NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(1) ORGANIZATION ............................ American Strategic Income Portfolio Inc. (the fund) is registered
under the Investment Company Act of 1940 (as amended) as a diversified, closed-end management investment
company. The fund emphasizes investments in mortgage-related assets that directly or indirectly represent a
participation in or are secured by and payable from mortgage loans. It may also invest in asset-backed securities,
U.S. government securities, corporate debt securities, municipal obligations, unregistered securities and mortgage
servicing rights. The fund may enter into dollar roll transactions. In addition, the fund may borrow using reverse
repurchase agreements and revolving credit facilities. Fund shares are listed on the New York Stock Exchange
under the symbol ASP.
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ............................
INVESTMENTS IN SECURITIES
Portfolio securities for which market quotations are
readily available are valued at current market value. If
market quotations or valuations are not readily available,
or if such quotations or valuations are believed to be
inaccurate, unreliable or not reflective of market value,
portfolio securities are valued according to procedures
adopted by the fund's board of directors in good faith at
"fair value", that is, a price that the fund might
reasonably expect to receive for the security or other
asset upon its current sale.
The current market value of certain fixed income securities is provided by an independent pricing service. Fixed
income securities for which prices are not available from an independent pricing service but where an active
market exists are valued using market quotations obtained from one or more dealers that make markets in the
securities or from a widely-used quotation system. Short-term securities with maturities of 60 days or less are
valued at amortized cost, which approximates market value.
The fund's investments in wh