Edgar Filing: ALLIANCEBERNSTEIN INCOME FUND INC

AllianceBernstein Income Fund, Inc.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-05207

ALLIANCEBERNSTEIN INCOME FUND, INC.

(Exact name of registrant as specified in charter)

1345 Avenue of the Americas, New York, New York 10105

(Address of principal executive offices) (Zip code)

Joseph J. Mantineo

AllianceBernstein L.P.

1345 Avenue of the Americas

New York, New York 10105

(Name and address of agent for service)

Registrant’s telephone number, including area code: (800) 221-5672

Date of fiscal year end: December 31, 2011

Date of reporting period: September 30, 2011

ITEM 1.

SCHEDULE OF INVESTMENTS.

AllianceBernstein Income Fund

Portfolio of Investments

September 30, 2011 (unaudited)


	Principal Amount (000)		U.S. $ Value
GOVERNMENTS - TREASURIES - 95.9%
Brazil - 0.4%
Brazil Notas do Tesouro Nacional
Series F
10.00%, 1/01/14	BRL	16,419	$	8,571,326

South Africa - 0.4%
South Africa Government Bond
Series R203
8.25%, 9/15/17	ZAR	79,000		9,989,559

United States - 95.1%
U.S. Treasury Bonds
5.375%, 2/15/31	U.S.$	1,961		2,758,576
6.25%, 8/15/23		10,000		14,253,120
6.625%, 2/15/27		45,570		69,636,656
U.S. Treasury Notes
1.50%, 8/31/18 (a)		70,000		70,339,080
1.875%, 10/31/17 (a)		128,500		133,328,773
2.625%, 2/29/16		74,200		80,025,887
2.625%, 4/30/16-11/15/20 (a)		565,600		606,007,558
2.75%, 11/30/16 (a)(b)		333,772		363,080,752
2.75%, 2/15/19		161,100		175,145,987
3.125%, 4/30/17		18,000		19,968,750
3.25%, 5/31/16 (a)		44,000		48,812,500
3.625%, 2/15/20 (a)		86,440		99,784,175
U.S. Treasury STRIPS
Zero Coupon, 5/15/17 (a)(c)		259,750		243,574,848
Zero Coupon, 11/15/21		164,379		133,210,528

				2,059,927,190

Total Governments - Treasuries (cost $1,947,380,992)				2,078,488,075

CORPORATES - INVESTMENT GRADES - 15.1%
Financial Institutions - 6.7%
Banking - 3.5%
Barclays Bank PLC
4.75%, 3/15/20	EUR	10,000		6,698,749
Capital One Financial Corp.
6.15%, 9/01/16	U.S.$	2,900		3,072,016
Citigroup, Inc.
8.50%, 5/22/19		9,100		10,991,162
Fifth Third Bancorp
5.45%, 1/15/17		3,100		3,295,390
Goldman Sachs Group, Inc. (The)
5.25%, 7/27/21		1,902		1,876,351
6.00%, 6/15/20		4,980		5,122,752
HSBC Bank USA NA
4.875%, 8/24/20		2,030		1,903,864
Itau Unibanco Holding SA/Cayman Island
6.20%, 4/15/20 (d)		3,200		3,232,173
Macquarie Group Ltd.
4.875%, 8/10/17 (d)		4,270		4,209,597
Manufacturers & Traders Trust Co.
6.625%, 12/04/17		506		588,147


	Principal Amount (000)		U.S. $ Value
Merrill Lynch & Co., Inc.
5.70%, 5/02/17	U.S.$	13,500		12,041,581
6.05%, 5/16/16		2,678		2,410,026
Morgan Stanley
10.09%, 5/03/17 (d)	BRL	11,615		5,744,954
Royal Bank of Scotland PLC (The)
5.625%, 8/24/20	U.S.$	3,895		3,761,990
Societe Generale SA
5.20%, 4/15/21 (d)		5,300		4,601,852
VTB Bank OJSC Via VTB Capital SA
6.875%, 5/29/18 (d)		2,716		2,743,160
Wachovia Bank NA
4.875%, 2/01/15		3,841		4,043,567

				76,337,331

Brokerage - 0.2%
Jefferies Group, Inc.
5.125%, 4/13/18		2,877		2,694,322
6.875%, 4/15/21		2,062		2,141,731

				4,836,053

Finance - 0.4%
General Electric Capital Corp.
6.44%, 11/15/22	GBP	149		240,508
SLM Corp.
5.05%, 11/14/14	U.S.$	3,610		3,483,368
Series A
5.375%, 5/15/14		3,885		3,823,361

				7,547,237

Insurance - 2.0%
Aflac, Inc.
3.45%, 8/15/15		865		883,892
American International Group, Inc.
4.25%, 5/15/13		4,480		4,469,203
AON Corp.
3.125%, 5/27/16		3,450		3,450,952
CIGNA Corp.
5.125%, 6/15/20		1,690		1,837,681
Fairfax Financial Holdings Ltd.
8.30%, 4/15/26		5,000		5,180,455
General Electric Glob Insurance
7.75%, 6/15/30		2,800		3,338,770
Genworth Financial, Inc.
7.70%, 6/15/20		3,100		2,732,173
Guardian Life Insurance Co. of America
7.375%, 9/30/39 (d)		2,455		3,237,720
Hartford Financial Services Group, Inc.
5.95%, 10/15/36		3,533		3,097,664
Humana, Inc.
8.15%, 6/15/38		2,900		3,922,870
MetLife, Inc.
4.75%, 2/08/21		2,135		2,221,835
Nationwide Mutual Insurance Co.
9.375%, 8/15/39 (d)		2,700		3,145,408


	Principal Amount (000)		U.S. $ Value
QBE Capital Funding III Ltd.
7.25%, 5/24/41 (d)	U.S.$	2,205		1,993,119
Transatlantic Holdings, Inc.
8.00%, 11/30/39		2,122		2,514,929

				42,026,671

Other Finance - 0.2%
Aviation Capital Group Corp.
6.75%, 4/06/21 (d)		4,235		4,074,536
IIRSA Norte Finance Ltd.
8.75%, 5/30/24 (d)		323		369,922
Red Arrow International Leasing PLC
8.375%, 6/30/12	RUB	2,030		62,415

				4,506,873

REITS - 0.4%
Duke Realty LP
6.75%, 3/15/20	U.S.$	1,655		1,718,686
Entertainment Properties Trust
7.75%, 7/15/20		3,308		3,539,560
HCP, Inc.
5.375%, 2/01/21		3,468		3,479,573

				8,737,819

				143,991,984

Industrial - 6.3%
Basic - 1.1%
Anglo American Capital PLC
9.375%, 4/08/19 (d)		3,492		4,624,739
ArcelorMittal
5.25%, 8/05/20		2,500		2,233,630
GTL Trade Finance, Inc.
7.25%, 10/20/17 (a)(d)		2,536		2,650,120
International Paper Co.
7.95%, 6/15/18		2,600		3,003,073
Southern Copper Corp.
7.50%, 7/27/35		5,107		5,525,003
Teck Resources Ltd.
6.00%, 8/15/40		327		336,548
Usiminas Commercial Ltd.
7.25%, 1/18/18 (d)		4,263		4,497,465

