UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-5769
Van Kampen High Income Trust II
(Exact name of registrant as specified in charter)
522 Fifth Avenue, New York, New York 10036
(Address of principal executive offices) (Zip code)
Ronald Robison
522 Fifth Avenue, New York, New York 10036
(Name and address of agent for service)
Registrant's telephone number, including area code: 212-762-4000
Date of fiscal year end: 12/31___
Date of reporting period: 3/31/08
Item 1. Schedule of Investments.
The Fund's schedule of investments as of the close of the reporting period
prepared pursuant to Rule 12-12 of Regulation S-X is as follows:
VAN KAMPEN HIGH INCOME TRUST II
PORTFOLIO OF INVESTMENTS - MARCH 31, 2008 (UNAUDITED)
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
------- -------------------------------------------------- ------ -------- ------------
CORPORATE BONDS 170.6%
BROADCASTING 2.1%
$ 420 LIN Television Corp. ............................. 6.500% 05/15/13 $ 391,650
335 LIN Television Corp., Ser
B ............................................. 6.500 05/15/13 312,387
515 Salem Communications Corp. ....................... 7.750 12/15/10 487,319
495 Univision Communications,
Inc. (a) (b) .................................. 9.750 03/15/15 301,950
------------
1,493,306
------------
CABLE 8.8%
1,175 Cablevision Systems Corp., Ser
B (c) ......................................... 9.644 04/01/09 1,172,062
495 CCH I LLC ........................................ 11.000 10/01/15 346,500
350 CCH II LLC ....................................... 10.250 09/15/10 320,250
115 DirecTV Holdings LLC/DirecTV
Financing Co. ....................... 6.375 06/15/15 107,813
495 Echostar DBS Corp. ............................... 5.750 10/01/08 493,763
1,740 Echostar DBS Corp. ............................... 6.375 10/01/11 1,674,750
340 Echostar DBS Corp. ............................... 6.625 10/01/14 310,250
80 Intelsat Subsidiary Holding Co.,
Ltd. (Bermuda) ............................... 8.250 01/15/13 81,000
950 Intelsat Subsidiary Holding Co.,
Ltd. (Bermuda) ............................... 8.625 01/15/15 961,875
145 NTL Cable PLC (United Kingdom) ................... 8.750 04/15/14 130,862
100 NTL Cable PLC (United Kingdom) ................... 9.125 08/15/16 90,000
693 PanAmSat Corp. ................................... 9.000 08/15/14 701,663
------------
6,390,788
------------
CHEMICALS 6.1%
740 Innophos, Inc. ................................... 8.875 08/15/14 721,500
705 Koppers, Inc. .................................... 9.875 10/15/13 743,775
1,450 Nalco Co. ........................................ 7.750 11/15/11 1,475,375
750 Terra Capital, Inc. .............................. 7.000 02/01/17 743,437
834 Westlake Chemical Corp. .......................... 6.625 01/15/16 733,920
------------
4,418,007
------------
CONSUMER PRODUCTS 2.8%
990 Jarden Corp. ..................................... 7.500 05/01/17 871,200
565 Oxford Industrials, Inc. ......................... 8.875 06/01/11 539,575
740 Steinway Musical Instruments,
Inc. (b) ...................................... 7.000 03/01/14 636,400
------------
2,047,175
------------
DIVERSIFIED MEDIA 6.8%
1,425 CanWest Media, Inc. (Canada) ..................... 8.000 09/15/12 1,360,875
685 Dex Media West, LLC, Ser B ....................... 9.875 08/15/13 597,662
2,610 Idearc, Inc. ..................................... 8.000 11/15/16 1,703,025
515 Interpublic Group of Cos., Inc. .................. 6.250 11/15/14 417,794
985 Valassis Communications, Inc. .................... 8.250 03/01/15 815,088
------------
4,894,444
------------
ENERGY 15.7%
1,440 CHC Helicopter Corp. (Canada) .................... 7.375 05/01/14 1,441,800
1,825 Chesapeake Energy Corp. .......................... 6.625 01/15/16 1,797,625
230 Cimarex Energy Co. ............................... 7.125 05/01/17 229,425
565 Compagnie Generale de
Geophysique, SA (France) ..................... 7.500 05/15/15 576,300
1,500 Frontier Oil Corp. ............................... 6.625 10/01/11 1,488,750
760 Helix Energy Solutions Group,
