<PAGE>
Dreyfus A Bonds Plus, Inc.
- -----------------------------------------------------------------------------
Letter to Shareholders
Dear Shareholder:
We are pleased to provide you with this report on Dreyfus A Bonds Plus, Inc.
for the six-month period ended September 30, 1998. Your Fund produced a total
return, including share price changes and dividend income generated, of 2.49%.*
This compares to a total return of 6.69% for the Merrill Lynch Domestic Master
Index during the same period.** Income dividends of $0.430 per share were
declared to shareholders. This is equivalent to an annualized distribution rate
per share of 5.84%.***
THE ECONOMY
The risk of global recession loomed large by the end of the reporting period.
Since last summer, the international economic crisis has spread from Asia and
Russia into Latin America and its effects are evident in the U.S., as witnessed
by early signs of a slowing in our domestic economy. Second-quarter gross
domestic product grew at an annual rate of 1.8%, well below the 5.5% rate in the
first quarter, while the trade deficit has continued to widen, affected by
weakening foreign demand and low-priced imports. These developments have
heightened a sense of global economic interdependence and have resulted in a
shift in emphasis by the Federal Reserve Board whereby fighting inflation has
taken a subordinate role to that of maintaining stable U.S. economic growth. As
Fed Chairman Alan Greenspan noted in early September: "It is just not credible
that the United States can remain an oasis of prosperity unaffected by a world
that is experiencing greatly increased stress." On September 29, the Federal
Open Market Committee cut interest rates for the first time since January 1996.
That quarter-point reduction in the Federal Funds target rate to 5.25% was
designed to cushion the adverse effects of the overseas economic crisis on the
domestic economy. (The Federal Funds rate is the interest rate that banks charge
each other for overnight loans.)
So far, shock waves from the overseas economic turmoil have been dampened by
the continued propensity of U.S. consumers to spend. In the first half of the
year, their spending outpaced earned income, an unsustainable phenomenon, yet a
telling indicator of the level of consumer optimism. The reasons for such
optimism are no surprise. Inflation remains tame, running at an annual rate
comfortably below 2%. After-tax income is growing: by the end of the reporting
period, wages had increased year-to-year at a 4% annual rate, resulting in
strong gains in real income for workers. Finally, and of great economic and
psychological importance to consumers, jobs are plentiful; the unemployment rate
has been at or near 30-year lows throughout the reporting period and new jobs
have been created at a robust pace.
While the corporate sector wrestles with the economic implications of global
developments, consumers have powered the economy. The consumer sector comprises
two-thirds of the activity in the $8-trillion U.S. economy and, with the
business sector slowing (corporate profits declined in the second quarter for
the first time in nearly a decade) , any significant pullback in household
spending could trigger a recession. Up to now, the spillover effect from
developments abroad has been largely confined to the manufacturing sector, whose
activity has contracted of late due to the falloff in export demand. Aside from
this "erosion at the edges," as Chairman Greenspan describes it, layoffs on a
broader scale-- a factor that could weaken consumer resolve to spend--so far
have not occurred. It is clear that the Fed is concerned about the possibility
of worldwide recession. The recent October interest rate reduction was a major
step by the Fed toward mitigating the domestic effects of international
financial turmoil and a gesture meant to serve notice to the world of the
seriousness of its purpose.
MARKET OVERVIEW
When we last wrote you at the end of March, 1998, the 10-year U.S. Treasury
bond was yielding 5.60%. This yield has plummeted to 4.42% as of September 30,
1998. This declining rate environment was brought on by the deteriorating
international economic picture mentioned above, as well as declining U.S. equity
markets which peaked this summer. As a result, U.S. Treasuries have become the
safe haven for both U.S. and international investors at a time when the supply
is shrinking due to a federal budget surplus.
<PAGE>
The flight to safety has caused yield spreads to Treasuries on both corporates
and mortgage-backeds to widen dramatically. In many cases, while Treasury yields
were falling and prices rising, corporate and mortgage bond yields were actually
rising, with prices declining. This dramatic price divergence has resulted in
forced hedge fund and brokerage firm liquidations, which in turn caused further
price divergence to occur.
PORTFOLIO FOCUS
The portfolio was generally positioned with a longer effective duration than
its benchmark, the Merrill Lynch Domestic Master Index, during most of the
six-month period. Thus the Fund has benefited from the falling interest rate
environment. However, the more important factor has been our decision to own
corporates and mortgages and relatively few U.S. Treasury securities. This
single decision has caused the portfolio to underperform its benchmark, the
Merrill Lynch Domestic Master Index, which has approximately 50% in U.S.