				22,870,578

Capital Goods - 0.5%
Holcim US Finance Sarl & Cie SCS
6.00%, 12/30/19 (d)		644		683,502
Legrand France SA
8.50%, 2/15/25		10		12,349
Owens Corning
9.00%, 6/15/19		3,000		3,542,055
Republic Services, Inc.
5.25%, 11/15/21		6,098		6,835,425

				11,073,331


	Principal Amount (000)		U.S. $ Value
Communications - Media - 0.4%
CBS Corp.
8.20%, 5/15/14	U.S.$	3,700		4,253,268
DirecTV Holdings LLC/DirecTV Financing Co., Inc.
4.75%, 10/01/14		1,485		1,608,848
Time Warner Entertainment Co. LP
8.375%, 7/15/33		2,500		3,260,147

				9,122,263

Communications - Telecommunications - 0.8%
American Tower Corp.
5.05%, 9/01/20		4,310		4,301,234
AT&T, Inc.
4.45%, 5/15/21		3,111		3,337,711
Embarq Corp.
7.082%, 6/01/16		1,277		1,321,904
Qwest Corp.
7.625%, 6/15/15		700		749,000
United States Cellular Corp.
6.70%, 12/15/33		2,100		2,111,819
Verizon Communications, Inc.
4.60%, 4/01/21		5,066		5,599,652

				17,421,320

Consumer Cyclical - Automotive - 0.1%
Harley-Davidson Funding Corp.
5.75%, 12/15/14 (d)		2,155		2,350,077

Consumer Cyclical - Entertainment - 0.1%
Time Warner, Inc.
7.70%, 5/01/32		2,500		3,172,315

Consumer Cyclical - Retailers - 0.1%
Gap, Inc. (The)
5.95%, 4/12/21		2,500		2,351,468

Consumer Non-Cyclical - 0.2%
Bunge Ltd. Finance Corp.
8.50%, 6/15/19		2,600		3,239,480
Newell Rubbermaid, Inc.
4.70%, 8/15/20		368		374,712
Whirlpool Corp.
8.60%, 5/01/14		520		593,105

				4,207,297

Energy - 2.0%
Anadarko Petroleum Corp.
5.95%, 9/15/16		4,262		4,661,771
Nabors Industries, Inc.
9.25%, 1/15/19		2,500		3,162,538
Noble Energy, Inc.
8.25%, 3/01/19		4,300		5,645,771
Noble Holding International Ltd.
4.90%, 8/01/20		389		418,443
TNK-BP Finance SA
7.50%, 7/18/16 (d)		12,083		12,505,905
7.875%, 3/13/18 (d)		8,270		8,600,800


	Principal Amount (000)		U.S. $ Value
Transocean, Inc.
7.50%, 4/15/31	U.S.$	2,200		2,548,674
Valero Energy Corp.
9.375%, 3/15/19		1,226		1,571,091
Weatherford International Ltd.
7.00%, 3/15/38		2,900		3,191,528

				42,306,521

Other Industrial - 0.1%
Noble Group Ltd.
6.75%, 1/29/20 (d)		2,803		2,466,640

Technology - 0.1%
Agilent Technologies, Inc.
5.00%, 7/15/20		782		843,687
Xerox Corp.
4.25%, 2/15/15		2,225		2,353,556

				3,197,243

Transportation - Airlines - 0.6%
Delta Air Lines 2007-1 Class A Pass
Through Trust
Series 071A
6.821%, 8/10/22		1,671		1,683,287
Qantas Airways Ltd.
6.05%, 4/15/16 (d)		5,000		5,339,930
Southwest Airlines Co.
5.25%, 10/01/14		2,720		2,916,416
5.75%, 12/15/16		1,780		1,973,251

				11,912,884

Transportation - Services - 0.2%
Asciano Finance Ltd.
3.125%, 9/23/15 (d)		3,960		3,916,397
4.625%, 9/23/20 (d)		1,080		1,052,461

				4,968,858

				137,420,795

Non Corporate Sectors - 1.8%
Agencies - Not Government Guaranteed - 1.8%
Ecopetrol SA
7.625%, 7/23/19 (a)		2,899		3,377,335
Gazprom OAO Via Gaz Capital SA
6.212%, 11/22/16 (d)		5,050		5,087,875
6.51%, 3/07/22 (d)		13,563		13,291,740
9.25%, 4/23/19 (d)		7,115		8,253,400
MDC-GMTN B.V.
5.50%, 4/20/21 (d)		3,928		4,098,810
Petrobras International Finance Co. - Pifco
5.75%, 1/20/20		3,150		3,269,700
VTB Capital SA
6.875%, 5/29/18 (d)		725		732,250

				38,111,110


	Principal Amount (000)		U.S. $ Value
Utility - 0.3%
Electric - 0.2%
FirstEnergy Corp.
Series C
7.375%, 11/15/31	U.S.$	3,000		3,700,029
Union Electric Co.
6.70%, 2/01/19		485		595,780

				4,295,809

Natural Gas - 0.1%
Kinder Morgan Energy Partners LP
4.15%, 3/01/22		2,149		2,122,408

				6,418,217

Total Corporates - Investment Grades (cost $308,505,796)				325,942,106

CORPORATES - NON-INVESTMENT GRADES - 8.2%
Industrial - 6.4%
Basic - 0.6%
AK Steel Corp.
7.625%, 5/15/20 (a)		2,082		1,824,352
Calcipar SA
6.875%, 5/01/18 (d)		687		594,255
Georgia Gulf Corp.
10.75%, 10/15/16		250		260,625
Huntsman International LLC
5.50%, 6/30/16		1,809		1,686,893
Mondi Finance PLC
5.75%, 4/03/17	EUR	942		1,235,090
Steel Dynamics, Inc.
7.625%, 3/15/20	U.S.$	3,000		2,996,250
United States Steel Corp.
6.05%, 6/01/17		965		878,150
7.375%, 4/01/20 (a)		1,477		1,329,300
Weyerhaeuser Co.
7.375%, 3/15/32		2,000		1,994,642

				12,799,557

Capital Goods - 1.2%
BE Aerospace, Inc.
6.875%, 10/01/20		2,000		2,085,000
Berry Plastics Corp.
10.25%, 3/01/16		67		58,290
Bombardier, Inc.
7.50%, 3/15/18 (d)		3,000		3,165,000
Building Materials Corp. of America
7.00%, 2/15/20 (d)		635		633,412
7.50%, 3/15/20 (d)		2,498		2,498,000
CNH America LLC
7.25%, 1/15/16		2,000		2,070,000
Griffon Corp.
7.125%, 4/01/18		3,558		3,139,935
Huntington Ingalls Industries, Inc.
6.875%, 3/15/18 (d)		698		649,140
7.125%, 3/15/21 (d)		690		639,975


	Principal Amount (000)		U.S. $ Value
Mohawk Industries, Inc.
6.875%, 1/15/16	U.S.$	762		786,765
RBS Global, Inc./Rexnord LLC
11.75%, 8/01/16 (a)		2,150		2,193,000
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Lu
7.125%, 4/15/19 (d)		3,000		2,790,000
Sealed Air Corp.
8.125%, 9/15/19 (d)		1,127		1,138,270
8.375%, 9/15/21 (d)		1,157		1,168,570
SPX Corp.
6.875%, 9/01/17		2,900		2,972,500