Inc. (b) ...................................... 9.500 01/15/16 763,800
1,610 Hilcorp Energy/Finance Corp. (b).................. 7.750 11/01/15 1,517,425
896 Kinder Morgan, Inc. .............................. 6.500 09/01/12 913,010
1,310 Massey Energy Co. ................................ 6.875 12/15/13 1,273,975
620 OPTI Canada, Inc. (Canada) ....................... 8.250 12/15/14 616,900
650 Pacific Energy Partners, LP ...................... 7.125 06/15/14 688,547
------------
11,307,557
------------
FINANCIAL 2.5%
2,535 Capmark Financial Group, Inc. (b)................. 5.875 05/10/12 1,607,428
85 Capmark Financial Group, Inc. (b)................. 6.300 05/10/17 51,041
178 UCAR Finance, Inc. ............................... 10.250 02/15/12 185,120
------------
1,843,589
------------
FOOD & DRUG 3.0%
1,230 Rite Aid Corp. ................................... 8.125 05/01/10 1,205,400
560 SUPERVALU, Inc. .................................. 7.500 05/15/12 573,441
365 SUPERVALU, Inc. .................................. 7.500 11/15/14 370,475
------------
2,149,316
------------
FOOD & TOBACCO 9.1%
465 Constellation Brands, Inc. ....................... 7.250 05/15/17 453,375
635 Michael Foods, Inc. .............................. 8.000 11/15/13 622,300
1,430 Pilgrim's Pride Corp. ............................ 7.625 05/01/15 1,383,525
725 Reynolds American, Inc. .......................... 6.500 07/15/10 743,125
1,810 Smithfield Foods, Inc., Ser B .................... 8.000 10/15/09 1,846,200
1,500 Tyson Foods, Inc. ................................ 6.850 04/01/16 1,509,315
------------
6,557,840
------------
FOREST PRODUCTS 4.7%
1,270 Crown Americas LLC ............................... 7.625 11/15/13 1,301,750
850 Georgia-Pacific Corp. (b)......................... 7.125 01/15/17 790,500
1,000 Graphic Packaging International,
Inc. ......................................... 9.500 08/15/13 965,000
320 P.H. Glatfelter Co. .............................. 7.125 05/01/16 316,000
------------
3,373,250
------------
GAMING & LEISURE 17.1%
2,595 Harrah's Operating Co., Inc. ..................... 5.375 12/15/13 1,686,750
965 Host Marriott LP ................................. 6.375 03/15/15 902,275
1,135 Host Marriott LP, Ser J .......................... 7.125 11/01/13 1,117,975
2,475 Isle of Capri Casinos, Inc. ...................... 7.000 03/01/14 1,775,812
1,370 Las Vegas Sands Corp. ............................ 6.375 02/15/15 1,215,875
2,900 MGM Mirage, Inc. ................................. 6.000 10/01/09 2,892,750
1,510 Mohegan Tribal Gaming Authority .................. 7.125 08/15/14 1,245,750
1,160 Station Casinos, Inc. ............................ 6.000 04/01/12 957,000
175 Station Casinos, Inc. ............................ 6.875 03/01/16 102,813
490 Station Casinos, Inc. ............................ 7.750 08/15/16 396,900
------------
12,293,900
------------
HEALTH CARE 21.7%
725 Community Health Systems, Inc. ................... 8.875 07/15/15 731,344
1,845 DaVita, Inc. ..................................... 6.625 03/15/13 1,798,875
1,485 Fisher Scientific International, Inc. ............ 6.125 07/01/15 1,481,100
1,000 FMC Finance III, SA (Luxembourg) ................. 6.875 07/15/17 1,005,000
1,290 Fresenius Medical Care Capital
Trust IV ..................................... 7.875 06/15/11 1,344,825
595 HCA, Inc. ........................................ 5.750 03/15/14 493,850
170 HCA, Inc. ........................................ 6.250 02/15/13 148,750
895 HCA, Inc. ........................................ 6.375 01/15/15 761,869
335 HCA, Inc. ........................................ 8.750 09/01/10 336,675
465 HCA, Inc. ........................................ 9.125 11/15/14 480,113
165 Invacare Corp. ................................... 9.750 02/15/15 166,650
425 LVB Acquisition Merger (a) (b).................... 10.375 10/15/17 443,063
500 Medco Health Solutions, Inc. ..................... 7.125 03/15/18 513,229
735 Omnicare, Inc. ................................... 6.750 12/15/13 659,662
710 Omnicare, Inc. ................................... 6.875 12/15/15 621,250
