Edgar Filing: BABSON CAPITAL CORPORATE INVESTORS

Adviser

Babson Capital Management LLC

1500 Main Street, P.O. Box 15189

Springfield, Massachusetts 01115-5189

Independent Registered Public Accounting Firm

KPMG LLP

Boston, Massachusetts 02110

Counsel to the Trust

Ropes & Gray LLP

Boston, Massachusetts 02110

Custodian

State Street Bank and Trust Company

Boston, Massachusetts 02116

Transfer Agent & Registrar

DST Systems, Inc.

P.O. Box 219086

Kansas City, Missouri 64121-9086

1-800-647-7374

Internet Website

www.babsoncapital.com/funds/closed-end-funds/babson-capital-corporate-investors

Babson Capital Corporate Investors

c/o Babson Capital Management LLC

1500 Main Street, Suite 2200

Springfield, Massachusetts 01115

(413) 226-1516

Investment Objective and Policy

Babson Capital Corporate Investors (the "Trust") is a closed-end management investment company, first offered to the public in 1971, whose shares are traded on the New York Stock Exchange under the trading symbol "MCI". The Trust's share price can be found in the financial section of most newspapers under either the New York Stock Exchange listings or Closed-End Fund Listings.

The Trust's investment objective is to maintain a portfolio of securities providing a current yield and at the same time offering an opportunity for capital gains. The Trust's principal investments are privately placed, below-investment grade, long-term debt obligations. Such direct placement securities may, in some cases, be accompanied by equity features such as common stock, warrants, conversion rights, or other equity features and, occasionally, preferred stocks. The Trust typically purchases these investments, which are not publicly tradable, directly from their issuers in private placement transactions. These investments are typically mezzanine debt instruments with accompanying private equity securities made to small or middle market companies. In addition, the Trust may invest, subject to certain limitations, in marketable investment grade debt securities, other marketable debt securities (including high yield securities) and marketable common stocks. Below-investment grade or high yield securities have predominantly speculative characteristics with respect to the capacity of the issuer to pay interest and repay principal.

Babson Capital Management LLC ("Babson Capital") manages the Trust on a total return basis. The Trust distributes substantially all of its net income to shareholders each year. Accordingly, the Trust pays dividends to shareholders in January, May, August, and November. The Trust pays dividends to its shareholders in cash, unless the shareholder elects to participate in the Dividend Reinvestment and Share Purchase Plan.

Form N-Q

The Trust files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission ("SEC") for the first and third quarters of each fiscal year on Form N-Q. This information is available (i) on the SEC's website at http://www.sec.gov; and (ii) at the SEC's Public Reference Room in Washington, DC (which information on their operation may be obtained by calling 1-800-SEC-0330). A complete schedule of portfolio holdings as of each quarter-end is available upon request by calling, toll-free, 866-399-1516.

Proxy Voting Policies & Procedures; Proxy Voting Record

The Trustees of the Trust have delegated proxy voting responsibilities relating to the voting of securities held by the Trust to Babson Capital. A description of Babson Capital's proxy voting policies and procedures is available (1) without charge, upon request, by calling, toll-free 866-399-1516; (2) on the Trust's website: http://www.babsoncapital.com/funds/closed-end-funds/babson-capital-corporate-investors; and (3) on the SEC's website at http://www.sec.gov. Information regarding how the Trust voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available (1) on the Trust's website: http://www.babsoncapital.com/funds/closed-end-funds/babson-capital-corporate-investors; and (2) on the SEC's website at http://www.sec.gov.

Legal Matters

The Trust has entered into contractual arrangements with an investment adviser, transfer agent and custodian (collectively "service providers") who each provide services to the Trust. Shareholders are not parties to, or intended beneficiaries of, these contractual arrangements, and these contractual arrangements are not intended to create any shareholder right to enforce them against the service providers or to seek any remedy under them against the service providers, either directly or on behalf of the Trust.

Under the Trust's Bylaws, any claims asserted against or on behalf of the Trust, including claims against Trustees and officers must be brought in courts located within the Commonwealth of Massachusetts.

The Trust's registration statement and this shareholder report are not contracts between the Trust and its shareholders and do not give rise to any contractual rights or obligations or any shareholder rights other than any rights conferred explicitly be federal or state securities laws that may not be waived.

Babson Capital Corporate Investors

TO OUR SHAREHOLDERS

April 30, 2016

We are pleased to present the March 31, 2016 Quarterly Report of Babson Capital Corporate Investors (the "Trust").

The Board of Trustees declared a quarterly dividend of $0.30 per share, payable on May 13, 2016 to shareholders of record on May 2, 2016. The Trust paid a $0.30 per share dividend for the preceding quarter. The Trust earned $0.24 per share of net investment income, including $0.03 per share of non-recurring charges, for the first quarter of 2016, compared to $0.28 per share, including $0.01 per share of non-recurring income, in the previous quarter.

During the first quarter, the net assets of the Trust increased to $282,588,113 or $14.35 per share compared to $275,915,289 or $14.03 per share on December 31, 2015. This translates into a 2.3% total return for the quarter, based on the change in the Trust's net assets assuming the reinvestment of all dividends. Longer term, the Trust returned 3.9%, 10.2%, 12.0%, 10.4%, and 13.7% for the 1-, 3-, 5-, 10-, and 25-year periods ended March 31, 2016, respectively, based on the change in the Trust's net asset value (net of all fees and expenses) assuming the reinvestment of all dividends and distributions.

The Trust's share price decreased 1.4% during the quarter, from $17.25 per share as of December 31, 2015 to $17.01 per share as of March 31, 2016. The Trust's market price of $17.01 per share equates to an 18.5% premium over the March 31, 2016 net asset value per share of $14.35. The Trust's average quarter-end premium for the 3-, 5- and 10-year periods was 10.5%, 16.0% and 13.0%, respectively. U.S. equity markets, as approximated by the Russell 2000 Index, decreased 1.5% for the quarter. U.S. fixed income markets, as approximated by the Barclays Capital U.S. Corporate High Yield Index, increased 3.4% for the quarter.

The Trust closed four new private placement investments, as well as one add-on investment in an existing portfolio company, during the first quarter. The four new investments were in Glynlyon Holding Companies, Inc., PANOS Brands LLC, Veritext Corporation and Wolf-Gordon, Inc., while the add-on investment was in PPC Event Services. A brief description of these investments can be found in the Consolidated Schedule of Investments. The total amount invested by the Trust in these transactions was $14,086,000.

It was an active first quarter for the Trust in terms of new investments. Middle market merger and acquisition activity, a key driver of deal flow for the Trust, was steady during the quarter. We expect deal flow to remain steady for the rest of the year, assuming no significant external shocks to the market, so we are optimistic about the level of new investment activity for the Trust in 2016. The dark cloud on the horizon though, continues to be the high purchase prices and leverage levels that have been common in buyout transactions for the last couple of years. Average purchase price multiples for small companies continue to be at their highest levels in the past 15 years. Leverage multiples have also been worrisomely high for several years and are near their highs of the past 15 years as well. Though we are actively making new investments on behalf of the Trust in this market, we do so cautiously and with discipline, consistent with our longstanding investment philosophy of seeking to take prudent levels of risk and getting paid appropriately for the risk taken. We are not willing to provide financial leverage at levels that we believe are imprudent. This approach has served us well over the long term and through all kinds of market cycles.

The condition of the Trust's existing portfolio remained solid through the first quarter. The number of companies on our watch list and in default continues to be at or near the lowest level we have seen over the last five years. We successfully exited one investment during the quarter. We have a solid backlog of portfolio companies that are in the process of being sold, with three companies already having been sold so far in the second quarter. We had no companies prepay their debt instruments held by the Trust during the quarter.

While the Trust was able to maintain its $0.30 per share quarterly dividend for the first quarter, we must make note again, as we have for over two years now, that this dividend level may not be sustainable through 2016. The Trust's net investment income per share from recurring sources of $0.27 for the first quarter was once again below the dividend rate. Net investment income per share from recurring sources has been below the dividend rate for every quarter since the third quarter of 2013. As we have discussed in prior reports, net investment income is down due principally to the considerable reduction in the number of private debt securities in the portfolio resulting from the high level of exit and prepayment activity that occurred in 2013 and 2014. With several strong recent quarters of new investment activity, we have made some progress in rebuilding the private portfolio, but it is still well below its former size. We have been able to maintain the $0.30 per share quarterly dividend with current income, non-recurring income and earnings carried forward from prior quarters. Over time, however, the Trust's dividend-paying ability tends to be correlated with its recurring earnings capacity. This quarter, the Trust utilized $0.06 per share of earnings carry-forwards to maintain the $0.30 per share quarterly dividend. The Trust continues to have earnings carry-forwards which should be available to supplement recurring income for the next few quarters. But unless market conditions change dramatically, it is still

(Continued)

unlikely that we will be able to completely rebuild the portfolio back to its former size in the near term and grow net investment income. As a result, it is likely that in 2016 we will have to reduce the dividend from the current $0.30 per share quarterly rate. As we move through 2016, we and the Board of Trustees will continue to evaluate the current and future earnings capacity of the Trust and formulate a dividend strategy that is consistent with that earnings level.

On behalf of the Trust's shareholders, the members of the Board of Trustees and the officers of the Trust, I would like to thank William J. Barrett for his many years of dedicated service to the Trust as a Trustee. Bill retired from the Board of Trustees effective as of the Trust's Annual Meeting of Shareholders which occurred on April 22, 2016. Bill had been a Trustee since 2006, and has provided the Trust with invaluable insight and guidance and has served our shareholders extremely well during his long tenure as a Trustee.

Lastly, as I announced at the Annual Meeting of Shareholders, I will be retiring from Babson Capital and as President of the Trust, effective June 1, 2016. At their April 22, 2016 meeting, the Board of Trustees elected Robert M. Shettle to succeed me as President of the Trust. Bob joined Babson Capital in 1998 and is currently a Vice President of the Trust and also head of Babson Capital's Mezzanine and Private Equity Group, where he oversees a team of investment professionals who originate, analyze, structure and document mezzanine and private equity investments.

Thank you for your continued interest in and support of Babson Capital Corporate Investors.

Sincerely,

Michael L. Klofas

President

Portfolio Composition as of 3/31/16*

* Based on market value of total investments (including cash)

Cautionary Notice: Certain statements contained in this report may be "forward looking" statements. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made and which reflect management's current estimates, projections, expectations or beliefs, and which are subject to risks and uncertainties that may cause actual results to differ materially. These statements are subject to change at any time based upon economic, market or other conditions and may not be relied upon as investment advice or an indication of the Trust's trading intent. References to specific securities are not recommendations of such securities, and may not be representative of the Trust's current or future investments. We undertake no obligation to publicly update forward looking statements, whether as a result of new information, future events, or otherwise.

Babson Capital Corporate Investors

CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES

March 31, 2016

(Unaudited)


Assets:
Investments (See Consolidated Schedule of Investments)

Corporate restricted securities at fair value (Cost - $205,671,979)	$	211,077,681

Corporate restricted securities at market value (Cost - $53,355,370)		51,050,285

Corporate public securities at market value (Cost - $40,421,913)		36,537,330

Short-term securities at amortized cost		4,174,408


Total investments (Cost - $303,623,670)		302,839,704
Cash		9,266,492
Interest receivable		3,004,602
Receivable for investments sold		682,844
Other assets		28,838

Total assets		315,822,480


Liabilities:
Note payable		30,000,000
Deferred tax liability		1,186,434
Investment advisory fee payable		883,088
Payable for investments purchased		546,304
Interest payable		202,400
Tax payable		103,128
Accrued expenses		313,013

Total liabilities		33,234,367

Total net assets	$	282,588,113


Net Assets:
Common shares, par value $1.00 per share	$	19,694,642
Additional paid-in capital		111,883,094
Retained net realized gain on investments, prior years		143,724,071
Undistributed net investment gain		9,068,996
Accumulated net realized gain on investments		187,710
Net unrealized depreciation of investments		(1,970,400	)

Total net assets	$	282,588,113

Common shares issued and outstanding (28,054,782 authorized)		19,694,642

Net asset value per share	$	14.35

See Notes to Consolidated Financial Statements

CONSOLIDATED STATEMENT OF OPERATIONS

For the three months ended March 31, 2016

(Unaudited)


Investment Income:
Interest	$	6,190,325
Dividends		88,719
Other		34,437

Total investment income		6,313,481


Expenses:
Investment advisory fees		883,088
Interest		396,000
Trustees' fees and expenses		97,500
Professional fees		52,585
Reports to shareholders		28,500
Custodian fees		8,400
Other		38,577

Total expenses		1,504,650

Investment income - net		4,808,831


Net realized and unrealized gain on investments:
Net realized loss on investments before taxes		(1,345,504	)
Income tax expense		(316,966	)

Net realized loss on investments after taxes		(1,662,470	)

Net change in unrealized appreciation of investments before taxes		3,089,553

Net change in deferred income tax expense		(58,257	)

Net change in unrealized appreciation of investments after taxes		3,031,296

Net gain on investments		1,368,826

Net increase in net assets resulting from operations	$	6,177,657

See Notes to Consolidated Financial Statements

Babson Capital Corporate Investors

CONSOLIDATED STATEMENT OF CASH FLOWS

For the three months ended March 31, 2016

(Unaudited)


Net increase in cash:
Cash flows from operating activities:
Purchases/Proceeds/Maturities from short-term portfolio securities, net	$	2,729,790
Purchases of portfolio securities		(16,008,952	)
Proceeds from disposition of portfolio securities		16,702,817
Interest, dividends and other income received		5,420,556
Interest expense paid		(396,000	)
Operating expenses paid		(1,100,877	)
Income taxes paid		(1,604,070	)

