Close

Form N-CSR FIRST TRUST HIGH YIELD For: May 31

August 8, 2022 3:34 PM EDT

Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-23199

First Trust High Yield Opportunities 2027 Term Fund
(Exact name of registrant as specified in charter)

120 East Liberty Drive, Suite 400
Wheaton, IL 60187
(Address of principal executive offices) (Zip code)

 

W. Scott Jardine, Esq.
First Trust Portfolios L.P.
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
(Name and address of agent for service)

 

Registrant’s telephone number, including area code: 630-765-8000

Date of fiscal year end: May 31

Date of reporting period: May 31, 2022

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 
 

Item 1. Reports to Stockholders.

(a)The Report to Shareholders is attached herewith.

 

First Trust
High Yield Opportunities 2027 Term Fund (FTHY)
Annual Report
For the Year Ended
May 31, 2022

Table of Contents
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Annual Report
May 31, 2022
Caution Regarding Forward-Looking Statements
This report contains certain forward-looking statements within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding the goals, beliefs, plans or current expectations of First Trust Advisors L.P. (“First Trust” or the “Advisor”) and its representatives, taking into account the information currently available to them. Forward-looking statements include all statements that do not relate solely to current or historical fact. For example, forward-looking statements include the use of words such as “anticipate,” “estimate,” “intend,” “expect,” “believe,” “plan,” “may,” “should,” “would” or other words that convey uncertainty of future events or outcomes.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of First Trust High Yield Opportunities 2027 Term Fund (the “Fund”) to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. When evaluating the information included in this report, you are cautioned not to place undue reliance on these forward-looking statements, which reflect the judgment of the Advisor and its representatives only as of the date hereof. We undertake no obligation to publicly revise or update these forward-looking statements to reflect events and circumstances that arise after the date hereof.
Performance and Risk Disclosure
There is no assurance that the Fund will achieve its investment objective. The Fund is subject to market risk, which is the possibility that the market values of securities owned by the Fund will decline and that the value of the Fund’s shares may therefore be less than what you paid for them. Accordingly, you can lose money by investing in the Fund. See “Principal Risks” in the Investment Objective, Policies, Risks and Effects of Leverage section of this report for a discussion of certain other risks of investing in the Fund.
Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. For the most recent month-end performance figures, please visit www.ftportfolios.com or speak with your financial advisor. Investment returns, net asset value and common share price will fluctuate and Fund shares, when sold, may be worth more or less than their original cost.
The Advisor may also periodically provide additional information on Fund performance on the Fund’s web page at www.ftportfolios.com.
How to Read This Report
This report contains information that may help you evaluate your investment in the Fund. It includes details about the Fund and presents data and analysis that provide insight into the Fund’s performance and investment approach.
By reading the portfolio commentary by the portfolio management team of the Fund, you may obtain an understanding of how the market environment affected the Fund’s performance. The statistical information that follows may help you understand the Fund’s performance compared to that of a relevant market benchmark.
It is important to keep in mind that the opinions expressed by personnel of the Advisor are just that: informed opinions. They should not be considered to be promises or advice. The opinions, like the statistics, cover the period through the date on the cover of this report. The material risks of investing in the Fund are spelled out in the prospectus, the statement of additional information, this report and other Fund regulatory filings.

