UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811- 3726
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
(Exact name of Registrant as specified in charter)
c/o The Dreyfus Corporation
200 Park Avenue
New York, New York 10166
(Address of principal executive offices) (Zip code)
Mark N. Jacobs, Esq.
200 Park Avenue
New York, New York 10166
(Name and address of agent for service)
Registrant's telephone number, including (212) 922-6000
area code:
Date of fiscal year end: 5/31
Date of reporting period: 11/30/03
FORM N-CSR
ITEM 1. REPORTS TO STOCKHOLDERS.
Dreyfus
New York Tax Exempt
Bond Fund, Inc.
SEMIANNUAL REPORT November 30, 2003
The views expressed in this report reflect those of the portfolio manager only
through the end of the period covered and do not necessarily represent the views
of Dreyfus or any other person in the Dreyfus organization. Any such views are
subject to change at any time based upon market or other conditions and Dreyfus
disclaims any responsibility to update such views. These views may not be relied
on as investment advice and, because investment decisions for a Dreyfus fund are
based on numerous factors, may not be relied on as an indication of trading
intent on behalf of any Dreyfus fund.
Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Contents
THE FUND
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2 Letter from the Chairman
3 Discussion of Fund Performance
6 Statement of Investments
14 Statement of Assets and Liabilities
15 Statement of Operations
16 Statement of Changes in Net Assets
17 Financial Highlights
18 Notes to Financial Statements
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus New York Tax Exempt Bond Fund, Inc.
LETTER FROM THE CHAIRMAN
Dear Shareholder:
This semiannual report for Dreyfus New York Tax Exempt Bond Fund, Inc. covers
the six-month period from June 1, 2003, through November 30, 2003. Inside,
you' ll find valuable information about how the fund was managed during the
reporting period, including a discussion with the fund's portfolio manager,
Joseph Darcy.
Recent reports of marked improvement in the growth of U.S. Gross Domestic
Product suggest to us that the economy has started to turn the corner. Tax cuts
and low mortgage rates have put cash in consumers' pockets, and corporations
have begun to increase spending and investment. As a result, after several years
of falling interest rates and rising bond prices, the municipal bond market
recently has become more volatile. As might be expected in a strengthening
economy, securities that are more sensitive to their issuers' credit quality
generally have outperformed those that tend to respond more to changes in
interest rates.
Of course, we have seen upturns before, only to be disappointed when growth
proved unsustainable over the longer term. However, based on recent data, we are
cautiously optimistic about the current economic environment. As always, we urge
you to speak regularly with your financial advisor, who may be in the best
position to suggest the Dreyfus funds designed to meet your current needs,
future goals and attitudes toward risk.
Thank you for your continued confidence and support.
Sincerely,
/s/ Stephen E. Canter
Stephen E. Canter
Chairman and Chief Executive Officer
The Dreyfus Corporation
December 15, 2003
2
DISCUSSION OF FUND PERFORMANCE
Joseph Darcy, Portfolio Manager
How did Dreyfus New York Tax Exempt Bond Fund, Inc. perform relative to its
benchmark?
For the six-month period ended November 30, 2003, the fund achieved a total
return of -1.01.(1) In comparison, the Lehman Brothers Municipal Bond Index, the
fund's benchmark, achieved a total return of 0.19% for the same period.(2) In
addition, the fund is reported in the Lipper New York Municipal Debt Funds
category, The average total return for all funds reported in the Lipper category
was 0.15% .(3)
After several years of above-average total returns driven by falling interest
rates, municipal bonds encountered heightened volatility during the reporting
period when a stronger economy raised concerns that interest rates might climb.
The fund produced a lower return than its Lipper category average, primarily
because certain yield-enhancement strategies utilized by the fund magnified the
adverse effects of the market's volatility during the summer of 2003. The fund
also underperformed its benchmark, mainly because the benchmark contains bonds
from many states, not just New York, and does not reflect transaction fees and
other fund expenses.
What is the fund's investment approach?
The fund seeks as high a level of current income exempt from federal, New York
state and New York city income taxes as is consistent with the preservation of
capital. To pursue this goal, the fund normally invests substantially all of its
assets in municipal bonds that provide income exempt from federal, New York
state and New York city personal income taxes. When we believe that acceptable
New York municipal obligations are unavailable for investment, the fund may
invest temporarily in municipal obligations that pay income subject to New York
state and New York city income taxes, but not federal income tax. The
dollar-weighted average maturity of the fund's portfolio normally exceeds 10
years, but the fund may invest without
The Fund 3
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
regard to maturity. The fund will invest at least 80% of its assets in
investment-grade municipal bonds or the unrated equivalent as determined by
Dreyfus.
The portfolio manager may buy and sell bonds based on credit quality, market
outlook and yield potential. In selecting municipal bonds for investment, the
portfolio manager may assess the current interest-rate environment and the
municipal bond' s potential volatility in different rate environments. The
portfolio manager focuses on bonds with the potential to offer attractive
current income, typically looking for bonds that can provide consistently
attractive current yields or that are trading at competitive market prices. A
portion of the fund' s assets may be allocated to "discount" bonds, which are
bonds that sell at a price below their face value, or to "premium" bonds, which
are bonds that sell at a price above their face value. The fund's allocation
either to discount bonds or to premium bonds will change along with our changing
views of the current interest-rate and market environment. The portfolio manager
also may look to select bonds that are most likely to obtain attractive prices
when sold.