750 Res-Care, Inc. ................................... 7.750 10/15/13 716,250
1,430 Tenet Healthcare Corp. ........................... 7.375 02/01/13 1,283,425
575 Tenet Healthcare Corp. ........................... 9.875 07/01/14 559,187
1,405 Ventas Realty, LP (REIT) ......................... 6.750 06/01/10 1,413,781
650 Warner Chilcott Corp. ............................ 8.750 02/01/15 653,250
------------
15,612,148
------------
HOUSING 2.6%
1,090 Interface, Inc. Ser B ............................ 9.500 02/01/14 1,133,600
80 Pulte Homes, Inc. ................................ 6.375 05/15/33 62,800
1,035 Realogy Corp. .................................... 10.500 04/15/14 701,212
------------
1,897,612
------------
INFORMATION TECHNOLOGY 3.5%
395 First Data Corp. (b).............................. 9.875 09/24/15 325,381
1,095 Freescale Semiconductor, Inc. .................... 8.875 12/15/14 862,313
1,340 Iron Mountain, Inc. .............................. 8.625 04/01/13 1,360,100
------------
2,547,794
------------
MANUFACTURING 5.0%
330 Baldor Electric Co. .............................. 8.625 02/15/17 328,350
1,200 Case New Holland, Inc. ........................... 7.125 03/01/14 1,182,000
925 JohnsonDiversey, Inc., Ser B ..................... 9.625 05/15/12 915,750
540 Propex Fabrics, Inc. ............................. 10.000 12/01/12 67,500
1,140 RBS Global, Inc. & Rexnord Corp. ................. 9.500 08/01/14 1,071,600
------------
3,565,200
------------
METALS 3.3%
245 Foundation, PA Coal Co. .......................... 7.250 08/01/14 243,775
735 Freeport-McMoRan Copper &
Gold, Inc. ................................... 8.375 04/01/17 781,856
1,505 Novelis, Inc. (Canada) ........................... 7.250 02/15/15 1,339,450
------------
2,365,081
------------
RETAIL 6.5%
1,045 Brown Shoe Co., Inc. ............................. 8.750 05/01/12 1,039,775
1,400 JC Penney Corp., Inc. ............................ 8.000 03/01/10 1,461,537
2,150 Phillips-Van Heusen Corp. ........................ 7.250 02/15/11 2,150,000
------------
4,651,312
------------
SERVICES 3.4%
1,760 Allied Waste North America, Inc. ................. 6.375 04/15/11 1,740,200
45 Allied Waste North America, Inc. ................. 7.875 04/15/13 46,519
416 Aramark Services Inc. ............................ 5.000 06/01/12 364,000
60 Aramark Services, Inc. (c)........................ 6.739 02/01/15 53,250
215 Aramark Services, Inc. ........................... 8.500 02/01/15 216,612
------------
2,420,581
------------
TELECOMMUNICATIONS 9.0%
861 Axtel, SA (Mexico) ............................... 11.000 12/15/13 938,490
375 Citizens Communications Co. ...................... 6.250 01/15/13 341,250
500 Exodus Communications,
Inc. (d) (e) (f) .............................. 11.250 07/01/08 0
290 Nordic Tel Co. Holdings
(Denmark) (b) ................................. 8.875 05/01/16 282,750
3,000 Qwest Corp. (c)................................... 6.050 06/15/13 2,715,000
1,000 Qwest Corp. ...................................... 7.875 09/01/11 1,002,500
815 Wind Acquisition Finance, SA
(Luxembourg) (b) .............................. 10.750 12/01/15 835,375
345 Windstream Corp. ................................. 8.125 08/01/13 340,687
------------
6,456,052
------------
TRANSPORTATION 12.4%
1,360 ArvinMeritor, Inc. ............................... 8.750 03/01/12 1,251,200
390 Asbury Automotive Group, Inc. .................... 7.625 03/15/17 310,050
1,535 Ford Motor Credit Co. ............................ 7.000 10/01/13 1,198,603
2,915 Ford Motor Credit Co. ............................ 7.250 10/25/11 2,396,220
2,140 General Motors Acceptance Corp. .................. 6.875 09/15/11 1,639,048
1,645 Sonic Automotive, Inc., Ser B .................... 8.625 08/15/13 1,529,850
700 United Auto Group, Inc. .......................... 7.750 12/15/16 609,000
------------
8,933,971
------------
UTILITY 18.7%
1,275 AES Corp. ........................................ 7.750 03/01/14 1,289,344
41 AES Corp. ........................................ 8.875 02/15/11 43,152
127 AES Corp. ........................................ 9.375 09/15/10 134,937
