<PAGE> PAGE 1
000 B000000 12/31/98
000 C000000 0000831655
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 U
001 A000000 MASSMUTUAL PARTICIPATION INVESTORS
001 B000000 811-5531
001 C000000 4137888411
002 A000000 1295 STATE STREET
002 B000000 SPRINGFIELD
002 C000000 MA
002 D010000 01111
002 D020000 0001
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
020 A000001 DONALDSON, LUFKIN, & JENRETTE SECURITIES CORP
020 B000001 13-2741729
020 C000001 8
020 A000002 ALLEN & CO. INCORPORATED
020 B000002 13-6176976
020 C000002 5
020 A000003 JONES & ASSOCIATES
020 B000003 95-3583143
020 C000003 5
020 A000004 LADENBURG, THALMAN LLC
020 B000004 13-2700032
020 C000004 2
020 A000005 DAIN RAUSCHER INCORPORATED
020 B000005 41-0212020
020 C000005 2
020 A000006 HAMBRECHT & QUIST LLC
020 B000006 94-3220292
020 C000006 2
020 A000007 LAZARD FRERES AND COMAPNY
020 B000007 13-5545100
020 C000007 2
020 A000008 WASSERSTEIN PERELLA SECURITIES INC.
020 B000008 13-3502273
020 C000008 1
020 A000009 JANNEY MONTGOMERY SCOTT INC.
020 B000009 23-0731260
020 C000009 1
020 A000010 MERRILL LYNCH, PIERCE, FENNER & SMITH INC.
<PAGE> PAGE 2
020 B000010 13-5674085
020 C000010 1
021 000000 30
022 A000001 GOLDMAN SACHS & CO
022 B000001 13-5108880
022 C000001 128736
022 D000001 3921
022 A000002 MERRILL LYNCH, PIERCE FENNER, & SMITH INC.
022 B000002 13-5674085
022 C000002 110276
022 D000002 6377
022 A000003 LEHMAN BROTHERS INC.
022 B000003 13-2518466
022 C000003 21560
022 D000003 1367
022 A000004 MORGAN (J.P.) SECURITIES INC.
022 B000004 13-3224016
022 C000004 18618
022 D000004 1059
022 A000005 MORGAN STANLEY & CO. INCORPORATED
022 B000005 13-2655998
022 C000005 11747
022 D000005 3069
022 A000006 DONALDSON LUFKIN, & JENRETTE SECURITIES CORP.
022 B000006 13-2741729
022 C000006 6210
022 D000006 4274
022 A000007 CHASE SECURITIES INC.
022 B000007 13-3112953
022 C000007 8285
022 D000007 1696
022 A000008 BA SECURITIES INC.
022 B000008 04-2476032
022 C000008 8430
022 D000008 173
022 A000009 BT ALEX. BROWN INCORPORATED
022 B000009 13-3311934
022 C000009 4226
022 D000009 1476
022 A000010 GRANTCHESTER SECURITIES INC.
022 B000010 13-3502273
022 C000010 2381
022 D000010 3086
023 C000000 369451
023 D000000 67753
024 000000 N
062 A000000 Y
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
<PAGE> PAGE 3
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 2.2
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 76.4
062 Q000000 0.0
062 R000000 21.4
070 A010000 Y
070 A020000 N
070 B010000 N
070 B020000 N
070 C010000 N
070 C020000 N
070 D010000 N
070 D020000 N
070 E010000 N
070 E020000 N
070 F010000 N
070 F020000 N
070 G010000 N
070 G020000 N
070 H010000 N
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 Y
070 J020000 Y
070 K010000 N
070 K020000 N
070 L010000 Y
070 L020000 Y
070 M010000 N
070 M020000 N
070 N010000 Y
070 N020000 N
070 O010000 Y
070 O020000 Y
070 P010000 N
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 70087
071 B000000 81208
<PAGE> PAGE 4
071 C000000 128102
071 D000000 55
072 A000000 12
074 N000000 135458
074 T000000 105200
075 A000000 0
075 B000000 109088
077 A000000 Y
077 B000000 Y
077 C000000 N
077 D000000 N
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 N
077 K000000 N
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 Y
077 P000000 N
077 Q010000 N
077 Q020000 Y
077 Q030000 N
078 000000 N
080 A000000 NEW HAMPSHIRE INSURANCE COMPANY
080 C000000 1200
081 A000000 Y
081 B000000 1
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 N
085 B000000 N
SIGNATURE CHARLES C. MCCOBB, JR.