				25,987,857

Communications - Media - 0.9%
Clear Channel Communications, Inc.
5.75%, 1/15/13		220		195,800
Cumulus Media, Inc.
7.75%, 5/01/19 (a)(d)		672		566,160
DISH DBS Corp.
7.125%, 2/01/16		2,000		2,025,000
EH Holding Corp.
7.625%, 6/15/21 (d)		3,111		2,994,338
Intelsat Jackson Holdings SA
7.25%, 4/01/19 (d)		4,231		3,924,252
LIN Television Corp.
8.375%, 4/15/18		900		909,000
Quebecor Media, Inc.
7.75%, 3/15/16		3,000		2,992,500
Virgin Media Finance PLC
8.375%, 10/15/19		2,000		2,125,000
XM Satellite Radio, Inc.
7.625%, 11/01/18 (d)		2,500		2,525,000

				18,257,050

Communications - Telecommunications - 0.4%
eAccess Ltd.
8.25%, 4/01/18 (d)		1,596		1,468,320
Frontier Communications Corp.
8.125%, 10/01/18		2,000		1,960,000
Sunrise Communications International SA
7.00%, 12/31/17 (d)	EUR	1,585		2,017,328
Windstream Corp.
7.50%, 4/01/23	U.S.$	2,000		1,865,000
7.75%, 10/01/21		1,070		1,032,550

				8,343,198

Consumer Cyclical - Automotive - 0.6%
American Axle & Manufacturing Holdings, Inc.
9.25%, 1/15/17 (d)		1,694		1,761,760
Delphi Corp.
5.875%, 5/15/19 (d)		654		608,220
6.125%, 5/15/21 (d)		491		456,630


	Principal Amount (000)		U.S. $ Value
Ford Motor Co.
7.45%, 7/16/31 (a)	U.S.$	650		733,772
Ford Motor Credit Co. LLC
5.75%, 2/01/21		2,125		2,102,686
7.00%, 10/01/13		2,350		2,467,775
Goodyear Dunlop Tires Europe BV
6.75%, 4/15/19 (d)	EUR	1,500		1,808,662
Goodyear Tire & Rubber Co. (The)
8.75%, 8/15/20	U.S.$	3,000		3,090,000

				13,029,505

Consumer Cyclical - Entertainment - 0.0%
Pinnacle Entertainment, Inc.
8.75%, 5/15/20 (a)		841		784,233

Consumer Cyclical - Other - 0.3%
Broder Brothers Co.
12.00%, 10/15/13 (d)(e)		607		598,228
Host Hotels & Resorts LP
9.00%, 5/15/17 (a)		2,000		2,160,000
Royal Caribbean Cruises Ltd.
7.00%, 6/15/13		2,000		2,035,000
7.50%, 10/15/27		1,100		1,034,000
Shea Homes LP/Shea Homes Funding Corp.
8.625%, 5/15/19 (d)		1,188		974,160

				6,801,388

Consumer Cyclical - Retailers - 0.7%
AutoNation, Inc.
6.75%, 4/15/18		481		490,620
Burlington Coat Factory Warehouse Corp.
10.00%, 2/15/19 (d)		401		340,850
JC Penney Co., Inc.
5.65%, 6/01/20		3,100		2,906,250
Limited Brands, Inc.
6.90%, 7/15/17		5,593		5,858,667
Rite Aid Corp.
8.00%, 8/15/20 (a)		3,200		3,336,000
Toys R US - Delaware, Inc.
7.375%, 9/01/16 (d)		2,220		2,120,100

				15,052,487

Consumer Non-Cyclical - 0.7%
Boparan Holdings Ltd.
9.875%, 4/30/18 (d)	GBP	2,400		2,900,621
CDRT Merger Sub, Inc.
8.125%, 6/01/19 (d)	U.S.$	2,391		2,211,675
CHS/Community Health Systems, Inc.
8.875%, 7/15/15		1,600		1,572,000
Fresenius Medical Care US Finance, Inc.
5.75%, 2/15/21 (d)		2,125		2,050,625
HCA, Inc.
8.50%, 4/15/19		1,895		2,008,700
Mylan Inc.


	Principal Amount (000)		U.S. $ Value
7.625%, 7/15/17 (d)	U.S.$	290		301,600
7.875%, 7/15/20 (d)		290		304,500
Select Medical Corp.
7.625%, 2/01/15		132		114,345
Select Medical Holdings Corp.
6.267%, 9/15/15 (f)		5,000		4,075,000

				15,539,066

Energy - 0.7%
Chesapeake Energy Corp.
6.625%, 8/15/20		2,435		2,508,050
Cie Generale de Geophysique-Veritas
9.50%, 5/15/16		857		878,425
Forest Oil Corp.
7.25%, 6/15/19		2,964		2,919,540
Hilcorp Energy I LP/Hilcorp Finance Co.
7.75%, 11/01/15 (d)		2,000		2,015,000
Oil States International, Inc.
6.50%, 6/01/19 (d)		1,960		1,915,900
SESI LLC
6.375%, 5/01/19 (d)		615		593,475
Tesoro Corp.
9.75%, 6/01/19		3,800		4,104,000

				14,934,390

Services - 0.3%
Live Nation Entertainment, Inc.
8.125%, 5/15/18 (d)		1,820		1,747,200
Service Corp. International/US
6.75%, 4/01/16		1,845		1,891,125
7.50%, 4/01/27		3,300		3,077,250
West Corp.
11.00%, 10/15/16		150		154,500

				6,870,075

Technology - 0.0%
Freescale Semiconductor, Inc.
10.125%, 12/15/16		300		305,250

Transportation - Airlines - 0.0%
American Airlines, Inc.
10.50%, 10/15/12		669		676,526

				139,380,582

Utility - 1.1%
Electric - 1.0%
AES Corp. (The)
8.00%, 10/15/17		2,000		2,010,000
Calpine Corp.
7.875%, 7/31/20 (d)		3,200		3,088,000
CMS Energy Corp.
8.75%, 6/15/19		3,900		4,545,622
Duquesne Light Holdings, Inc.
6.40%, 9/15/20 (d)		2,140		2,216,755
GenOn Americas Generation LLC
8.50%, 10/01/21		3,200		2,752,000


	Principal Amount (000)		U.S. $ Value
GenOn Energy, Inc.
7.875%, 6/15/17	U.S.$	2,100		1,932,000
NRG Energy, Inc.
7.375%, 1/15/17		3,000		3,093,750
8.25%, 9/01/20		1,300		1,228,500

				20,866,627

Natural Gas - 0.1%
El Paso Corp.
Series G
7.75%, 1/15/32		2,000		2,316,520

				23,183,147

Financial Institutions - 0.7%
Banking - 0.2%
ABN Amro Bank NV
4.31%, 3/10/16	EUR	6,790		5,280,751

Brokerage - 0.0%
Lehman Brothers Holdings, Inc.
6.875%, 5/02/18 (g)	U.S.$	3,605		878,719

Finance - 0.2%
Ally Financial, Inc.
8.00%, 11/01/31		2,456		2,155,140
Series 8
6.75%, 12/01/14		2,640		2,524,500