What other factors influenced the fund's performance?
The reporting period was generally volatile for New York's municipal bond
market. The quick end to major combat operations in Iraq lifted a veil of
uncertainty from the U.S. economy, and signs of stronger growth began to emerge.
Although the Federal Reserve Board reduced short-term interest rates in late
June to a 45-year low of 1%, municipal bond prices declined sharply in July and
August amid new evidence of economic recovery. Tax-exempt securities recovered
much of their lost value in the fall, but the market remained volatile through
the reporting period's end.
In New York, the strengthening economy and better business conditions on Wall
Street helped drive an improvement in New York City's fiscal condition, and the
city's bond prices generally rose as a result. However, New York state's fiscal
status remains uncertain as a still weak economy outside of the city has
continued to constrain tax receipts.
4
In this environment, the fund began the reporting period with an emphasis on
income-oriented securities, including approximately 15% of the fund's assets
invested in securities that were part of a yield-enhancement strategy designed
to benefit from wider than normal differences among bonds at different points of
the maturity spectrum. Although this strategy helped the fund's performance
early in the reporting period when short-term interest rates continued to fall,
it effectively magnified the effects of the municipal bond market's steep
decline during the summer of 2003.
What is the fund's current strategy?
We gradually have reduced the fund' s holdings of yield enhancement-related
securities in an attempt to manage more effectively the risks of market
volatility in a strengthening economy. In addition, we have attempted to
diversify the fund more broadly among bonds from a variety of New York issuers.
However, our ability to do so quickly has been restricted by the limited
availability of longer-term alternatives meeting our investment criteria. We
currently intend to continue to monitor the markets and move toward a more
defensive posture as opportunities arise.
December 15, 2003
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE, YIELD AND
INVESTMENT RETURN FLUCTUATE SUCH THAT UPON REDEMPTION, FUND SHARES MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST. INCOME MAY BE SUBJECT TO STATE AND LOCAL
TAXES FOR NON-NEW YORK RESIDENTS, AND SOME INCOME MAY BE SUBJECT TO THE FEDERAL
ALTERNATIVE MINIMUM TAX (AMT) FOR CERTAIN INVESTORS. CAPITAL GAINS, IF ANY, ARE
FULLY TAXABLE.
(2) SOURCE: LIPPER INC. -- REFLECTS REINVESTMENT OF DIVIDENDS AND, WHERE
APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
IS A WIDELY ACCEPTED, UNMANAGED TOTAL RETURN PERFORMANCE BENCHMARK FOR THE
LONG-TERM, INVESTMENT-GRADE, TAX-EXEMPT BOND MARKET. INDEX RETURNS DO NOT
REFLECT FEES AND EXPENSES ASSOCIATED WITH OPERATING A MUTUAL FUND.
(3) SOURCE: LIPPER INC. -- CATEGORY AVERAGE RETURNS REFLECT THE FEES AND
EXPENSES OF THE FUNDS COMPRISING THE AVERAGE.
The Fund 5
STATEMENT OF INVESTMENTS
November 30, 2003 (Unaudited)
STATEMENT OF INVESTMENTS
Principal
LONG-TERM MUNICIPAL INVESTMENTS--98.7% Amount ($) Value ($)
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NEW YORK--94.3%
Albany Municipal Water Finance Authority,
Second Resolution Revenue:
5.25%, 12/1/2019 (Insured; MBIA) 2,775,000 2,910,364
5.25%, 12/1/2021 (Insured; MBIA) 3,040,000 3,166,677
Battery Park City Authority, Revenue:
5.25%, 11/1/2018 10,000,000 11,036,900
5.25%, 11/1/2019 12,000,000 13,161,720
5.25%, 11/1/2020 17,000,000 18,515,210
5.25%, 11/1/2022 12,045,000 12,956,084
Huntington Housing Authority, Senior Housing Facility
Revenue (Gurwin Jewish Senior Residences)
6%, 5/1/2039 4,750,000 4,189,547
Long Island Power Authority, Electric Power and Light
System Revenue:
5.25%, 12/1/2014 (Insured; FSA) 16,000,000 18,280,320
5.25%, 12/1/2026 (Insured; MBIA) 13,000,000 13,724,490
5.375%, 5/1/2033 8,000,000 8,241,360
Metropolitan Transportation Authority, Revenue:
Commuter Facilities 6%, 7/1/2016
(Insured; FGIC) (Prerefunded 7/1/2008) 9,000,000 (a) 10,462,140
Service Contract:
5.50%, 7/1/2024 10,000,000 10,812,900
5.125%, 1/1/2029 10,975,000 11,227,096