Net cash provided by operating activities		5,743,264

Cash flows from financing activities:
Cash dividends paid from net investment income		(5,899,411	)
Receipts for shares issued on reinvestment of dividends		495,167

Net cash used for financing activities		(5,404,244	)

Net increase in cash		339,020
Cash - beginning of year		8,927,472

Cash - end of period	$	9,266,492



Reconciliation of net increase in net assets to net cash provided by operating activities:

Net increase in net assets resulting from operations	$	6,177,657

Decrease in investments		380,589
Decrease in interest receivable		505,276
Increase in receivable for investments sold		(682,844	)
Decrease in other assets		37,356
Increase in deferred tax liability		58,257
Increase in investment advisory fee payable		20,853
Increase in payable for investments purchased		546,304
Decrease in tax payable		(1,287,104	)
Decrease in accrued expenses		(13,080	)

Total adjustments to net assets from operations		(434,393	)

Net cash provided by operating activities	$	5,743,264

See Notes to Consolidated Financial Statements

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS


	For the three months ended 03/31/2016 (Unaudited)			For the year ended 12/31/2015
Increase in net assets:
Operations:
Investment income - net	$	4,808,831		$	20,423,963
Net realized (loss)/gain on investments after taxes		(1,662,470	)		1,884,370
Net change in unrealized appreciation/(depreciation) of investments after taxes		3,031,296			(5,025,211	)

Net increase in net assets resulting from operations		6,177,657			17,283,122

Increase from common shares issued on reinvestment of dividends
Common shares issued (2016 - 29,938; 2015 - 131,288)		495,167			2,041,729

Dividends to shareholders from:
Net investment income (2016 - $0.00 per share; 2015 - $1.20 per share)		—			(23,539,826	)

Total increase/(decrease) in net assets		6,672,824			(4,214,975	)

Net assets, beginning of period/year		275,915,289			280,130,264


Net assets, end of period/year (including undistributed net investment income of $9,068,996 and $4,260,165, respectively)	$	282,588,113		$	275,915,289

See Notes to Consolidated Financial Statements

Babson Capital Corporate Investors

CONSOLIDATED SELECTED FINANCIAL HIGHLIGHTS

Selected data for each share of beneficial interest outstanding:


	For the three months ended 03/31/2016 (Unaudited)		For the years ended December 31,
	For the three months ended 03/31/2016 (Unaudited)		2015		2014		2013		2012
Net asset value:
Beginning of period/year	$	14.03	$	14.34	$	13.85	$	13.38	$	12.69

Net investment income (a)		0.24		1.04		1.23		1.18		1.28
Net realized and unrealized gain (loss) on investments		0.07		(0.16)		0.45		0.48		0.69

Total from investment operations		0.31		0.88		1.68		1.66		1.97

Dividends from net investment income to common shareholders		—		(1.20)		(1.20)		(1.20)		(1.25)
Dividends from realized gain on investments to common shareholders		—		—		—		—		(0.05)
Increase from dividends reinvested		0.01		0.01		0.01		0.01		0.02

Total dividends		0.01		(1.19)		(1.19)		(1.19)		(1.28)

Net asset value: End of period/year	$	14.35	$	14.03	$	14.34	$	13.85	$	13.38

Per share market value:
End of period/year	$	17.01	$	17.25	$	15.89	$	14.93	$	15.28

Total investment return
Net asset value (b)		2.28%		6.20%		13.78%		12.76%		17.07%
Market value (b)		(1.39%)		17.01%		16.53%		5.93%		(7.11%)
Net assets (in millions):
End of period/year	$	282.59	$	275.92	$	280.13	$	268.69	$	257.38
Ratio of total expenses to average net assets		2.63%(d)		2.56%		3.66%		2.42%		3.17%
Ratio of operating expenses to average net assets		1.60%(d)		1.67%		1.65%		1.64%		1.66%
Ratio of interest expense to average net assets		0.57%(d)		0.55%		0.57%		0.59%		0.63%
Ratio of income tax expense to average net assets (c)		0.46%(d)		0.34%		1.44%		0.19%		0.88%
Ratio of net investment income to average net assets		6.95%(d)		7.12%		8.57%		8.50%		9.78%
Portfolio turnover		6%		29%		38%		34%		34%

(a)	Calculated using average shares.

(b)

Net asset value return represents portfolio returns based on change in the Trust's net asset value assuming the reinvestment of all dividends and distributions which differs from the total investment return based on the Trust's market value due to the difference between the Trust's net asset value and the market value of its shares outstanding; past performance is no guarantee of future results.

(c)

As additional information, this ratio is included to reflect the taxes paid on retained long-term gains. These taxes paid are netted against realized capital gains in the Statement of Operations. The taxes paid are treated as deemed distributions and a credit for the taxes paid is passed on to the shareholders.

(d)	Annualized.


Senior borrowings:
Total principal amount (in millions)	$	30	$	30	$	30	$	30	$	30
Asset coverage per $1,000 of indebtedness	$	10,420	$	10,197	$	10,338	$	9,956	$	9,579

See Notes to Consolidated Financial Statements

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2016

(Unaudited)


Corporate Restricted Securities - 92.76%: (A)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value

Private Placement Investments - 74.69%: (C)
1492 Acquisition LLC
A leading producer of premium Italian cured meats and deli meats in the U.S.
14% Senior Subordinated Note due 10/17/2019	$	1,667,032	10/17/12		$	1,646,935	$	1,667,032
Limited Liability Company Unit Class A Preferred (B)	245 uts.		10/17/12			245,450		316,024
Limited Liability Company Unit Class A Common (B)	27,273 uts.		10/17/12			27,273		267,044
						1,919,658		2,250,100

A W X Holdings Corporation
A provider of aerial equipment rental, sales and repair services to non-residential construction and maintenance contractors operating in the State of Indiana.
10.5% Senior Secured Term Note due 12/20/2016 (D)	$	735,000	05/15/08			724,402		709,275
13% Senior Subordinated Note due 12/20/2016 (D)	$	735,000	05/15/08			673,096		—
Common Stock (B)	105,000 shs.		05/15/08			105,000		—
Warrant, exercisable until 2016, to purchase common stock at $.01 per share (B)	36,923 shs.		05/15/08			62,395		—
						1,564,893		709,275

ABC Industries, Inc.
A manufacturer of mine and tunneling ventilation products in the U.S.
13% Senior Subordinated Note due 07/31/2019	$	436,364	08/01/12			408,621		436,363
Preferred Stock Series A (B)	300,000 shs.		08/01/12			300,000		557,493
Warrant, exercisable until 2022, to purchase common stock at $.02 per share (B)	53,794 shs.		08/01/12			101,870		94,323
						810,491		1,088,179

Advanced Manufacturing Enterprises LLC
A designer and manufacturer of large, custom gearing products for a number of critical customer applications.
Limited Liability Company Unit (B)	4,669 uts.			*		498,983		18,664
* 12/07/12, 07/11/13 and 06/30/15.

Advanced Technologies Holdings
A provider of factory maintenance services to industrial companies.
Preferred Stock Series A (B)	287 shs.		12/27/07			141,915		556,658
Convertible Preferred Stock Series B (B)	52 shs.		01/04/11			40,800		101,886
						182,715		658,544

AFC - Dell Holding Corporation
A distributor and provider of inventory management services for "C-Parts" used by OEMs in their manufacturing and production facilities.
12.5% Senior Subordinated Note due 09/27/2020	$	2,423,318	03/27/15			2,381,895		2,469,958
Preferred Stock (B)	2,276 shs.		03/27/15			227,558		228,711
Common Stock (B)	703 shs.		03/27/15			703		—
						2,610,156		2,698,669

Babson Capital Corporate Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

March 31, 2016

(Unaudited)


Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value
Airxcel Holdings
A leading manufacturer of a broad range of climate control solutions, including air-conditioners, heat pumps, cooking appliances, furnaces, powered vents, and water heaters.
12.5% Senior Subordinated Note due 11/18/2020	$	2,977,431	11/18/14		$	2,928,792	$	2,998,248
Limited Liability Company Unit	583 uts.		11/18/14			583,000		620,779
						3,511,792		3,619,027

AMS Holding LLC
A leading multi-channel direct marketer of high-value collectible coins and proprietary-branded jewelry and watches.
Limited Liability Company Unit Class A Preferred (B)	273 uts.		10/04/12			272,727		795,280


Animal Supply Company
A distributor of pet products to independent pet stores, veterinary clients and other pet specialty retailers.
10.5% Second Lien Term Loan due 09/17/2019	$	3,570,000	03/30/15			3,529,367		3,390,219


ARI Holding Corporation
A leading national supplier of products used primarily by specialty contractors.
11.5% Senior Subordinated Note due 02/01/2020	$	3,413,408		*		3,372,542		3,420,786
Limited Partnership Interest	1,048 uts.		08/01/14			1,047,900		1,225,526
* 05/21/13 and 08/01/14.						4,420,442		4,646,312


ASC Holdings, Inc.
A manufacturer of capital equipment used by corrugated box manufacturers.
13% Senior Subordinated Note due 05/18/2021	$	1,507,871	11/19/15			1,479,230		1,503,414
Limited Liability Company Unit (B)	225,300 uts.		11/18/15			225,300		100,709
						1,704,530		1,604,123

Aurora Parts & Accessories LLC
A distributor of aftermarket over-the-road semi-trailer parts and accessories sold to customers across North America.
11% Senior Subordinated Note due 02/17/2022	$	3,074,700	08/17/15			3,018,225		3,098,547
Preferred Stock (B)	425 shs.		08/17/15			424,875		421,328
Common Stock (B)	425 shs.		08/17/15			425		—
						3,443,525		3,519,875

Avantech Testing Services LLC
A manufacturer of custom Non-Destructive Testing ("NDT") systems and provider of NDT and inspections services primarily to the oil country tubular goods market.
15% Senior Subordinated Note due 01/31/2020 (D)	$	1,015,684	07/31/14			996,694		—
Limited Liability Company Unit	92,327 uts.			*		—		—
* 07/31/14 and 10/14/15.						996,694		—

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

March 31, 2016

(Unaudited)


Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value
Blue Wave Products, Inc.
A distributor of pool supplies.
10% Senior Secured Term Note due 09/30/2018	$	446,808	10/12/12		$	442,412	$	446,808
13% Senior Subordinated Note due 09/30/2019	$	740,120	10/12/12			707,106		740,120
Common Stock (B)	114,894 shs.		10/12/12			114,894		415,878
Warrant, exercisable until 2022, to purchase common stock at $.01 per share (B)	45,486 shs.		10/12/12			45,486		164,644
						1,309,898		1,767,450

BlueSpire Holding, Inc.
A marketing services firm that integrates strategy, technology, and content to deliver customized marketing solutions for clients in the senior living, financial services and healthcare end markets.
12.5% Senior Subordinated Note due 06/30/2021	$	3,217,730	06/30/15			3,159,684		3,128,648
Common Stock (B)	2,876 shs.		06/30/15			318,200		232,673
						3,477,884		3,361,321

BP SCI LLC
A leading value-added distributor of branded pipes, valves, and fittings (PVF) to diversified end markets.
Limited Liability Company Unit Class A (B)	1,000 uts.		10/17/12			100,000		322,008
Limited Liability Company Unit Class B (B)	400 uts.		10/17/12			400,000		587,406
						500,000		909,414

CG Holdings Manufacturing Company
A coating provider serving the automotive, agricultural, heavy truck and other end markets.
13% Senior Subordinated Note 11/01/2019	$	3,390,252		*		3,257,712		3,424,155
Preferred Stock (B)	3,241 shs.			*		324,054		383,569
Preferred Stock (B)	1,174 shs.			*		116,929		138,971
Common Stock (B)	337 shs.			*		35,673		163,579
Warrant, exercisable until 2023, to purchase common stock at $.01 per share (B)	137 shs.			*		13,033		66,554
* 05/09/13 and 11/01/13.						3,747,401		4,176,828


CHG Alternative Education Holding Company
A leading provider of publicly-funded, for profit pre-K-12 education services targeting special needs children at therapeutic day schools and "at risk" youth through alternative education programs.
13.5% Senior Subordinated Note due 01/19/2018	$	2,313,060	01/19/11			2,267,040		2,313,060
14% Senior Subordinated Note due 08/03/2019	$	605,727	08/03/12			599,002		605,727
Common Stock (B)	1,125 shs.		01/19/11			112,500		139,065
Warrant, exercisable until 2021, to purchase common stock at $.01 per share (B)	884 shs.		01/19/11			87,750		109,314
						3,066,292		3,167,166

Babson Capital Corporate Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

March 31, 2016

(Unaudited)


Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value
Church Services Holding Company
A provider of diversified residential services to homeowners in the Houston, Dallas, and Austin markets.
14.5% Senior Subordinated Note due 03/26/2018	$	572,800	03/26/12		$	564,374	$	525,137
10% Senior Subordinated Note due 09/15/2099	$	20,559	09/15/14			20,559		—
Common Stock (B)	3,981 shs.			*		398,100		—
Warrant, exercisable until 2022, to purchase common stock at $.01 per share (B)	172 shs.		03/26/12			17,220		—
* 03/26/12, 05/25/12 and 06/19/12.						1,000,253		525,137


