<PAGE> PAGE 1
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<PAGE> PAGE 2
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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<PAGE> PAGE 5
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<PAGE> PAGE 7
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<PAGE> PAGE 8
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<PAGE> PAGE 9
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<PAGE> PAGE 10
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<PAGE> PAGE 11
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<PAGE> PAGE 12
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<PAGE> PAGE 13
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<PAGE> PAGE 14
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<PAGE> PAGE 15
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<PAGE> PAGE 16
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<PAGE> PAGE 17
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<PAGE> PAGE 18
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<PAGE> PAGE 19
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<PAGE> PAGE 20
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048 B020800 0.000
<PAGE> PAGE 21
048 C010800 0
048 C020800 0.000
048 D010800 0
048 D020800 0.000
048 E010800 0
048 E020800 0.000
048 F010800 0
048 F020800 0.000
048 G010800 0
048 G020800 0.000
048 H010800 0
048 H020800 0.000
048 I010800 0
048 I020800 0.000
048 J010800 0
048 J020800 0.000
048 K010800 0
048 K020800 0.000
049 000800 N
050 000800 N
051 000800 N
052 000800 N
053 A000800 N
054 A000800 Y
054 B000800 Y
054 C000800 Y
054 D000800 N
054 E000800 N
054 F000800 N
054 G000800 Y
054 H000800 Y
054 I000800 N
054 J000800 Y
054 K000800 N
054 L000800 Y
054 M000800 Y
054 N000800 N
054 O000800 N
055 A000800 Y
055 B000800 N
056 000800 N
057 000800 N
058 A000800 N
059 000800 Y
060 A000800 Y
060 B000800 Y
061 000800 1000
062 A000800 Y
062 B000800 0.0
062 C000800 0.0
062 D000800 1.0
<PAGE> PAGE 22
062 E000800 0.0
062 F000800 0.0
062 G000800 0.0
062 H000800 0.0
062 I000800 0.0
062 J000800 0.0
062 K000800 0.0
062 L000800 0.0
062 M000800 0.0
062 N000800 0.0
062 O000800 0.0
062 P000800 97.3
062 Q000800 0.0
062 R000800 1.7
063 A000800 0
063 B000800 7.9
064 A000800 Y
064 B000800 N
066 A000800 N
067 000800 N
068 A000800 N
068 B000800 N
069 000800 N
070 A010800 Y
070 A020800 Y
070 B010800 Y
070 B020800 N
070 C010800 Y
070 C020800 N
070 D010800 Y
070 D020800 N
070 E010800 Y
070 E020800 N
070 F010800 Y
070 F020800 N
070 G010800 Y
070 G020800 N
070 H010800 Y
070 H020800 N
070 I010800 Y
070 I020800 N
070 J010800 Y
070 J020800 Y
070 K010800 N
070 K020800 N
070 L010800 Y
070 L020800 Y
070 M010800 Y
070 M020800 Y
070 N010800 Y
070 N020800 N
<PAGE> PAGE 23
070 O010800 N
070 O020800 N
070 P010800 N
070 P020800 N
070 Q010800 N
070 Q020800 N
070 R010800 Y
070 R020800 N
071 A000800 1671661
071 B000800 1521705
071 C000800 1577270
071 D000800 96
072 A000800 12
072 B000800 164957