Treasury and government agency securities. At this time, we believe the
portfolio is positioned to benefit from a more stable financial environment
where spreads on corporates and mortgages narrow relative to U.S. Treasury
securities. We continue to underweight government mortgage-backed securities
which, at these rate levels, are vulnerable to increasing prepayment rates on
the underlying home mortgages. Instead we own commercial mortgage-backed
securities which we think, generally, have much better protection against early
prepayments than government mortgage-backeds. Regarding specific corporate
names, we have added a position in Sealed Air preferred and sold our position in
Bankers Trust.
As always, we will be monitoring all areas of the fixed-income markets for
favorable risk/reward relationships to capitalize on in the Fund. It is both an
honor and a pleasure to be managing your investments.
Very truly yours,
[Kevin McClintock, signature logo]
Kevin McClintock
Head of Taxable Fixed Income
October 16, 1998
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid.
** SOURCE: MERRILL LYNCH, PIERCE, FENNER AND SMITH INC.--Unlike the Fund, the
Merrill Lynch Domestic Master Index is an unmanaged performance
benchmark composed of U.S. Government, mortgage and BBB or higher-
rated corporate securities with maturities greater than or equal to
one year; Treasury securities in the index must have par amounts
outstanding greater than or equal to $1 billion and corporate and generic
mortgage-backed securities $100 million per coupon.
*** Distribution rate per share is based upon dividends per share declared from
net investment income during the period (annualized), divided by the net
asset value per share at the end of the period.
<PAGE>
<TABLE>
Dreyfus A Bonds Plus, Inc.
- -----------------------------------------------------------------------------
Statement of Investments September 30, 1998 (Unaudited)
Principal
Bonds and Notes--91.6% Amount Value
- ------------------------------------------------------- _____________ _____________
<S> <C> <C>
Airlines--2.4% Continental Airlines,
Pass-Through Ctfs.,
Ser. 97-4A, 6.90%, 2018 . . . . . . . . . . . . . $ 14,000,000 $ 14,824,810
_____________
Asset-Backed--4.4% Bosque Asset,
Asset-Backed Notes,
7.66%, 2002 . . . . . . . . . . . . . . . . . . . 3,719,527 (a) 3,732,314
California Infrastructure and Economic
Development Bank:
Special Purpose Trust PG & E-1,
Rate Reduction Ctfs.,
Ser. 1997-1, Cl. A-6, 6.32%, 2005 . . . . . 5,160,000 5,367,690
Special Purpose Trust SCE-1,
Rate Reduction Ctfs.:
Ser. 1997-1, Cl. A-3, 6.17%, 2003 . . . . . 3,000,000 3,077,715
Ser. 1997-1, Cl. A-5, 6.28%, 2005 . . . . . 5,250,000 5,544,446
Special Purpose Trust SDG & E-1,
Rate Reduction Ctfs.,
Ser. 1997-1, Cl. A-5, 6.19%, 2005 . . . . . 4,300,000 4,419,594
The Money Store Trust,
Asset-Backed Ctfs.,
Ser. 1996-D, Cl. A-16, 7.11%, 2028 . . . . . . . . 4,943,548 5,126,262
_____________
27,268,021
_____________
Commercial Mortgage
Pass-Through Ctfs.--23.8% 277 Park Avenue Finance:
Ser. 1997-C1, Cl. A-2, 7.68%, 2007 . . . . . . . . 14,750,000 (a) 16,326,406
Ser. 1997-C1, Cl. B-1, 7.88%, 2007 . . . . . . . . 2,500,000 (a) 2,759,375
BTC Mortgage Investors Trust,
Ser. 1997-S1, Cl. B, 6.445%, 2009 . . . . . . . . 13,000,000 (a) 13,000,000
Chase Mortgage Finance, REMIC:
Ser. 1998-S5, Cl. B3, 6.50%, 2013 . . . . . . . . 630,000 (a) 586,294
Ser. 1998-S5, Cl. B4, 6.50%, 2013 . . . . . . . . 525,000 (a) 415,636
DLJ Mortgage Acceptance:
Ser. 1996-CF2, Cl. A-3, 7.38%, 2021 . . . . . . . 3,000,000 (a) 3,265,312
Ser. 1997-CF1, Cl. A-3, 7.76%, 2007 . . . . . . . 6,600,000 (a) 7,305,375
Ser. 1997-CF2, Cl. B-3, 6.99%, 2009 . . . . . . . 8,500,000 (a) 8,330,000
Ser. 1998-STFA, Cl. B-3, 7.75%, 2000 . . . . . . . 5,550,000 (a,b) 5,527,453
GMAC Commercial Mortgage Securities,
Ser. 1996-C1, Cl. E, 7.86%, 2006 . . . . . . . . . 3,105,000 3,076,861
GS Mortgage Securities II,
Ser. 1998-GL II, Cl. C, 6.965%, 2031 . . . . . . . 10,000,000 (b) 10,421,875
Merrill Lynch Mortgage Investors,
Ser. 1995-C3, Cl. C, 7.342%, 2025 . . . . . . . . 4,980,000 (b) 5,345,059
Morgan Stanley Capital I,
Ser. 1998-XLI, Cl. A3, 6.48%, 2030 . . . . . . . . 10,000,000 10,396,875
<PAGE>
Dreyfus A Bonds Plus, Inc.