TITLE VICE PRESIDENT & CFO
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
THE REPORT TO SHAREHOLDERS OF MASSMUTUAL PARTICIPATION INVESTORS
FOR THE YEAR ENDED DECEMBER 31, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS
</LEGEND>
<CIK> 0000831655
<NAME> MASSMUTUAL PARTICIPATION INVESTORS
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 130,244,818
<INVESTMENTS-AT-VALUE> 130,730,834
<RECEIVABLES> 2,696,579
<ASSETS-OTHER> 2,030,611
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 135,458,024
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 22,500,000
<OTHER-ITEMS-LIABILITIES> 7,758,026
<TOTAL-LIABILITIES> 30,258,026
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 85,739,379
<SHARES-COMMON-STOCK> 9,288,323
<SHARES-COMMON-PRIOR> 9,216,665
<ACCUMULATED-NII-CURRENT> 357,094
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 4,820,787
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 486,016
<NET-ASSETS> 105,199,998
<DIVIDEND-INCOME> 388,403
<INTEREST-INCOME> 11,258,613
<OTHER-INCOME> 0
<EXPENSES-NET> 2,742,369
<NET-INVESTMENT-INCOME> 8,904,647
<REALIZED-GAINS-CURRENT> 6,440,897
<APPREC-INCREASE-CURRENT> (6,579,078)
<NET-CHANGE-FROM-OPS> 8,766,466
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 8,950,257
<DISTRIBUTIONS-OF-GAINS> 1,616,071
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 71,658
<NET-CHANGE-IN-ASSETS> (955,587)
<ACCUMULATED-NII-PRIOR> 402,704
<ACCUMULATED-GAINS-PRIOR> 13,703,839
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 987,685
<INTEREST-EXPENSE> 1,471,432
<GROSS-EXPENSE> 2,742,369
<AVERAGE-NET-ASSETS> 109,087,779
<PER-SHARE-NAV-BEGIN> 11.52
<PER-SHARE-NII> .97
<PER-SHARE-GAIN-APPREC> (.02)
<PER-SHARE-DIVIDEND> .96
<PER-SHARE-DISTRIBUTIONS> .18
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.33
<EXPENSE-RATIO> 2.51
<AVG-DEBT-OUTSTANDING> 22,500,000
<AVG-DEBT-PER-SHARE> 2.42
</TABLE>
EXHIBIT INDEX TO FORM N-SAR
OF MASSMUTUAL PARTICIPATION INVESTORS
FOR PERIOD ENDED DECEMBER 31, 1998
EXHIBIT NO. DESCRIPTION
77B Accountant's Report on Internal Control
77O Transactions Effected Pursuant to Rule 10f-3
77Q2 Information Called for by the Instructions to Sub-Item 77Q2
PRICEWATERHOUSECOOPERS
PricewaterhouseCoopers LLP
2300 BayBank Tower
P.O. Box 59
Springfield, MA 01101-0059
Telephone (413) 781-7200
Facsimile (413) 733-2195
To the Board of Trustees of
MassMutual Participation Investors
In planning and performing our audit of the financial statements of
MassMutual Participation Investors for the year ended December 31,
1998, 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 internal control.
The management of MassMutual Participation Investors 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, error 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 internal control would not necessarily disclose
all matters in 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 internal control and its operation, including controls for
safeguarding securities, that we consider to be material weaknesses
as defined above as of December 31, 1998.
This report is intended solely for the information and use of
management, the Board of Trustees of MassMutual Participation
Investors, and the Securities and Exchange Commission.
PricewaterhouseCoopers
Springfield, Massachusetts
February 25, 1999
For Period Ending 12/31/98
File No. 811-5531
Item 77O. Transactions Effected Pursuant to Rule 10f-3
Registrant purchased in a Rule 144A offering from Jefferies & Co.,
Inc. $700,000 principal amount of 10.125% Senior Notes due December 1,
2004 issued by Mrs. Fields' Original Cookies, Inc. at a price of
$97.00 on August 13, 1998. Mr. Richard G. Dooley, Vice Chairman and
member of the Board of Trustees of Registrant, is a director of
Jefferies Group, Inc., the parent of Jefferies & Co.
To the extent such offerings might be deemed to be underwritten public
offerings, Registrant claims an exemption from the provisions of
Section 10(f) of the Investment Company Act of 1940, as amended, (the
"Act") on the basis that, with respect to this purchase, Registrant
has complied with the provisions of Rule 10f-3 promulgated under the
Act. Registrant's Board of Trustees have adopted the procedures,
pursuant to which such purchases may be effected. Such procedures are
reasonably designed to provide for the conditions set forth in
subsections (a) through (g) of Rule 10f-3.
Registrant will preserve a record of this transaction for a period of
six years from the end of the fiscal year in which the transaction
occurred, the first two years in an easily accessible place.
For Period Ended 12/31/98
File No. 811-5531
Item 77Q2 Information Called for by the Instructions to Sub-Item
77Q2.
During the fiscal year Mark B. Ackerman inadvertently failed to file
SEC Form 3 in a timely manner upon his election as Treasurer and
executive officer of the Trust. In addition, John F. Maypole, a
Director of the Insurance Company, inadvertently failed to timely file
one SEC Form 4 with respect to one transaction during the year.