072 C000800 2816
072 D000800 0
072 E000800 0
072 F000800 8209
072 G000800 3283
072 H000800 0
072 I000800 1057
072 J000800 45
072 K000800 0
072 L000800 77
072 M000800 25
072 N000800 179
072 O000800 0
072 P000800 0
072 Q000800 0
072 R000800 30
072 S000800 8
072 T000800 8243
072 U000800 0
072 V000800 0
072 W000800 27
072 X000800 21183
072 Y000800 0
072 Z000800 146590
072AA000800 0
072BB000800 100357
072CC010800 0
072CC020800 104146
072DD010800 45310
072DD020800 101854
072EE000800 0
073 A010800 0.0000
073 A020800 0.0000
073 B000800 0.0000
073 C000800 0.0000
074 A000800 0
074 B000800 15435
<PAGE> PAGE 24
074 C000800 0
074 D000800 1586819
074 E000800 22740
074 F000800 129
074 G000800 0
074 H000800 0
074 I000800 5473
074 J000800 25874
074 K000800 0
074 L000800 46317
074 M000800 310
074 N000800 1703097
074 O000800 24736
074 P000800 1133
074 Q000800 0
074 R010800 0
074 R020800 0
074 R030800 0
074 R040800 11852
074 S000800 0
074 T000800 1665376
074 U010800 47939
074 U020800 113644
074 V010800 0.00
074 V020800 0.00
074 W000800 0.0000
074 X000800 66310
074 Y000800 72379
075 A000800 0
075 B000800 1646080
076 000800 0.00
015 A000901 PNC BANK
015 B000901 C
015 C010901 PHILADELPHIA
015 C020901 PA
015 C030901 19103
015 E010901 X
028 A010900 10828
028 A020900 0
028 A030900 0
028 A040900 25437
028 B010900 16808
028 B020900 4834
028 B030900 0
028 B040900 29585
028 C010900 15744
028 C020900 0
028 C030900 0
028 C040900 27964
028 D010900 10664
028 D020900 0
<PAGE> PAGE 25
028 D030900 0
028 D040900 22272
028 E010900 11137
028 E020900 4695
028 E030900 0
028 E040900 23780
028 F010900 9822
028 F020900 0
028 F030900 0
028 F040900 22978
028 G010900 75003
028 G020900 9528
028 G030900 0
028 G040900 152016
028 H000900 58218
029 000900 Y
030 A000900 238
030 B000900 5.00
030 C000900 0.00
031 A000900 0
031 B000900 0
032 000900 0
033 000900 238
034 000900 Y
035 000900 441
036 A000900 Y
036 B000900 0
037 000900 N
038 000900 0
039 000900 N
040 000900 Y
041 000900 Y
042 A000900 0
042 B000900 0
042 C000900 0
042 D000900 0
042 E000900 0
042 F000900 0
042 G000900 0
042 H000900 0
043 000900 5579
044 000900 0
045 000900 Y
046 000900 N
047 000900 Y
048 000900 0.450
048 A010900 0
048 A020900 0.000
048 B010900 0
048 B020900 0.000
048 C010900 0
<PAGE> PAGE 26
048 C020900 0.000
048 D010900 0
048 D020900 0.000
048 E010900 0
048 E020900 0.000
048 F010900 0
048 F020900 0.000
048 G010900 0
048 G020900 0.000
048 H010900 0
048 H020900 0.000
048 I010900 0
048 I020900 0.000
048 J010900 0
048 J020900 0.000
048 K010900 0
048 K020900 0.000
062 A000900 N
062 B000900 0.0
062 C000900 0.0
062 D000900 0.0
062 E000900 0.0
062 F000900 0.0
062 G000900 0.0
062 H000900 0.0
062 I000900 0.0
062 J000900 0.0
062 K000900 0.0
062 L000900 0.0
062 M000900 0.0
062 N000900 0.0
062 O000900 0.0
062 P000900 0.0
062 Q000900 0.0
062 R000900 0.0
063 A000900 0
063 B000900 0.0
066 A000900 Y
066 E000900 Y
067 000900 N
068 A000900 N
068 B000900 N
069 000900 N
070 A010900 Y
070 A020900 Y
070 B010900 Y
070 B020900 N