- -----------------------------------------------------------------------------
Statement of Investments (continued) September 30, 1998 (Unaudited)
Principal
Bonds and Notes (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
Commercial Mortgage
Pass-Through Ctfs. (continued) Mortgage Capital Funding,
Ser. 1998-MC1, Cl. C, 6.947%, 2008 . . . . . . . . $ 8,190,000 $ 8,573,906
Nomura Asset Securities,
Ser. 1998-D6, Cl. A-3, 7.225%, 2028 . . . . . . . 22,000,000 (a,b) 22,199,375
Nomura Depositor Trust ST I,
Ser. 1998 ST 1, Cl. A-3, 6.221%, 2003 . . . . . . 5,000,000 (a,b) 4,915,625
Resolution Trust,
Ser. 1994-C2, Cl. D, 8%, 2025 . . . . . . . . . . 9,885,946 10,325,822
Structured Asset Securities:
Ser. 1996-C3, Cl. B, 7.125%, 2030 . . . . . . . . 7,000,000 (a) 7,163,924
Multiclass Pass-Through Ctfs., REMIC,
Ser. 1996-CFL, Cl. C, 6.525%, 2028 . . . . . . 7,192,927 (a) 7,336,786
_____________
147,271,959
_____________
Energy--1.8% Tosco,
Notes, 7.25%, 2007 . . . . . . . . . . . . . . . . 10,000,000 10,871,790
_____________
Financial--1.9% Fuji Finance,
Gtd. Floating Rate Notes, 6.425%, 2049 . . . . . . 21,000,000 (b) 11,550,000
_____________
Food & Tobacco--1.5% Philip Morris Cos.,
Notes, 6.95%, 2001 . . . . . . . . . . . . . . . . 9,000,000 (c) 9,538,470
_____________
Foreign--.9% Province of Quebec,
Deb., 6.50%, 2006 . . . . . . . . . . . . . . . . 5,300,000 5,590,546
Republic of Argentina,
Floating Rate Notes, 6.625%, 2005 . . . . . . . . 237,500 (b) 187,478
_____________
5,778,024
_____________
Industrial--3.4% Rockwell International, Deb.:
6.70%, 2028 . . . . . . . . . . . . . . . . . . . 12,000,000 12,761,136
5.20%, 2098 . . . . . . . . . . . . . . . . . . . 10,000,000 8,076,450
_____________
20,837,586
_____________
Insurance--2.6% American General Institutional Capital B,
Gtd. Capital Securities, Ser. B, 8.125%, 2046 . . 10,000,000 (a) 10,919,450
NAC Re,
Notes, 8%, 1999 . . . . . . . . . . . . . . . . . 5,000,000 5,077,000
_____________
15,996,450
_____________
Pharmaceutical--2.5% Bayer,
Notes, 6.65%, 2028 . . . . . . . . . . . . . . . . 16,000,000 (a) 15,844,768
_____________
Publishing-Newspapers--2.4% A.H. Belo,
Sr. Notes, 6.875%, 2002 . . . . . . . . . . . . . 14,000,000 14,646,856
_____________
Real Estate Investment Trusts--2.4% Crescent Real Estate Equities, L.P.,
Notes, 6.625%, 2002 . . . . . . . . . . . . . . . 6,000,000 5,904,390
Tanger Properties, L.P.,
Notes (Gtd. by Tanger Factory Outlet Centers),
7.875%, 2004 . . . . . . . . . . . . . . . . . . . 8,500,000 8,869,852
_____________
14,774,242
_____________
<PAGE>
Dreyfus A Bonds Plus, Inc.