				4,679,640

Insurance - 0.0%
Pearl Group Holdings Ltd. No 1
6.586%, 4/25/16	GBP	43		36,451

Other Finance - 0.1%
iPayment, Inc.
10.25%, 5/15/18 (d)	U.S.$	1,814		1,659,810

REITS - 0.2%
DDR Corp.
7.875%, 9/01/20		3,000		3,178,008

				15,713,379

Total Corporates - Non-Investment Grades (cost $183,417,369)				178,277,108

AGENCIES - 5.7%
Agency Debentures - 5.7%
Federal National Mortgage Association
5.375%, 6/12/17		59,222		71,821,244
Residual Funding Corp. Principal Strip Zero Coupon, 7/15/20		61,700		51,077,234

Total Agencies (cost $105,132,420)				122,898,478

MORTGAGE PASS-THROUGH’S - 5.1%
Agency Fixed Rate 30-Year - 2.9%
Federal Home Loan Mortgage Corp. Gold Series 2006


	Principal Amount (000)		U.S. $ Value
6.00%, 9/01/36	U.S.$	21,312		23,434,655
Series 2007
7.00%, 2/01/37		6,273		7,107,605
Federal National Mortgage Association
6.00%, 2/01/40-4/01/40		10,771		11,819,957
Series 1998
8.00%, 6/01/28		43		48,899
Series 1999
7.50%, 11/01/29		60		68,504
Series 2008
6.00%, 5/01/38		17,673		19,394,418

				61,874,038

Agency ARMs - 2.2%
Federal Home Loan Mortgage Corp.
Series 2007
5.568%, 1/01/37 (f)		10,486		10,812,621
5.684%, 3/01/37 (f)		7,203		7,580,757
5.685%, 2/01/37 (f)		6,992		7,397,296
5.874%, 3/01/37 (f)		2,711		2,870,895
5.966%, 2/01/37 (f)		6,623		6,835,794
Federal National Mortgage Association
Series 2006
5.76%, 11/01/36 (f)		4,582		4,768,051
Series 2007
5.828%, 3/01/37 (f)		7,596		7,898,623

				48,164,037

Total Mortgage Pass-Through’s (cost $105,315,967)				110,038,075

COMMERCIAL MORTGAGE-BACKED SECURITIES - 3.2%
Non-Agency Fixed Rate CMBS - 3.2%
Banc of America Merrill Lynch Commercial Mortgage, Inc.
Series 2007-5, Class A4
5.492%, 2/10/51		8,732		9,120,371
Commercial Mortgage Pass Through Certificates
Series 2007-C9, Class A4
6.008%, 12/10/49		5,030		5,426,605
Credit Suisse Mortgage Capital Certificates
Series 2006-C4, Class AM
5.509%, 9/15/39		13,000		10,359,661
Series 2006-C5, Class A3
5.311%, 12/15/39		13,000		13,601,042
JP Morgan Chase Commercial Mortgage Securities Corp.
Series 2006-CB15, Class AM
5.855%, 6/12/43		1,651		1,490,681
Merrill Lynch Mortgage Trust
Series 2008-C1, Class A4
5.69%, 2/12/51		6,000		6,403,182
Merrill Lynch/Countrywide Commercial Mortgage Trust
Series 2006-4, Class AM


	Principal Amount (000)		U.S. $ Value
5.204%, 12/12/49	U.S.$	10,000		8,642,280
Series 2007-9, Class A4
5.70%, 9/12/49		5,220		5,384,122
Morgan Stanley Capital I
Series 2006-IQ12, Class AMFX
5.37%, 12/15/43		8,500		7,840,578

				68,268,522

Non-Agency Floating Rate CMBS - 0.0%
Eclipse Ltd.
Series 2007-1X, Class B
1.083%, 1/25/20 (d)(f)	GBP	59		48,265

Total Commercial Mortgage-Backed Securities (cost $67,719,518)				68,316,787

QUASI-SOVEREIGNS - 2.4%
Quasi-Sovereign Bonds - 2.4%
Indonesia - 0.3%
Majapahit Holding BV
7.875%, 6/29/37 (d)	U.S.$	6,188		6,744,920

Russia - 2.1%
Russian Agricultural Bank OJSC Via RSHB Capital SA
6.299%, 5/15/17 (d)		22,568		22,285,900
7.125%, 1/14/14 (d)		12,351		12,659,775
7.75%, 5/29/18 (d)		9,905		10,400,250

				45,345,925

Total Quasi-Sovereigns (cost $40,749,907)				52,090,845

INFLATION-LINKED SECURITIES - 2.1%
United States - 2.1%
U.S. Treasury Inflation Index
2.125%, 1/15/19 (TIPS) (cost $41,816,074)		38,411		44,736,994

BANK LOANS - 2.0%
Industrial - 1.7%
Basic - 0.2%
Flakeboard US GP I / Flakeboard America Limited
7.72%, 7/28/12 (f)		1,241		1,117,173
Ineos US Finance LLC
7.50%, 12/16/13 (f)		205		204,075
8.00%, 12/16/14 (f)		235		234,611
NewPage Corporation
8.00%, 4/04/13 (h)		3,400		3,378,750

				4,934,609

Capital Goods - 0.3%
Harbor Freight Tools USA, Inc./Central Purchasing, LLC
6.50%, 12/22/17 (f)		5,416		5,334,871


	Principal Amount (000)		U.S. $ Value
Hawker Beechcraft Acquisition Company LLC
2.37%, 3/26/14 (f)	U.S.$	120		82,211
Sequa Corp.
3.48%-3.50%, 12/03/14 (f)		397		373,033

				5,790,115

Communications - Media - 0.2%
Cengage Learning Acquisitions Inc (Thomson Learning)
2.49%, 7/03/14 (f)		536		417,675
Charter Communications Operating, LLC
2.24%, 3/06/14 (f)		40		39,613
Clear Channel Communications, Inc.
3.89%, 1/29/16 (f)		408		284,860
Sunshine Acquisition Limited (aka HIT Entertainment)
5.51%, 6/01/12 (f)		721		689,717
SuperMedia Inc. (fka Idearc Inc.)
11.00%, 12/31/15 (f)		313		136,427
Univision Communications Inc.
4.49%, 3/31/17 (f)		2,445		2,051,730
WideOpenWest Finance , LLC
2.73%-4.75%, 6/30/14 (f)		1,457		1,352,542

				4,972,564

Communications - Telecommunications - 0.1%
Level 3 Financing, Inc.
2.49%-2.50%, 3/13/14 (f)		1,316		1,225,420

Consumer Cyclical - Entertainment - 0.0%
Las Vegas Sands, LLC
2.74%, 11/23/16 (f)		878		815,227

Consumer Cyclical - Other - 0.1%
Caesars Entertainment Operating Company Inc. (fka Harrah’s Operating Company, Inc.)
3.23%-3.25%, 1/28/15 (f)		601		498,849
3.25%-3.37%, 1/28/15 (f)		546		454,168
Great Atlantic & Pacific Tea Company, Inc., The
8.75%, 6/14/12 (f)		250		248,957
November 2005 Land Investors, LLC (North Las Vegas Consortium)
7.25%, 4/30/10 (f)(g)		2,179		5,556
VML US Finance LLC (aka Venetian Macau)
4.74%, 5/25/12 - 5/28/13 (f)		1,412		1,400,568