070 C010900 Y
070 C020900 N
070 D010900 Y
070 D020900 N
<PAGE> PAGE 27
070 E010900 Y
070 E020900 N
070 F010900 Y
070 F020900 N
070 G010900 Y
070 G020900 N
070 H010900 Y
070 H020900 N
070 I010900 N
070 I020900 N
070 J010900 Y
070 J020900 Y
070 K010900 N
070 K020900 N
070 L010900 Y
070 L020900 Y
070 M010900 Y
070 M020900 Y
070 N010900 Y
070 N020900 Y
070 O010900 Y
070 O020900 N
070 P010900 N
070 P020900 N
070 Q010900 Y
070 Q020900 N
070 R010900 Y
070 R020900 N
071 A000900 560942
071 B000900 742218
071 C000900 927435
071 D000900 60
072 A000900 12
072 B000900 31933
072 C000900 8694
072 D000900 0
072 E000900 0
072 F000900 4222
072 G000900 1877
072 H000900 0
072 I000900 940
072 J000900 62
072 K000900 0
072 L000900 285
072 M000900 16
072 N000900 96
072 O000900 0
072 P000900 0
072 Q000900 0
072 R000900 56
072 S000900 0
<PAGE> PAGE 28
072 T000900 5579
072 U000900 0
072 V000900 0
072 W000900 38
072 X000900 13171
072 Y000900 0
072 Z000900 27456
072AA000900 5501
072BB000900 0
072CC010900 69388
072CC020900 0
072DD010900 7911
072DD020900 15112
072EE000900 222811
073 A010900 0.0000
073 A020900 0.0000
073 B000900 3.6600
073 C000900 0.0000
074 A000900 0
074 B000900 0
074 C000900 0
074 D000900 351513
074 E000900 1703
074 F000900 532197
074 G000900 0
074 H000900 0
074 I000900 534
074 J000900 13072
074 K000900 217
074 L000900 8063
074 M000900 65818
074 N000900 973117
074 O000900 3066
074 P000900 731
074 Q000900 0
074 R010900 0
074 R020900 0
074 R030900 0
074 R040900 76382
074 S000900 0
074 T000900 892938
074 U010900 22425
074 U020900 42323
074 V010900 0.00
074 V020900 0.00
074 W000900 0.0000
074 X000900 62278
074 Y000900 0
075 A000900 0
075 B000900 4976
076 000900 0.00
<PAGE> PAGE 29
015 A001001 CHASE MANHATTAN BANK
015 B001001 C
015 C011001 BROOKLYN
015 C021001 NY
015 C031001 11245
015 E011001 X
028 A011000 93774
028 A021000 7888
028 A031000 0
028 A041000 116577
028 B011000 108770
028 B021000 15734
028 B031000 0
028 B041000 145375
028 C011000 84733
028 C021000 0
028 C031000 0
028 C041000 115470
028 D011000 113815
028 D021000 7748
028 D031000 0
028 D041000 140603
028 E011000 88251
028 E021000 15393
028 E031000 0
028 E041000 145776
028 F011000 113164
028 F021000 7479
028 F031000 0
028 F041000 142454
028 G011000 602507
028 G021000 54242
028 G031000 0
028 G041000 806255
028 H001000 484572
029 001000 Y
030 A001000 1999
030 B001000 4.50
030 C001000 1.00
031 A001000 0
031 B001000 0
032 001000 0
033 001000 1999
034 001000 Y
035 001000 2368
036 A001000 Y
036 B001000 0
037 001000 N
038 001000 0
039 001000 N
040 001000 Y
<PAGE> PAGE 30
041 001000 Y
042 A001000 0
042 B001000 0
042 C001000 0
042 D001000 0
042 E001000 0
042 F001000 0
042 G001000 0
042 H001000 0
043 001000 18209
044 001000 0
045 001000 Y
046 001000 N
047 001000 Y
048 001000 0.450
048 A011000 0
048 A021000 0.000
048 B011000 0
048 B021000 0.000
048 C011000 0
048 C021000 0.000
048 D011000 0
048 D021000 0.000
048 E011000 0
048 E021000 0.000
048 F011000 0
048 F021000 0.000
048 G011000 0