615 CMS Energy Corp. ................................. 6.300 02/01/12 621,778
700 CMS Energy Corp. ................................. 8.500 04/15/11 747,019
3,100 Colorado Interstate Gas Co. ...................... 6.800 11/15/15 3,211,622
795 Dynegy Holdings, Inc. ............................ 7.750 06/01/19 747,300
405 Equitable Resources, Inc. ........................ 6.500 04/01/18 407,806
800 Intergen NV (Netherlands) (b)..................... 9.000 06/30/17 840,000
465 IPALCO Enterprises, Inc. ......................... 8.375 11/14/08 473,137
405 IPALCO Enterprises, Inc. ......................... 8.625 11/14/11 428,287
510 Nevada Power Co., Ser A .......................... 8.250 06/01/11 553,169
765 NRG Energy, Inc. ................................. 7.375 01/15/17 745,875
735 Reliant Energy, Inc. ............................. 7.875 06/15/17 735,000
315 Sierra Pacific Power Co., Ser H .................. 6.250 04/15/12 323,095
690 Texas Competitive Electric
Holdings Co. LLC, Ser A (b) ................... 10.250 11/01/15 690,863
1,435 Texas Competitive Electric
Holdings Co. LLC, Ser B (b) ................... 10.250 11/01/15 1,436,794
------------
13,429,178
------------
WIRELESS COMMUNICATIONS 5.8%
240 American Tower Corp. ............................. 7.125 10/15/12 246,600
1,425 American Tower Corp. ............................. 7.500 05/01/12 1,464,188
1,775 Nextel Communications, Inc., Ser
E ............................................. 6.875 10/31/13 1,403,290
1,000 Rural Cellular Corp. ............................. 8.250 03/15/12 1,030,000
------------
4,144,078
------------
TOTAL CORPORATE BONDS 170.6% ..................... 122,792,179
------------
UNITED STATES TREASURY OBLIGATION 4.9%
3,400 United States Treasury Bond ...................... 4.500 02/15/36 3,513,424
------------
COLLATERALIZED MORTGAGE OBLIGATIONS 2.3%
424 American Home Mortgage
Assets (c) .................................... 2.898 06/25/47 208,490
398 American Home Mortgage Assets
(c) ........................................... 2.908 10/25/46 198,820
450 Countrywide Alternative Loan
Trust (c) ..................................... 2.815 03/20/47 215,784
450 Countrywide Alternative Loan
Trust (c) ..................................... 3.118 10/25/46 45,000
375 Countrywide Alternative Loan
Trust (c) ..................................... 3.418 01/25/36 147,788
275 Greenpoint Mortgage Funding
Trust (c) .................................... 3.008 09/25/46 128,660
375 Harborview Mortgage Loan Trust
(c) ........................................... 3.148 08/21/36 75,000
700 Lehman XS Trust Ser (c)........................... 3.598 03/25/47 213,938
548 Luminent Mortgage Trust (c)....................... 2.958 07/25/36 236,466
325 Structured Asset Mortgage
Investments, Inc. (c) ......................... 2.968 08/25/36 156,615
------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS ........ 1,626,561
------------
EQUITIES 0.0%
DecisionOne Corp. (5,483 Common Shares) (f) (g)................................. 0
Hosiery Corp. of America, Inc., Class A (1,000 Common Shares) (f) (g)........... 0
VS Holdings, Inc. (20,207 Common Shares) (f) (g)................................ 0
XO Holdings, Inc. (681 Common Shares) (g)....................................... 885
XO Holdings, Inc., Ser A (1,364 Common Stock Warrants, expiring 01/16/10)
(g)....................................................................... 137
XO Holdings, Inc., Ser B (1,022 Common Stock Warrants, expiring 01/16/10)
(g)....................................................................... 51
XO Holdings, Inc., Ser C (1,022 Common Stock Warrants, expiring 01/16/10)
(g)....................................................................... 41
-------------
TOTAL EQUITIES 0.0%............................................................. 1,114
-------------
TOTAL LONG-TERM INVESTMENTS 177.8%
(Cost $139,469,667).......................................................... 127,933,278
-------------
SHORT-TERM INVESTMENTS 12.8%
REPURCHASE AGREEMENTS 11.0%
Banc of America Securities ($2,719,073 par collateralized by U.S.