Shareholder Letter
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Annual Letter from the Chairman and CEO
May 31, 2022
Dear Shareholders,
First Trust is pleased to provide you with the annual report for the First Trust High Yield Opportunities 2027 Term Fund (the “Fund”), which contains detailed information about the Fund for the twelve months ended May 31, 2022.
I would like to begin by addressing the elephant in the room: how everything so good has seemingly gotten so bad. If you are someone having difficulty understanding today’s investment climate, you are certainly not alone, in my opinion. Let us see if we can make some sense of things. While stocks and bonds have been roughed up in 2022, commodities, such as crude oil and gasoline, have surged higher. For the better part of the previous decade, the opposite was true. Stocks and bonds prospered in a low rate, low inflationary climate, while commodities dropped in value. It appears that the primary catalyst behind this recent shift in sentiment is robust inflation, which is defined as too much money chasing too few goods. The Consumer Price Index (“CPI”) stood at 8.6% on a trailing 12-month basis on May 31, 2022, the highest it has been since 1982, according to data from the U.S. Bureau of Labor Statistics. For comparative purposes, the average rate on the CPI has been 3.0% since 1926.
Conventional wisdom says that the cure for high prices is high prices, particularly with respect to commodities. In other words, let market forces determine prices. This implies that high prices at some point should be effective in curbing demand, which, in turn, should reduce the supply of goods and prices over time. But we do not leave it solely to market forces. This is where the central banks step in. The Federal Reserve (the “Fed”) played a major role in fueling inflation by massively increasing the U.S. money supply during the coronavirus pandemic to help prop up demand, in my opinion. The Fed’s traditional remedy for spiking inflation is to curb demand for goods and services by increasing the rate of interest levied on borrowed money. This process is currently underway. As of June 15, 2022, the Federal Funds target rate (upper bound) stood at 1.75%, up from 0.25% this past March. The Fed has signaled that it intends to raise this benchmark lending rate by another 50-75 basis points (“bps”) at its next meeting on July 27, 2022 and could take the rate above the 3.00% mark by year-end. Investors need to accept the fact that the days of low inflation and low interest rates are behind us, at least for the foreseeable future.
As previously noted, stocks and bonds have succumbed to selling pressure in 2022. Aside from spiking inflation, the common thread between the two markets is the sharp rise in Treasury yields, particularly the benchmark 10-Year Treasury Note (“T-Note”). In fact, higher bond yields are usually a byproduct of rising inflation. The closing yield on the 10-Year T-Note has risen from 1.51% on December 31, 2021 to 3.23% on June 17, 2022, or an increase of 172 bps, according to Bloomberg. That is a sharp move higher in a relatively short period of time. As you likely know, bond prices and bond yields are inversely related. When bond yields rise, bond prices, in most cases, fall, particularly with respect to investment-grade debt. Keep in mind, the yield on the 10-Year T-Note bottomed at 0.51% (all-time closing low) on August 4, 2020, so bond yields have been normalizing for nearly two years. What is normal? Well, the yield on the 10-Year T-Note averaged 3.95% for the 30-year period ended June 17, 2022. Stock prices have also been negatively impacted by the upward move in bond yields. Higher bond yields can put downward pressure on future corporate earnings and margins. Stock prices have been adjusting lower to reflect this. Also, over time, the higher bond yields trend, the more attractive/competitive they become to investors relative to stocks. Lastly, after posting an annualized U.S. gross domestic product (“GDP”) growth rate of -1.5% in the first quarter of 2022, we are hearing more talk about the potential for a recession, which is defined as two consecutive quarters of negative GDP growth. The Fed has discussed the concept of a soft landing, where the economy would slow but not enter recessionary territory, but that is easier said than done. Brian Wesbury, Chief Economist at First Trust, is not forecasting a recession for this year, but he does believe we could experience one in late 2023 or 2024. As always, stay the course!
Thank you for giving First Trust the opportunity to play a role in your financial future. We value our relationship with you and will report on the Fund again in six months.
Sincerely,
James A. Bowen
Chairman of the Board of Trustees
Chief Executive Officer of First Trust Advisors L.P.
Page 1

First Trust High Yield Opportunities 2027 Term Fund (FTHY)
“AT A GLANCE”
As of May 31, 2022 (Unaudited)
Fund Statistics
Symbol on New York Stock Exchange FTHY
Common Share Price $16.07
Common Share Net Asset Value (“NAV”) $17.48
Premium (Discount) to NAV (8.07)%
Net Assets Applicable to Common Shares $642,782,675
Current Distribution per Common Share(1) $0.1344
Current Annualized Distribution per Common Share $1.6128
Current Distribution Rate on Common Share Price(2) 10.04%
Current Distribution Rate on NAV(2) 9.23%
Common Share Price & NAV (weekly closing price)
  
 
Performance
      Average Annual
Total Returns
    1 Year Ended
5/31/22
Inception (6/25/20)
to 5/31/22
Fund Performance(3)      
NAV   -9.73% 0.33%
Market Value   -11.70% -3.94%
Index Performance      
ICE BofA US High Yield Constrained Index   -5.00% 3.87%
(1) Most recent distribution paid or declared through May 31, 2022. Subject to change in the future.
(2) Distribution rates are calculated by annualizing the most recent distribution paid or declared through the report date and then dividing by Common Share Price or NAV, as applicable, as of May 31, 2022. Subject to change in the future.
(3) Total return is based on the combination of reinvested dividend, capital gain, and return of capital distributions, if any, at prices obtained by the Dividend Reinvestment Plan and changes in NAV per share for NAV returns and changes in Common Share Price for market value returns. Total returns do not reflect sales load and are not annualized for periods of less than one year. Past performance is not indicative of future results.
Page 2