048 G021000 0.000
048 H011000 0
048 H021000 0.000
048 I011000 0
048 I021000 0.000
048 J011000 0
048 J021000 0.000
048 K011000 0
048 K021000 0.000
049 001000 N
050 001000 N
051 001000 N
052 001000 N
053 A001000 N
055 A001000 N
055 B001000 N
056 001000 N
057 001000 N
058 A001000 N
059 001000 N
060 A001000 Y
060 B001000 Y
061 001000 1000
<PAGE> PAGE 31
062 A001000 Y
062 B001000 0.0
062 C001000 0.0
062 D001000 18.4
062 E001000 0.0
062 F001000 0.0
062 G001000 0.0
062 H001000 0.0
062 I001000 0.0
062 J001000 0.0
062 K001000 0.0
062 L001000 0.0
062 M001000 0.0
062 N001000 40.8
062 O001000 0.0
062 P001000 28.1
062 Q001000 12.7
062 R001000 0.0
063 A001000 0
063 B001000 5.0
064 A001000 N
064 B001000 N
066 A001000 N
067 001000 N
068 A001000 N
068 B001000 N
069 001000 N
070 A011000 Y
070 A021000 Y
070 B011000 Y
070 B021000 N
070 C011000 Y
070 C021000 Y
070 D011000 N
070 D021000 N
070 E011000 Y
070 E021000 Y
070 F011000 N
070 F021000 N
070 G011000 Y
070 G021000 N
070 H011000 Y
070 H021000 N
070 I011000 N
070 I021000 N
070 J011000 Y
070 J021000 Y
070 K011000 Y
070 K021000 N
070 L011000 Y
070 L021000 Y
<PAGE> PAGE 32
070 M011000 Y
070 M021000 Y
070 N011000 Y
070 N021000 Y
070 O011000 Y
070 O021000 N
070 P011000 N
070 P021000 N
070 Q011000 Y
070 Q021000 N
070 R011000 Y
070 R021000 N
071 A001000 4686162
071 B001000 4472168
071 C001000 2978994
071 D001000 150
072 A001000 12
072 B001000 212109
072 C001000 2655
072 D001000 0
072 E001000 0
072 F001000 13056
072 G001000 5803
072 H001000 0
072 I001000 2105
072 J001000 309
072 K001000 0
072 L001000 101
072 M001000 19
072 N001000 139
072 O001000 0
072 P001000 0
072 Q001000 0
072 R001000 28
072 S001000 18
072 T001000 18209
072 U001000 0
072 V001000 0
072 W001000 49
072 X001000 39836
072 Y001000 0
072 Z001000 174928
072AA001000 0
072BB001000 11704
072CC011000 0
072CC021000 96071
072DD011000 27293
072DD021000 146593
072EE001000 2721
073 A011000 0.0000
073 A021000 0.0000
<PAGE> PAGE 33
073 B001000 0.0100
073 C001000 0.0400
074 A001000 16412
074 B001000 605000
074 C001000 0
074 D001000 2678240
074 E001000 8624
074 F001000 135
074 G001000 0
074 H001000 0
074 I001000 74360
074 J001000 211480
074 K001000 0
074 L001000 42132
074 M001000 0
074 N001000 3636383
074 O001000 841981
074 P001000 1459
074 Q001000 0
074 R011000 0
074 R021000 0
074 R031000 0
074 R041000 103153
074 S001000 0
074 T001000 2689790
074 U011000 62270
074 U021000 297447
074 V011000 0.00
074 V021000 0.00
074 W001000 0.0000
074 X001000 112791
074 Y001000 0
075 A001000 0
075 B001000 2908013
076 001000 0.00
015 A001101 PNC BANK
015 B001101 C
015 C011101 PHILADELPHIA
015 C021101 PA
015 C031101 19103
015 E011101 X
028 A011100 3374
028 A021100 639
028 A031100 0
028 A041100 4361
028 B011100 2563
028 B021100 1266
028 B031100 0
028 B041100 5626
028 C011100 2100
028 C021100 0
<PAGE> PAGE 34
028 C031100 0
028 C041100 5641
028 D011100 1815
028 D021100 618
028 D031100 0
028 D041100 6363
028 E011100 1927
028 E021100 1194
028 E031100 0
028 E041100 4486