Clarion Brands Holding Corp.
A portfolio of six over-the-counter (OTC) pharmaceutical brands whose products are used to treat tinnitus or ringing of the ear, excessive sweating, urinary tract infections, muscle pain, and skin conditions.
12.5% Senior Subordinated Note due 04/01/2021	$	3,254,083	10/01/14			3,199,783		3,286,624
Common Stock (B)	3,182 shs.		10/01/14			318,182		173,349
						3,517,965		3,459,973

Clough, Harbour and Associates
An engineering service firm that is located in Albany, NY.
Preferred Stock (B)	277 shs.		12/02/08			276,900		1,270,357


Compass Chemical International LLC
A manufacturer and supplier of standard and specialty formulated chemicals, primarily phosphoric acid derivatives called phosphonates.
13% Senior Subordinated Note due 10/04/2020	$	3,098,892	03/04/15			3,047,453		3,095,759
Limited Liability Company Unit (B)	467 uts.		03/04/15			466,700		482,119
						3,514,153		3,577,878

Connecticut Electric, Inc.
A supplier and distributor of electrical products sold into the retail and wholesale markets.
Limited Liability Company Unit Class A (B)	156,046 uts.		01/12/07			156,046		196,823
Limited Liability Company Unit Class C (B)	112,873 uts.		01/12/07			112,873		151,506
Limited Liability Company Unit Class D (B)	1,268,437 uts.		05/03/10			—		1,566,647
Limited Liability Company Unit Class E (B)	2,081 uts.		05/03/10			—		229,349
						268,919		2,144,325

CTM Holding, Inc.
A leading owner and operator of coin-operated children's rides, penny presses and candy kiosks in the U.S.
15% Senior Subordinated Note due 11/22/2019	$	2,536,269	11/22/13			2,502,695		2,509,782
Common Stock (B)	155 shs.		11/22/13			886,364		962,227
						3,389,059		3,472,009

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

March 31, 2016

(Unaudited)


Corporate Restricted Securities: (A) (Continued)		Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date	Cost		Fair Value
Custom Engineered Wheels, Inc.
A manufacturer of custom engineered, non-pneumatic plastic wheels and plastic tread cap tires used primarily for lawn and garden products and wheelchairs.
Preferred Stock PIK (B)	296 shs.			10/26/09	$	295,550	$	501,478
Preferred Stock Series A (B)	216 shs.			10/27/09		197,152		366,399
Common Stock (B)	72 shs.			10/26/09		72,238		226,380
Warrant, exercisable until 2016, to purchase common stock at $.01 per share (B)	53 shs.			10/27/09		48,608		165,398
						613,548		1,259,655

DPL Holding Corporation
A distributor and manufacturer of aftermarket undercarriage parts for medium and heavy duty trucks and trailers.
14% Senior Subordinated Note due 05/04/2019		$	3,319,463	05/04/12		3,284,732		3,319,463
Preferred Stock (B)	61 shs.			05/04/12		605,841		790,657
Common Stock (B)	61 shs.			05/04/12		67,316		17,502
						3,957,889		4,127,622

Dunn Paper
A provider of specialty paper for niche product applications.
Preferred Stock (B)	530 shs.			12/30/14		530,303		1,795,988


Eagle Family Foods, Inc.
A producer of low-cost branded and private label canned milk.
10.05% Last Out Term Loan due 06/30/2016		$	3,500,000	12/22/15		3,449,703		3,454,815


ECG Consulting Group
A healthcare management consulting company who provides strategic, financial, operational, and technology related consulting services to healthcare providers.
11.75% Senior Subordinated Note due 11/21/2020		$	2,651,855	11/21/14		2,602,119		2,704,892
Limited Liability Company Unit (B)	467 uts.			11/19/14		145,833		171,742
						2,747,952		2,876,634

ERG Holding Company LLC
A provider of inpatient and outpatient clinical trial services to pharmaceutical companies and contract research organizations.
13.5% Senior Subordinated Note due 10/04/2019		$	1,944,826	04/04/14		1,917,583		1,951,279
Common Stock (B)	63 shs.			04/04/14		157,314		169,911
						2,074,897		2,121,190

F F C Holding Corporation
A leading U.S. manufacturer of private label frozen novelty and ice cream products.
Limited Liability Company Unit Preferred (B)	512 uts.			09/27/10		175,035		222,827
Limited Liability Company Unit Common (B)	512 uts.			09/27/10		51,220		309,899
						226,255		532,726

Babson Capital Corporate Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

March 31, 2016

(Unaudited)


Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date	Cost		Fair Value
F G I Equity LLC
A manufacturer of a broad range of filters and related products that are used in commercial, light industrial, healthcare, gas turbine, nuclear, laboratory, clean room, hotel, educational system, and food processing settings.
Limited Liability Company Unit Preferred (B)	483,355 uts.		04/15/14	$	—	$	483,355
Limited Liability Company Unit Class B-1 (B)	394,737 uts.		12/15/10		394,737		890,709
Limited Liability Company Unit Class B-2 (B)	49,488 uts.		12/15/10		49,488		111,668
Limited Liability Company Unit Class B-3 (B)	39,130 uts.		08/30/12		90,000		98,470
Limited Liability Company Unit Class C (B)	9,449 uts.		12/20/10		96,056		179,568
					630,281		1,763,770

FMH Holdings Corporation
A designer and manufacturer of highly engineered components for the aerospace, defense and space industries.
11.5% Senior Subordinated Note due 11/01/2020	$	2,929,728	05/01/15		2,879,107		2,988,323
Common Stock (B)	300 shs.		05/01/15		300,485		481,005
					3,179,592		3,469,328

G C Holdings
A leading manufacturer of gaming tickets, industrial recording charts, security-enabled point-of sale receipts, and medical charts and supplies.
Warrant, exercisable until 2018, to purchase common stock at $.01 per share (B)	594 shs.		10/19/10		140,875		354,755


GD Dental Services LLC
A provider of convenient "onestop" general, specialty, and cosmetic dental services with 21 offices located throughout
South and Central Florida.
Limited Liability Company Unit Preferred (B)	182 uts.		10/05/12		182,209		228,002
Limited Liability Company Unit Common (B)	1,840 uts.		10/05/12		1,840		121,504
					184,049		349,506

GenNx Novel Holding, Inc.
A manufacturer and distributor of nutraceutical ingredients.
13% Senior Subordinated Note due 03/27/2020	$	3,242,125	03/27/14		3,194,586		3,079,824
Common Stock (B)	31,500 shs.		03/27/14		315,000		233,110
					3,509,586		3,312,934

gloProfessional Holdings, Inc.
A marketer and distributor of premium mineral-based cosmetics, cosmeceuticals and professional hair care products to the professional spa and physician's office channels.
14% Senior Subordinated Note due 03/27/2019	$	2,884,563	03/27/13		2,851,818		2,818,099
Common Stock (B)	2,835 shs.		03/27/13		283,465		274,891
					3,135,283		3,092,990

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

March 31, 2016

(Unaudited)


Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date	Cost		Fair Value
Glynlyon Holding Companies, Inc.
A technology-enabled curriculum provider of K-12 and support services predominantly to small and medium public school districts.
12% Senior Subordinated Note due 01/15/2022	$	3,207,612	01/15/16	$	3,145,141	$	3,274,737
Common Stock (B)	299 shs.		01/15/16		299,145		252,051
					3,444,286		3,526,788

GlynnDevins Acquisition Corporation
A marketing communications agency that service senior living facilities.
13% Senior Subordinated Note due 12/19/2020	$	1,608,613	06/19/15		1,580,105		1,618,184
Preferred Stock Series A (B)	695 shs.		06/19/15		143,414		149,528
Common Stock (B)	695 shs.		06/19/15		5,976		2,046
					1,729,495		1,769,758

Grakon Parent
The leading designer and manufacturer of highly-engineered and customized LED and incandescent lighting systems for transportation-based markets.
Common Stock (B)	355 shs.		10/31/14		354,730		481,861


GTI Holding Company
A designer, developer, and marketer of precision specialty hand tools and handheld test instruments.
12% Senior Subordinated Note due 02/05/2020	$	1,455,729	02/05/14		1,380,707		1,382,633
Common Stock (B)	1,693 shs.		02/05/14		169,271		129,580
Warrant, exercisable until 2024, to purchase common stock at $.01 per share (B)	795 shs.		02/05/14		73,633		60,848
					1,623,611		1,573,061

Handi Quilter Holding Company
A designer and manufacturer of long-arm quilting machines and related components for the consumer quilting market.
12% Senior Subordinated Note due 06/19/2021	$	2,916,667	12/19/14		2,866,483		2,893,278
Limited Liability Company Unit Preferred (B)	583 uts.		12/19/14		583,336		433,895
Limited Liability Company Unit Common Class A (B)	5,833 uts.		12/19/14		—		—
					3,449,819		3,327,173

Hartland Controls Holding Corporation
A manufacturer and distributor of electronic and electromechanical components.
14% Senior Subordinated Note due 08/14/2019	$	2,211,488	02/14/14		2,180,404		2,233,603
12% Senior Subordinated Note due 08/14/2019	$	875,000	06/22/15		867,599		881,499
Preferred Stock Series A (B)	2,452 shs.		02/14/14		231,326		258,275
Common Stock (B)	1,666 shs.		02/14/14		1,667		196,852
					3,280,996		3,570,229

Babson Capital Corporate Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

March 31, 2016

(Unaudited)


Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date	Cost		Fair Value
Healthcare Direct Holding Company
A direct-to-consumer marketer of discount dental plans.
Common Stock (B)	1,552 shs.		03/09/12	$	155,172	$	302,134


HHI Group, LLC
A developer, marketer, and distributor of hobby-grade radio control products.
14% Senior Subordinated Note due 01/17/2020	$	3,231,462	01/17/14		3,187,158		2,805,826
Limited Liability Company Unit (B)	203 uts.		01/17/14		203,125		11,833
					3,390,283		2,817,659

Hi-Rel Group LLC
A manufacturer and distributor of precision metal piece parts for the microelectronic packaging industry, serving the aerospace/defense, telecommunications, and medical end markets.
12% Senior Subordinated Note due 03/15/2018	$	1,687,500	04/15/13		1,632,911		1,686,342
Limited Liability Company Unit (B)	563 uts.		04/15/13		562,500		795,799
Warrant, exercisable until 2020, to purchase common stock at $.01 per share (B)	89,224 shs.		04/15/13		77,625		157,782
					2,273,036		2,639,923

Hollandia Produce LLC
A hydroponic greenhouse producer of branded root vegetables.
13.75% Senior Subordinated Note due 03/31/2021	$	2,643,247	12/30/15		2,592,679		2,697,787


HOP Entertainment LLC
A provider of post production equipment and services to producers of television shows and motion pictures.
Limited Liability Company Unit Class F (B)	89 uts.		10/14/11		—		—
Limited Liability Company Unit Class G (B)	215 uts.		10/14/11		—		—
Limited Liability Company Unit Class H (B)	89 uts.		10/14/11		—		—
Limited Liability Company Unit Class I (B)	89 uts.		10/14/11		—		—
					—		—

Hospitality Mints Holding Company
A manufacturer of individually-wrapped imprinted promotional mints.
12% Senior Subordinated Note due 08/19/2016	$	2,075,581	08/19/08		2,060,938		2,041,822
Common Stock (B)	474 shs.		08/19/08		474,419		66,495
Warrant, exercisable until 2016, to purchase common stock at $.01 per share (B)	123 shs.		08/19/08		113,773		17,187
					2,649,130		2,125,504

HVAC Holdings, Inc.
A provider of integrated energy efficiency services and maintenance programs for HVAC systems.
12.5% Senior Subordinated Note due 09/27/2019	$	2,885,692	09/27/12		2,851,706		2,885,692
Limited Liability Company Unit Class A Preferred (B)	2,705 uts.		09/27/12		270,542		377,362
Limited Liability Company Unit Class A Common (B)	2,185 uts.		09/27/12		2,185		130,797
					3,124,433		3,393,851

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

March 31, 2016

(Unaudited)


Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date	Cost		Fair Value
Ideal Tridon Holdings, Inc.
A designer and manufacturer of clamps and couplings used in automotive and industrial end markets.
Common Stock	279 shs.		10/27/11	$	232,385	$	474,918


Impact Confections
An independent manufacturer and marketer of confectionery products including Warheads^® brand sour candies, Melster^® brand classic candies, and co-manufactured/private label classic candies.
13% Senior Subordinated Note due 11/10/2020	$	2,188,543	11/10/14		2,152,588		2,200,586
Common Stock (B)	4,667 shs.		11/10/14		466,667		381,376
					2,619,255		2,581,962

Insurance Claims Management, Inc.
A third party administrator providing auto and property claim administration services for insurance companies.
Common Stock (B)	89 shs.		02/27/07		2,689		279,859


J A C Holding Enterprises, Inc.
A supplier of luggage racks and accessories to the original equipment manufacturers.
Preferred Stock A (B)	495 shs.		12/20/10		495,000		923,231
Preferred Stock B (B)	0.17 shs.		12/20/10		—		311
Common Stock	100 shs.		12/20/10		5,000		190,396
Warrant, exercisable until 2020, to purchase common stock at $.01 per share (B)	36 shs.		12/20/10		316,931		346,898
					816,931		1,460,836

Janus Group Holdings LLC
A manufacturer of roll-up doors and hallway systems that are primarily used in self-storage facilities.
13.5% Senior Subordinated Note due 06/10/2019	$	2,214,946	12/11/13		2,185,269		2,237,095
Limited Liability Company Unit Class A (B)	565 uts.		12/11/13		1,223,588		1,963,773
					3,408,857		4,200,868