First Trust High Yield Opportunities 2027 Term Fund (FTHY)
“AT A GLANCE” (Continued)
As of May 31, 2022 (Unaudited)
Credit Quality (S&P Ratings)(4) % of Total
Fixed Income
Investments(5)
BBB 0.1%
BBB- 0.1
BB+ 1.1
BB 4.4
BB- 7.2
B+ 18.2
B 20.8
B- 24.1
CCC+ 17.8
CCC 4.5
CCC- 0.2
CC 0.5
D 0.6
Not Rated 0.4
Total 100.0%
    
Top 10 Issuers % of Total
Long-Term
Investments(5)
Internet Brands, Inc. (WebMD/MH Sub I, LLC) 2.9%
Tenet Healthcare Corp. 2.8
Charter Communications Operating, LLC 2.5
AssuredPartners, Inc. 2.5
Cablevision (aka CSC Holdings, Inc.) 2.5
HUB International Ltd. 2.5
Verscend Technologies, Inc. (Cotiviti) 2.3
PG&E Corp. 2.3
Nexstar Broadcasting, Inc. 2.3
Golden Nugget, Inc. (Fertitta Entertainment, LLC) 2.3
Total 24.9%
Industry Classification % of Total
Long-Term
Investments(5)
Media 14.3%
Software 13.6
Health Care Providers & Services 12.5
Insurance 9.1
Hotels, Restaurants & Leisure 7.6
Health Care Technology 5.9
Pharmaceuticals 5.0
Diversified Telecommunication Services 3.2
Diversified Consumer Services 2.9
Electric Utilities 2.5
Building Products 2.1
Entertainment 2.1
Containers & Packaging 2.0
Commercial Services & Supplies 1.8
Health Care Equipment & Supplies 1.6
Communications Equipment 1.4
Aerospace & Defense 1.3
Professional Services 1.2
Independent Power & Renewable Electricity Producers 1.1
Trading Companies & Distributors 1.1
Specialty Retail 0.9
Internet & Direct Marketing Retail 0.8
Machinery 0.8
Construction Materials 0.7
Road & Rail 0.7
Construction & Engineering 0.5
IT Services 0.5
Automobiles 0.5
Diversified Financial Services 0.4
Consumer Finance 0.4
Food & Staples Retailing 0.3
Electronic Equipment, Instruments & Components 0.3
Life Sciences Tools & Services 0.3
Household Products 0.2
Personal Products 0.1
Auto Components 0.1
Technology Hardware, Storage & Peripherals 0.1
Capital Markets 0.1
Beverages 0.0*
Electrical Equipment 0.0*
Total 100.0%
    
* Amount is less than 0.1%.
 
(4) The ratings are by S&P Global Ratings except where otherwise indicated. A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO) of the creditworthiness of an issuer with respect to debt obligations except for those debt obligations that are only privately rated. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). Investment grade is defined as those issuers that have a long-term credit rating of BBB- or higher. The credit ratings shown relate to the creditworthiness of the issuers of the underlying securities in the Fund, and not to the Fund or its shares. Credit ratings are subject to change.
(5) Percentages are based on long-term positions. Money market funds are excluded.
Page 3