Government obligations in a pooled cash account, interest rate of 2.40%,
dated 03/31/08, to be sold on 04/01/08 at $2,719,254) ...................... 2,719,073
Citigroup Global Markets, Inc. ($2,719,073 par collateralized by U.S.
Government obligations in a pooled cash account, interest rate of 2.10%,
dated 03/31/08, to be sold on 04/01/08 at $2,719,232) ...................... 2,719,073
JPMorgan Chase & Co. ($815,722 par collateralized by U.S. Government
obligations in a pooled cash account, interest rate of 2.25%, dated 03/31/08,
to be sold on 04/01/08 at $815,773) ........................................ 815,722
State Street Bank & Trust Co. ($1,680,132 par collateralized by U.S.
Government obligations in a pooled cash account, interest rate of 1.80%,
dated 03/31/08, to be sold on 04/01/08 at $1,680,216) ...................... 1,680,132
-------------
TOTAL REPURCHASE AGREEMENTS ................................................. 7,934,000
-------------
UNITED STATES GOVERNMENT AGENCY OBLIGATION 1.8%
United States Treasury Bill ($1,270,000 par, yielding 2.181%, 04/10/08
maturity) (h) ............................................................... 1,269,323
-------------
TOTAL SHORT-TERM INVESTMENTS 12.8%
(Cost $9,203,323)............................................................. 9,203,323
-------------
TOTAL INVESTMENTS 190.6%
(Cost $148,672,990)........................................................... 137,136,601
OTHER ASSETS IN EXCESS OF LIABILITIES 0.6%...................................... 431,504
PREFERRED SHARES (INCLUDING ACCRUED DISTRIBUTIONS) (91.2%)..................... (65,607,915)
-------------
NET ASSETS 100.0%............................................................... $ 71,960,190
-------------
Percentages are calculated as a percentage of net assets applicable to common
shares.
(a) Payment-in-kind security.
(b) 144A-Private Placement security which is exempt from registration under
Rule 144A of the Securities Act of 1933, as amended. This security may only
be resold in transactions exempt from registration which are normally those
transactions with qualified institutional buyers.
(c) Floating Rate Coupon.
(d) This borrower has filed for protection in federal bankruptcy court.
(e) Non-income producing as security is in default.
(f) Market value is determined in accordance with procedures established in
good faith by the Board of Trustees.
(g) Non-income producing security as this stock currently does not declare
income dividends.
(h) All or a portion of this security has been physically segregated in
connection with open futures contracts.
REIT - Real Estate Investment Trust
FUTURES CONTRACTS OUTSTANDING AS OF MARCH 31, 2008:
UNREALIZED
APPRECIATION/
CONTRACTS DEPRECIATION
--------- -------------
LONG CONTRACTS:
U.S. Treasury Notes 2-Year Futures, June 2008 (Current
Notional Value of $214,656 per contract) ........... 14 $ 14,953
--- ---------
SHORT CONTRACTS:
U.S. Treasury Bond Futures, June 2008 (Current Notional
Value of $118,797 per contract) .................... 28 (28,241)
U.S. Treasury Notes 5-Year Futures, June 2008 (Current
Notional Value of $114,234 per contract) ........... 8 (1,518)
U.S. Treasury Notes 10-Year Futures, June 2008 (Current
Notional Value of $118,953 per contract) ........... 176 (617,952)
--- ---------
212 $(647,711)
--- ---------
TOTAL FUTURES CONTRACTS .............................. 226 $(632,758)
--- ---------
SWAP AGREEMENTS OUTSTANDING AS OF MARCH 31, 2008:
CREDIT DEFAULT SWAPS
PAY/
RECEIVE NOTIONAL
BUY/SELL FIXED EXPIRATION AMOUNT UPFRONT
COUNTERPARTY REFERENCE ENTITY PROTECTION RATE DATE (000) PAYMENTS VALUE
-------------------- --------------------- ---------- ------- ---------- -------- --------- ----------
Bank of Carnival
America, N.A. Corp. Buy 1.57% 03/20/18 $ 810 0 $ (11,823)
Bank of Goodrich
America, N.A. Corp. Buy 0.70 03/20/13 565 0 (5,601)
Bank of Goodrich
America, N.A. Corp. Buy 0.82 03/20/18 395 0 (7,204)
Bank of Nordstrom, Inc.