Municipal Assistance Corporation for City of New York,
Revenue:
6%, 7/1/2005 9,500,000 10,220,575
6.25%, 7/1/2008 14,455,000 16,703,042
Nassau County Industrial Development Agency, IDR
(Keyspan-Glenwood Energy Project) 5.25%, 6/1/2027 10,000,000 10,015,500
New York City:
6.50%, 3/15/2005 13,770,000 14,620,573
5.75%, 2/1/2007 (Insured; AMBAC) 305,000 334,292
10.119%, 2/1/2007 6,000,000 (b,c) 7,152,480
6.25%, 2/15/2007 5,000 5,302
6.25%, 2/15/2007 (Prerefunded 2/15/2005) 5,370,000 (a) 5,751,001
5.75%, 8/15/2008 5,000 5,091
5.375%, 8/1/2009 (Insured; FGIC) 7,000,000 7,804,300
6.25%, 8/1/2009 (Prerefunded 8/1/2004) 8,660,000 (a) 9,089,882
6.25%, 8/1/2010 (Prerefunded 8/1/2004) 9,400,000 (a) 9,866,616
5.80%, 8/1/2011 190,000 193,443
6.375%, 8/15/2012 (Prerefunded 8/15/2005) 9,975,000 (a) 10,927,612
5.75%, 8/1/2016 (Insured; AMBAC) 10,000,000 11,440,900
5.875%, 8/1/2024 (Insured; MBIA) 13,700,000 15,169,599
6
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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NEW YORK (CONTINUED)
New York City Industrial Development Agency:
IDR:
(Brooklyn Navy Yard Cogen Partners):
6.20%, 10/1/2022 13,925,000 13,576,596
5.65%, 10/1/2028 12,500,000 11,427,000
(Field Hotel Association LP)
6%, 11/1/2028 13,525,000 (d) 7,260,490
New York City Municipal Water Finance Authority, Water
and Sewer Systems Revenue:
5.625%, 6/15/2011 (Prerefunded 6/15/2004) 10,210,000 (a) 10,565,512
5.625%, 6/15/2019 (Insured; MBIA) 16,085,000 17,546,161
5.75%, 6/15/2029 (Insured; MBIA) 13,000,000 14,545,960
5.50%, 6/15/2033 12,890,000 13,957,679
New York City Transitional Finance Authority,
Future Tax Secured Revenue:
6%, 8/15/2016 (Insured; FGIC)
(Prerefunded 8/15/2009) 5,000,000 (a) 5,951,900
5.25%, 2/1/2018 10,500,000 11,520,285
5.75%, 8/15/2019
(Prerefunded 8/15/2009) 5,000,000 (a) 5,885,850
5.50%, 5/1/2025 (Prerefunded 5/1/2009) 10,350,000 (a) 11,992,027
State of New York:
5.70%, 8/15/2011 4,500,000 4,825,260
5.50%, 7/15/2016 (Prerefunded 7/15/2006) 10,165,000 (a) 11,278,067
New York State Dormitory Authority, Revenues:
10.211%, 5/15/2011 9,950,000 (b,c) 13,163,850
(City University Systems):
5.25%, 7/1/2008 (Insured; FGIC) 200,000 225,240
8.51%, 7/1/2008 (Insured; FGIC) 4,900,000 (b,c) 6,129,998
8.71%, 7/1/2008 (Insured; FGIC) 3,950,000 (b,c) 4,910,324
5.35%, 7/1/2009 (Insured; FGIC) 200,000 224,436
5.50%, 7/1/2016 (Insured; AMBAC) 6,685,000 7,334,448
5.50%, 7/1/2016 (Insured; AMBAC)
(Prerefunded 7/1/2006) 16,315,000 (a) 18,234,623
5.625%, 7/1/2016 (Insured; FGIC) 9,120,000 10,618,781
5.50%, 7/1/2019 (Insured; FSA) 10,000,000 11,179,400
(Columbia University):
5.125%, 7/1/2018 4,450,000 4,865,808
5%, 7/1/2022 2,895,000 3,044,643
5%, 7/1/2023 5,220,000 5,456,466
Health, Hospital and Nursing Home:
(Lenox Hill Hospital Obligated Group)
5.50%, 7/1/2030 4,000,000 4,114,200
The Fund 7
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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NEW YORK (CONTINUED)
New York State Dormitory Authority, Revenues (continued):
Health, Hospital and Nursing Home (continued):
(Memorial Sloan Kettering Cancer Center):
5.75%, 7/1/2020 (Insured; MBIA) 3,000,000 3,494,520
5%, 7/1/2022 (Insured; MBIA) 5,500,000 5,718,625
5%, 7/1/2023 (Insured; MBIA) 5,000,000 5,167,200
(Menorah Campus)
6.10%, 2/1/2037 (Insured; FHA) 8,300,000 9,305,794
(Miriam Osborne Memorial Home)
6.875%, 7/1/2025 (Insured; ACA) 6,105,000 6,823,436
(North Shore University Hospital at Forest Hills)
5.50%, 11/1/2013 (Insured; MBIA) 2,625,000 3,030,484
(New York University):
5.75%, 7/1/2027 (Insured; MBIA) 34,625,000 40,429,535
5.50%, 7/1/2040 (Insured; AMBAC) 8,000,000 9,177,520
(Rockefeller University) 5%, 7/1/2032 18,480,000 18,939,598
(School District Financing Program):
5.375%, 10/1/2022 (Insured; MBIA) 35,000,000 37,834,650
5.25%, 10/1/2023 (Insured; MBIA) 18,350,000 19,488,067
State Personal Income Tax 5.375%, 3/15/2020 5,000,000 5,454,050
(State University Educational Facilities):
5.875%, 5/15/2011 100,000 116,258
7.50%, 5/15/2011 2,570,000 3,136,711
7.50%, 5/15/2011
(Prerefunded 5/15/2011) 1,180,000 (a) 1,493,255
5.50%, 5/15/2013 (Insured; FGIC) 35,000 40,226
5.50%, 5/15/2013 (Insured; MBIA) 100,000 115,106
9.648%, 5/15/2013 (Insured; FGIC) 5,000,000 (b,c) 6,493,250