JMH Investors LLC
A developer and manufacturer of custom formulations for a wide variety of foods.
14.25% Senior Subordinated Note due 12/05/2019	$	2,670,060	12/05/12		2,637,930		2,321,201
Limited Liability Company Unit (B)	2,493,253 uts.		12/05/12		557,301		32,582
					3,195,231		2,353,783

K & N Parent, Inc.
A manufacturer and supplier of automotive aftermarket performance air filters and intake systems.
Preferred Stock Series A	305 shs.		12/23/11		—		—
Preferred Stock Series B	86 shs.		12/23/11		—		—
Common Stock	489 shs.		*		19,565		490,817
* 12/23/11 and 06/30/14.					19,565		490,817

Babson Capital Corporate Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

March 31, 2016

(Unaudited)


Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value
K N B Holdings Corporation
A designer, manufacturer and marketer of products for the custom framing market.
Common Stock (B)	134,210 shs.		05/24/06		$	134,210	$	149,937
Warrant, exercisable until 2016, to purchase common stock at $.01 per share (B)	82,357 shs.		05/25/06			71,534		92,008
						205,744		241,945

K P I Holdings, Inc.
The largest player in the U.S. non-automotive, non-ferrous die casting segment.
Limited Liability Company Unit Class C Preferred (B)	75 uts.		06/30/15			—		137,531
Common Stock (B)	667 shs.		07/15/08			539,502		781,641
						539,502		919,172

Kyjen Company
A designer and distributor of branded and private label dog toys and accessories primarily in the U.S.
13% Senior Subordinated Note due 10/14/2021	$	2,637,118	10/14/15			2,587,375		2,663,028


Mail Communications Group, Inc.
A provider of mail processing and handling services, lettershop services, and commercial printing services.
Limited Liability Company Unit	24,109 uts.			*		314,464		308,668
Warrant, exercisable until 2017, to purchase common stock at $.01 per share (B)	3,375 shs.		05/04/07			43,031		43,210
* 05/04/07 and 01/02/08.						357,495		351,878


Manhattan Beachwear Holding Company
A designer and distributor of women's swimwear.
12.5% Senior Subordinated Note due 01/15/2018	$	1,259,914	01/15/10			1,205,887		1,205,952
15% Senior Subordinated Note due 01/15/2018	$	352,282	10/05/10			350,070		325,030
Common Stock (B)	106 shs.		10/05/10			106,200		11,823
Common Stock Class B (B)	353 shs.		01/15/10			352,941		39,292
Warrant, exercisable until 2019, to purchase common stock at $.01 per share (B)	312 shs.		10/05/10			283,738		34,773
						2,298,836		1,616,870

Master Cutlery LLC
A designer and marketer of a wide assortment of knives and swords.
13% Senior Subordinated Note due 04/17/2020	$	1,758,407	04/17/15			1,740,288		1,705,271
Limited Liability Company Unit	9 uts.		04/17/15			1,356,658		691,824
						3,096,946		2,397,095

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

March 31, 2016

(Unaudited)


Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date	Cost		Fair Value
MC Sign Holdings LLC
A provider of sign and lighting services nationwide.
11.75% Senior Subordinated Note due 09/15/2021	$	1,550,186	09/22/15	$	1,521,229	$	1,566,456
Limited Liability Company Unit Class B (B)	205,900 uts.		09/22/15		205,900		202,214
					1,727,129		1,768,670

MedSystems Holdings LLC
A manufacturer of enteral feeding products, such as feeding tubes and other products related to assisted feeding.
Preferred Unit (B)	126 uts.		08/29/08		87,177		192,392
Common Unit Class A (B)	1,268 uts.		08/29/08		1,268		543,796
Common Unit Class B (B)	497 uts.		08/29/08		120,064		213,328
					208,509		949,516

Merex Holding Corporation
A provider of after-market spare parts and components, as well as Maintenance, Repair and Overhaul services for "out of production" or "legacy" aerospace and defense systems that are no longer effectively supported by the original equipment manufacturers.
16% Senior Subordinated Note due 10/30/2019	$	1,362,886	09/22/11		1,347,188		1,323,709
15% Senior Subordinated Note due 04/30/2022	$	71,517	08/18/15		71,517		64,365
Limited Liability Company Unit Series A (B)	684 uts.		05/07/14		44,281		7,428
Limited Liability Company Unit Series B (B)	467,833 uts.		09/22/11		467,833		102,555
Common Stock Class A	5,578 shs.		08/18/15		—		60,548
					1,930,819		1,558,605

MES Partners, Inc.
An industrial service business offering an array of cleaning and environmental services to the Gulf Coast region of the U.S.
12% Senior Subordinated Note due 09/30/2021	$	2,228,593	09/30/14		2,191,234		2,262,658
Common Stock Class B (B)	445,455 shs.		09/30/14		445,455		354,990
					2,636,689		2,617,648

MNX Holding Company
An international third party logistics company providing customized logistics services to customers across the globe.
14% Senior Subordinated Note due 11/02/2019	$	3,096,756	11/02/12		3,060,157		3,096,756
Common Stock (B)	107 shs.		11/02/12		107,143		116,247
					3,167,300		3,213,003

Money Mailer
A leading provider of hyperlocal shared direct mail advertising as well as interactive and online advertising solutions through its nationwide production and distribution network.
Preferred Stock	2,704,364 shs.		12/10/14		2,663,799		2,704,364

Babson Capital Corporate Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

March 31, 2016

(Unaudited)


Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value
Motion Controls Holdings
A manufacturer of high performance mechanical motion control and linkage products.
14.25% Senior Subordinated Note due 08/15/2020	$	2,988,310	11/30/10		$	2,963,409	$	2,988,310
Limited Liability Company Unit Class B-1 (B)	225,000 uts.		11/30/10			—		259,033
Limited Liability Company Unit Class B-2 (B)	20,403 uts.		11/30/10			—		23,489
						2,963,409		3,270,832

NABCO, Inc.
A producer of explosive containment vessels in the United States.
Common Stock (B)	809 shs.		12/20/12			578,174		111,113


NetShape Technologies, Inc.
A manufacturer of powder metal and metal injection molded precision components used in industrial, consumer, and other applications.
12% Senior Subordinated Note due 06/10/2020	$	1,530,000	02/02/07			1,528,882		713,113
Limited Partnership Interest of Saw Mill PCG Partners LLC (B)	2.73% int.		02/01/07			1,110,810		—
Limited Liability Company Unit Class D of Saw Mill PCG Partners LLC (B)	17 uts.			*		16,759		—
Limited Liability Company Unit Class D-1 of Saw Mill PCG Partners LLC (B)	229 uts.		09/30/09			228,858		—
Limited Liability Company Unit Class D-2 of Saw Mill PCG Partners LLC (B)	128 uts.		04/29/11			65,256		82,220
Limited Liability Company Unit Class D-3 of Saw Mill PCG Partners LLC (B)	196 uts.		12/10/14			196,263		198,811
* 12/18/08 and 09/30/09.						3,146,828		994,144


Northwest Mailing Services, Inc.
A producer of promotional materials for companies that use direct mail as part of their customer retention and loyalty programs.
Limited Partnership Interest (B)	3,287 uts.			*		328,679		371,589
Warrant, exercisable until 2019, to purchase common stock at $.01 per share (B)	4,920 shs.			*		492,016		556,250
* 07/09/09 and 08/09/10.						820,695		927,839


O E C Holding Corporation
A provider of elevator maintenance, repair and modernization services.
Preferred Stock Series A (B)	1,661 shs.		06/04/10			166,062		247,686
Preferred Stock Series B (B)	934 shs.		06/04/10			93,376		159,012
Common Stock (B)	1,032 shs.		06/04/10			1,032		63,101
						260,470		469,799

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

March 31, 2016

(Unaudited)


Corporate Restricted Securities: (A) (Continued)		Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date	Cost		Fair Value
PANOS Brands LLC
A marketer and distributor of branded consumer foods in the specialty, natural, better-for-you, "free from" healthy and gluten-free categories.
12% Senior Subordinated Note due 07/29/2021		$	2,945,063	01/29/16	$	2,887,574	$	3,006,668
Common Stock Class A (B)	560,000 shs.			01/29/16		560,000		560,000
						3,447,574		3,566,668

Pearlman Enterprises, Inc.
A developer and distributor of tools, equipment, and supplies to the natural and engineered stone industry.
Preferred Stock Series A (B)	2,334 shs.			05/22/09		111,508		2,334,350
Preferred Stock Series B (B)	13,334 shs.			05/22/09		547,872		174,204
Common Stock (B)	40,540 shs.			05/22/09		1,877,208		—
						2,536,588		2,508,554

Petroplex Inv Holdings LLC
A leading provider of acidizing services to E&P customers in the Permian Basin.
Limited Liability Company Unit	375,000 uts.			11/29/12		375,000		—


Polytex Holdings LLC
A manufacturer of water based inks and related products serving primarily the wall covering market.
13% Senior Subordinated Note due 01/31/2020		$	2,138,701	07/31/14		2,106,353		2,067,401
Limited Liability Company Unit	300,485 uts.			07/31/14		300,485		229,450
						2,406,838		2,296,851

Power Stop Holdings LLC
A supplier of performance upgrade aftermarket brake products.
11% Senior Subordinated Note due 05/29/2022		$	3,266,800	05/29/15		3,208,763		3,329,808
Limited Liability Company Unit Preferred (B)	2,332 uts.			05/29/15		233,200		247,253
Limited Liability Company Unit Common (B)	2,332 uts.			05/29/15		—		95,421
						3,441,963		3,672,482

PPC Event Services
A special event equipment rental business.
14% Senior Subordinated Note due 05/20/2020		$	2,332,447	11/20/14		2,295,431		2,379,096
Limited Liability Company Unit (B)	7,000 uts.			11/20/14		350,000		787,500
Limited Liability Company Unit Series A-1 (B)	689 uts.			03/16/16		86,067		86,066
						2,731,498		3,252,662

Randy's Worldwide Automotive
A designer and distributor of automotive aftermarket parts.
11.5% Senior Subordinated Note due 05/12/2021		$	2,304,719	05/12/15		2,264,805		2,308,248
Common Stock (B)	240 shs.			05/12/15		240,388		272,854
						2,505,193		2,581,102

Babson Capital Corporate Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

March 31, 2016

(Unaudited)

Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value
REVSpring, Inc.
A provider of accounts receivable management and revenue cycle management services to customers in the healthcare, financial and utility industries.
Limited Liability Company Unit Class A (B)	40,643 uts.			*	$	406,432	$	671,108
* 10/21/11 and 08/03/12.

Safety Infrastructure Solutions
A provider of trench safety equipment to a diverse customer base across multiple end markets in Texas and the Southwestern United States.
Preferred Stock (B)	6,294 shs.		03/30/12			251,758		354,307
Common Stock (B)	2,949 shs.		03/30/12			29,492		462,338
						281,250		816,645

Signature Systems Holdings Company
A seller and installer of a variety of modular surfaces, industrial matting and related products used for ground protection.
Common Stock (B)	181 shs.		03/15/13			181,221		290,715
Warrant, exercisable until 2023, to purchase common stock at $.01 per share (B)	74 shs.		03/15/13			67,958		118,760
						249,179		409,475

Smart Source Holdings LLC
A short-term computer rental company.
Limited Liability Company Unit (B)	619 uts.			*		493,496		669,793
Warrant, exercisable until 2016, to purchase common stock at $.01 per share (B)	157 shs.			*		127,437		169,681
* 08/31/07 and 03/06/08.						620,933		839,474


SMB Machinery Holdings, Inc.
A reseller of used, rebuilt and refurbished packaging and processing equipment, primarily serving the bottling and food manufacturing industries.
14% Senior Subordinated Note due 10/18/2019 (D)	$	1,477,388	10/18/13			1,452,295		—
Common Stock (B)	1,681 shs.		10/18/13			168,100		—
						1,620,395		—

Strahman Holdings Inc
A manufacturer of industrial valves and wash down equipment for a variety of industries, including chemical, petrochemical, polymer, pharmaceutical, food processing, beverage and mining.
14% Senior Subordinated Note due 06/13/2019 (D)	$	2,119,565	12/13/13			2,086,788		2,140,761
Preferred Stock Series A (B)	317,935 shs.		12/13/13			317,935		569,104
Preferred Stock Series A-2 (B)	53,086 shs.		09/10/15			59,987		95,024
						2,464,710		2,804,889

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

March 31, 2016

(Unaudited)

Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value
Sunrise Windows Holding Company
A manufacturer and marketer of premium vinyl windows exclusively selling to the residential remodeling and replacement market.
16% Senior Subordinated Note due 12/14/2017	$	3,801,585		*	$	3,733,069	$	3,421,427
Common Stock (B)	115 shs.		12/14/10			114,504		74,045
Warrant, exercisable until 2020, to purchase common stock at $.01 per share (B)	112 shs.		12/14/10			111,747		72,267
* 12/14/10, 08/17/12 and 03/31/16.						3,959,320		3,567,739


Sunvair Aerospace Group Inc.
An aerospace maintenance, repair, and overhaul provider servicing landing gears on narrow body aircraft.
12% Senior Subordinated Note due 07/31/2021	$	2,466,440	07/31/15			2,417,111		2,485,752
Common Stock (B)	139 shs.		07/31/15			158,560		149,757
						2,575,671		2,635,509