- -----------------------------------------------------------------------------
Statement of Investments (continued) September 30, 1998 (Unaudited)
Principal
Bonds and Notes (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
Residential Mortgage
Pass-Through Ctfs.--5.9% GE Capital Mortgage Services,
REMIC, Ser. 1998-16, Cl. B3, 6.50%, 2013 . . . . . $ 1,122,319 (a) $ 1,025,160
Norwest Asset Securities:
Ser. 1997-6, Cl. B-1, 7.50%, 2027 . . . . . . . . 7,188,459 7,445,433
Ser. 1997-8, Cl. B-1, 7.50%, 2027 . . . . . . . . 3,933,541 4,073,576
Ser. 1997-10, Cl. B-2, 7.625%, 2027 . . . . . . . 1,954,897 2,095,376
Ser. 1997-15, Cl. B-1, 6.75%, 2012 . . . . . . . . 1,063,771 1,103,444
Ser. 1997-16, Cl. B-1, 6.75%, 2027 . . . . . . . . 2,181,093 2,196,863
Ser. 1997-16, Cl. B-2, 6.75%, 2027 . . . . . . . . 694,344 697,816
Ser. 1997-16, Cl. M, 6.75%, 2027 . . . . . . . . . 894,426 907,154
Ser. 1998-2, Cl. M, 6.50%, 2028 . . . . . . . . . 2,863,971 2,918,422
Ser. 1998-11, Cl. B-2, 6.50%, 2013 . . . . . . . . 1,772,602 1,794,707
Ser. 1998-13, Cl. B-1, 6.25%, 2028 . . . . . . . . 2,997,835 3,094,575
Ser. 1998-13, Cl. B-2, 6.25%, 2028 . . . . . . . . 2,868,157 2,946,373
Ser. 1998-13, Cl. B-6, 6.25%, 2028 . . . . . . . . 375,072 (a) 127,525
Residential Funding Mortgage Securities I,
Ser. 1996-S10, Cl. M3, 7.50%, 2026 . . . . . . . . 5,749,978 6,012,321
_____________
36,438,745
_____________
Utilities--3.2% Cleveland Electric Illuminating,
Ser. A, Secured Notes, 7.19%, 2000 . . . . . . . . 7,000,000 7,210,000
National Rural Utilities Cooperative Finance,
Collateral Trust Bonds, 7.30%, 2006 . . . . . . . 5,000,000 5,586,525
Western Resources,
First Mortgage Bonds, 6.25%, 2003 . . . . . . . . 7,000,000 7,235,760
_____________
20,032,285
_____________
U.S. Government Agency/
Mortgage Backed--20.0% FHA Project Loan Ctfs., Ser. Pool No. 6
(Reilly Mortgage Group), 7.43%, 2022 . . . . . . . 5,864,190 6,360,814
Federal Home Loan Mortgage,
REMIC, Multiclass Mortgage Participation Ctfs.
(Interest Only Obligation):
Ser. 1552, Cl. JD, 7%, 8/15/2023 . . . . . . . 40,418,426 (d) 12,436,750
Ser. 1978, Cl. PH, 7%, 1/15/2024 . . . . . . . 5,878,907 (d) 759,026
Ser. 1995, Cl. PY, 7%, 10/15/2027 . . . . . . . 10,124,292 (d) 4,388,248
Federal National Mortgage Association:
6.88%, 2/1/2028 . . . . . . . . . . . . . . . . . 4,276,921 4,361,989
REMIC Trust, Gtd. Pass-Through Ctfs.:
Ser. 1992-103, Cl. G, 7.50%, 8/25/2018 . . . . 658,901 657,178
Ser. 1996-64, Cl. PM, 7%, 1/18/2012
(Interest Only Obligation) . . . . . . . . . . 8,035,243 (d) 1,318,824
Ser. 1996-70, Cl. PL, 7%, 2/25/2026
(Interest Only Obligation) . . . . . . . . . . 15,238,355 (d) 3,218,341
Ser. 1997-24, Cl. IA, 7%, 1/18/2026
(Interest Only Obligation) . . . . . . . . . . 18,000,000 (d) 7,686,180
<PAGE>
Dreyfus A Bonds Plus, Inc.