9.648%, 5/15/2013 (Insured; MBIA) 6,450,000 (b,c) 8,398,674
5.75%, 5/15/2016 (Insured; FSA) 4,000,000 4,696,800
5.75%, 5/15/2016 (Insured; FSA)
(Prerefunded 5/15/2010) 2,000,000 (a) 2,359,160
5.50%, 7/1/2026 (Insured; FGIC) 10,000,000 10,784,600
Third General Resolution
5.25%, 11/15/2012 (Insured; MBIA) 12,660,000 14,366,441
New York State Energy Research and Development
Authority:
Electric Facilities Revenue
(Consolidated Edison Co. Project)
7.125%, 12/1/2029 13,000,000 13,979,680
PCR (Central Hudson Gas)
5.45%, 8/1/2027 (Insured; AMBAC) 9,000,000 9,721,890
8
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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NEW YORK (CONTINUED)
New York State Environmental Facilities Corp., State
Water and Drinking Revolving Funds (New York
City Municipal Water Project):
5.25%, 6/15/2019 11,205,000 12,197,651
5.25%, 6/15/2020 13,745,000 14,869,616
5.125%, 6/15/2023 13,685,000 14,340,375
5.125%, 6/15/2027 10,000,000 10,349,500
New York State Housing Finance Agency, Revenue:
Health Facilities 6%, 5/1/2008 10,000 10,920
Housing Projects 6.10%, 11/1/2015 (Insured; FSA) 11,715,000 12,439,807
Multi-Family Housing Secured Mortgage
10.461%, 5/1/2008 (Guaranteed; SONYMA) 4,995,000 (b,c) 5,910,683
New York State Local Government Assistance Corp.:
5%, 4/1/2021 (Insured; MBIA) 10,000,000 10,778,900
6%, 4/1/2024 (Prerefunded 4/1/2005) 6,905,000 (a) 7,479,151
New York State Medical Care Facilities
Finance Agency, Revenue:
Hospital and Nursing Home FHA Insured Mortgage:
6.125%, 2/15/2015 (Insured; FHA) 10,700,000 11,423,748
6.125%, 2/15/2015
(Insured; FHA) (Prerefunded 2/15/2007) 2,460,000 (a) 2,728,165
Mental Health Services 6%, 2/15/2025
(Insured; MBIA) (Prerefunded 2/15/2005) 8,710,000 (a) 9,383,283
(Montefiore Medical Center)
5.75%, 2/15/2015 (Insured; AMBAC) 6,750,000 7,183,215
New York State Mortgage Agency, Homeowner Mortgage,
Revenue:
5.10%, 10/1/2007 150,000 162,489
5.40%, 10/1/2010 160,000 170,768
9.399%, 10/1/2010 1,380,000 (b,c) 1,565,734
5.55%, 10/1/2012 190,000 201,113
9.699%, 10/1/2012 2,405,000 (b,c) 2,686,337
5.85%, 4/1/2017 1,685,000 1,778,720
6%, 4/1/2017 6,000,000 6,348,600
6%, 10/1/2022 4,660,000 4,893,652
6.20%, 10/1/2026 20,000 21,257
10.999%, 10/1/2026 775,000 (b,c) 872,402
5.80%, 10/1/2028 8,835,000 9,289,384
5.85%, 10/1/2028 8,220,000 8,594,257
5.40%, 4/1/2029 9,995,000 10,262,966
5.875%, 4/1/2030 7,000,000 7,607,670
The Fund 9
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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NEW YORK (CONTINUED)
New York State Power Authority,
Revenue and General Purpose:
5.25%, 11/15/2016 19,525,000 21,572,587
5%, 11/15/2019 18,210,000 19,323,542
5%, 11/15/2020 10,000,000 10,542,600
5%, 11/15/2021 11,000,000 11,530,090
New York State Thruway Authority:
Service Contract Revenue:
(Highway and Bridge Trust Fund)
5%, 4/1/2020 (Insured; AMBAC) 10,000,000 10,510,800
(Local Highway and Bridge):
5.50%, 4/1/2004 8,000,000 8,117,440
5%, 4/1/2006 250,000 268,945
8.461%, 4/1/2006 10,660,000 (b,c) 12,267,954
5.25%, 4/1/2010 8,550,000 9,548,298
5.25%, 4/1/2010 (Prerefunded 4/1/2007) 1,450,000 (a) 1,637,036
6%, 4/1/2011 2,200,000 2,493,788
6%, 4/1/2011 (Prerefunded 4/1/2007) 2,800,000 (a) 3,228,932
6%, 4/1/2012 2,395,000 2,714,828
6%, 4/1/2012 (Prerefunded 4/1/2007) 3,800,000 (a) 4,382,122
5.75%, 4/1/2016 (Insured; MBIA)
(Prerefunded 4/1/2006) 32,950,000 (a) 36,775,495
State Personal Income Tax (Transportation)
5.125%, 3/15/2021 10,000,000 10,545,000
New York State Urban Development Corp.:
Correctional Capital Facilities:
5.625%, 1/1/2017 (Insured; FSA)
(Prerefunded 1/1/2006) 5,865,000 (a) 6,480,766
5.25%, 1/1/2030 (Insured; FSA)
(Prerefunded 1/1/2011) 5,000,000 (a) 5,691,450
Local or Guaranteed Housing
5.50%, 7/1/2016 (Insured; FHA) 10,000,000 10,971,500
State Facilities 5.70%, 4/1/2020 (Insured; MBIA) 20,000,000 23,258,800
Niagara County Industrial Development Agency, SWDR
5.55%, 11/15/2024 2,500,000 2,638,975
Orange County Industrial Development Agency,
Life Care Community Revenue
(Glen Arden Inc. Project) 5.70%, 1/1/2028 4,600,000 3,775,128
Port Authority of New York and New Jersey:
(Consolidated Bond 85th Series) 5.375%, 3/1/2028 15,625,000 17,028,438
(Consolidated Bond 93rd Series) 6.125%, 6/1/2094 15,000,000 17,239,500