028 F011100 908
028 F021100 579
028 F031100 0
028 F041100 6349
028 G011100 12687
028 G021100 4296
028 G031100 0
028 G041100 32826
028 H001100 6901
029 001100 Y
030 A001100 325
030 B001100 4.50
030 C001100 0.00
031 A001100 0
031 B001100 0
032 001100 325
033 001100 0
034 001100 Y
035 001100 384
036 A001100 Y
036 B001100 0
037 001100 N
038 001100 0
039 001100 N
040 001100 Y
041 001100 Y
042 A001100 0
042 B001100 0
042 C001100 0
042 D001100 0
042 E001100 0
042 F001100 0
042 G001100 100
042 H001100 0
043 001100 1035
044 001100 0
045 001100 Y
046 001100 N
047 001100 Y
048 001100 0.650
048 A011100 0
<PAGE> PAGE 35
048 A021100 0.000
048 B011100 0
048 B021100 0.000
048 C011100 0
048 C021100 0.000
048 D011100 0
048 D021100 0.000
048 E011100 0
048 E021100 0.000
048 F011100 0
048 F021100 0.000
048 G011100 0
048 G021100 0.000
048 H011100 0
048 H021100 0.000
048 I011100 0
048 I021100 0.000
048 J011100 0
048 J021100 0.000
048 K011100 0
048 K021100 0.000
062 A001100 Y
062 B001100 0.0
062 C001100 0.0
062 D001100 0.0
062 E001100 0.0
062 F001100 0.0
062 G001100 0.0
062 H001100 0.0
062 I001100 0.0
062 J001100 0.0
062 K001100 0.0
062 L001100 0.0
062 M001100 0.0
062 N001100 9.5
062 O001100 39.7
062 P001100 41.2
062 Q001100 9.6
062 R001100 0.0
063 A001100 0
063 B001100 23.0
064 A001100 Y
064 B001100 N
066 A001100 N
067 001100 N
068 A001100 N
068 B001100 N
069 001100 N
070 A011100 Y
070 A021100 Y
070 B011100 N
<PAGE> PAGE 36
070 B021100 N
070 C011100 N
070 C021100 N
070 D011100 N
070 D021100 N
070 E011100 N
070 E021100 N
070 F011100 N
070 F021100 N
070 G011100 Y
070 G021100 Y
070 H011100 N
070 H021100 N
070 I011100 N
070 I021100 N
070 J011100 N
070 J021100 N
070 K011100 N
070 K021100 N
070 L011100 N
070 L021100 N
070 M011100 N
070 M021100 N
070 N011100 Y
070 N021100 N
070 O011100 N
070 O021100 N
070 P011100 N
070 P021100 N
070 Q011100 N
070 Q021100 N
070 R011100 N
070 R021100 N
071 A001100 79325
071 B001100 55899
071 C001100 173349
071 D001100 32
072 A001100 12
072 B001100 12428
072 C001100 0
072 D001100 0
072 E001100 0
072 F001100 1169
072 G001100 0
072 H001100 0
072 I001100 121
072 J001100 7
072 K001100 0
072 L001100 77
072 M001100 15
072 N001100 93
<PAGE> PAGE 37
072 O001100 0
072 P001100 0
072 Q001100 0
072 R001100 29
072 S001100 20
072 T001100 1035
072 U001100 0
072 V001100 0
072 W001100 15
072 X001100 2581
072 Y001100 155
072 Z001100 10002
072AA001100 0
072BB001100 1587
072CC011100 0
072CC021100 12620
072DD011100 3562
072DD021100 6513
072EE001100 0
073 A011100 0.0000
073 A021100 0.0000
073 B001100 0.0000
073 C001100 0.0000
074 A001100 0
074 B001100 0
074 C001100 0
074 D001100 157378
074 E001100 0
074 F001100 0
074 G001100 0
074 H001100 0
074 I001100 0
074 J001100 2571
074 K001100 65
074 L001100 3206
074 M001100 0
074 N001100 163220
074 O001100 0
074 P001100 40
074 Q001100 0
074 R011100 0
074 R021100 0
074 R031100 0
074 R041100 835
074 S001100 0
074 T001100 162345
074 U011100 4882
074 U021100 10334
074 V011100 0.00
074 V021100 0.00
074 W001100 0.0000