- -----------------------------------------------------------------------------
Statement of Investments (continued) September 30, 1998 (Unaudited)
Principal
Bonds and Notes (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
U.S. Government Agency/
Mortgage Backed (continued) Government National Mortgage Association I:
6.475%, 9/1/2033 . . . . . . . . . . . . . . . . . $ 7,800,000 $ 7,870,688
7%, 6/15/2008 . . . . . . . . . . . . . . . . . . 116,881 121,411
9.50%, 11/15/2017 . . . . . . . . . . . . . . . . 6,006,054 6,582,215
Construction Loan:
6.70%, 7/15/2001 . . . . . . . . . . . . . . . . . 2,666,635 2,710,794
6.70%, 7/15/2001 . . . . . . . . . . . . . . . . . 12,699,164 (e) 13,092,902
7%, 3/15/2000 . . . . . . . . . . . . . . . . . . 6,127,687 6,338,296
7%, 3/15/2000 . . . . . . . . . . . . . . . . . . 5,671,013 (e) 5,848,941
Project Loan:
6.54%, 7/15/2033 . . . . . . . . . . . . . . . . . 4,450,688 4,620,348
6.55%, 6/15/2033 . . . . . . . . . . . . . . . . . 1,848,242 1,904,263
6.625%, 7/15/2033-9/15/2033 . . . . . . . . . . . 10,249,159 10,682,825
6.75%, 7/1/2033-10/15/2033 . . . . . . . . . . . . 3,956,776 4,114,234
7.50%, 5/15/2037 . . . . . . . . . . . . . . . . . 6,635,517 6,919,584
Government National Mortgage Association,
REMIC Trust, Gtd. Pass-Through Securities,
Ser. 1997-2, Cl. K, 7.50%, 1/20/2024 . . . . . . . 11,259,000 11,690,107
_____________
123,683,958
_____________
U.S. Government--12.5% U.S. Treasury Bonds,
5.50%, 8/15/2008 . . . . . . . . . . . . . . . . . 16,000,000 17,311,520
U.S. Treasury Notes:
5.25%, 8/15/2003 . . . . . . . . . . . . . . . . . 49,000,000 50,828,680
6.25%, 1/31/2002 . . . . . . . . . . . . . . . . . 8,500,000 8,984,415
_____________
77,124,615
_____________
TOTAL BONDS AND NOTES
(cost $559,541,390) . . . . . . . . . . . . . . . $566,482,579
_____________
Preferred Stocks--.6% Shares
- ------------------------------------------------------------------------------------------- _______________
Containers; Sealed Air,
Ser. A, Conv., $2.00
(cost $4,915,350) . . . . . . . . . . . . . . . 110,000 $ 3,946,250
_____________
<PAGE>
Dreyfus A Bonds Plus, Inc.
- -----------------------------------------------------------------------------
Statement of Investments (continued) September 30, 1998 (Unaudited)
Principal
Short-Term Investments--5.6% Amount Value
- ------------------------------------------------------- _____________ _____________
U.S. Government Agency--5.2% Federal Home Loan Banks,
5.40%, 10/1/1998 . . . . . . . . . . . . . . . . . $ 31,994,000 $ 31,994,000
_____________
U.S. Treasury Bills--.4% 4.80%, 11/5/1998 . . . . . . . . . . . . . . . . . . . 940,000 (f) 936,353
4.20%, 12/31/1998 . . . . . . . . . . . . . . . . . . 465,000 (f) 459,992
4.22%, 1/7/1999 . . . . . . . . . . . . . . . . . . . 1,240,000 (f) 1,225,591
_____________
2,621,936
_____________
TOTAL SHORT-TERM INVESTMENTS
(cost $34,615,432) . . . . . . . . . . . . . . . . $ 34,615,936
_____________
TOTAL INVESTMENTS (cost $599,072,172). . . . . . . . . . . . . . . . . . . . . . . . . . . 97.8% $605,044,765
_______ _____________
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2% $ 13,392,007
_______ _____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $618,436,772
_______ _____________
</TABLE>
Notes to Statements of Investments:
- -----------------------------------------------------------------------------
(a) 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 September 30,
1998 these securities amounted to $130,780,778 or 21.1% of net assets.
(b) Variable rate security--interest rate subject to periodic change.
(c) Reflects date security can be redeemed at holders' option; the stated
maturity is 6/1/2006.
(d) Notional face amount shown.
(e) Purchased on a forward commitment basis.
(f) Held by the custodian in a segregated account as collateral for open
Financial Futures positions.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
<TABLE>
Dreyfus A Bonds Plus, Inc.