(Consolidated Bond 99th Series)
6%, 11/1/2013 (Insured; FGIC) 5,810,000 6,194,913
10
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
Port Authority of New York and New Jersey (continued):
(Consolidated Bond 121st Series)
5.375%, 10/15/2035 (Insured; MBIA) 14,950,000 15,898,877
(Consolidated Bond 125th Series)
5%, 10/15/2019 (Insured; FSA) 13,150,000 13,983,710
Special Obligation Revenue
(JFK International Air Terminal-6):
6.25%, 12/1/2013 (Insured; MBIA) 6,000,000 6,910,740
6.25%, 12/1/2014 (Insured; MBIA) 10,000,000 11,567,300
Suffolk County Industrial Development Agency:
IDR (Nissequogue Cogen Partners Facility)
5.30%, 1/1/2013 2,250,000 2,166,638
Solid Waste Disposal Facilities Revenue,
(Ogden Martin Systems):
5.75%, 10/1/2006 (Insured; AMBAC) 25,000 27,661
10.02%, 10/1/2006 (Insured; AMBAC) 4,925,000 (b,c) 5,973,237
Tobacco Settlement Financing Corp., Revenue:
5.50%, 6/1/2017 10,000,000 10,700,200
5.50%, 6/1/2019 10,000,000 10,714,700
Tompkins County Industrial Development Agency, Civic
Facility Revenue (Ithacare Center Project)
6.20%, 2/1/2037 (Insured; FHA) 6,000,000 6,750,300
Triborough Bridge and Tunnel Authority,
General Purpose Revenues:
5.375%, 1/1/2019 (Prerefunded 1/1/2016) 7,500,000 (a) 8,538,750
5.50%, 1/1/2024 18,635,000 20,010,449
5.50%, 1/1/2030 (Prerefunded 1/1/2022) 10,540,000 (a) 11,942,979
Watervliet Housing Authority, Residential Housing
Revenue (Beltrone Living Center Project):
6%, 6/1/2028 1,800,000 1,565,946
6.125%, 6/1/2038 6,800,000 5,850,244
Yonkers Industrial Development Agency, Civic Facilities
Revenue (Saint Joseph's Hospital):
6.15%, Series A 3/1/2015 1,000,000 848,920
6.15%, Series C 3/1/2015 3,500,000 2,971,220
U.S. RELATED--4.4%
Commonwealth of Puerto Rico, Public Improvement:
5.50%, 7/1/2010 (Insured; FSA) 500,000 579,100
9.699%, 7/1/2010 (Insured; FSA) 4,800,000 (b,c) 6,318,720
6%, 7/1/2015 (Insured; MBIA) 3,000,000 3,631,320
9.573%, 7/1/2015 (Insured; FSA) 5,000,000 (b,c) 6,658,200
6%, 7/1/2026 (Prerefunded 7/1/2007) 5,000,000 (a) 5,764,250
The Fund 11
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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U.S. RELATED (CONTINUED)
Puerto Rico Highway and Transportation Authority,
Highway Revenue 6%, 7/1/2022
(Prerefunded 7/1/2006) 9,500,000 (a) 10,694,910
Puerto Rico Infrastructure Financing Authority,
Special Obligation:
5.50%, 10/1/2032 10,000,000 10,924,900
5.50%, 10/1/2040 5,000,000 5,453,100
Puerto Rico Public Buildings Authority, Revenue
(Government Facilities)
5.25%, 7/1/2014 (Insured; FGIC) 10,000,000 11,418,400
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $1,286,248,439) 1,368,539,611
- ------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM MUNICIPAL INVESTMENTS--1.7%
- --------------------------------------------------------------------------------
New York City Transitional Finance Authority, VRDN:
Future Tax Secured Revenue 1.10%
(SBPA; Bayerische Landesbank) 19,000,000 (e) 19,000,000
New York City Recovery 1.10%
(Liquidity Facility, Dexia Credit Local) 4,000,000 (e) 4,000,000
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $23,000,000) 23,000,000
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $1,309,248,439) 100.4% 1,391,539,611
LIABILITIES, LESS CASH AND RECEIVABLES (.4%) (5,454,368)
NET ASSETS 100.0% 1,386,085,243
12
Summary of Abbreviations
ACA American Capital Access MBIA Municipal Bond Investors Assurance
AMBAC American Municipal Bond Assurance Insurance Corporation
Corporation PCR Pollution Control Revenue
FGIC Financial Guaranty Insurance SBPA Standby Bond Purchase Agreement
Company SONYMA State of New York Mortgage Agency
FHA Federal Housing Administration SWDR Solid Waste Disposal Revenue
FSA Financial Security Assurance VRDN Variable Rate Demand Notes
IDR Industrial Development Revenue
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
- ------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa AAA 63.5
AA Aa AA 24.5
A A A 4.9
BBB Baa BBB 2.0
Not Rated( f) Not Rated( f) Not Rated( f) 5.1
100.0
(A) BONDS WHICH ARE PREREFUNDED ARE COLLATERALIZED BY U.S. GOVERNMENT
SECURITIES WHICH ARE HELD IN ESCROW AND ARE USED TO PAY PRINCIPAL AND INTEREST
ON THE MUNICIPAL ISSUE AND TO RETIRE THE BONDS IN FULL AT THE EARLIEST REFUNDING
DATE.