<PAGE> PAGE 38
074 X001100 7874
074 Y001100 0
075 A001100 0
075 B001100 180365
076 001100 0.00
SIGNATURE PAUL BROOK
TITLE CONTROLLER
SMITH BARNEY INCOME FUND
10f-3 REPORT
February 1, 1999 through July 31, 1999
Trade % of
Issuer Date Selling Dealer Amount
Price Issue
Dr. Horton 2/1/99 DLJ $750,000 $99.457
3.90%
8.00% due 2/01/2029
National Steel Corp. 3/3/99 J.P. Morgan 245,000
99.226 2.22
9.875% due 3/01/2009
Charter Communications 3/12/99 Goldman, Sachs
0/9.92% due 4/1/2011 1,596,244 61.394
8.625% due 4/1/2009 1,500,000 99.695
3,096,244 2.08
Telewest Communications 4/1/99 DLJ
0/9.875% due 4/15/2009 485,181 61.758
0/9.25% due 4/15/2009 308,595 63.628
793,776 1.97
IT Croup 4/6/99 DLJ 490,000 100.00
4.44
11.25% due 4/1/2009
Just for Feet 4/12/99 NationsBanc Montgomery 395,000
100.00 4.00
11.00% due 5/1/2009
Fairchild Corporation 4/15/99 CS First Boston 550,000
100.00 5.78
10.75% due 4/15/2009
ONO Finance PLC 4/29/99 BT/Alex Brown 225,000
100.00 1.82
13.00% due 5/1/2009
UnionBanCal Corp. 2/25/99 Morgan Stanley 600,000
30.00 0.32
Pepsi Bottling 3/30/99 Merrill Lynch 5,520,000
23.00 5.65
Dr. Horton 2/1/99 DLJ 5,335,000 99.457
3.90
8.00% due 2/01/2029
National Steel Corp. 3/3/99 J.P. Morgan 1,785,000
99.226 2.22
9.875% due 3/1/2009
Charter Communications 3/12/99 Goldman, Sachs
0/9.92% due 4/1/2011 11,296,496 61.394
8.625% due 4/1/2009 10,625,000 99.695
21,921,496 2.08
Telewest Communications 4/1/99 DLJ
0/9.875% due 4/15/2009 3,594,302 61.758
0/9.25% due 4/15/2009 2,303,333 63.628
5.897,635 1.97
IT Group 4/6/99 DLJ 3,620,000 100.00
4.44
11.25% due 4/1/2009
Just for Feet 4/12/99 NationsBanc Montgomery 2,905,000
100.00 4.00
11.00% due 5/1/2009
Fairchild Corporation 4/15/99 CS First Boston 4,200,000
100.00 5.78
10.75% due 4/15/2009
ONO Finance PLC 4/29/99 BT/Alex Brown 1,850,000
100.00 1.82
13.00% due 5/1/2009
Dr. Horton 2/1/99 DLJ 3,260,000 99.457
3.90
8.00% due 2/01/2029
National Steel Corp. 3/3/99 J.P. Morgan 1,090,000
99.226 2.22
9.875% due 3/01/2009
Charter Communications 3/12/99 Goldman, Sachs
0/9.92% due 4/1/2011 6,906,825 61.394
8.625% due 4/1/2009 6,500,000 99.695
13,406,825 2.08
Telewest Communications 4/1/99 DLJ
0/9.875% due 4/15/2009 2,099,151 61.758
0/9.25% due 4/15/2009 1,345,732 63.628
3,444,883 1.97
IT Group 4/6/99 DLJ 2,110,000 100.00
4.44
11.25% due 4/1/2009
Just for Feet 4/12/99 NationsBanc Montgomery 1,675,000
100.00 4.00
11.00% due 5/1/2009
Fairchild Corporation 4/15/99 CS First Boston 2,800,000
100.00 5.78
10.75% due 4/15/2009
ONO Finance PLC 4/29/99 BT/Alex Brown 1,025,000
100.00 1.82
13.00% due 5/1/2009
Lyondell Chemical 5/11/99 Donaldson, Lufkin & Jenrette
9.875% due 5/1/2007 970,000 100.00
10.875% due 5/1/2009 240,000 100.00
9.625% due 5/1/2007 485,000 100.00
1,695,000 2.33
International Game Tech: 5/11/99 Goldman Sachs
7.875% due 5/15/2004 718,314 99.053
8.375% due 5/15/2009 717,562 98.974
1,435,876 2.97
Crown Castle Int' 5/12/99 Goldman Sachs 340,000
100.000 3.89
9.00% due 5/15/2011