Synteract Holdings Corporation
A provider of outsourced clinical trial management services to pharmaceutical and biotechnology companies.
14% Senior Subordinated Note due 02/26/2019	$	4,402,212	09/02/08			4,324,529		4,402,212
Preferred Stock Series D (B)	485 shs.		02/27/13			48,503		—
Redeemable Preferred Stock Series A (B)	1,280 shs.		10/03/08			12,523		—
Warrant, exercisable until 2018, to purchase common stock at $.01 per share (B)	12,803 shs.		09/02/08			112,693		—
						4,498,248		4,402,212

Team Drive-Away Holdings LLC
An asset-light provider of over the road driveaway services for class 8 trucks and specialized equipment.
12.5% Senior Subordinated Note due 04/15/2021	$	1,555,600	10/15/15			1,526,351		1,572,395
Limited Liability Company Unit (B)	194,400 uts.		10/15/15			194,400		191,484
						1,720,751		1,763,879

Torrent Group Holdings, Inc.
A contractor specializing in the sales and installation of engineered drywells for the retention and filtration of stormwater and nuisance water flow.
3% Senior Subordinated Note due 12/31/2018 (D)	$	1,455,525	12/05/13			—		1,382,749
15% Senior Subordinated Note due 12/05/2020(D)	$	88,396	12/05/13			414,051		83,976
Warrant, exercisable until 2023, to purchase common stock at $.01 per share (B)	53,038 shs.		12/05/13			—		1,061
						414,051		1,467,786

Babson Capital Corporate Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

March 31, 2016

(Unaudited)

Corporate Restricted Securities: (A) (Continued)		Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value

Transpac Holding Company
A designer, importer and wholesaler of home décor and seasonal gift products.
8% Senior Subordinated Note due 10/31/2016 (D)		$	1,773,006	10/31/07		$	1,717,521	$	—
Common Stock (B)	209 shs.			10/31/07			208,589		—
Warrant, exercisable until 2016, to purchase common stock at $.01 per share (B)	94 shs.			10/31/07			87,607		—
							2,013,717		—

Tranzonic Holdings LLC
A producer of commercial and industrial supplies, such as safety products, janitorial supplies, work apparel, washroom and restroom supplies and sanitary care products.
14% Senior Subordinated Note due 07/05/2019		$	3,120,306	07/05/13			3,082,113		3,120,306
Limited Liability Company Unit Preferred Class A (B)	295,455 uts.			07/05/13			295,455		403,856
							3,377,568		3,524,162

Tristar Global Energy Solutions, Inc.
A hydrocarbon and decontamination services provider serving refineries worldwide.
12.5% Senior Subordinated Note due 07/31/2020		$	2,294,018	01/23/15			2,255,476		2,115,137


Veritext Corporation
A provider of stenographic staffing and other services used during the legal deposition process.
10.75% Second Lien Term Loan due 01/29/2023		$	3,500,000	01/21/16			3,431,725		3,437,597


Vitex Packaging Group, Inc.
A manufacturer of specialty packaging, primarily envelopes and tags used on tea bags.
Class B Unit (B)	767,881 uts.			10/29/09			348,058		—
Class C Unit (B)	850,000 uts.			10/29/09			780,572		244,344
Limited Liability Company Unit Class A (B)	723,465 uts.				*		433,222		—
Limited Liability Company Unit Class B (B)	182,935 uts.			07/19/04			182,935		—
* 07/19/04 and 10/29/09.							1,744,787		244,344


VP Holding Company
A provider of school transportation services for special-needs and homeless children in Massachusetts.
Common Stock (B)	7,368 shs.			03/31/14			736,842		1,149,496


Wellborn Forest Holding Company
A manufacturer of semi-custom kitchen and bath cabinetry.
8% Senior Subordinated Note due 09/30/2017 (D)		$	3,175,092	11/30/06			1,638,669		2,381,319
Common Stock (B)	191 shs.			11/30/06			191,250		—
Warrant, exercisable until 2016, to purchase common stock at $.01 per share (B)	95 shs.			11/30/06			86,493		—
							1,916,412		2,381,319

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

March 31, 2016

(Unaudited)


Corporate Restricted Securities: (A) (Continued)		Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date	Cost		Fair Value
Westminster Acquisition LLC
A manufacturer of premium, all-natural oyster cracker products sold under the Westminster and Olde Cape Cod brands.
12% Senior Subordinated Note due 02/03/2021		$	756,168	08/03/15	$	742,650	$	759,754
Limited Liability Company Unit (B)	751,212 uts.			08/03/15		751,212		1,039,976
						1,493,862		1,799,730

Whitcraft Holdings, Inc.
A leading independent manufacturer of precision formed, machined, and fabricated flight-critical aerospace components.
Common Stock (B)	616 shs.			12/16/10		616,438		607,186
Warrant, exercisable until 2018, to purchase common stock at $.01 per share (B)	166 shs.			12/16/10		148,003		163,153
						764,441		770,339

Wolf-Gordon, Inc.
A designer and specialty distributor of wallcoverings and related building products, including textiles, paint, and writeable surfaces.
12.5% Senior Subordinated Note due 07/22/2021		$	3,190,966	01/22/16		3,128,883		3,229,223
Common Stock (B)	318 shs.			01/22/16		318,182		285,111
						3,447,065		3,514,334

WP Supply Holding Corporation
A distributor of fresh fruits and vegetables to grocery wholesalers and foodservice distributors in the upper Midwest.
14.5% Senior Subordinated Note due 06/12/2020		$	2,846,336	11/03/11		2,821,190		2,846,336
Common Stock	4,500 shs.			11/03/11		450,000		655,079
						3,271,190		3,501,415

York Wall Holding Company
A designer, manufacturer and marketer of wall covering products for both residential and commercial wall coverings.
12.5% Senior Subordinated Note due 03/04/2021		$	3,178,320	03/04/15		3,123,788		2,980,512
Common Stock (B)	3,723 shs.			03/04/15		372,300		215,931
						3,496,088		3,196,443


Total Private Placement Investments (E)					$	205,671,979	$	211,077,681

Babson Capital Corporate Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

March 31, 2016

(Unaudited)

Corporate Restricted Securities: (A) (Continued)	Interest Rate		Due Date	Principal Amount		Cost		Market Value

Rule 144A Securities - 18.07%:
Bonds - 18.07%
Alere Inc.		6.375%	07/01/23	$	1,175,000	$	1,191,955	$	1,233,750
Altice S.A.		7.750	05/15/22		1,000,000		1,000,000		984,080
Amsted Industries		5.375	09/15/24		520,000		520,000		499,850
Anixter, Inc.		5.500	03/01/23		1,000,000		1,000,000		1,012,500
Belden Inc.		5.250	07/15/24		410,000		410,000		391,550
Beverage Packaging Holdings		6.000	06/15/17		730,000		730,000		724,069
Boyd Gaming Corporation		6.375	04/01/26		197,000		197,000		204,388
Brunswick Corporation		4.625	05/15/21		1,000,000		1,009,577		1,007,500
CCOH Safari, LLC		5.750	02/15/26		1,000,000		1,000,000		1,035,000
CITGO Petroleum Corporation		6.250	08/15/22		925,000		925,000		892,625
Commscope Holdings Inc.		6.625	06/01/20		500,000		500,810		512,500
Consolidated Energy Finance S.A.		6.750	10/15/19		1,000,000		989,849		952,499
Constellium N.V.		7.875	04/01/21		743,000		743,000		742,354
Cornerstone Chemical Company		9.375	03/15/18		750,000		759,108		699,375
Coveris Holdings S.A.		7.875	11/01/19		1,000,000		1,000,000		895,000
CTP Transportation Products, LLC		8.250	12/15/19		635,000		635,000		625,475
Dean Foods		6.500	03/15/23		663,000		663,000		682,061
Endo Finance LLC		5.375	01/31/23		1,000,000		981,762		952,500
Family Tree Escrow, LLC		5.750	03/01/23		1,000,000		1,028,875		1,060,000
First Data Corporation		5.000	01/15/24		834,000		834,000		835,043
Gates Global LLC		6.000	07/15/22		1,000,000		769,092		855,000
Harron Communications, L.P.		9.125	04/01/20		500,000		535,451		522,815
HD Supply, Inc.		5.250	12/15/21		265,000		265,000		278,250
Hilcorp Energy Company		5.000	12/01/24		500,000		500,000		421,250
Hill-Rom Holdings, Inc.		5.750	09/01/23		385,000		385,000		398,475
H.J. Heinz Company		4.875	02/15/25		419,000		419,000		461,595
Hub International Ltd.		7.875	10/01/21		1,000,000		1,000,000		985,000
INEOS Group Holdings PLC		5.875	02/01/19		485,000		485,000		488,638
Infor (US), Inc.		5.750	08/15/20		226,000		223,971		232,780
International Automotive Component		9.125	06/01/18		1,000,000		976,115		900,000
International Wire Group		8.500	10/15/17		500,000		514,385		498,125
J.B. Poindexter Co., Inc.		9.000	04/01/22		1,000,000		1,040,419		1,047,500
JBS USA Holdings, Inc.		7.750	10/28/20		750,000		779,733		742,500
Jupiter Resources Inc.		8.500	10/01/22		1,000,000		948,188		530,000
Jurassic Holdings III Inc		6.875	02/15/21		328,000		328,878		226,584
KeHE Distributors, LLC		7.625	08/15/21		1,000,000		1,052,165		957,500
LBC Tank Terminals Holding Netherlands B.V.		6.875	05/15/23		1,315,000		1,348,673		1,222,950
Mallinckrodt PLC		5.750	08/01/22		1,000,000		1,000,000		921,250
Micron Technology, Inc.		5.250	08/01/23		1,000,000		1,000,000		817,500

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

March 31, 2016

(Unaudited)

Corporate Restricted Securities: (A) (Continued)	Interest Rate		Due Date	Shares or Principal Amount		Cost		Market Value

Milacron Financial		7.750%	02/15/21	$	500,000	$	500,000	$	460,000
Moog Inc.		5.250	12/01/22		1,000,000		1,007,002		1,001,250
MPLX LP		4.875	12/01/24		1,000,000		1,000,000		923,237
Mustang Merger Corporation		8.500	08/15/21		1,000,000		998,055		1,032,500
Onex Corporation		8.500	10/01/22		352,000		352,000		225,280
OPE KAG Finance Sub		7.875	07/31/23		1,750,000		1,820,650		1,745,624
Paragon Offshore plc. (D)		6.750	07/15/22		1,000,000		351,422		262,500
Pinnacle Operating Corporation		9.000	11/15/20		1,000,000		1,033,984		862,500
Prestige Brands Holdings, Inc.		5.375	12/15/21		1,350,000		1,350,000		1,366,875
Sabre GLBL Inc.		5.375	04/15/23		1,000,000		988,573		1,026,250
Sabre GLBL Inc.		5.250	11/15/23		251,000		251,000		255,367
Safway Group Holding LLC/Finance Corporation		7.000	05/15/18		500,000		500,000		501,250
Sirius XM Radio Inc.		5.875	10/01/20		750,000		750,000		783,638
Sirius XM Radio Inc.		5.375	04/15/25		250,000		250,000		254,375
Surgical Care Affiliates, Inc.		6.000	04/01/23		918,000		918,000		924,885
TeamHealth Holdings Inc		7.250	12/15/23		235,000		235,000		251,450
Teine Energy Ltd.		6.875	09/30/22		900,000		893,871		801,000
Topaz Marine S.A.		8.625	11/01/18		1,000,000		1,000,000		905,000
Unitymedia KabelBW GmbH		6.125	01/15/25		1,000,000		1,000,000		1,039,380
Univision Communications, Inc.		5.125	05/15/23		325,000		325,000		323,375
Univision Communications, Inc.		5.125	02/15/25		860,000		870,848		849,250
UPCB Finance IV Limited		5.375	01/15/25		425,000		425,000		430,313
Valeant Pharmaceuticals International		7.000	10/01/20		880,000		881,075		739,200
Virgin Media Secured Finance PLC		5.250	01/15/26		1,000,000		1,008,114		1,000,000
VRX Escrow Corp.		6.125	04/15/25		782,000		782,000		602,140
Watco Companies, L.L.C.		6.375	04/01/23		1,000,000		1,000,000		975,000
Welltec A/S		8.000	02/01/19		750,000		742,533		680,625
West Corporation		5.375	07/15/22		1,000,000		983,492		917,300
Western Digital Corporation		10.500	04/01/24		494,000		494,000		495,235
XPO Logistics, Inc.		7.875	09/01/19		933,000		953,745		965,655

Total Bonds							53,355,370		51,050,285

Common Stock - 0.00%
TherOX, Inc. (B)					103		—		—
Touchstone Health Partnership (B)					1,168		—		—

Total Common Stock							—		—


Total Rule 144A Securities							53,355,370		51,050,285


Total Corporate Restricted Securities						$	259,027,349	$	262,127,966

Babson Capital Corporate Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

March 31, 2016

(Unaudited)

Corporate Public Securities - 12.93%: (A)	Interest Rate		Maturity Date	Principal Amount		Cost		Market Value

Bank Loans - 0.77%
Ascent Resource - Marcellus LLC		8.500%	07/09/21	$	209,882	$	207,472	$	8,045
Aquilex Holdings LLC		6.500	12/31/20		291,963		291,463		270,066
Caelus Energy Alaska, LLC		8.750	04/15/20		1,000,000		992,959		425,000
Fieldwood Energy LLC		8.375	09/30/20		1,000,000		421,872		173,750
Seadrill Partners Finco, LLC		4.000	02/21/21		997,449		386,551		438,878
Synarc-BioCore Holdings, LLC		9.250	03/04/22		1,000,000		992,541		860,000