Portfolio Commentary
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Annual Report
May 31, 2022 (Unaudited)
Advisor
The First Trust Advisors L.P. (“First Trust”) Leveraged Finance Team is comprised of 17 experienced investment professionals specializing in below investment grade securities. The team is comprised of portfolio management, research, trading and operations personnel. As of May 31, 2022, the First Trust Leveraged Finance Team managed or supervised approximately $7.1 billion in senior secured bank loans and high yield bonds. These assets are managed across various strategies, including two closed-end funds, an open-end fund, four exchange-traded funds, and a series of unit investment trusts on behalf of retail and institutional clients.
Portfolio Management Team
William Housey, CFA – Managing Director of Fixed Income, Senior Portfolio Manager
Jeffrey Scott, CFA – Senior Vice President and Portfolio Manager
Commentary
First Trust High Yield Opportunities 2027 Term Fund
The investment objective of the First Trust High Yield Opportunities 2027 Term Fund (“FTHY” or the “Fund”) is to provide current income. Under normal market conditions, the Fund will seek to achieve its investment objective by investing at least 80% of its Managed Assets in high yield debt securities of any maturity that are rated below investment grade at the time of purchase or unrated securities determined by the First Trust Leveraged Finance Team to be of comparable quality. “Managed Assets” means the total asset value of the Fund minus the sum of its liabilities, other than the principal amount of borrowings. High yield debt securities include U.S. and non-U.S. corporate debt obligations and senior secured floating rate loans (“Senior Loans”). Securities rated below investment grade are commonly referred to as “junk” or “high yield” securities and are considered speculative with respect to the issuer’s capacity to pay interest and repay principal. There can be no assurance that the Fund will achieve its investment objective or that the Fund’s investment strategies will be successful.
Market Recap
The twelve-month period ended May 31, 2022 can be separated into two distinct market environments, with the Federal Reserve (the “Fed”) acknowledgement in December 2021 that inflation was not “transitory” representing the inflection point between the two. In the first six months of the period, the reopening of the economy progressed with an accommodative Fed which reaffirmed its commitment to providing ongoing stimulus. The stock market and broader risk asset prices moved higher, consistently marking new highs. During the six-month period ended November 30, 2021, the S&P 500® Index returned 9.38%. However, during this time, inflation also reached a 40-year high in November 2021, with the Consumer Price Index registering 6.8%. In December 2021, the Fed finally acquiesced, acknowledging that inflation had broadened and accelerated, indicating a more hawkish approach to monetary policy going forward. Moreover, in February 2022, Russia invaded Ukraine, exacerbating existing inflationary pressures in oil and other commodity prices. Inflation hit 8.5% in March 2022 and measured 8.3% in April 2022. In March 2022, the Fed began what is expected to be a series of interest rate hikes to combat the inflationary pressures. By the end of the period, the Fed was clearly playing catch-up, in our opinion, and concern about the ability of the Fed to engineer a “soft landing” led to fears that the threat of a recession was growing. Through this period of uncertainty, we saw a shift in asset prices, with the S&P 500® Index down 8.85% in the six months ending the period. The 10-Year U.S. Treasury yield (rates) increased 125 basis points (“bps”) during the twelve-month period ending May 31, 2022, to 2.84%, with a 133 bps increase since the end of last year (December 31, 2021). Longer duration investment grade corporate bonds, which are negatively correlated with movements in rates, returned -10.29% underperforming equities and other risk asset classes. Over the same period, the S&P 500® Index returned -0.30%, high-yield bonds returned -5.00% and senior loans returned -0.26%.(1)
High-Yield Bond Market
High-yield bond spreads over U.S. Treasuries increased 88 bps during the twelve-month period ended May 31, 2022, to T+423 bps. The current spread is 129 bps below the high-yield bond market’s long-term average spread over U.S. Treasuries of T+552 bps (December 1997 – May 2022). High-yield bond funds reported their fifth consecutive monthly outflow in May 2022, the eighth monthly outflow in the last twelve-month (“LTM”) period. High-yield bond outflows totaled $37.9 billion during the LTM period.
During the LTM period, higher quality BB rated high-yield bonds returned -4.49%, outperforming single-B rated bonds’ return of -4.92% and CCC rated bonds’ return of -8.22%. The average price of high-yield bonds in the market decreased from $104.29 in the beginning of the period to $92.46 at the end of the period.(1)
  
(1) Bloomberg: High-Yield Bonds are represented by the ICE BofA US High Yield Constrained Index, Investment Grade Bonds are represented by the ICE BofA US Corporate Index, and Senior Loans are represented by the S&P/LSTA Leveraged Loan Index.
Page 4