- -----------------------------------------------------------------------------
Statement of Financial Futures September 30, 1998 (Unaudited)
Unrealized
Market Value Appreciation
Covered (Depreciation)
Financial Futures Long Contracts by Contracts Expiration at 9/30/98
_____________________ ____________ _______________ ______________ ______________
<S> <C> <C> <C> <C>
U.S. Treasury 5 year Notes . . . . . . . . . . . . . . . 993 $114,148,453 December '98 $1,098,078
U.S. Treasury 30 year Bonds. . . . . . . . . . . . . . . 875 115,035,156 December '98 1,661,625
___________
$2,759,703
___________
Financial Futures Short
_____________________
Standard & Poor's 500. . . . . . . . . . . . . . . . . . 22 $ 5,643,000 December '98 $ 245,850
U.S. Treasury 10 year Notes. . . . . . . . . . . . . . . 145 17,608,438 December '98 (681,719)
___________
$ (435,869)
___________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
<TABLE>
Dreyfus A Bonds Plus, Inc.
- -----------------------------------------------------------------------------
Statement of Assets and Liabilities September 30, 1998 (Unaudited)
Cost Value
_____________ _____________
<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $599,072,172 $605,044,765
Receivable for investment securities sold . . . . . . . . 27,523,774
Dividends and interest receivable . . . . . . . . . . . . 5,391,484
Receivable for futures variation margin--Note 4(a) . . . 1,868,359
Receivable for shares of Common Stock subscribed . . . . 155,166
Paydowns receivable . . . . . . . . . . . . . . . . . . . 27,336
Prepaid expenses and other assets . . . . . . . . . . . . 145,957
_____________
640,156,841
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 376,043
Cash overdraft due to Custodian . . . . . . . . . . . . . 223,195
Payable for investment securities purchased . . . . . . . 18,672,868
Payable for shares of Common Stock redeemed . . . . . . . 2,263,109
Accrued expenses . . . . . . . . . . . . . . . . . . . . 184,854
_____________
21,720,069
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $618,436,772
_____________
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $598,970,446
Accumulated undistributed investment income--net . . . . 6,231,659
Accumulated net realized gain (loss) on investments . . . 4,938,240
Accumulated net unrealized appreciation (depreciation)
on investments (including $2,323,834 net unrealized
appreciation on financial futures)--Note 4(b) . . . . . 8,296,427
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $618,436,772
_____________
SHARES OUTSTANDING
(100 MILLION SHARES OF $.01 PAR VALUE COMMON STOCK AUTHORIZED) . . . . . . . . . . . . . . 42,141,763
NET ASSET VALUE, offering and redemption price per share . . . . . . . . . . . . . . . . . $14.68
_______
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
<TABLE>
Dreyfus A Bonds Plus, Inc.
- -----------------------------------------------------------------------------
Statement of Operations Six Months Ended September 30, 1998 (Unaudited)
INVESTMENT INCOME
<S> <C> <C>
INCOME: Cash dividends . . . . . . . . . . . . . . . . . . . . . $ 140,343
Interest Income . . . . . . . . . . . . . . . . . . . . . 21,211,174
____________
Total Income . . . . . . . . . . . . . . . . . . . . . $21,351,517
EXPENSES: Management fee--Note 3(a) . . . . . . . . . . . . . . . . 2,047,432
Shareholder servicing costs--Note 3(b) . . . . . . . . . 807,120
Prospectus and shareholders' reports . . . . . . . . . . 54,871
Professional fees . . . . . . . . . . . . . . . . . . . . 45,617
Custodian fees--Note 3(b) . . . . . . . . . . . . . . . . 29,158
Directors' fees and expenses--Note 3(c) . . . . . . . . . 26,841
Registration fees . . . . . . . . . . . . . . . . . . . . 18,268
Miscellaneous . . . . . . . . . . . . . . . . . . . . . . 5,518
____________
Total Expenses . . . . . . . . . . . . . . . . . . . . 3,034,825
____________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,316,692
____________
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments . . . . . . . . . $ (2,480,392)
Net realized gain (loss) on financial futures . . . . . . (1,131,408)
____________
Net Realized Gain (Loss) . . . . . . . . . . . . . . . (3,611,800)
Net unrealized appreciation (depreciation) on investments
(including $2,323,834 net unrealized appreciation
on financial futures) . . . . . . . . . . . . . . . . 443,454
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . . . . . (3,168,346)
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . . . . . $15,148,346
____________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
<TABLE>
Dreyfus A Bonds Plus, Inc.