America, N.A. Buy 1.03 03/20/18 545 0 12,708
Bank of Pactiv
America, N.A. Corp. Buy 1.38 03/20/13 1,195 0 (1,782)
Bank of Sealed Air
America, N.A. Corp. Buy 1.08 03/20/18 245 0 8,942
Bank of Sealed Air
America, N.A. Corp. Buy 1.12 03/20/18 350 0 11,708
Bank of Textron Financial
America, N.A. Corp. Buy 0.80 03/20/18 640 0 38,593
Bank of Toll Brothers, Inc.
America, N.A. Buy 2.25 03/20/18 345 0 3,080
Bank of Toll Brothers, Inc.
America, N.A. Buy 2.90 03/20/13 685 0 4,081
Citibank, N.A., Eaton
New York Corp. Buy 0.62 03/20/13 630 0 4,640
Citibank, N.A., Eaton
New York Corp. Buy 0.72 03/20/13 515 0 1,427
Citibank, N.A., Eaton
New York Corp. Buy 0.82 03/20/18 1,045 0 8,587
Citibank, N.A., MGIC Investment
New York Corp. Buy 7.90 03/20/13 450 0 (28,927)
Credit Suisse
International ABX.HE.AAA.06-1 Buy 0.18 07/25/45 730 116,734 76,519
Credit Suisse
International ABX.HE.AAA.06-1 Buy 0.18 07/25/45 730 109,438 76,519
Credit Suisse Arrow
International Electronics,
Inc. Buy 1.00 03/20/15 855 0 4,219
Credit Suisse Arrow
International Electronics,
Inc. Buy 1.11 03/20/13 1,105 0 (5,506)
Credit Suisse Nordstrom, Inc.
International Buy 1.04 03/20/13 1,320 0 12,302
Credit Suisse Nordstrom, Inc.
International Buy 1.05 03/20/13 685 0 6,074
Credit Suisse Pactiv
International Corp. Buy 1.35 03/20/13 1,195 0 (426)
Credit Suisse The PMI Group,
International Inc. Buy 8.10 03/20/13 400 0 (19,143)
Deutsche Bank Washington
AG, New York Mutual, Inc. Buy 5.00 06/20/13 720 0 (4,614)
Goldman Sachs AvalonBay
International Communities,
Inc. Buy 3.05 03/20/13 1,330 0 (13,713)
Goldman Sachs Carnival
International Corp. Buy 1.60 03/20/18 70 0 (939)
Goldman Sachs Coca-Cola
International Enterprises, Inc. Buy 0.59 03/20/13 1,370 0 (3,040)
Goldman Sachs Eaton
International Corp. Buy 0.97 03/20/18 450 0 (1,888)
Goldman Sachs FirstEnergy
International Corp. Buy 1.25 03/20/13 1,315 0 (8,451)
Goldman Sachs Goodrich
International Corp. Buy 0.47 03/20/18 365 0 3,848
Goldman Sachs Merrill Lynch &
International Co., Inc. Buy 2.45 03/20/13 735 0 6,683
Goldman Sachs Nordstrom, Inc.
International Buy 1.05 06/20/13 690 0 38,001
Goldman Sachs ProLogis
International Buy 3.33 03/20/13 585 0 4,413
Goldman Sachs Sealed Air
International Corp. Buy 1.08 03/20/18 480 0 17,518
Goldman Sachs Sealed Air
International Corp. Buy 1.24 03/20/18 235 0 5,715
Goldman Sachs Simon Property
International Group, L.P. Buy 2.32 03/20/18 865 0 (44,869)
Goldman Sachs Simon Property
International Group, L.P. Buy 2.37 03/20/18 1,085 0 (60,200)
Goldman Sachs Textron Financial
International Corp. Buy 1.05 03/20/13 1,110 0 24,869
Goldman Sachs Trane Inc.
International Buy 0.50 03/20/13 250 0 1,842
Goldman Sachs Trane Inc.
International Buy 0.60 03/20/18 105 0 762
JPMorgan Eaton
Chase Bank, Corp.
N.A. Buy 0.60 03/20/13 225 0 1,864
JPMorgan Merrill Lynch &
Chase Bank, Co., Inc.
N.A. Buy 2.30 03/20/13 700 0 10,846
JPMorgan Nordstrom, Inc.