				2,608,098

Consumer Cyclical - Retailers - 0.1%
Burlington Coat Factory Warehouse Corporation
6.25%, 2/23/17 (f)		988		941,492


	Principal Amount (000)		U.S. $ Value
Mattress Holding Corp.
2.62%-4.50%, 1/18/14 (f)	U.S.$	478		430,616

				1,372,108

Consumer Non-Cyclical - 0.3%
CHS/Community Health Systems, Inc.
3.82%, 1/25/17 (f)		186		168,905
CityCenter Holdings, LLC
7.50%, 1/21/15 (f)		338		329,667
Grifols Inc.
5.50%, 6/01/16 (f)		500		486,665
Harlan Laboratories, Inc. (fka Harlan Sprague Dawley, Inc.)
3.77%, 7/11/14 (f)		875		775,486
HCA Inc.
3.62%, 5/01/18 (f)		895		838,816
Immucor, Inc.
7.25%, 8/19/18 (f)		3,300		3,246,375
U.S. Foodservice
2.73%-2.74%, 7/03/14 (f)		992		903,553

				6,749,467

Energy - 0.0%
CITGO Petroleum Corp.
9.00%, 6/24/17 (f)		346		350,809
Dalbo, Inc.
7.00%, 8/27/12 (f)		450		405,373

				756,182

Other Industrial - 0.0%
Gavilon Group LLC, The
6.00%, 12/06/16 (f)		341		335,619

Services - 0.2%
Advantage Sales & Marketing Inc.
5.25%, 12/18/17 (f)		844		810,724
Aveta, Inc.
8.50%, 4/14/15 (f)		306		297,516
Global Cash Access, Inc.
7.00%, 3/01/16 (f)		426		416,955
Sabre Inc.
2.24%-2.25%, 9/30/14 (f)		2,178		1,822,249
ServiceMaster Co. (The)
2.72%-2.83%, 7/24/14 (f)		622		579,958
2.74%, 7/24/14 (f)		62		57,755
West Corporation
4.50%-4.62%, 7/15/16 (f)		485		467,841

				4,452,998

Technology - 0.2%
Avaya, Inc.
3.06%, 10/24/14 (f)		121		108,650
4.81%, 10/26/17 (f)		243		205,457


	Principal Amount (000)		U.S. $ Value
First Data Corporation
2.98%, 9/24/14 (f)	U.S.$	875		758,152
IPC Systems, Inc.
5.62%, 6/01/15 (f)		2,000		1,652,500
SunGard Data Systems Inc. (Solar Capital Corp.)
1.98%, 2/28/14 (f)		33		31,356
3.86%-3.90%, 2/28/16 (f)		436		418,923

				3,175,038

Transportation - Services - 0.0%
Swift Transportation Co., LLC
6.00%, 12/21/16 (f)		349		337,777

				37,525,222

Utility - 0.2%
Electric - 0.2%
FirstLight Power Resources, Inc. (fka NE Energy, Inc.)
2.75%, 11/01/13 (f)		505		476,125
4.75%, 5/01/14 (f)		1,000		907,000
GBGH, LLC (US Energy)
6.00%, 6/09/13 (f)(i)(j)		258		19,328
14.00%, 6/09/14 (e)(f)(i)(j)		110		0
Texas Competitive Electric Holdings Company, LLC (TXU)
3.73%-3.77%, 10/10/14 (f)		2,379		1,672,672

				3,075,125

Financial Institutions - 0.1%
Finance - 0.1%
Delos Aircraft Inc.
7.00%, 3/17/16 (f)		434		431,846
International Lease Finance Corp. (Delos Aircraft Inc.)
6.75%, 3/17/15 (f)		591		588,093
LPL Holdings, Inc.
1.99%-2.12%, 6/28/13 (f)		186		182,257

				1,202,196

Other Finance - 0.0%
LPL Holdings, Inc.
4.25%, 6/25/15 (f)		586		581,538

				1,783,734

Total Bank Loans (cost $45,243,237)				42,384,081

EMERGING MARKETS - CORPORATE BONDS - 1.9%
Financial Institutions - 0.4%
Banking - 0.2%
ATF Bank JSC
9.00%, 5/11/16 (d)		3,673		3,489,350


	Principal Amount (000)		U.S. $ Value
Banco BMG SA
9.15%, 1/15/16 (d)	U.S.$	400		388,000
CenterCredit International BV
8.625%, 1/30/14 (d)		2,297		2,182,150

				6,059,500

Other Finance - 0.2%
AES El Salvador Trust
6.75%, 2/01/16 (d)		350		341,250
DTEK Finance BV
9.50%, 4/28/15 (d)		4,110		3,699,000

				4,040,250

				10,099,750

Industrial - 1.4%
Basic - 0.5%
Evraz Group SA
8.875%, 4/24/13 (d)		3,697		3,733,970
9.50%, 4/24/18 (d)		385		373,450
Vedanta Resources PLC
8.75%, 1/15/14 (d)		7,226		6,900,830

				11,008,250

Communications - Media - 0.3%
Columbus International, Inc.
11.50%, 11/20/14 (d)		3,959		3,879,820
European Media Capital SA
10.00%, 2/01/15 (k)		1,853		1,667,863

				5,547,683

Communications - Telecommunications - 0.3%
Pacnet Ltd.
9.25%, 11/09/15 (d)		2,981		2,623,280
Vimpel Communications Via VIP Finance Ireland Ltd. OJSC
9.125%, 4/30/18 (d)		3,500		3,377,500

				6,000,780

Consumer Cyclical - Other - 0.1%
MCE Finance Ltd.
10.25%, 5/15/18		2,420		2,565,200
Peermont Global Pty Ltd.
7.75%, 4/30/14 (d)	EUR	50		51,915

				2,617,115

Consumer Non-Cyclical - 0.1%
JBS Finance II Ltd.
8.25%, 1/29/18 (d)	U.S.$	3,100		2,557,500

Other Industrial - 0.1%
Marfrig Overseas Ltd.
9.50%, 5/04/20 (d)		4,151		2,656,640


	Principal Amount (000)		U.S. $ Value
				30,387,968

Utility - 0.1%
Electric - 0.1%
Inkia Energy Ltd.
8.375%, 4/04/21 (d)	U.S.$	1,395		1,367,100

Total Emerging Markets - Corporate Bonds (cost $47,010,545)				41,854,818

EMERGING MARKETS - SOVEREIGNS - 1.5%
Argentina - 0.4%
Republic of Argentina
7.82%, 12/31/33	EUR	12,902		9,895,893

El Salvador - 0.3%
El Salvador
7.65%, 6/15/35 (d)	U.S.$	5,957		5,778,290

Indonesia - 0.8%
Republic of Indonesia
6.625%, 2/17/37 (d)		720		802,800
6.875%, 1/17/18 (d)		8,285		9,403,475
7.75%, 1/17/38 (a)(d)		5,073		6,353,933
8.50%, 10/12/35 (d)		801		1,081,350