Portfolio Commentary (Continued)
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Annual Report
May 31, 2022 (Unaudited)
Senior Loan Market
Senior loan spreads over the 3-month London Interbank Offered Rate (“LIBOR”) increased 132 bps during the twelve-month period ended May 31, 2022, to L+551 bps. The current spread is 38 bps above the senior loan market’s long-term average spread of L+513 bps (December 1997 – May 2022). Inflows for loan funds totaled $44.9 billion over the LTM period. However, in May 2022, retail senior loan funds experienced their first monthly outflow after seventeen consecutive monthly inflows which totaled $71.4 billion from December 2020 through April 2022. Seeking to curb inflation, the Fed began raising interest rates for the first time since 2018, lifting its benchmark short-term rate by a quarter percentage point in March 2022 and half a percentage point in May 2022. As of May 31, 2022, the Fed’s policy rate is set at a range of 0.75% to 1.00%. Fed Funds futures indicate incremental rate hikes in 2022 of at least 1.75% in total. We believe the strong demand for senior loans in the LTM period was driven by rising U.S. Treasury rates and a high probability of further interest rate hikes going forward.
During the LTM period, higher quality BB rated senior loans returned 0.09%, outperforming single-B rated senior loans’ return of -0.29% and CCC rated senior loans’ return of -2.22%. The average price of senior loans in the market decreased from $98.08 in the beginning of the period to $94.64 at the end of the period.
Default Rates
During the twelve-month period ended May 31, 2022, default rates decreased within the high-yield bond and senior loan markets, as measured by the JP Morgan High-Yield Bond Universe and the S&P/LSTA Leveraged Loan Index, respectively. The LTM default rate within the high-yield bond market declined from a peak of 2.58% at the beginning of the period, to 0.43% at the end of the period. The senior loan market LTM default rate ended the period at 0.21% compared to the 1.73% rate at the beginning of the period. The default rates in both the high-yield bond market and the senior loan market are below the long-term average default rates of 3.11% and 2.80%, respectively.
Performance Analysis
      Average Annual
Total Returns
    1 Year Ended
5/31/22
Inception (6/25/20)
to 5/31/22
Fund Performance(2)      
NAV   -9.73% 0.33%
Market Value   -11.70% -3.94%
Index Performance      
ICE BofA US High Yield Constrained Index   -5.00% 3.87%
  
(2) Total return is based on the combination of reinvested dividend, capital gain and return of capital distributions, if any, at prices obtained by the Dividend Reinvestment Plan and changes in NAV per Common Share for NAV returns and changes in Common Share price for market value returns. Total returns do not reflect sales load and are not annualized for periods of less than one year.
Page 5

Portfolio Commentary (Continued)
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Annual Report
May 31, 2022 (Unaudited)

Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund’s past performance does not predict future performance.
During the twelve-month period ended May 31, 2022, the Fund’s net asset value (“NAV”) and market price returns(2) were -9.73% and -11.70%, respectively. This compares to the ICE BofA US High Yield Constrained Index (the “Index”) return of -5.00% over the same period. Due to the Fund’s market price decreasing more than its NAV, the Fund’s discount to NAV widened 2.06%, ending May 2022 at a discount of 8.07%.
The Fund has a practice of seeking to maintain a relatively stable monthly distribution, which may be changed at any time. The practice has no impact on the Fund’s investment strategy and may reduce the Fund’s NAV. However, the Advisor believes the practice helps maintain the Fund’s competitiveness and may benefit the Fund’s market price and premium/discount to the Fund’s NAV. The monthly distribution rate began the period at $0.1194 per share and ended the period at $0.1344 per share. At the $0.1344 per share monthly distribution rate, the annualized distribution rate at May 31, 2022 was 9.23% at NAV and 10.04% at market price. For the twelve-month period ended May 31, 2022, 98.22% of the distributions were characterized as ordinary income and 1.78% of the distributions were characterized as capital gains. The final determination of the source and tax status of all 2022 distributions will be made after the end of 2022 and will be provided on Form 1099-DIV. The foregoing is not to be construed as tax advice. Please consult your tax advisor for further information regarding tax matters.
At the end of May 2022, the Fund was well diversified across 261 securities (average position size of 0.38%) with the top 10 issuers comprising 24.87% of the Fund. The Fund was also well diversified across 40 different industries, the largest of which was Media at 14.30%, followed by Software at 13.62% and Health Care Providers & Services at 12.47%. Additionally, the Fund held 72.92% of its total assets in high yield bonds at the end of the same period. The Fund’s leverage was 30.19% of adjusted net assets (net assets plus borrowings) at the end of the period.
The primary headwind to the Fund’s performance relative to the Index during the twelve-month period ended May 31, 2022, was the Fund’s use of leverage as risk asset prices generated negative returns during the period. The impact from leverage was partially mitigated by the Fund’s allocation to senior loans, which outperformed high-yield bonds during the period. Additional headwinds in the period were the Fund’s overweight position in the Healthcare industry, which underperformed the overall Index return during the period, and its underweight position in the Energy industry, which outperformed during the period. The Fund had a 28.28% average weight to the Healthcare industry and a 0.01% weight to the Energy industry, compared to the Index weights of 9.57% and 13.39%, respectively. Partially offsetting the headwinds was the Fund’s security selection in the Technology & Electronics industry. Within Technology & Electronics, the Fund’s overweight position in companies that provide enterprise software and a digital advertising company outperformed the overall Index return during the period.
Market and Fund Outlook
As 2022 began, financial markets became increasingly focused on a more hawkish Fed. Investors came into the year pricing in three hikes, but quickly repriced the path of interest rates to nearly seven hikes by March 2022 and repriced again to over 10 hikes by May 2022. This rapid repricing caused volatility in risk asset classes, including the high-yield bond and senior loan markets, and exerted upward pressure on credit spreads. While corporate issuer fundamentals came into this period generally with healthy balance sheets and strong liquidity profiles, we expect volatility to continue as investors attempt to price the ultimate terminal Federal Funds rate and likelihood of recession in the coming years. With this environment of widespread uncertainty and dislocation, we remain focused on our detailed credit underwriting process and disciplined approach to risk management.
Page 6