Pride International 5/21/99 Donaldson, Lufkin, & Jenrette
720,000 100.000 7.00
10.00% due 6/1/2009
Nextlink Communications 5/25/99 Goldman Sachs
0/12.25% due 6/1/2009 510,461 55.185
10.75% due 6/1/2009 1,285,000 100.000
1,795,461 2.76
Chaiquita Brands Int'l 6/15/99 Lehman Brothers 855,000
100.000 8.75
10.00% due 6/15/2009
Head Holding 7/12/99 Fleet Securities 500,000
101.800 12.00
10.75% due 7/15/2006
Kappa Beheer BV 7/16/99 Barclay's Bank 1,260,000
102.150 6.76
10.625% due 7/15/2009
Worldwide Fiber 7/23/99 Donaldson, Lufkin, & Jenrette 725,000
100.000 3.40
12.00% due 8/1/2009 200,000
925,000
Allied Waste 7/27/99 Lehman Brothers 5,425,000
99.668 5.50
10.000% due 8/1/2009
BSN Financing S.A. 7/27/99 Societe Generale 750,000
106.270 11.11
10.25% due 8/1/2009
United Pan-Europe 7/27/99 Donaldson, Lufkin, & Jenrette
3,598,386 54.521 10.01
0/12.50 % due 8/1/2009
Kappa Bcheer BV 7/16/99 Barclay's Bank 9,265,000
102.150 6.76
10.625% due 7/15/2009
Worldwide Fiber 7/23/99 Donaldson, Lufkin, & Jenrette 5,600,000
100.000
12.00% due 8/1/2009 1,500,000
7,100,000 3.40
Allied Waste 7/27/99 Lehman Brothers 40,500,000
99.668 5.50
10.00% due 8/1/2009
BSN Financial S.A. 7/27/99 Societe Generale 10,600,000
106.270 11.11
10.25% due 8/1/2009
United Pan-Europe 7/27/99 Donaldson, Lufkin & Jenrette
27,260,500 54.521 10.01
0/12.50% due 8/1/2009
Lyondell Chemical 5/11/99 Donaldson, Lufkin, & Jenrette
9.875% due 5/1/2007 7,185,000 100.000
10.875% due 5/1/2009 1,815,000 100.000
9.625% due 5/1/2007 3,595,000 100.000
12,595,000 2.33
International Game Tech 5/11/99 Goldman Sachs
7.875% due 5/15/2004 5,348,862 99.053
8.375% due 5/15/2009 5,344,596 98.974
10,693,458 2.97
Crown Castle Int'l 5/12/99 Goldman Sachs 2,450,000
100.000 3.89
9.00% due 5/15/2011
Pride International 5/21/99 Donaldson, Lufkin, & Jenrette
4,700,000 100.000 7.00
10.00% due 6/1/2009
Nextlink Communications 5/25/99 Goldman Sachs
0/12.25% due 6/1/2009 3,335,933 55.185
10.75% due 6/1/2009 8,395,000 100.000
11,730,933 2.76
Chiquita Brands Int'l 6/15/99 Lehman Brothers 6,345,000
100.000 8.75
10.00% due 6/15/2009
Head Holding 7/12/99 Fleet Securities 3,700,000
101.800
10.75% due 7/15/2006 1,800,000 102.818
5,500,000
12.00
Kappa Beheer BV 7/19/99 Barclay's Bank 5,180,000
102.150 6.76
10.625% due 7/15/2009
Worldwide Fiber 7/23/99 Donaldson, Lufkin, & Jenrette 3,075,000
100.000 3.40
12.00% due 8/1/2009
Allied Waste 7/27/99 Lehman Brothers 22,800,000
99.668 5.50
10.00% due 8/1/2009
BSN Financing S.A. 7/27/99 Societe Generale 2,925,000
106.270 11.11
10.25% due 8/1/2009
United Pan-Europe 7/27/99 Donaldson, Lufkin & Jenrette
15,265,880 54.521 10.01
0/12.25% due 8/1/2009
Lyondell Chemical 5/11/99 Donaldson, Lufkin & Jenrette
9.875% due 5/1/2007 4,180,000 100.00
10.875% due 5/1/2009 1,045,000 100.00
9.625% due 5/1/2007 2,090,000 100.00
7,315,000 2.33
International Game Tech 5/11/99 Goldman Sachs
7.875% due 5/15/2004 3,105,312 99.053
8.375% due 5/15/2009 3,102,835 98.974
6,208,147 2.97
Crown Castle Int'l 5/12/99 Goldman Sachs 1,460,000