- -----------------------------------------------------------------------------
Statement of Changes in Net Assets
Six Months Ended
September 30, 1998 Year Ended
(Unaudited) March 31, 1998
_____________ _________________
OPERATIONS:
<S> <C> <C>
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 18,316,692 $ 36,544,951
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . (3,611,800) 11,729,977
Net unrealized appreciation (depreciation) on investments . . . . . . . . . . 443,454 19,700,076
_____________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . . 15,148,346 67,975,004
_____________ _____________
NET EQUALIZATION CREDITS (DEBITS)--Note 1(e) . . . . . . . . . . . . . . . . . . (342,606) 330,950
_____________ _____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . (18,407,433) (36,337,978)
Net realized gain on investments . . . . . . . . . . . . . . . . . . . . . . . ---- - (6,661,447)
_____________ _____________
Total Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (18,407,433) (42,999,425)
_____________ _____________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold . . . . . . . . . . . . . . . . . . . . . . . . 143,937,862 306,802,891
Dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,162,548 37,642,192
Cost of shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . (186,433,801) (292,960,035)
_____________ _____________
Increase (Decrease) in Net Assets from Capital Stock Transactions . . . . . (26,333,391) 51,485,048
_____________ _____________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . . (29,935,084) 76,791,577
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 648,371,856 571,580,279
_____________ _____________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $618,436,772 $648,371,856
_____________ _____________
UNDISTRIBUTED INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . $ 6,231,659 $ 6,665,006
_____________ _____________
Shares Shares
_____________ _____________
CAPITAL SHARE TRANSACTIONS:
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,829,425 21,161,431
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . 1,103,064 2,609,422
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12,749,109) (20,252,009)
_____________ _____________
Net Increase (Decrease) in Shares Outstanding . . . . . . . . . . . . . . . (1,816,620) 3,518,844
_____________ _____________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
<TABLE>
Dreyfus A Bonds Plus, Inc.
- -----------------------------------------------------------------------------
Financial Highlights
Contained below is per share operating performance data for a share of Common
Stock outstanding, total investment return, ratios to average net assets and
other supplemental data for each period indicated. This information has been
derived from the Fund's financial statements.
Six Months Ended
September 30, 1998 Year Ended March 31,
________________________________________________
PER SHARE DATA: (Unaudited) 1998 1997 1996 1995 1994
___________ ______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . $14.75 $14.13 $14.47 $13.75 $14.38 $15.43
______ ______ ______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . . . .43 .89 .88 .92 .94 .98
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . (.07) .79 (.34) .73 (.56) (.46)
______ ______ ______ ______ ______ ______
Total from Investment Operations . . . . . .36 1.68 .54 1.65 .38 .52
______ ______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . (.43) (.89) (.88) (.93) (.94) (.99)
Dividends from net realized gain
on investments . . . . . . . . . . . . -- (.17) -- -- (.07) (.58)
______ ______ ______ ______ ______ ______
Total Distributions . . . . . . . . . . . . (.43) (1.06) (.88) (.93) (1.01) (1.57)
______ ______ ______ ______ ______ ______
Net asset value, end of period . . . . . . $14.68 $14.75 $14.13 $14.47 $13.75 $14.38
______ ______ ______ ______ ______ ______
TOTAL INVESTMENT RETURN. . . . . . . . . . . . 4.97%(1) 12.20% 3.88% 12.12% 3.01% 3.09%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . .96%(1) .95% .96% .93% .99% .90%
Ratio of net investment income
to average net assets . . . . . . . . . 5.82%(1) 6.07% 6.12% 6.32% 6.89% 6.30%
Portfolio Turnover Rate . . . . . . . . . . 103.00%(2) 374.30% 415.69% 165.50% 172.60% 93.67%
Net Assets, end of period (000's Omitted) . . $618,437 $648,372 $571,580 $598,551 $539,140 $593,615
- -----------------------------
(1) Annualized.
(2) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
Dreyfus A Bonds Plus, Inc.
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus A Bonds Plus, Inc. (the "Fund") is registered under the Investment
Company Act of 1940, as amended ("Act") as a diversified open-end management
investment company. The Fund'sinvestment objective is to provide investors
with the maximum amount of currentincome to the extent consistent with
the preservation of capital and themaintenance of liquidity. The Dreyfus
Corporation (the "Manager") serves as theFund' s investment adviser. The
Manager is a direct subsidiary of Mellon Bank,N.A. (" Mellon" ). Premier
Mutual Fund Services, Inc. is the distributor of theFund's shares, which
are sold to the public without a sales charge.
The Fund' s financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: Investments in securities (excluding short-term
investments, other than U.S. Treasury Bills, and financial futures) are
valued each business day by an independent pricing service ("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
securities of comparable quality, coupon, maturity and type;
indications as to values from dealers; and general market conditions.