Total Bank Loans							3,292,858		2,175,739


Bonds - 11.75%
Accuride Corp		9.500	08/01/18		1,500,000		1,519,026		1,380,000
Anixter, Inc.		5.125	10/01/21		421,000		421,000		423,105
Antero Resources Corporation		5.375	11/01/21		800,000		800,000		740,000
Bonanza Creek Energy, Inc.		5.750	02/01/23		1,000,000		1,000,000		265,000
Calpine Corporation		5.750	01/15/25		700,000		700,000		672,000
Calumet Specialty Products Partners L.P.		7.625	01/15/22		1,000,000		999,525		707,500
Clearwater Paper Corporation		4.500	02/01/23		750,000		744,432		715,312
Commercial Metals Company		4.875	05/15/23		1,500,000		1,502,397		1,327,500
Commercial Vehicle Group Inc.		7.875	04/15/19		930,000		946,371		781,200
CPI International, Inc.		8.750	02/15/18		400,000		400,798		391,000
CVR Refining LLC		6.500	11/01/22		650,000		632,254		575,250
D.R. Horton, Inc.		4.000	02/15/20		1,000,000		1,000,000		1,030,000
EP Energy Corporation		9.375	05/01/20		819,000		356,404		413,082
Ferrellgas Partners, L.P		6.750	01/15/22		465,000		465,000		412,687
Ferrellgas Partners, L.P		8.625	06/15/20		1,048,000		1,049,169		969,400
Forum Energy Technologies		6.250	10/01/21		325,000		325,000		279,500
HCA Holdings, Inc.		5.375	02/01/25		150,000		152,536		151,641
HealthSouth Corporation		5.750	11/01/24		893,000		902,470		904,609
Hornbeck Offshore Services, Inc.		1.500	09/01/19		1,000,000		515,000		593,125
Icahn Enterprises L.P.		6.000	08/01/20		1,150,000		1,166,125		1,118,375
Kindred Healthcare, Inc.		8.750	01/15/23		1,000,000		1,000,000		957,500
Lamar Media Corp.		5.375	01/15/24		320,000		320,000		333,696
Lear Corporation		4.750	01/15/23		750,000		738,811		770,625
Lennar Corporation		4.500	11/15/19		250,000		250,402		260,000
Lennar Corporation		4.750	11/15/22		750,000		741,413		751,875
M/I Homes, Inc.		6.750	01/15/21		914,000		914,000		898,005
Memorial Production Partners LP		6.875	08/01/22		1,000,000		986,793		270,000
Meritor, Inc.		6.750	06/15/21		1,000,000		1,000,000		927,500
Meritor, Inc.		7.875	03/01/26		669,000		663,403		775,622
Netflix, Inc.		5.500	02/15/22		605,000		605,000		633,399
Nielsen Finance LLC		4.500	10/01/20		1,000,000		1,000,000		1,022,500

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

March 31, 2016

(Unaudited)

Corporate Public Securities: (A) (Continued)	Interest Rate		Maturity Date	Shares or Principal Amount		Cost		Market Value

NRG Energy, Inc.		6.250%	07/15/22	$	1,000,000	$	1,000,000	$	930,000
Oasis Petroleum Inc.		6.875	03/15/22		1,000,000		1,000,000		740,000
Omnova Solutions, Inc.		7.875	11/01/18		900,000		908,243		891,000
Orbital ATK Inc.		5.250	10/01/21		1,000,000		1,000,000		1,037,500
Perry Ellis International, Inc.		7.875	04/01/19		250,000		248,692		251,250
P.H. Glatfelter Company		5.375	10/15/20		1,000,000		1,009,193		985,000
Ply Gem Industries, Inc.		6.500	02/01/22		1,000,000		941,735		980,000
Precision Drilling Corporation		6.625	11/15/20		750,000		764,410		600,000
Sanchez Energy Corporation		6.125	01/15/23		1,000,000		700,752		540,000
Select Medical Corporation		6.375	06/01/21		650,000		657,368		614,250
Sprint Corporation		7.125	06/15/24		315,000		315,000		233,888
Tenet Healthcare Corporation		6.750	06/15/23		725,000		721,633		694,188
Suburban Propane Partners, L.P.		5.750	03/01/25		1,000,000		1,000,000		955,000
William Lyon Homes		7.000	08/15/22		1,000,000		1,000,000		960,000
WPX Energy, Inc.		5.250	09/15/24		925,000		925,000		642,875
Xerium Technologies, Inc.		8.875	06/15/18		831,000		852,380		685,575

Total Bonds							36,861,735		33,191,534


Common Stock - 0.41%
Chase Packaging Corporation					9,541		—		286
Nortek, Inc.					175		1		8,451
Supreme Industries, Inc. (B)					131,371		267,319		1,161,320

Total Common Stock							267,320		1,170,057


Total Corporate Public Securities						$	40,421,913	$	36,537,330

Babson Capital Corporate Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

March 31, 2016

(Unaudited)

Short-Term Securities:	Interest Rate/Yield^		Maturity Date	Principal Amount		Cost		Market Value

Commercial Paper - 1.48%
Ryder System, Inc.		0.800%	04/05/16	$	175,000	$	174,984	$	174,984
South Carolina Electric & Gas Company		0.740	04/08/16		4,000,000		3,999,424		3,999,424

Total Short-Term Securities						$	4,174,408	$	4,174,408


Total Investments		107.17%				$	303,623,670	$	302,839,704


Other Assets		4.59							12,982,776

Liabilities		(11.76)							(33,234,367	)

Total Net Assets		100.00%						$	282,588,113

(A)	In each of the convertible note, warrant, convertible preferred and common stock investments, the issuer has agreed to provide certain registration rights.

(B)	Non-income producing security.

(C)	Security valued at fair value using methods determined in good faith by or under the direction of the Board of Trustees.

(D)	Defaulted security; interest not accrued.

(E)	Illiquid securities. As of March 31, 2016, the value of these securities amounted to $211,077,681 or 74.69% of net assets.

^	Effective yield at purchase

PIK	- Payment-in-kind

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

March 31, 2016

(Unaudited)

Industry Classification:	Fair Value/ Market Value

AEROSPACE & DEFENSE - 3.49%
CPI International, Inc.	$	391,000
FMH Holdings Corporation		3,469,328
Merex Holding Corporation		1,558,605
Orbital ATK Inc.		1,037,500
Sunvair Aerospace Group Inc.		2,635,509
Whitcraft Holdings, Inc.		770,339
		9,862,281

AIRLINES - 0.34%
XPO Logistics, Inc.		965,655

AUTOMOTIVE - 10.25%
Accuride Corp		1,380,000
Aurora Parts & Accessories LLC		3,519,875
CG Holdings Manufacturing Company		4,176,828
Commercial Vehicle Group Inc.		781,200
DPL Holding Corporation		4,127,622
Gates Global LLC		855,000
Grakon Parent		481,861
International Automotive Component		900,000
J A C Holding Enterprises, Inc.		1,460,836
J.B. Poindexter Co., Inc.		1,047,500
K & N Parent, Inc.		490,817
Lear Corporation		770,625
Meritor, Inc.		1,703,122
Moog Inc.		1,001,250
Power Stop Holdings LLC		3,672,482
Randy's Worldwide Automotive		2,581,102
		28,950,120

BROKERAGE, ASSET MANAGERS & EXCHANGES - 0.40%
Icahn Enterprises L.P.		1,118,375

BUILDING MATERIALS - 8.38%
ARI Holding Corporation		4,646,312
Janus Group Holdings LLC		4,200,868
Nortek, Inc.		8,451
Pearlman Enterprises, Inc.		2,508,554
Ply Gem Industries, Inc.		980,000
Signature Systems Holdings Company		409,475
Sunrise Windows Holding Company		3,567,739
Torrent Group Holdings, Inc.		1,467,786
Wellborn Forest Holding Company		2,381,319
Wolf-Gordon, Inc.		3,514,334
		23,684,838


	Fair Value/ Market Value

CABLE & SATELLITE - 1.77%
Altice S.A.	$	984,080
Harron Communications, L.P.		522,815
CCOH Safari, LLC		1,035,000
Unitymedia KabelBW GmbH		1,039,380
UPCB Finance IV Limited		430,313
Virgin Media Secured Finance PLC		1,000,000
		5,011,588

CHEMICALS - 3.89%
Compass Chemical International LLC		3,577,878
Consolidated Energy Finance S.A.		952,499
Cornerstone Chemical Company		699,375
INEOS Group Holdings PLC		488,638
LBC Tank Terminals Holding Netherlands B.V.		1,222,950
Omnova Solutions, Inc.		891,000
Pinnacle Operating Corporation		862,500
Polytex Holdings LLC		2,296,851
		10,991,691

CONSTRUCTION MACHINERY - 0.62%
A W X Holdings Corporation		709,275
Jurassic Holdings III Inc		226,584
Safety Infrastructure Solutions		816,645
		1,752,504

CONSUMER CYCLICAL SERVICES - 2.78%
CHG Alternative Education Holding Company		3,167,166
Church Services Holding Company		525,137
PPC Event Services		3,252,662
West Corporation		917,300
		7,862,265

CONSUMER PRODUCTS - 10.09%
AMS Holding LLC		795,280
Animal Supply Company		3,390,219
Blue Wave Products, Inc.		1,767,450
gloProfessional Holdings, Inc.		3,092,990
GTI Holding Company		1,573,061
Handi Quilter Holding Company		3,327,173
HHI Group, LLC		2,817,659
K N B Holdings Corporation		241,945

See Notes to Consolidated Financial Statements

Babson Capital Corporate Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

March 31, 2016

(Unaudited)

Industry Classification: (Continued)	Fair Value/ Market Value

Kyjen Company	$	2,663,028
Manhattan Beachwear Holding Company		1,616,870
Master Cutlery LLC		2,397,095
Perry Ellis International, Inc.		251,250
Prestige Brands Holdings, Inc.		1,366,875
Transpac Holding Company		—
York Wall Holding Company		3,196,443
		28,497,338

DIVERSIFIED MANUFACTURING - 7.27%
ABC Industries, Inc.		1,088,179
Advanced Manufacturing Enterprises LLC		18,664
Airxcel Holdings		3,619,027
Amsted Industries		499,850
Belden Inc.		391,550
BP SCI LLC		909,414
CTP Transportation Products, LLC		625,475
Custom Engineered Wheels, Inc.		1,259,655
F G I Equity LLC		1,763,770
Forum Energy Technologies		279,500
G C Holdings		354,755
Ideal Tridon Holdings, Inc.		474,918
K P I Holdings, Inc.		919,172
Motion Controls Holdings		3,270,832
NABCO, Inc.		111,113
NetShape Technologies, Inc.		994,144
Strahman Holdings Inc		2,804,889
Supreme Industries, Inc.		1,161,320
		20,546,227

ELECTRIC - 1.98%
Calpine Corporation		672,000
NRG Energy, Inc.		930,000
South Carolina Electric & Gas Company		3,999,424
		5,601,424

ENERGY - 0.15%
Ascent Resource - Marcellus LLC		8,045
Caelus Energy Alaska, LLC		425,000
		433,045

FINANCIAL OTHER - 0.59%
Hub International Ltd.		985,000
Insurance Claims Management, Inc.		279,859

	Fair Value/ Market Value

Onex Corporation	$	225,280
Ryder System, Inc.		174,984
		1,665,123

FOOD & BEVERAGE - 10.98%
1492 Acquisition LLC		2,250,100
Dean Foods		682,061
Eagle Family Foods, Inc.		3,454,815
F F C Holding Corporation		532,726
GenNx Novel Holding, Inc.		3,312,934
H.J. Heinz Company		461,595
Hollandia Produce LLC		2,697,787
Hospitality Mints Holding Company		2,125,504
Impact Confections		2,581,962
JBS USA Holdings, Inc.		742,500
JMH Investors LLC		2,353,783
KeHE Distributors, LLC		957,500
PANOS Brands LLC		3,566,668
Westminster Acquisition LLC		1,799,730
WP Supply Holding Corporation		3,501,415
		31,021,080

GAMING - 1.30%
Boyd Gaming Corporation		204,388
CTM Holding, Inc.		3,472,009
		3,676,397

HEALTHCARE - 6.09%
Alere Inc.		1,233,750
ECG Consulting Group		2,876,634
GD Dental Services LLC		349,506
HCA Holdings, Inc.		151,641
Healthcare Direct Holding Company		302,134
HealthSouth Corporation		904,609
Hill-Rom Holdings, Inc.		398,475
Kindred Healthcare, Inc.		957,500
MedSystems Holdings LLC		949,516
Select Medical Corporation		614,250
Surgical Care Affiliates, Inc.		924,885
Synarc-BioCore Holdings, LLC		860,000
Synteract Holdings Corporation		4,402,212
TeamHealth Holdings Inc		251,450
Tenet Healthcare Corporation		694,188

See Notes to Consolidated Financial Statements

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

March 31, 2016

(Unaudited)

Industry Classification: (Continued)	Fair Value/ Market Value

TherOX, Inc.	$	—
Touchstone Health Partnership		—
Valeant Pharmaceuticals International		739,200
VRX Escrow Corp.		602,140
		17,212,090

HOME CONSTRUCTION - 1.38%
D.R. Horton, Inc.		1,030,000
Lennar Corporation		1,011,875
M/I Homes, Inc.		898,005
William Lyon Homes		960,000
		3,899,880