				17,641,558

Total Emerging Markets - Sovereigns (cost $30,005,179)				33,315,741

LOCAL GOVERNMENTS - MUNICIPAL BONDS - 0.5%
United States - 0.5%
California GO
7.95%, 3/01/36		3,955		4,487,580
Illinois GO
7.35%, 7/01/35		3,330		3,747,282
Texas Transp Comm (Texas St Hwy Fund First Tier)
5.178%, 4/01/30		2,560		3,020,826

Total Local Governments - Municipal Bonds (cost $9,889,686)				11,255,688

GOVERNMENTS - SOVEREIGN BONDS - 0.4%
Croatia - 0.2%
Republic of Croatia
6.375%, 3/24/21 (d)		1,230		1,113,150
6.75%, 11/05/19 (d)		2,750		2,605,625

				3,718,775

Lithuania - 0.2%
Republic of Lithuania
6.75%, 1/15/15 (d)		5,100		5,355,000

Total Governments - Sovereign Bonds (cost $9,011,768)				9,073,775


	Principal Amount (000)		U.S. $ Value
ASSET-BACKED SECURITIES - 0.3%
Other ABS - Fixed Rate - 0.2%
GSMS 2011-GC5 C
8.25%, 8/10/44	U.S.$	5,651		4,619,902

Autos - Floating Rate - 0.1%
Wheels SPV LLC Series 2009-1, Class A
1.779%, 3/15/18 (d)(f)		2,381		2,389,194

Total Asset-Backed Securities (cost $7,018,268)				7,009,096

EMERGING MARKETS - TREASURIES - 0.1%
Turkey - 0.1%
Turkey Government Bond 16.00%, 3/07/12 (cost $2,826,242)	TRY	4,834		2,690,646


	Shares
PREFERRED STOCKS - 0.1%
Financial Institutions - 0.1%
Finance - 0.1%
Ally Financial, Inc.
7.00% (d)		2,680		1,794,679

Non Corporate Sectors - 0.0%
Agencies - Government Sponsored - 0.0%
Federal National Mortgage Association
8.25%		125,325		238,117

Total Preferred Stocks (cost $3,668,924)				2,032,796


	Contracts
OPTIONS PURCHASED - PUTS - 0.1%
Options on Forward Contracts - 0.1%
CNY/USD
Expiration: Aug 2012, Exercise Price: CNY 7.00 (l)(m)		10,800,000		1,244,573
EUR/USD
Expiration: Nov 2011, Exercise Price: EUR 1.25 (l)(m)		625,000		429,223

Options Purchased - Puts (cost $856,110)				1,673,796


	Shares
COMMON STOCKS - 0.0%
Gallery Media (i)(l)(n) (cost $0)		697		836,400


	Principal Amount (000)		U.S. $ Value
COLLATERALIZED MORTGAGE OBLIGATIONS - 0.0%
Non-Agency Fixed Rate - 0.0%
Merrill Lynch Mortgage Investors, Inc. Series 2005-A9, Class 2A1A
2.762%, 12/25/35	U.S.$	478		474,768

Agency Fixed Rate - 0.0%
Government National Mortgage Association Series 2006-32, Class XM
0.35%, 11/16/45 (o)		3,413		59,294

Total Collateralized Mortgage Obligations (cost $714,013)				534,062


	Shares
WARRANTS - 0.0%
GBGH, LLC, expiring 6/09/19 (i)(j)(l)		517		0
Ion Media Networks, expiring 12/12/39 (i)(j)(l)		1,264		0
Ion Media Networks, expiring 12/31/49 (i)(j)(l)		1,248		0
Quality Distribution, LLC, expiring 11/01/13 (l)		40,706		364,726

Total Warrants (cost $0)				364,726

SHORT-TERM INVESTMENTS - 0.7%
Investment Companies - 0.7%
AllianceBernstein Fixed-Income Shares, Inc. - Government STIF Portfolio, 0.08% (p) (cost $14,539,193)		14,539,193		14,539,193

Total Investments - 145.3% (cost $2,970,821,208) (q)				3,148,353,286
Other assets less liabilities - (45.3)%				(981,943,810	)

Net Assets - 100.0%			$	2,166,409,476

FUTURES CONTRACTS


Type	Number of Contracts		Expiration Month		Original Value		Value at September 30, 2011		Unrealized Appreciation/ (Depreciation)
Sold Contracts
U.S. T-Bond 30 Yr Futures		1,301		December 2011	$	180,765,288	$	185,555,125	$	(4,789,837	)
U.S. T-Note 10 Yr Futures		3,263		December 2011		423,622,744		424,495,907		(873,163	)
U.S. T-Note 5 Yr Futures		1,154		December 2011		141,411,285		141,346,969		64,316

									$	(5,598,684	)

FORWARD CURRENCY EXCHANGE CONTRACTS


Counterparty & Description	Contract Amount (000)		U.S. $ Value on Origination Date		U.S. $ Value at September 30, 2011		Unrealized Appreciation/ (Depreciation)
Buy Contracts
Credit Suisse London Branch (GFX):
Chinese Yuan Renminbi settling 1/13/12		176,203	$	27,182,416	$	27,536,041	$	353,625
Swedish Krona settling 10/19/11		135,036		21,042,114		19,665,288		(1,376,826	)
Goldman Sachs International:
Brazilian Real settling 10/04/11		32,148		17,336,110		17,097,770		(238,340	)
Brazilian Real settling 10/04/11		32,148		17,820,445		17,097,770		(722,675	)
HSBC BankUSA:
Norwegian Krone settling 10/19/11		117,865		21,623,580		20,064,092		(1,559,488	)
Morgan Stanley and Co., Inc.:
Indonesian Rupiah settling 10/21/11		92,776,433		10,839,635		10,229,298		(610,337	)
Russian Rubles settling 10/17/11		277,483		9,076,982		8,594,189		(482,793	)
Standard Chartered Bank:
South Korean Won settling 10/27/11		49,840,097		45,999,166		42,247,514		(3,751,652	)
Sale Contracts
Barclays Bank PLC Wholesale:
Japanese Yen settling 10/27/11		670,372		8,781,565		8,694,171		87,394
Brown Brothers Harriman and Co.:
South African Rand settling 10/20/11		80,156		11,242,867		9,903,729		1,339,138
Goldman Sachs International:
Brazilian Real settling 10/04/11		32,148		19,801,714		17,097,770		2,703,944
Brazilian Real settling 10/04/11		32,148		17,336,110		17,097,770		238,340
Brazilian Real settling 11/03/11		32,148		17,712,442		16,970,248		742,194
Euro settling 10/17/11		57,032		78,148,033		76,400,855		1,747,178
Royal Bank of Scotland PLC:
Great British Pound settling 10/07/11		2,616		4,282,017		4,078,789		203,228
Swedish Krona settling 10/19/11		134,752		20,296,408		19,623,965		672,443
Standard Chartered Bank:
Indonesian Rupiah settling 10/21/11		91,819,851		10,386,861		10,123,828		263,033
South Korean Won settling 10/27/11		25,251,561		21,255,522		21,404,767		(149,245	)
South Korean Won settling 10/27/11		24,485,751		20,186,110		20,755,620		(569,510	)

							$	(1,110,349	)