First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments
May 31, 2022
Principal
Value
  Description   Stated
Coupon
  Stated
Maturity
  Value
CORPORATE BONDS AND NOTES – 91.4%
    Aerospace & Defense – 1.5%            
$158,000  
Booz Allen Hamilton, Inc. (a) (b)

  3.88%   09/01/28   $148,179
491,000  
Science Applications International Corp. (a) (b)

  4.88%   04/01/28   469,713
667,000  
Spirit AeroSystems, Inc. (a) (b)

  5.50%   01/15/25   662,981
6,000,000  
Spirit AeroSystems, Inc. (a) (b)

  7.50%   04/15/25   6,025,530
1,946,000  
TransDigm, Inc. (a) (b)

  6.25%   03/15/26   1,992,315
        9,298,718
    Apparel Retail – 0.7%            
4,040,000  
Nordstrom, Inc. (b)

  4.00%   03/15/27   3,762,518
1,146,000  
Nordstrom, Inc. (b)

  4.38%   04/01/30   1,017,648
        4,780,166
    Application Software – 1.1%            
3,000,000  
Condor Merger Sub, Inc. (a) (b)

  7.38%   02/15/30   2,619,810
124,000  
Go Daddy Operating Co., LLC/GD Finance Co., Inc. (a) (b)

  5.25%   12/01/27   123,506
5,072,000  
LogMeIn, Inc. (a) (b)

  5.50%   09/01/27   4,070,785
        6,814,101
    Automobile Manufacturers – 0.7%            
3,369,000  
Ford Motor Co. (b)

  9.63%   04/22/30   4,094,797
333,000  
Penske Automotive Group, Inc. (b)

  3.50%   09/01/25   326,688
        4,421,485
    Automotive Retail – 0.0%            
83,000  
Group 1 Automotive, Inc. (a) (b)

  4.00%   08/15/28   75,805
162,000  
IAA, Inc. (a) (b)

  5.50%   06/15/27   157,287
        233,092
    Broadcasting – 12.7%            
1,837,000  
Cumulus Media New Holdings, Inc. (a) (b)

  6.75%   07/01/26   1,789,704
1,657,000  
Diamond Sports Group, LLC/Diamond Sports Finance Co. (a)

  5.38%   08/15/26   549,652
9,524,000  
Diamond Sports Group, LLC/Diamond Sports Finance Co. (a)

  6.63%   08/15/27   1,833,370
5,708,000  
Gray Television, Inc. (a) (b)

  5.88%   07/15/26   5,638,848
8,201,000  
Gray Television, Inc. (a) (b)

  7.00%   05/15/27   8,343,779
1,409,000  
Gray Television, Inc. (a) (b)