INDEPENDENT - 1.06%
Antero Resources Corporation		740,000
EP Energy Corporation		413,082
Fieldwood Energy LLC		173,750
Jupiter Resources Inc.		530,000
Precision Drilling Corporation		600,000
Sanchez Energy Corporation		540,000
		2,996,832

INDUSTRIAL OTHER - 9.92%
Advanced Technologies Holdings		658,544
AFC - Dell Holding Corporation		2,698,669
Aquilex Holdings LLC		270,066
Brunswick Corporation		1,007,500
Clough, Harbour and Associates		1,270,357
Connecticut Electric, Inc.		2,144,325
Hartland Controls Holding Corporation		3,570,229
Hi-Rel Group LLC		2,639,923
HVAC Holdings, Inc.		3,393,851
International Wire Group		498,125
Mail Communications Group, Inc.		351,878
MC Sign Holdings LLC		1,768,670
Milacron Financial		460,000
Nielsen Finance LLC		1,022,500
Northwest Mailing Services, Inc.		927,839
O E C Holding Corporation		469,799
Safway Group Holding LLC/Finance Corporation		501,250
Smart Source Holdings LLC		839,474
SMB Machinery Holdings, Inc.		—
Tranzonic Holdings LLC		3,524,162
		28,017,161

	Fair Value/ Market Value

MEDIA & ENTERTAINMENT - 3.90%
BlueSpire Holding, Inc.	$	3,361,321
GlynnDevins Acquisition Corporation		1,769,758
HOP Entertainment LLC		—
Lamar Media Corp.		333,696
Money Mailer		2,704,364
Netflix, Inc.		633,399
Sirius XM Radio Inc.		1,038,013
Univision Communications, Inc.		1,172,625
		11,013,176

METALS & MINING - 0.73%
Commercial Metals Company		1,327,500
Constellium N.V.		742,354
		2,069,854

MIDSTREAM - 1.03%
CVR Refining LLC		575,250
Ferrellgas Partners, L.P		1,382,087
Suburban Propane Partners, L.P.		955,000
		2,912,337

OIL FIELD SERVICES - 2.04%
Avantech Testing Services LLC		—
Bonanza Creek Energy, Inc.		265,000
Hilcorp Energy Company		421,250
Hornbeck Offshore Services, Inc.		593,125
Memorial Production Partners LP		270,000
Oasis Petroleum Inc.		740,000
Petroplex Inv Holdings LLC		—
Seadrill Partners Finco, LLC		438,878
Teine Energy Ltd.		801,000
Topaz Marine S.A.		905,000
Welltec A/S		680,625
WPX Energy, Inc.		642,875
		5,757,753

PACKAGING - 1.59%
ASC Holdings, Inc.		1,604,123
Beverage Packaging Holdings		724,069
Chase Packaging Corporation		286

See Notes to Consolidated Financial Statements

Babson Capital Corporate Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

March 31, 2016

(Unaudited)

Industry Classification: (Continued)	Fair Value/ Market Value

Coveris Holdings S.A.	$	895,000
Mustang Merger Corporation		1,032,500
Vitex Packaging Group, Inc.		244,344
		4,500,322

PAPER - 1.48%
Clearwater Paper Corporation		715,312
Dunn Paper		1,795,988
P.H. Glatfelter Company		985,000
Xerium Technologies, Inc.		685,575
		4,181,875

PHARMACEUTICALS - 2.64%
Clarion Brands Holding Corp.		3,459,973
Endo Finance LLC		952,500
ERG Holding Company LLC		2,121,190
Mallinckrodt PLC		921,250
		7,454,913

REFINING - 2.66%
Calumet Specialty Products Partners L.P.		707,500
CITGO Petroleum Corporation		892,625
MES Partners, Inc.		2,617,648
MPLX LP		923,237
Paragon Offshore plc.		262,500
Tristar Global Energy Solutions, Inc.		2,115,137
		7,518,647

	Fair Value/ Market Value
RETAILERS - 0.47%
Family Tree Escrow, LLC	$	1,060,000
HD Supply, Inc.		278,250
		1,338,250

TECHNOLOGY - 4.69%
Anixter, Inc.		1,435,605
Commscope Holdings Inc.		512,500
First Data Corporation		835,043
Glynlyon Holding Companies, Inc.		3,526,788
Infor (US), Inc.		232,780
Micron Technology, Inc.		817,500
REVSpring, Inc.		671,108
Sabre GLBL Inc.		1,281,617
Veritext Corporation		3,437,597
Western Digital Corporation		495,235
		13,245,773

TRANSPORTATION SERVICES - 3.13%
MNX Holding Company		3,213,003
OPE KAG Finance Sub		1,745,624
Team Drive-Away Holdings LLC		1,763,879
VP Holding Company		1,149,496
Watco Companies, L.L.C.		975,000
		8,847,002

WIRELESS - 0.08%
Sprint Corporation		233,888

Total Investments - 107.17%	$	302,839,704

See Notes to Consolidated Financial Statements

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

History

Babson Capital Corporate Investors (the "Trust") commenced operations in 1971 as a Delaware corporation. Pursuant to an Agreement and Plan of Reorganization dated November 14, 1985, approved by shareholders, the Trust was reorganized as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts, effective November 28, 1985.

The Trust is a diversified closed-end management investment company. Babson Capital Management LLC ("Babson Capital"), a wholly-owned indirect subsidiary of Massachusetts Mutual Life Insurance Company ("MassMutual"), acts as its investment adviser. The Trust's investment objective is to maintain a portfolio of securities providing a current yield and at the same time offering an opportunity for capital gains. The Trust's principal investments are privately placed, below-investment grade, long-term debt obligations. Such direct placement securities may, in some cases, be accompanied by equity features such as common stock, warrants, conversion rights, or other equity features and, occasionally, preferred stocks. The Trust typically purchases these investments, which are not publicly tradable, directly from their issuers in private placement transactions. These investments are typically mezzanine debt instruments with accompanying private equity securities made to small or middle market companies. In addition, the Trust may invest, subject to certain limitations, in marketable investment grade debt securities, other marketable debt (including high yield securities) and marketable common stocks. Below-investment grade or high yield securities have predominantly speculative characteristics with respect to the capacity of the issuer to pay interest and repay capital.

On January 27, 1998, the Board of Trustees authorized the formation of a wholly-owned subsidiary of the Trust ("CI Subsidiary Trust") for the purpose of holding certain investments. The results of CI Subsidiary Trust are consolidated in the accompanying financial statements. Footnote 2.D below discusses the Federal tax consequences of the CI Subsidiary Trust.

2.	Significant Accounting Policies

The following is a summary of significant accounting policies followed consistently by the Trust in the preparation of its consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP").

The Trustees have determined that the Trust is an investment company in accordance with Accounting Standards Codification ("ASC") 946, Financial Services—Investment Companies, for the purpose of financial reporting.

A. Fair Value Measurements:

Under U.S. GAAP, fair value represents the price that should be received to sell an asset (exit price) in an orderly transaction between willing market participants at the measurement date.

Determination of Fair Value

The determination of the fair value of the Trust's investments is the responsibility of the Trust's Board of Trustees (the "Trustees"). The Trustees have adopted procedures for the valuation of the Trust's securities and has delegated responsibility for applying those procedures to Babson Capital. Babson Capital has established a Pricing Committee which is responsible for setting the guidelines used in following the procedures adopted by the Trustees and ensuring that those guidelines are being followed. Babson Capital considers all relevant factors that are reasonably available, through either public information or information directly available to Babson Capital, when determining the fair value of a security. The Trustees meet at least once each quarter to approve the value of the Trust's portfolio securities as of the close of business on the last business day of the preceding quarter. This valuation requires the approval of a majority of the Trustees of the Trust, including a majority of the Trustees who are not interested persons of the Trust or of Babson Capital. In approving valuations, the Trustees will consider reports by Babson Capital analyzing each portfolio security in accordance with the procedures and guidelines referred to above, which include the relevant factors referred to below. Babson Capital has agreed to provide such reports to the Trust at least quarterly. The consolidated financial statements include private placement restricted securities valued at $211,077,681 (74.69% of net assets) as of March 31, 2016 whose values have been estimated by the Trustees based on the process described above in the absence of readily ascertainable market values. Due to the inherent uncertainty of valuation, those estimated values may differ significantly from the values that would have been used had a ready market for the securities existed, and the differences could be material.

Following is a description of valuation methodologies used for assets recorded at fair value:

Corporate Public Securities – Corporate Bonds, Preferred Stocks and Common Stocks

The Trust uses external independent third-party pricing services to determine the fair values of its Corporate Public Securities. At March 31, 2016, 100% of the carrying value of these investments was from external pricing services. In the event that the primary pricing service does not provide a price, the Trust utilizes the pricing provided by a secondary pricing service.

Public debt securities generally trade in the over-the-counter market rather than on a securities exchange. The Trust's pricing services use multiple valuation techniques to determine fair value. In instances where significant market activity exists, the pricing services may utilize a market based approach through which quotes from market makers are used to determine fair value. In instances where significant market activity may not exist or is limited, the pricing services also utilize proprietary valuation models which may consider market characteristics such as benchmark yield curves,

Babson Capital Corporate Investors

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

option adjusted spreads, credit spreads, estimated default rates, coupon rates, anticipated timing of principal underlying prepayments, collateral, and other unique security features in order to estimate the relevant cash flows, which are then discounted to calculate the fair value.

The Trust's investments in bank loans are normally valued at the bid quotation obtained from dealers in loans by an independent pricing service in accordance with the Trust's valuation policies and procedures approved by the Trustees.

Public equity securities listed on an exchange or on the NASDAQ National Market System are valued at the last quoted sales price of that day.

Annually, Babson Capital conducts reviews of the primary pricing vendors to validate that the inputs used in that vendors' pricing process are deemed to be market observable as defined in the standard. While Babson Capital is not provided access to proprietary models of the vendors, the reviews have included on-site walk-throughs of the pricing process, methodologies and control procedures for each asset class and level for which prices are provided. The review also includes an examination of the underlying inputs and assumptions for a sample of individual securities across asset classes, credit rating levels and various durations, a process Babson Capital continues to perform annually. In addition, the pricing vendors have an established challenge process in place for all security valuations, which facilitates identification and resolution of prices that fall outside expected ranges. Babson Capital believes that the prices received from the pricing vendors are representative of prices that would be received to sell the assets at the measurement date (exit prices) and are classified appropriately in the hierarchy.

Corporate Restricted Securities – Corporate Bonds

The fair value of certain notes is determined using an internal model that discounts the anticipated cash flows of those notes using a specific discount rate. Changes to that discount rate are driven by changes in general interest rates, probabilities of default and credit adjustments. The discount

rate used within the models to discount the future anticipated cash flows is considered a significant unobservable input. Significant increases/(decreases) in the discount rate would result in a significant (decrease)/increase to the notes' fair value.

The fair value of certain distressed notes is based on an enterprise waterfall methodology which is discussed in the equity security valuation section below.

Corporate Restricted Securities – Common Stock, Preferred Stock and Partnerships & LLC's

The fair value of equity securities is determined using an enterprise waterfall methodology. Under this methodology, the enterprise value of the company is first estimated and that value is then allocated to the company's outstanding debt and equity securities based on the documented priority of each class of securities in the capital structure. Generally, the waterfall proceeds from senior debt tranches of the capital structure to senior then junior subordinated debt, followed by each class of preferred stock and finally the common stock.

To estimate a company's enterprise value, the company's trailing twelve months earnings before interest, taxes, depreciation and amortization ("EBITDA") is multiplied by a valuation multiple.

Both the company's EBITDA and valuation multiple are considered significant unobservable inputs. Significant increases/(decreases) to the company's EBITDA and/or valuation multiple would result in significant increases/ (decreases) to the equity value. An increase/(decrease) to the discount would result in a (decrease)/increase to the equity value.

Short-Term Securities

Short-term securities, of sufficient credit quality, with more than sixty days to maturity are valued at fair value, using external independent third-party services. Short-term securities having a maturity of sixty days or less are valued at amortized cost, which approximates fair value.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Quantitative Information about Level 3 Fair Value Measurements

The following table represents quantitative information about Level 3 fair value measurements as of March 31, 2016.

	Fair Value	Valuation Technique	Unobservable Inputs	Range	Weighted Average
Corporate Bonds	$150,633,221	Discounted Cash Flows	Discount Rate	9.1% to 20.3%	12.7%

	$7,978,746	Market Approach	Valuation Multiple	4.3x to 10.1x	8.1x

			EBITDA	$0.0 million to $7.3 million	$5.3 million

Equity Securities	$52,465,714	Market Approach	Valuation Multiple	3.7x to 12.4x	7.9x

			Discount for lack of marketability	0% to 20%	0.6%

			EBITDA	$0.0 million to $152.0 million	$23.5 million

Fair Value Hierarchy

The Trust categorizes its investments measured at fair value in three levels, based on the inputs and assumptions used to determine fair value. These levels are as follows:

Level 1 – quoted prices in active markets for identical securities

Level 2 – other significant observable inputs (including quoted prices for similar securities, 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 following is a summary of the inputs used to value the Trust's net assets as of March 31, 2016:

Assets:	Total		Level 1		Level 2		Level 3
Restricted Securities
Corporate Bonds	$	209,662,254	$	—	$	51,050,285	$	158,611,969
Common Stock - U.S.		15,938,023		—		—		15,938,023
Preferred Stock		15,082,889		—		—		15,082,889
Partnerships and LLCs		21,444,800		—		—		21,444,800
Public Securities
Bank Loans		2,175,739		—		2,175,739		—
Corporate Bonds		33,191,534		—		33,191,534		—
Common Stock - U.S.		1,170,057		1,170,057		—		—
Short-term Securities		4,174,408		—		4,174,408		—
Total	$	302,839,704	$	1,170,057	$	90,591,966	$	211,077,681
See information disaggregated by security type and industry classification in the Consolidated Schedule of Investments.