(B) INVERSE FLOATER SECURITY--THE INTEREST RATE IS SUBJECT TO CHANGE
PERIODICALLY.
(C) SECURITIES EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT
OF 1933. THESE SECURITIES MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM
REGISTRATION, NORMALLY TO QUALIFIED INSTITUTIONAL BUYERS. AT NOVEMBER 30,2003,
THESE SECURITIES AMOUNTED TO $88,501,843 OR 6.4% OF NET ASSETS.
(D) NON-INCOME PRODUCING SUCURITY--INTEREST PAYMENT IN DEFAULT.
(E) SECURITIES PAYABLE ON DEMAND. VARIABLE INTEREST RATE--SUBJECT TO PERIODIC
CHANGE.
(F) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S,
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE RATED
SECURITIES IN WHICH THE FUND MAY INVEST.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund 13
STATEMENT OF ASSETS AND LIABILITIES
November 30, 2003 (Unaudited)
Cost Value
- --------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 1,309,248,439 1,391,539,61
Interest receivable 20,168,994
Receivable for shares of Common Stock subscribed 6,525
Prepaid expenses 20,100
1,411,735,230
- --------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 744,413
Cash overdraft due to Custodian 981,568
Payable for investment securities purchased 21,267,700
Payable for shares of Common Stock redeemed 2,588,437
Accrued expenses 67,869
25,649,987
- --------------------------------------------------------------------------------
NET ASSETS ($) 1,386,085,243
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 1,304,263,699
Accumulated undistributed investment income--net 615,647
Accumulated net realized gain (loss) on investments (1,085,275)
Accumulated net unrealized appreciation
(depreciation) on investments 82,291,172
- --------------------------------------------------------------------------------
NET ASSETS ($) 1,386,085,243
- --------------------------------------------------------------------------------
SHARES OUTSTANDING
(300 million shares of $.001 par value Common Stock authorized) 91,837,224
NET ASSET VALUE, offering and redemption price per share--Note 3(d) ($) 15.09
SEE NOTES TO FINANCIAL STATEMENTS.
14
STATEMENT OF OPERATIONS
Six Months Ended November 30, 2003 (Unaudited)
- --------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 34,653,020
EXPENSES:
Management fee--Note 3(a) 4,192,833
Shareholder servicing costs--Note 3(b) 616,862
Custodian fees 45,268
Professional fees 27,871
Directors' fees and expenses--Note 3(c) 25,315
Registration fees 13,698
Prospectus and shareholders' reports 10,642
Loan commitment fees--Note 2 5,824
Miscellaneous 27,368
TOTAL EXPENSES 4,965,681
INVESTMENT INCOME--NET 29,687,339
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments (6,840,904)
Net unrealized appreciation (depreciation) on investments (38,003,821)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (44,844,725)
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (15,157,386)
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund 15
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
November 30, 2003 Year Ended
(Unaudited) May 31, 2003
- --------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 29,687,339 66,372,563
Net realized gain (loss) on investments (6,840,904) 13,594,708
Net unrealized appreciation (depreciation)
on investments (38,003,821) 53,696,300
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (15,157,386) 133,663,571
- --------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net (29,503,211) (66,134,988)
Net realized gain on investments -- (14,931,558)
TOTAL DIVIDENDS (29,503,211) (81,066,546)
- --------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold 70,082,094 195,712,798
Dividends reinvested 20,963,472 58,417,647
Cost of shares redeemed (136,216,583) (292,533,515)
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL STOCK TRANSACTIONS (45,171,017) (38,403,070)
TOTAL INCREASE (DECREASE) IN NET ASSETS (89,831,614) 14,193,955
- --------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 1,475,916,857 1,461,722,902
END OF PERIOD 1,386,085,243 1,475,916,857
Undistributed investment income--net 615,647 171,979
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 4,645,788 12,854,928
Shares issued for dividends reinvested 1,396,334 3,833,192
Shares redeemed (9,013,281) (19,177,788)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (2,971,159) (2,489,668)
SEE NOTES TO FINANCIAL STATEMENTS.
16
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Total return shows how much your investment in the fund would have increased (or
decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the fund's financial
statements.