Chase Bank,
N.A. Buy 1.07 03/20/18 430 0 8,693
JPMorgan Nordstrom, Inc.
Chase Bank,
N.A. Buy 1.15 03/20/18 430 0 6,027
JPMorgan The Pepsi
Chase Bank, Bottling Group,
N.A. Inc. Buy 0.58 03/20/13 340 0 (1,177)
JPMorgan The Pepsi
Chase Bank, Bottling Group,
N.A. Inc. Buy 0.63 03/20/13 470 0 (2,822)
Lehman Arrow
Brothers Electronics,
Special Inc.
Financing, Inc. Buy 1.04 03/20/18 145 0 1,084
Lehman Arrow
Brothers Electronics,
Special Inc.
Financing, Inc. Buy 1.40 03/20/13 2,025 0 (1,103)
Lehman Coca-Cola
Brothers Enterprises, Inc.
Special
Financing, Inc. Buy 0.64 03/20/13 1,235 0 (5,867)
Lehman Goodrich
Brothers Corp.
Special
Financing, Inc. Buy 0.45 03/20/18 450 0 5,481
Lehman Goodrich
Brothers Corp.
Special
Financing, Inc. Buy 0.46 03/20/18 320 0 3,636
Lehman MetLife, Inc.
Brothers
Special
Financing, Inc. Buy 2.15 03/20/13 785 0 (23,187)
Merrill Lynch Carnival
International Corp. Buy 1.50 03/20/18 795 0 (7,076)
Merrill Lynch Carnival
International Corp. Buy 1.57 03/20/18 670 0 (9,722)
Merrill Lynch Carnival
International Corp. Buy 1.60 03/20/18 445 0 (5,969)
Merrill Lynch Eaton
International Corp. Buy 0.92 03/20/18 490 0 (73)
Merrill Lynch The Walt Disney
International Co. Buy 0.60 03/20/13 1,275 0 (4,635)
Merrill Lynch The Walt Disney
International Co. Buy 0.77 03/20/13 2,025 0 (606)
UBS AG Martin Marietta
Materials, Inc. Buy 1.73 03/20/18 320 0 6,395
UBS AG Martin Marietta
Materials, Inc. Buy 1.78 03/20/13 320 0 3,703
UBS AG Textron Financial
Corp. Buy 1.00 03/20/13 660 0 15,993
UBS AG Textron Financial
Corp. Buy 1.01 03/20/13 450 0 10,876
UBS AG Textron Financial
Corp. Buy 1.06 03/20/13 1,100 0 (3,617)
UBS AG Toll Brothers, Inc. Buy 2.90 03/20/13 1,060 0 6,301
UBS AG Trane, Inc. Buy 0.50 03/20/13 755 0 5,563
UBS AG Trane, Inc. Buy 0.60 03/20/18 790 0 5,733
Goldman Sachs
International CDX.NA.IG.HVOL.9 Sell 1.40 12/20/12 1,500 (129,769)
(116,018)
JPMorgan SLM Corp.
Chase Bank,
N.A. Sell 4.95 03/20/13 385 0 (43,900)
Lehman CDX.NA.HY.9
Brothers
Special
Financing, Inc. Sell 3.75 12/20/12 4,554 (293,164) (506,835)
Merrill Lynch
International CDX.NA.IG.HVOL.9 Sell 1.40 12/20/12 2,475 (261,420) (191,430)
Merrill Lynch SLM Corp.