CREDIT DEFAULT SWAP CONTRACTS ON CORPORATE AND INDICES


Swap Counterparty & Referenced Obligation	Fixed Deal (Pay) Receive Rate			Implied Credit Spread at September 30, 2011			Notional Amount (000)		Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
Buy Contracts
Citibank, N.A.:
Qantas Airways Ltd.
5.125%, 6/20/13, 3/20/16*		(1.75	)%		2.85	%	$	5,000	$	217,240		$	– 0	–	$	217,240
Sale Contracts
Credit Suisse First Boston:
CDX NAHY
Series 15 5 Yr Index, 12/20/15*		5.00			14.00			5,050		(1,343,335	)		(464,797	)		(878,538	)
CDX NAHY
Series 15 5 Yr Index, 12/20/15*		5.00			14.00			5,650		(1,502,939	)		(515,974	)		(986,965	)
Morgan Stanley Capital Services Inc.:
CDX-NAHY
Series 15 5 Year Index, 12/20/15*		5.00			7.10			21,400		(1,446,093	)		425,878			(1,871,971	)
CDX-NAHY
Series 16 5 Year Index, 6/20/16*		5.00			7.72			44,000		(4,127,835	)		(2,668,654	)		(1,459,181	)

															$	(4,979,415	)

*	Termination date.

REVERSE REPURCHASE AGREEMENTS


Broker	Interest Rate			Maturity	U.S. $ Value at September 30, 2011
Barclays Bank		0.00	%	12/30/11	$	1,965,000
Barclays Bank		0.09	%	10/05/11		103,508,280
Barclays Bank		1.13	%	12/30/11		594,750
Deutsche Bank		0.10	%	10/05/11		43,903,902
Deutsche Bank		0.11	%	10/12/11		37,278,075
Deutsche Bank		0.14	%	11/09/11		210,020,075
Deutsche Bank		0.16	%	11/29/11		11,077,500
HSBC		0.08	%	10/11/11		39,965,005
HSBC		0.11	%	11/08/11		109,884,065
HSBC		0.14	%	11/21/11		65,929,615
HSBC		0.15	%	11/28/11		107,255,363
ING		0.00	%	12/30/11		3,164,750
ING+		0.00	%	–		3,512,000
ING		0.05	%	12/30/11		2,226,000
ING		0.38	%	12/30/11		685,500
ING		1.00	%	12/30/11		326,250
Jefferies Group, Inc.		0.11	%	10/17/11		42,224,475
Jefferies Group, Inc.		0.11	%	11/03/11		55,414,362
Jefferies Group, Inc.		0.15	%	11/23/11		109,086,363
JP Morgan Chase		0.00	%	12/30/11		2,797,500


Broker	Interest Rate			Maturity	U.S. $ Value at September 30, 2011
JP Morgan Chase		0.00	%	12/30/11	$	1,809,000
Nomura International		0.11	%	10/11/11		96,874,073
Nomura International		0.15	%	10/13/11		85,782,692

					$	1,135,284,595

+	The reverse repurchase agreement matures on demand. Interest rate resets daily and the rate shown is the rate in effect on September 30, 2011

(a)

Position, or a portion thereof, has been segregated to collateralize reverse repurchase agreements. The market value of the collateral amounted to $991,922,533.

(b)

Position, or a portion thereof, has been segregated to collateralize total return swaps. The aggregate market value of these securities amounted to $4,643,869.

(c)

Position, or a portion thereof, has been segregated to collateralize margin requirements for open futures contracts. The market value of the collateral amounted to $243,574,848.

(d)

Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2011, the aggregate market value of these securities amounted to $296,388,704 or 13.7% of net assets.

(e)

Pay-In-Kind Payments (PIK).

(f)

Floating Rate Security. Stated interest rate was in effect at September 30, 2011.

(g)

Security is in default and is non-income producing.

(h)

This position or a portion of this position represents an unsettled loan purchase. At September 30, 2011, the market value and unrealized gain of these unsettled loan purchases amounted to $3,378,750 and $12,750, respectively. The coupon rate will be determined at the time of settlement and will be based upon the London-Interbank Offered Rate (“LIBOR”) plus a premium which was determined at the time of purchase.

(i)

Fair valued.

(j)

Illiquid security.

(k)

Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities, which represent 0.08% of net assets as of September 30, 2011, are considered illiquid and restricted.

Restricted Securities

Acquisition
Date

Cost

Market
Value

Percentage of
Net Assets

European Media Capital SA

10.00%, 2/01/15

8/18/10

2,553,774

1,667,863

0.08

(l)

Non-income producing security.

(m)

One contract relates to 100 shares.

(n)

Restricted and illiquid security.

(o)

IO - Interest Only

(p)

Investment in affiliated money market mutual fund. The rate shown represents the 7-day yield as of period end.

(q)

As of September 30, 2011, the cost basis of investment securities owned was substantially identical for both book and tax purposes. Gross unrealized appreciation of investments was $208,938,539 and gross unrealized depreciation of investments was $(31,406,461), resulting in net unrealized appreciation of $177,532,078.

Currency Abbreviations:


BRL	-	Brazilian Real
CNY	-	Chinese Yuan Renminbi
EUR	-	Euro
GBP	-	Great British Pound
RUB	-	Russian Ruble
TRY	-	Turkish Lira
ZAR	-	South African Rand

Glossary:


ABS	-	Asset-Backed Securities
ARMs	-	Adjustable Rate Mortgages
CMBS	-	Commercial Mortgage-Backed Securities
GO	-	General Obligation
LIBOR	-	London Interbank Offered Rates
OJSC	-	Open Joint Stock Company
REIT	-	Real Estate Investment Trust
STRIPS	-	Separate Trading of Registered Interest and Principle of Securities
TIPS	-	Treasury Inflation Protected Security

COUNTRY BREAKDOWN *

September 30, 2011 (unaudited)


	89.3%			United States
	3.4%			Russia
	1.1%			Brazil
	0.8%			Indonesia
	0.6%			United Kingdom
	0.5%			Australia
	0.4%			Canada
	0.3%			South Africa
	0.3%			Argentina
	0.2%			Luxembourg
	0.2%			India
	0.2%			El Salvador
	0.2%			Peru
	2.0%			Other
	0.5%			Short-Term

	100.0%			Total Investments

All data are as of September 30, 2011. The Fund’s country breakdowns are expressed as a percentage of total investments and may vary over time. The Fund also enters into derivative transactions, which may be used for hedging or investment purposes (see “Portfolio of Investments” section of the report for additional details). “Other” country weightings represent 0.2% or less in the following countries: Barbados, China, Colombia, Croatia, France, Germany, Hong Kong, Israel, Japan, Kazakhstan, Lithuania, Netherlands, New Zealand, Switzerland, Turkey, Ukraine and United Arab Emirates.