100.00 3.89
9.00% due 5/15/2011
Pride International 5/21/99 Donaldson, Lufkin, & Jenrette
3,225,000 100.00 7.00
10.00% due 6/1/2009
Nextlink Communications 5/25/99 Goldman Sachs
0/12.25% due 6/1/2009 2,287,418 55.185
10.75% due 6/1/2009 5,760,000 100.000
8,047,418 2.76
Chiquita Brands Int'l 6/15/99 Lehman Brothers 3,690,000
100.000 8.75
10.00% due 6/15/2009
Head Holding 7/12/99 Fleet Securities 2,075,000
101.800 12.00
10.75% due 7/15/2006
To the Shareholders and Trustees of the
Smith Barney Income Funds:
In planning and performing our audit of the financial statements
of the Smith Barney Income Funds (the "Funds") for the year
ended July 31, 1999, we considered its internal control,
including control activities for safeguarding securities, in
order to determine our auditing procedures for the purpose of
expressing our opinion on the financial statements and to comply
with the requirements of Form N-SAR, not to provide assurance on
the internal control.
The management of the Funds is responsible for establishing and
maintaining internal control. In fulfilling this responsibility,
estimates and judgments by management are required to assess the
expected benefits and related costs of controls. Generally,
controls that are relevant to an audit pertain to the entity's
objective of preparing financial statements for external purposes
that are fairly presented in conformity with generally accepted
accounting principles. Those controls include the safeguarding of
assets against unauthorized acquisition, use, or disposition.
Because of inherent limitations in internal control, errors or
fraud may occur and not be detected. Also, projection of any
evaluation of internal control to future periods is subject to
the risk that it may become inadequate because of changes in
conditions or that the effectiveness of the design and operation
may deteriorate.
Our consideration of the internal control would not necessarily
disclose all matters in the internal control that might be
material weaknesses under standards established by the American
Institute of Certified Public Accountants. A material weakness
is a condition in which the design or operation of one or more of
the internal control components does not reduce to a relatively
low level the risk that misstatements caused by error or fraud in
amounts that would be material in relation to the financial
statements being audited may occur and not be detected within a
timely period by employees in the normal course of performing
their assigned functions. However, we noted no matters involving
the internal control and its operation, including controls for
safeguarding securities that we consider to be material
weaknesses as defined above.
This report is intended solely for the information and use of
management, the Trustees of the Funds, and the Securities and
Exchange Commission and is not intended to be and should not be
used by anyone other than specified parties.
September 14, 1999