International Sell 5.00 03/20/13 385 0 (43,257)
--------- ---------
TOTAL CREDIT DEFAULT SWAPS
$(458,181) $(720,175)
========= =========
INTEREST RATE SWAPS
PAY/
RECEIVE NOTIONAL
FLOATING FIXED EXPIRATION AMOUNT
COUNTERPARTY FLOATING RATE INDEX RATE RATE DATE (000) VALUE
---------------- ------------------- -------- ------ ---------- -------- ----------
Bank of USD-LIBOR BBA
America, N.A. Pay 5.550% 02/22/18 $ 9,270 $ 182,063
Bank of USD-LIBOR BBA
America N.A. Pay 5.638 03/07/18 9,260 208,998
Deutsche Bank USD-LIBOR BBA
AG New York Pay 5.031 10/25/17 20,700 1,975,862
Bank of USD-LIBOR BBA
America, N.A. Receive 5.958 02/22/23 11,830 (166,803)
Bank of USD-LIBOR BBA
America N.A. Receive 6.040 03/07/23 11,905 (195,242)
JPMorgan USD-LIBOR BBA
Chase Bank,
N.A. Receive 3.966 03/25/18 2,200 20,715
JPMorgan USD-LIBOR BBA
Chase Bank,
N.A. Receive 3.966 03/25/18 3,300 31,072
JPMorgan USD-LIBOR BBA
Chase Bank,
N.A. Pay 5.361 08/24/17 8,200 889,520
JPMorgan USD-LIBOR BBA
Chase Bank,
N.A. Pay 5.428 08/20/17 9,700 1,109,250
----------
TOTAL INTEREST RATE SWAPS 4,055,435
----------
TOTAL SWAP AGREEMENTS $3,335,260
==========
The Trust adopted Financial Accounting Standards Board Statement of Financial
Accounting Standards No. 157, "Fair Value Measurements" ("FAS 157"), effective
January 1, 2008. In accordance with FAS 157, fair value is defined as the price
that the Trust would receive to sell an investment or pay to transfer a
liability in an orderly transaction with an independent buyer in the principal
market, or in the absence of a principal market the most advantageous market for
the investment or liability. FAS 157 establishes a three-tier hierarchy to
distinguish between (1) inputs that reflect the assumptions market participants
would use in pricing an asset or liability developed based on market data
obtained from sources independent of the reporting entity (observable inputs)
and (2) inputs that reflect the reporting entity's own assumptions about the
assumptions market participants would use in pricing an asset or liability
developed based on the best information available in the circumstances
(unobservable inputs) and to establish classification of fair value measurements
for disclosure purposes. Various inputs are used in determining the value of the
Trust's investments. The inputs are summarized in the three broad levels listed
below.
- Level 1 - quoted prices in active markets for identical investments
- Level 2 - other significant observable inputs (including quoted prices
for similar investments, interest rates, prepayment speeds, credit
risk, etc.)
- Level 3 - significant unobservable inputs (including the Trust's own
assumptions in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities.
The following is a summary of the inputs used as of March 31, 2008 in valuing
the Trust's investments carried at value:
INVESTMENTS IN OTHER FINANCIAL
VALUATION INPUTS SECURITIES INSTRUMENTS*
--------------------------- -------------- ---------------
Level 1 - Quoted Prices $ 1,114 $ (632,758)
Level 2 - Other Significant
Observable Inputs 137,135,487 3,335,260
Level 3 - Significant
Unobservable Inputs -0- -0-
------------ ----------
TOTAL $137,136,601 $2,702,502
============ ==========
* Other financial instruments include futures, forwards and swap contracts.
SECURITY VALUATION Investments are stated at value using market quotations or
indications of value obtained from an independent pricing service. For those
securities where quotations or prices are not readily available, valuations are
obtained from yield data relating to instruments or securities with similar
characteristics in accordance with procedures established in good faith by the
Board of Trustees. Futures contracts are valued at the settlement price
established each day on the exchange on which they are traded. Swaps are valued
using market quotations obtained from brokers. Short-term securities with
remaining maturities of 60 days or less are valued at amortized cost, which
approximates market value.
Item 2. Controls and Procedures.
(a) The Fund's principal executive officer and principal financial officer have
concluded that the Fund's disclosure controls and procedures are sufficient to
ensure that information required to be disclosed by the Fund in this Form N-Q
was recorded, processed, summarized and reported within the time periods
specified in the Securities and Exchange Commission's rules and forms, based
upon such officers' evaluation of these controls and procedures as of a date
within 90 days of the filing date of the report.
(b) There were no changes in the Fund's internal control over financial
reporting that occurred during the registrant's fiscal quarter that has
materially affected, or is reasonably likely to materially affect, the Fund's
internal control over financial reporting.
Item 3. Exhibits.
(a) A certification for the Principal Executive Officer of the registrant is
attached hereto as part of EX-99.cert.
(b) A certification for the Principal Financial Officer of the registrant is
attached hereto as part of EX-99.cert.
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.
(Registrant) Van Kampen High Income Trust II
By: /s/ Ronald E. Robison
---------------------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: May 20, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed by the following
persons on behalf of the registrant and in the capacities and on the dates
indicated.
By: /s/ Ronald E. Robison
---------------------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: May 20, 2008
By: /s/ Stuart N. Schuldt
---------------------------------
Name: Stuart N. Schuldt
Title: Principal Financial Officer
Date: May 20, 2008