AllianceBernstein Income Fund

September 30, 2011 (unaudited)

In accordance with U.S. GAAP regarding fair value measurements, fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The U.S. GAAP disclosure requirements establish a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

•

Level 1—quoted prices in active markets for identical investments

•

Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

•

Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of September 30, 2011:

Investments in Securities:

Level 1

Level 2

Level 3

Total

Assets:

Governments - Treasuries

– 0

–

2,078,488,075

– 0

–

2,078,488,075

Corporates - Investment Grades

– 0

–

325,942,106

– 0

–

325,942,106

Corporates - Non-Investment Grades

– 0

–

178,277,108

– 0

–

178,277,108

Agencies

– 0

–

122,898,478

– 0

–

122,898,478

Mortgage Pass - Through’s

– 0

–

110,038,075

– 0

–

110,038,075

Commercial Mortgage-Backed Securities

– 0

–

25,430,829

42,885,958

68,316,787

Quasi-Sovereigns

– 0

–

52,090,845

– 0

–

52,090,845

Inflation-Linked Securities

– 0

–

44,736,994

– 0

–

44,736,994

Bank Loans

– 0

–

– 0

–

42,384,081

Emerging Markets - Corporate Bonds

– 0

–

40,186,955

1,667,863

41,854,818

Emerging Markets - Sovereigns

– 0

–

33,315,741

– 0

–

33,315,741

Local Governments - Municipal Bonds

– 0

–

11,255,688

– 0

–

11,255,688

Governments - Sovereign Bonds

– 0

–

9,073,775

– 0

–

9,073,775

Asset-Backed Securities

– 0

–

2,389,194

4,619,902

7,009,096

Emerging Markets - Treasuries

– 0

–

2,690,646

– 0

–

2,690,646

Preferred Stocks

238,117

1,794,679

– 0

–

2,032,796

Options Purchased - Puts

– 0

–

– 0

–

1,673,796

Common Stocks

– 0

–

– 0

–

836,400

Collateralized Mortgage Obligations

– 0

–

59,294

474,768

534,062

Warrants

– 0

–

– 0

–

364,726

Short-Term Investments

14,539,193

– 0

–

– 0

–

14,539,193

Total Investments in Securities

14,777,310

3,038,668,482+

94,907,494

3,148,353,286

Other Financial Instruments* :

Assets:

Futures Contracts

64,316

– 0

–

– 0

–

64,316

Forward Currency Exchange Contracts

– 0

–

8,350,517

– 0

–

8,350,517

Credit Default Swap Contracts

– 0

–

217,240

– 0

–

217,240

Liabilities:

Futures Contracts

(5,663,000

)

– 0

–

– 0

–

(5,663,000

)

Forward Currency Exchange Contracts

– 0

–

(9,460,866

)

– 0

–

(9,460,866

)

Credit Default Swap Contracts

– 0

–

(5,196,655

)

– 0

–

(5,196,655

)

Unfunded Loan Commitment

– 0

–

– 0

–

(621,353

)

(621,353

)

Total

9,178,626

3,032,578,718

94,286,141

3,136,043,485

*	Other financial instruments are derivative instruments, such as futures, forwards and swap contracts, which are valued at the unrealized appreciation/depreciation on the instrument.

The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred between the close of the foreign markets and the time at which the Fund values its securities which may materially affect the value of securities trading in such markets. To account for this, the Fund may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Fund’s investments are categorized as Level 2 investments.

Following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value. The transfers between levels of the fair value hierarchy assumes the financial instrument was transferred at the beginning of the reporting period.

Commercial
Mortgage-Backed
Securities

Bank Loans

Emerging Markets-
Corporate Bonds

Balance as of 12/31/10

46,176,890

53,468,498

1,223,099

Accrued discounts/(premiums)

170,118

339,952

(163,330

)

Realized gain (loss)

741,573

(27,297

)

– 0

–

Change in unrealized appreciation/depreciation

(5,190,686

)

(1,592,763

)

608,094

Purchases

5,221,501

15,195,500

– 0

–

Sales

(4,233,438

)

(24,999,809

)

– 0

–

Transfers in to Level 3

– 0

–

– 0

–

– 0

–

Transfers out of Level 3

– 0

–

– 0

–

– 0

–

Balance as of 9/30/11

42,885,958

42,384,081

1,667,863

Net change in unrealized appreciation/depreciation from Investments held as of 9/30/11

(4,545,228

)

(2,183,087

)

608,094

Asset-Backed
Securities

Options Purchased -
Puts

Common Stocks

Balance as of 12/31/10

– 0

–

– 0

–

– 0

–

Accrued discounts/(premiums)

– 0

–

– 0

–

– 0

–

Realized gain (loss)

– 0

–

– 0

–

630,768

Change in unrealized appreciation/depreciation

(8,567

)

817,684

836,400

Purchases

4,628,469

856,112

– 0

–

Sales

– 0

–

– 0

–

(630,768

)

Transfers in to Level 3

– 0

–

– 0

–

– 0

–

Transfers out of Level 3

– 0

–

– 0

–

– 0

–

Balance as of 9/30/11

4,619,902

1,673,796

836,400

Net change in unrealized appreciation/depreciation from Investments held as of 9/30/11

(8,567

)

817,684

836,400

Collateralized
Mortgage
Obligations

Warrants*

Corporates - Non-
Investment Grades

Balance as of 12/31/10

1,428,922

231,215

– 0

–

Accrued discounts/(premiums)

1,653

– 0

–

(444

)

Realized gain (loss)

62,573

242,985

(6,928,250

)

Change in unrealized appreciation/depreciation

(32,633

)

189,563

6,930,662

Purchases

– 0

–

– 0

–

– 0

–

Sales

(985,747

)

(299,037

)

(1,968

)

Transfers in to Level 3

– 0

–

– 0

–

– 0

–

Transfers out of Level 3

– 0

–

– 0

–

– 0

–

Balance as of 9/30/11

474,768

364,726

– 0

–

Net change in unrealized appreciation/depreciation from Investments held as of 9/30/11

(32,633

)

364,726

– 0

–


	Unfunded Loan Commitment			Total
Balance as of 12/31/10	$	– 0	–	$	102,528,624
Accrued discounts/(premiums)		12,912			360,861
Realized gain (loss)		– 0	–		(5,277,648	)
Change in unrealized appreciation/depreciation		(153,702	)		2,404,052
Purchases		(480,563	)		25,421,019
Sales		– 0	–		(31,150,767	)
Transfers in to Level 3		– 0	–		– 0	–
Transfers out of Level 3		– 0	–		– 0	–

Balance as of 9/30/11	$	(621,353	)	$	94,286,141

Net change in unrealized appreciation/depreciation from Investments held as of 9/30/11	$	(153,702	)	$	(4,296,313	)

*	The Portfolio held a security with zero market value at period end.

ITEM 2.

CONTROLS AND PROCEDURES.

(a) The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective at the reasonable assurance level based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.

(b) There were no significant changes in the registrant’s internal control over financial reporting that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

ITEM 3.

EXHIBITS.

The following exhibits are attached to this Form N-Q:


EXHIBIT NO.		DESCRIPTION OF EXHIBIT

11 (a) (1)		Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

11 (a) (2)		Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant): AllianceBernstein Income Fund, Inc.


By:		/s/ Robert M. Keith
		Robert M. Keith
		President

Date:		November 21, 2011

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


By:		/s/ Robert M. Keith
		Robert M. Keith
		President

Date:		November 21, 2011

By:		/s/ Joseph J. Mantineo
		Joseph J. Mantineo
		Treasurer and Chief Financial Officer

Date:		November 21, 2011