Babson Capital Corporate Investors

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:


Assets:	Beginning balance at 12/31/2015		Included in earnings			Purchases		Sales			Prepayments			Transfers into Level 3		Transfers out of Level 3		Ending balance at 3/31/2016
Restricted Securities
Corporate Bonds	$	144,499,690	$	1,020,255		$	13,141,145		—		$	(49,121	)	$	—	$	—	$	158,611,969
Common Stock - U.S.		17,650,577		(1,843,297	)		1,177,327		(1,046,584	)		—			—		—		15,938,023
Preferred Stock		13,760,307		1,342,332			—		(19,750	)		—			—		—		15,082,889
Partnerships and LLCs		21,562,089		161,528			86,067		(364,884	)		—			—		—		21,444,800
	$	197,472,663	$	680,818		$	14,404,539	$	(1,431,218	)	$	(49,121	)	$	—	$	—	$	211,077,681
There were no transfers into or out of Level 1 or Level 2 assets.

Income, Gains and Losses included in Net Increase in Net Assets resulting from Operations for the period are presented in the following accounts on the Statement of Operations:

	Net Increase in Net Assets Resulting from Operations			Change in Unrealized Gains & (Losses) in Net Assets from assets still held
Interest (Amortization)	$	126,217			—
Net realized gain on investments before taxes	$	1,087,822			—
Net change in unrealized depreciation of investments before taxes	$	(533,221	)		(691,591	)

B. Accounting for Investments:

Investment transactions are accounted for on the trade date. Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis, including the amortization of premiums and accretion of discounts on bonds held using the yield-to-maturity method. The Trust does not accrue income when payment is delinquent and when management believes payment is questionable.

Realized gains and losses on investment transactions and unrealized appreciation and depreciation of investments are reported for financial statement and Federal income tax purposes on the identified cost method.

C. Use of Estimates:

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

D. Federal Income Taxes:

The Trust has elected to be taxed as a "regulated investment company" under the Internal Revenue Code, and intends to maintain this qualification and to distribute substantially all of its net taxable income to its shareholders. In any year when net long-term capital gains are realized by the Trust, management, after evaluating the prevailing economic conditions, will recommend that the Trustees either designate the net realized long-term gains as undistributed and pay the Federal capital gains taxes thereon or distribute all or a portion of such net gains. For the three months ended March 31, 2016, the Trust did not have any realized taxable long-term capital gains.

The Trust is taxed as a regulated investment company and is therefore limited as to the amount of non-qualified income that it may receive as the result of operating a trade or business, e.g. the Trust's pro rata share of income allocable to the Trust by a partnership operating company. The Trust's violation of this limitation could result in the loss of its status as a regulated investment company, thereby subjecting all of its net income and capital gains to corporate taxes prior to distribution to its shareholders. The Trust, from time-to-time, identifies investment opportunities in the securities of entities that could cause such trade or business income to be allocable to the Trust. The CI Subsidiary Trust (described in Footnote 1 above) was formed in order to allow investment in such securities without adversely affecting the Trust's status as a regulated investment company.

The CI Subsidiary Trust is not taxed as a regulated investment company. Accordingly, prior to the Trust receiving any distributions from the CI Subsidiary Trust, all of the CI Subsidiary Trust's taxable income and realized gains, including non-qualified income and realized gains, is subject to taxation at prevailing corporate tax rates. As of March 31, 2016, the CI Subsidiary Trust has incurred income tax expense of $316,966.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of the existing assets and liabilities and their respective tax basis. As of March 31, 2016, the CI Subsidiary Trust has a deferred tax liability of $1,186,434.

The Trust recognizes a tax benefit from an uncertain position only if it is more likely than not that the position is sustainable, based solely on its technical merits and consideration of the relevant taxing authority's widely understood administrative practices and precedents. If this threshold is met, the Trust measures the tax benefit as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. The Trust has evaluated and determined that the tax positions did not have a material effect on the Trust's financial position and results of operations for the three months ended March 31, 2016.

Each of the Trust's Federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

E. Distributions to Shareholders:

The Trust records distributions to shareholders from net investment income and net realized gains, if any, on the ex-dividend date. The Trust's net investment income dividend is declared four times per year, in April, July, October, and December. The Trust's net realized capital gain distribution, if any, is declared in December.

3.	Investment Services Contract

A. Services:

Under an Investment Services Contract (the "Contract") with the Trust, Babson Capital agrees to use its best efforts to present to the Trust a continuing and suitable investment program consistent with the investment objectives and policies of the Trust. Babson Capital represents the Trust in any negotiations with issuers, investment banking firms, securities brokers or dealers and other institutions or investors relating to the Trust's investments. Under the Contract, Babson Capital also provides administration of the day-to-day operations of the Trust and provides the Trust with office space and office equipment, accounting and bookkeeping services, and necessary executive, clerical and secretarial personnel for the performance of the foregoing services.

B. Fee:

For its services under the Contract, Babson Capital is paid a quarterly investment advisory fee of 0.3125% of the net asset value of the Trust as of the last business day of each fiscal quarter, which is approximately equal to 1.25% annually. A majority of the Trustees, including a majority of the Trustees who are not interested persons of the Trust or of Babson Capital, approve the valuation of the Trust's net assets as of such day.

4.	Senior Secured Indebtedness

MassMutual holds the Trust's $30,000,000 Senior Fixed Rate Convertible Note (the "Note") issued by the Trust on November 15, 2007. The Note is due November 15, 2017 and accrues interest at 5.28% per annum. MassMutual, at its option, can convert the principal amount of the Note into common shares. The dollar amount of principal would be converted into an equivalent dollar amount of common shares based upon the average price of the common shares for ten business days prior to the notice of conversion. For the three months ended March 31, 2016, the Trust incurred total interest expense on the Note of $396,000.

The Trust may redeem the Note, in whole or in part, at the principal amount proposed to be redeemed together with the accrued and unpaid interest thereon through the redemption date plus a Make Whole Premium. The Make Whole Premium equals the excess of (i) the present value of the scheduled payments of principal and interest which the Trust would have paid but for the proposed redemption, discounted at the rate of interest of U.S. Treasury obligations whose maturity approximates that of the Note plus 0.50% over (ii) the principal of the Note proposed to be redeemed.

5.	Purchases and Sales of Investments

	For the three months ended 03/31/2016
	Cost of Investments Acquired		Proceeds from Sales or Maturities
Corporate restricted securities	$	15,314,228	$	8,467,920
Corporate public securities		1,241,028		8,234,897

The aggregate cost of investments is substantially the same for financial reporting and Federal income tax purposes as of March 31, 2016. The net unrealized depreciation of investments for financial reporting and Federal tax purposes as of March 31, 2016 is $783,966 and consists of $27,386,182 appreciation and $28,170,148 depreciation.

Net unrealized depreciation of investments on the Statement of Assets and Liabilities reflects the balance net of a deferred tax accrual of $1,186,434 on net unrealized losses on the CI Subsidiary Trust.

Babson Capital Corporate Investors

THIS PRIVACY NOTICE IS BEING PROVIDED ON BEHALF OF BABSON CAPITAL MANAGEMENT LLC AND ITS AFFILIATES;

BABSON CAPITAL SECURITIES LLC;

BABSON CAPITAL MANAGEMENT (AUSTRALIA) PTY LTD.

BABSON CAPITAL MANAGEMENT (JAPAN) KK;

BABSON CAPITAL CORNERSTONE ASIA LIMITED;

BABSON CAPITAL FUNDS TRUST;

BABSON CAPITAL GLOBAL SHORT DURATION HIGH YIELD FUND;

BABSON CAPITAL CORPORATE INVESTORS AND BABSON CAPITAL PARTICIPATION INVESTORS (TOGETHER, FOR PURPOSES OF THIS PRIVACY NOTICE, "BABSON CAPITAL").

When you use Babson Capital you entrust us not only with your hard-earned assets but also with your personal and financial data. We consider your data to be private and confidential, and protecting its confidentiality is important to us. Our policies and procedures regarding your personal information are summarized below.

We may collect non-public personal information about you from:

•

Applications or other forms, interviews, or by other means;

•

Consumer or other reporting agencies, government agencies, employers or others;

•

Your transactions with us, our affiliates, or others; and

•

Our Internet website.

We may share the financial information we collect with our financial service affiliates, such as insurance companies, investment companies and securities broker-dealers. Additionally, so that we may continue to offer you products and services that best meet your investment needs and to effect transactions that you request or authorize, we may disclose the information we collect, as described above, to companies that perform administrative or marketing services on our behalf, such as transfer agents, custodian banks, service providers or printers and mailers that assist us in the distribution of investor materials or that provide operational support to Babson Capital. These companies are required to protect this information and will use this information only for the services for which we hire them, and are not permitted to use or share this information for any other purpose. Some of these companies may perform such services in jurisdictions other than the United States. We may share some or all of the information we collect with other financial institutions with whom we jointly market products. This may be done only if it is permitted by the state in which you live. Some disclosures may be limited to your name, contact and transaction information with us or our affiliates.

Any disclosures will be only to the extent permitted by federal and state law. Certain disclosures may require us to get an "opt-in" or "opt-out" from you. If this is required, we will do so before information is shared. Otherwise, we do not share any personal information about our customers or former customers unless authorized by the customer or as permitted by law.

We restrict access to personal information about you to those employees who need to know that information to provide products and services to you. We maintain physical, electronic and procedural safeguards that comply with legal standards to guard your personal information. As an added measure, we do not include personal or account information in non-secure e-mails that we send you via the Internet without your prior consent. We advise you not to send such information to us in non-secure e-mails.

This joint notice describes the privacy policies of Babson Capital, the Funds and Babson Capital Securities LLC. It applies to all Babson Capital and the Funds accounts you presently have, or may open in the future, using your social security number or federal taxpayer identification number – whether or not you remain a shareholder of our Funds or as an advisory client of Babson Capital. As mandated by rules issued by the Securities and Exchange Commission, we will be sending you this notice annually, as long as you own shares in the Funds or have an account with Babson Capital.

Babson Capital Securities LLC is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). Investors may obtain information about SIPC including the SIPC brochure by contacting SIPC online at www.sipc.org or calling (202)-371-8300. Investors may obtain information about FINRA including the FINRA Investor Brochure by contacting FINRA online at www.finra.org or by calling (800) 289-9999.

May 2016

Members of the Board of Trustees

William J. Barrett

Michael H. Brown*

Barbara M. Ginader

Edward P. Grace III

Robert E. Joyal

Clifford M. Noreen

Susan B. Sweeney*

Maleyne M. Syracuse*

*Member of the Audit Committee

Officers

Clifford M. Noreen

Chairman

Michael L. Klofas

President

James M. Roy

Vice President & Chief Financial Officer

Janice M. Bishop

Vice President, Secretary & Chief Legal Officer

Sean Feeley

Vice President

Robert M. Shettle

Vice President

Daniel J. Florence

Treasurer

Melissa M. LaGrant

Chief Compliance Officer

DIVIDEND REINVESTMENT AND SHARE PURCHASE PLAN

Babson Capital Corporate Investors (the "Trust") offers a Dividend Reinvestment and Share Purchase Plan (the "Plan"). The Plan provides a simple way for shareholders to add to their holdings in the Trust through the receipt of dividend shares issued by the Trust or through the investment of cash dividends in Trust shares purchased in the open market. A shareholder may join the Plan by filling out and mailing an authorization card to DST Systems, Inc., the Transfer Agent.

Participating shareholders will continue to participate until they notify the Transfer Agent, in writing, of their desire to terminate participation. Unless a shareholder elects to participate in the Plan, he or she will, in effect, have elected to receive dividends and distributions in cash. Participating shareholders may also make additional contributions to the Plan from their own funds. Such contributions may be made by personal check or other means in an amount not less than $10 nor more than $5,000 per quarter. Cash contributions must be received by the Transfer Agent at least five days (but no more then 30 days) before the payment date of a dividend or distribution.

Whenever the Trust declares a dividend payable in cash or shares, the Transfer Agent, acting on behalf of each participating shareholder, will take the dividend in shares only if the net asset value is lower than the market price plus an estimated brokerage commission as of the close of business on the valuation day. The valuation day is the last day preceding the day of dividend payment.

When the dividend is to be taken in shares, the number of shares to be received is determined by dividing the cash dividend by the net asset value as of the close of business on the valuation date or, if greater than net asset value, 95% of the closing share price. If the net asset value of the shares is higher than the market value plus an estimated commission, the Transfer Agent, consistent with obtaining the best price and execution, will buy shares on the open market at current prices promptly after the dividend payment date.

The reinvestment of dividends does not, in any way, relieve participating shareholders of any federal, state or local tax. For federal income tax purposes, the amount reportable in respect of a dividend received in newly-issued shares of the Trust will be the fair market value of the shares received, which will be reportable as ordinary income and/or capital gains.

As compensation for its services, the Transfer Agent receives a fee of 5% of any dividend and cash contribution (in no event in excess of $2.50 per distribution per shareholder.)

Any questions regarding the Plan should be addressed to DST Systems, Inc., Transfer Agent for Babson Capital Corporate Investors' Dividend Reinvestment and Share Purchase Plan, P.O. Box 219086, Kansas City, MO 64121-9086.