Six Months Ended
November 30, 2003 Year Ended May 31,
------------------------------------------------------------------------
(Unaudited) 2003 2002(a) 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
beginning of period 15.57 15.02 14.96 14.03 15.27 15.47
Investment Operations:
Investment income--net .32(b) .69(b) .72(b) .72 .72 .74
Net realized and unrealized
gain (loss) on investments (.48) .71 .11 .93 (1.10) (.06)
Total from
Investment Operations (.16) 1.40 .83 1.65 (.38) .68
Distributions:
Dividends from
investment income--net (.32) (.69) (.73) (.72) (.73) (.74)
Dividends from net realized
gain on investments -- (.16) (.04) (.00)(c) (.13) (.14)
Total Distributions (.32) (.85) (.77) (.72) (.86) (.88)
Net asset value,
end of period 15.09 15.57 15.02 14.96 14.03 15.27
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (1.01)(d) 9.56 5.64 11.99 (2.44) 4.47
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses
to average net assets .71(e) .71 .70 .73 .75 .75
Ratio of net investment income
to average net assets 4.25(e) 4.53 4.82 4.91 5.02 4.77
Decrease reflected in above
expense ratios due to
undertakings by
The Dreyfus Corporation -- -- -- .04 .05 .01
Portfolio Turnover Rate 16.96(d) 29.28 19.47 17.57 37.67 20.77
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of
period ($ x 1,000) 1,386,085 1,475,917 1,461,723 1,449,047 1,387,952 1,602,113
(A) AS REQUIRED, EFFECTIVE JUNE 1, 2001, THE FUND HAS ADOPTED THE PROVISIONS OF
THE AICPA AUDIT AND ACCOUNTING GUIDE FOR INVESTMENT COMPANIES AND BEGAN
AMORTIZING DISCOUNT OR PREMIUM ON A SCIENTIFIC BASIS FOR DEBT SECURITIES ON A
DAILY BASIS. THE EFFECT OF THIS CHANGE FOR THE PERIOD ENDED MAY 31, 2002 WAS TO
INCREASE NET INVESTMENT INCOME PER SHARE AND DECREASE NET REALIZED AND
UNREALIZED GAIN (LOSS) ON INVESTMENTS PER SHARE BY LESS THAN $.01 AND INCREASE
THE RATIO OF NET INVESTMENT INCOME TO AVERAGE NET ASSETS FROM 4.81% TO 4.82%.
PER SHARE DATA AND RATIOS/SUPPLEMENTAL DATA FOR PERIODS PRIOR TO JUNE 1, 2001
HAVE NOT BEEN RESTATED TO REFLECT THIS CHANGE IN PRESENTATION.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) AMOUNT REPRESENTS LESS THAN $.01 PER SHARE.
(D) NOT ANNUALIZED.
(E) ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund 17
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus New York Tax Exempt Bond Fund, Inc. (the "fund") is registered under the
Investment Company Act of 1940 (the "Act"), as a non-diversified, open-end
management investment company. The fund's investment objective is to provide
investors with as high a level of current income exempt from federal, New York
state and New York city personal income taxes as is consistent with the
preservation of capital. The Dreyfus Corporation ("Manager") serves as the
fund's investment adviser. The Manager is a wholly-owned subsidiary of Mellon
Bank, N.A., which is a wholly-owned subsidiary of Mellon Financial Corporation.
Dreyfus Service Corporation (the "Distributor"), a wholly-owned subsidiary of
the Manager, is the distributor of the fund's shares, which are sold to the
public without a sales charge.
The fund's financial statements are prepared in accordance with accounting
principles generally accepted in the United States, which may require the use of
management estimates and assumptions. Actual results could differ from those
estimates.
(A) PORTFOLIO VALUATION: Investments in securities are valued each business day
by an independent pricing service (the "Service") approved by the Board of
Directors. Investments for which quoted bid prices are readily available and are
representative of the bid side of the market in the judgment of the Service are
valued at the mean between the quoted bid prices (as obtained by the Service
from dealers in such securities) and asked prices (as calculated by the Service
based upon its evaluation of the market for such securities). Other investments
(which constitute a majority of the portfolio securities) are carried at fair
value as determined by the Service, based on methods which include consideration
of: yields or prices of municipal securities of comparable quality, coupon,
maturity and type; indications as to values from dealers; and general market
conditions.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Interest income,
adjusted for amortization of discount and premium on invest-
18
ments, is earned from settlement date and recognized on the accrual basis.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date. Under the terms of the custody
agreement, the fund received net earnings credits of $28,607 during the period
ended November 30, 2003 based on available cash balances left on deposit. Income
earned under this arrangement is included in interest income.
The fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations held
by the fund.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the fund to declare dividends
daily from investment income-net. Such dividends are paid monthly. Dividends
from net realized capital gain, if any, are normally declared and paid annually,
but the fund may make distributions on a more frequent basis to comply with the
distribution requirements of the Internal Revenue Code of 1986, as amended (the
"Code"). To the extent that net realized capital gain can be offset by capital
loss carryovers, if any, it is the policy of the fund not to distribute such
gain. Income and capital gain distributions are determined in accordance with
income tax regulations, which may differ from accounting principles generally
accepted in the United States.
(D) FEDERAL INCOME TAXES: It is the policy of the fund to continue to qualify as
a regulated investment company, which can distribute tax exempt dividends, by
complying with the applicable provisions of the Code, and to make distributions
of income and net realized capital gain sufficient to relieve it from
substantially all federal income and excise taxes.