Investments denominated in foreign currencies are translated to U.S.
dollars at the prevailing rates of exchange. Short-term investments,
excluding U.S. Treasury Bills, are carried at amortized cost, which
approximates value.
(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.
Dividend income is recognized on the ex-dividend date and interest
income, including, where applicable, amortization of discount on
investments, is recognized on the accrual basis. Under the terms of
the custody agreement, the Fund receives net earnings credits based on
available cash balances left on deposit.
(C) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net are declared and paid
monthly. Dividends from net realized capital gain 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.
On September 30, 1998, the Board of Directors declared a cash dividend of
$.071 per share from undistributed investment income-net, payable on October 1,
1998 (ex-dividend date), to shareholders of record as of the close of business
on September 30, 1998.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to qualify
as a regulated investment company, if such qualification is in
the best interests of its shareholders, by complying with the
applicable provisions of the Code and to make distributions of taxable
income sufficient to relieve it from substantially all Federal income and
excise taxes.
<PAGE>
Dreyfus A Bonds Plus, Inc.
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
(E) EQUALIZATION: The Fund follows the accounting practice known as
" equalization" by which a portion of the amounts received on issuances
and the amounts paid on redemptions of Fund shares (equivalent, on a per
share basis, to the amount of distributable investment income--net
on the date of the transaction) is allocated to undistributed
investment income-net so that undistributed investment income-net
per share is unaffected by Fund shares issued or redeemed.
NOTE 2--BANK LINE OF CREDIT:
The Fund may borrow up to $20 million for leveraging purposes under a
short-term unsecured line of credit and participates with other Dreyfus-managed
funds in a $100 million unsecured line of credit primarily to be utilized for
temporary or emergency purposes, including the financing of redemptions.
Interest is charged to the Fund at rates which are related to the Federal Funds
rate in effect at the time of borrowings. During the period ended September 30,
1998, the Fund did not borrow under their line of credit.
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 .65 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 and extraordinary expenses, exceed 1 1/2% of the value of the
Fund's average net assets, the Fund may deduct from the payments to
be made to the Manager, or the Manager will bear, the amount of such
excess expenses. There was no expense reimbursement for the period
ended September 30, 1998.
(B) Under the Shareholder Services Plan, the Fund reimburses Dreyfus Service
Corporation, a wholly-owned subsidiary of the Manager, 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 September 30, 1998, the Fund was charged $358,079
pursuant to the Shareholder Services Plan.
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 September 30, 1998, the Fund was charged $121,742 pursuant to the transfer
agency agreement.
The Fund compensates Mellon under a custody agreement for providing custodial
services for the Fund. During the period ended September 30, 1998, the Fund was
charged $29,158 pursuant to the custody agreement.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of
$500 per meeting. The Chairman of the Board receives an
additional 25% of such compensation.
<PAGE>
Dreyfus A Bonds Plus, Inc.
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
NOTE 4--SECURITIES TRANSACTIONS:
(A) The aggregate amount of purchases and sales (including paydowns) of
investment securities, excluding short-term securities and financial
futures, during the period ended September 30, 1998, amounted to
$624,365,350 and $649,765,944, respectively.
The Fund may invest in financial futures contracts in order to gain exposure
to or protect against changes in the market. The Fund is exposed to market risk
as a result of changes in the value of the underlying financial instruments.
Investments in financial futures require the Fund to "mark to market" on a daily
basis, which reflects the change in the market value of the contracts at the
closing of each day's trading. Typically, variation margin payments are received
or made to reflect daily unrealized gains or losses. When the contracts are
closed, the Fund recognizes realized gain or loss. These investments require
initial margin deposits with a custodian, which consist of cash or cash
equivalents, up to approximately 10% of the contract amount. The amount of these
deposits is determined by the exchange or Board of Trade on which the contract
is traded and is subject to change. Contracts open at September 30, 1998, are
set forth in the Statement of Financial Futures.
(B) At September 30, 1998, accumulated net unrealized appreciation on
investments and financial futures was $8,296,427, consisting of
$21,229,635 gross unrealized appreciation and $12,933,208 gross
unrealized depreciation.
At September 30, 1998, 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).
<PAGE>
<PAGE>
Dreyfus lion "d" logo (reg.tm)
Dreyfus logo (reg.tm)
DREYFUS A BONDS PLUS, INC.
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 084SA989
A Bonds Plus
Semi-Annual
Report
September 30, 1998
