class, 5.04%(l)(n) | 460,901 | 460,901 | |
Invesco Liquid Assets Portfolio, Institutional Class, 5.13%(l)(n) | 330,464 | 330,497 | |
Invesco Treasury Portfolio, Institutional Class, 5.04%(l)(n) | 526,744 | 526,744 | |
Total Money Market Funds (Cost $1,318,174) | 1,318,142 | ||
TOTAL INVESTMENTS IN SECURITIES–139.33% (Cost $109,725,905) | 102,319,718 | ||
OTHER ASSETS LESS LIABILITIES—(39.33)% | (28,881,942) | ||
NET ASSETS–100.00% | $73,437,776 |
Investment Abbreviations:
Conv. | – Convertible |
ETF | – Exchange-Traded Fund |
EUR | – Euro |
GBP | – British Pound Sterling |
LIBOR | – London Interbank Offered Rate |
Pfd. | – Preferred |
PIK | – Pay-in-Kind |
REIT | – Real Estate Investment Trust |
SOFR | – Secured Overnight Financing Rate |
USD | – U.S. Dollar |
See accompanying notes which are an integral part of this schedule.
Invesco High Income Trust II
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Calculated as a percentage of net assets. Amounts in excess of 100% are due to the Trust’s use of leverage. |
(c) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at May 31, 2023 was $76,278,220, which represented 103.87% of the Trust’s Net Assets. |
(d) | Security issued at a fixed rate for a specific period of time, after which it will convert to a variable rate. |
(e) | Perpetual bond with no specified maturity date. |
(f) | Defaulted security. Currently, the issuer is in default with respect to principal and/or interest payments. The value of this security at May 31, 2023 represented less than 1% of the Trust’s Net Assets. |
(g) | All or a portion of this security is Pay-in-Kind. Pay-in-Kind securities pay interest income in the form of securities. |
(h) | Step coupon bond. The interest rate represents the coupon rate at which the bond will accrue at a specified future date. |
(i) | Foreign denominated security. Principal amount is denominated in the currency indicated. |
(j) | Variable rate senior loan interests often require prepayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with any accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. However, it is anticipated that the variable rate senior loan interests will have an expected average life of three to five years. |
(k) | Variable rate senior loan interests are, at present, not readily marketable, not registered under the 1933 Act and may be subject to contractual and legal restrictions on sale. Variable rate senior loan interests in the Trust’s portfolio generally have variable rates which adjust to a base, such as the London Interbank Offered Rate (“LIBOR”), on set dates, typically every 30 days, but not greater than one year, and/or have interest rates that float at margin above a widely recognized base lending rate such as the Prime Rate of a designated U.S. bank. |
(l) | Affiliated issuer. The issuer and/or the Trust is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Trust’s transactions in, and earnings from, its investments in affiliates for the three months ended May 31, 2023. |
Value February 28, 2023 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value May 31, 2023 | Dividend Income | |
Investments in Affiliated Money Market Funds: | |||||||
Invesco Government & Agency Portfolio, Institutional Class | $575,999 | $5,710,448 | $(5,825,546) | $- | $- | $460,901 | $10,620 |
Invesco Liquid Assets Portfolio, Institutional Class | 412,760 | 4,078,891 | (4,161,103) | (4) | (47) | 330,497 | 6,315 |
Invesco Treasury Portfolio, Institutional Class | 658,284 | 6,526,227 | (6,657,767) | - | - | 526,744 | 9,816 |
Investments in Other Affiliates: | |||||||
Invesco AT1 Capital Bond UCITS ETF | - | 258,648 | - | 1,998 | - | 260,646 | - |
Total | $1,647,043 | $16,574,214 | $(16,644,416) | $1,994 | $(47) | $1,578,788 | $26,751 |
(m) | Non-income producing security. |
(n) | The rate shown is the 7-day SEC standardized yield as of May 31, 2023. |
Open Forward Foreign Currency Contracts | ||||||
Settlement Date | Counterparty | Contract to | Unrealized Appreciation | |||
Deliver | Receive | |||||
Currency Risk | ||||||
08/17/2023 | Canadian Imperial Bank of Commerce | EUR | 200,000 | USD | 217,552 | $2,859 |
08/17/2023 | Goldman Sachs International | EUR | 2,288,000 | USD | 2,535,035 | 78,942 |
08/17/2023 | Goldman Sachs International | GBP | 376,000 | USD | 476,148 | 7,789 |
08/17/2023 | State Street Bank & Trust Co. | EUR | 2,855,000 | USD | 3,118,048 | 53,299 |
08/17/2023 | State Street Bank & Trust Co. | GBP | 425,000 | USD | 531,565 | 2,170 |
Total Forward Foreign Currency Contracts | $145,059 |
Open Centrally Cleared Credit Default Swap Agreements(a) | ||||||||||
Reference Entity | Buy/Sell Protection | (Pay)/ Receive Fixed Rate | Payment Frequency | Maturity Date | Implied Credit Spread(b) | Notional Value | Upfront Payments Paid (Received) | Value | Unrealized Appreciation (Depreciation) | |
Credit Risk | ||||||||||
Markit CDX North America High Yield Index, Series 40, Version 1 | Buy | (5.00)% | Quarterly | 06/20/2028 | 4.706% | USD | 2,000,000 | $(20,054) | $(23,729) | $(3,675) |
See accompanying notes which are an integral part of this schedule.
Invesco High Income Trust II
(a) | Centrally cleared swap agreements collateralized by $184,386 cash held with Bank of America Merrill Lynch. |
(b) | Implied credit spreads represent the current level, as of May 31, 2023, at which protection could be bought or sold given the terms of the existing credit default swap agreement and serve as an indicator of the current status of the payment/performance risk of the credit default swap agreement. An implied credit spread that has widened or increased since entry into the initial agreement may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets generally. |
Abbreviations: | |
EUR | —Euro |
GBP | —British Pound Sterling |
USD | —U.S. Dollar |
The valuation policy and a listing of other significant accounting policies are available in the most recent shareholder report.
See accompanying notes which are an integral part of this schedule.
Invesco High Income Trust II
Notes to Quarterly Schedule of Portfolio Holdings
May 31, 2023
(Unaudited)
NOTE 1—Additional Valuation Information
Generally Accepted Accounting Principles ("GAAP") defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect Invesco Advisers, Inc.’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of May 31, 2023. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
Level 1 | Level 2 | Level 3 | Total | |
Investments in Securities | ||||
U.S. Dollar Denominated Bonds & Notes | $— | $91,273,135 | $— | $91,273,135 |
Non-U.S. Dollar Denominated Bonds & Notes | — | 6,755,170 | — | 6,755,170 |
Variable Rate Senior Loan Interests | — | 2,525,538 | — | 2,525,538 |
Exchange-Traded Funds | — | 260,646 | — | 260,646 |
Preferred Stocks | 12 | 110,275 | — | 110,287 |
Common Stocks & Other Equity Interests | 76,800 | — | — | 76,800 |
Money Market Funds | 1,318,142 | — | — | 1,318,142 |
Total Investments in Securities | 1,394,954 | 100,924,764 | — | 102,319,718 |
Other Investments - Assets* | ||||
Forward Foreign Currency Contracts | — | 145,059 | — | 145,059 |
Other Investments - Liabilities* | ||||
Swap Agreements | — | (3,675) | — | (3,675) |
Total Other Investments | — | 141,384 | — | 141,384 |
Total Investments | $1,394,954 | $101,066,148 | $— | $102,461,102 |
* | Unrealized appreciation (depreciation). |
Invesco High Income Trust II