The tax character of distributions paid to shareholders during the fiscal year
ended May 31, 2003 was as follows: tax exempt income $66,134,988, ordinary
income $412,111 and long-term capital gains $14,519,447. The tax character of
current year distributions will be determined at the end of the current fiscal
year.
The Fund 19
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
NOTE 2--BANK LINE OF CREDIT:
The fund participates with other Dreyfus-managed funds in a $350 million
redemption credit facility (the "Facility" ) to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the fund based on prevailing market rates
in effect at the time of borrowings. During the period ended November 30, 2003,
the fund did not borrow under the Facility.
NOTE 3--Management Fee and Other Transactions With Affiliates:
(A) Pursuant to a management agreement ("Agreement") with the Manager, the
management fee is computed at the annual rate of .60 of 1% of the value of the
fund' s average daily net assets and is payable monthly. The Agreement provides
that if in any full fiscal year the aggregate expenses of the fund, exclusive of
taxes, interest on borrowings, brokerage commissions, commitment fees and
extraordinary expenses, exceed 11_2% of the value of the fund's average daily
net assets, the fund may deduct from payments to be made to the Manager, or the
Manager will bear such excess expense. During the period ended November 30,
2003, there was no expense reimbursement pursuant to the Agreement.
(B) Under the Shareholder Services Plan, the fund reimburses the Distributor an
amount not to exceed an annual rate of .25 of 1% of the value of the fund's
average daily net assets for certain allocated expenses of providing personal
services and/or maintaining shareholder accounts. The services provided may
include personal services relating to shareholder accounts, such as answering
shareholder inquiries regarding the fund and providing reports and other
information, and services related to the maintenance of shareholder accounts.
During the period ended November 30, 2003, the fund was charged $363,220
pursuant to the Shareholder Services Plan.
20
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended November 30, 2003, the fund was charged $183,035 pursuant to the transfer
agency agreement.
(C) Each Board member also serves as a Board member of other funds within the
Dreyfus complex. Effective October 15, 2003, annual retainer fees and attendance
fees are allocated to each fund based on net assets. Prior to October 15, 2003,
each director who is not an "affiliated person" as defined in the Act received
from the fund an annual fee of $4,500 and an attendance fee of $500 per meeting
for services to the fund. The Chairman of the Board received an additional 25%
of such compensation and continues to do so under the new compensation
structure.
(D) A .10% redemption fee is charged and retained by the fund on shares redeemed
within thirty days following the date of issuance, including redemptions made
through the use of the fund' s exchange privilege. During the period ended
November 30, 2003, redemption fees charged and retained by the fund amounted to
$3,209.
NOTE 4--SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended November 30, 2003, amounted to
$228,856,692 and $260,469,498, respectively.
At November 30, 2003, accumulated net unrealized appreciation on investments was
$82,291,172, consisting of $94,316,728 gross unrealized appreciation and
$12,025,556 gross unrealized depreciation.
At November 30, 2003, the cost of investments for federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
The Fund 21
For More Information
Dreyfus
New York Tax Exempt
Bond Fund, Inc.
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
200 Park Avenue
New York, NY 10166
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
To obtain information:
BY TELEPHONE
Call 1-800-645-6561
BY MAIL Write to:
The Dreyfus Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request to info@dreyfus.com
ON THE INTERNET Information can be viewed online or downloaded from:
http://www.dreyfus.com
(c) 2004 Dreyfus Service Corporation 980SA1103
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 principal executive and principal financial officers
have concluded, based on their evaluation of the Registrant's disclosure
controls and procedures as of a date within 90 days of the filing date of
this report, that the Registrant's disclosure controls and procedures are
reasonably designed to ensure that information required to be disclosed by
the Registrant on Form N-CSR is recorded, processed, summarized and reported
within the required time periods and that information required to be
disclosed by the Registrant in the reports that it files or submits on Form
N-CSR is accumulated and communicated to the Registrant's management,
including its principal executive and principal financial officers, as
appropriate to allow timely decisions regarding required disclosure.
(b) There were no changes to the Registrant's internal control over
financial reporting that occurred during the Registrant's most recently ended
fiscal half-year that has materially affected, or is reasonably likely to
materially affect, the Registrant's internal control over financial
reporting.
ITEM 10. EXHIBITS.
(a)(1) Not applicable.
(a)(2) Certifications of principal executive and principal financial
officers as required by Rule 30a-2(a) under the Investment Company Act of
1940.
(b) Certification of principal executive and principal financial officers
as required by Rule 30a-2(b) under the Investment Company Act of 1940.
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.
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
By: /S/STEPHEN E. CANTER
Stephen E. Canter
President
Date: January 23, 2004
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/STEPHEN E. CANTER
Stephen E. Canter
Chief Executive Officer
Date: January 23, 2004
By: /S/JAMES WINDELS
James Windels
Chief Financial Officer
Date: January 23, 2004
EXHIBIT INDEX
(a)(2) Certifications of principal executive and principal
financial officers as required by Rule 30a-2(a) under the Investment
Company Act of 1940. (EX-99.CERT)
(b) Certification of principal executive and principal financial
officers as required by Rule 30a-2(b) under the Investment Company Act
of 1940. (EX-99.906CERT)