  4.75%   10/15/30   1,255,849
13,053,000  
iHeartCommunications, Inc. (b)

  8.38%   05/01/27   12,214,345
177,000  
iHeartCommunications, Inc. (a) (b)

  5.25%   08/15/27   166,861
17,628,000  
Nexstar Media, Inc. (a) (b)

  5.63%   07/15/27   17,665,371
3,150,000  
Nexstar Media, Inc. (a) (b)

  4.75%   11/01/28   2,973,049
611,000  
Scripps Escrow II, Inc. (a) (b)

  3.88%   01/15/29   554,461
17,974,000  
Sinclair Television Group, Inc. (a) (b)

  5.13%   02/15/27   15,813,472
1,956,000  
Sirius XM Radio, Inc. (a) (b)

  3.13%   09/01/26   1,849,212
343,000  
Sirius XM Radio, Inc. (a) (b)

  5.50%   07/01/29   341,124
2,231,000  
Univision Communications, Inc. (a) (b)

  5.13%   02/15/25   2,219,934
8,048,000  
Univision Communications, Inc. (a) (b)

  6.63%   06/01/27   8,080,870
        81,289,901
    Building Products – 0.2%            
574,000  
Standard Industries, Inc. (a) (b)

  4.75%   01/15/28   544,594
858,000  
Standard Industries, Inc. (a) (b)

  4.38%   07/15/30   769,279
        1,313,873
    Cable & Satellite – 7.2%            
2,262,000  
CCO Holdings, LLC/CCO Holdings Capital Corp. (a) (b)

  5.00%   02/01/28   2,191,313
9,088,000  
CCO Holdings, LLC/CCO Holdings Capital Corp. (a) (b)

  5.38%   06/01/29   8,792,640
See Notes to Financial Statements
Page 7

First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments (Continued)
May 31, 2022
Principal
Value
  Description   Stated
Coupon
  Stated
Maturity
  Value
CORPORATE BONDS AND NOTES (Continued)
    Cable & Satellite (Continued)            
$7,413,000  
CCO Holdings, LLC/CCO Holdings Capital Corp. (a) (b)

  4.75%   03/01/30   $6,874,186
3,993,000  
CCO Holdings, LLC/CCO Holdings Capital Corp. (a) (b)

  4.50%   08/15/30   3,611,409
1,155,000  
CCO Holdings, LLC/CCO Holdings Capital Corp. (a) (b)

  4.25%   02/01/31   1,020,772
2,370,000  
CSC Holdings, LLC (a) (b)

  7.50%   04/01/28   2,208,484
19,531,000  
CSC Holdings, LLC (a) (b)

  5.75%   01/15/30   16,197,840
3,000,000  
CSC Holdings, LLC (a) (b)

  4.63%   12/01/30   2,361,810
250,000  
CSC Holdings, LLC (a) (b)

  3.38%   02/15/31   203,186
143,000  
Directv Financing, LLC/Directv Financing Co-Obligor, Inc. (a) (b)

  5.88%   08/15/27   135,096
1,149,000  
Radiate HoldCo, LLC/Radiate Finance, Inc. (a) (b)

  4.50%   09/15/26   1,067,128
2,284,000  
Radiate HoldCo, LLC/Radiate Finance, Inc. (a) (b)

  6.50%   09/15/28   1,902,115
        46,565,979
    Casinos & Gaming – 6.2%            
153,000  
Boyd Gaming Corp. (a) (b)

  8.63%   06/01/25   159,599
1,438,000  
Boyd Gaming Corp. (a) (b)

  4.75%   06/15/31   1,317,589
8,377,000  
Caesars Entertainment, Inc. (a) (b)

  6.25%   07/01/25   8,487,577
1,195,000  
Caesars Entertainment, Inc. (a) (b)

  8.13%   07/01/27   1,217,645
1,999,000  
Caesars Entertainment, Inc. (a) (b)

  4.63%   10/15/29   1,709,125
7,500,000  
Caesars Resort Collection, LLC/CRC Finco, Inc. (a) (b)

  5.75%   07/01/25   7,539,113
71,000  
CDI Escrow Issuer, Inc. (a) (b)

  5.75%   04/01/30   69,668
13,774,000  
Fertitta Entertainment, LLC/Fertitta Entertainment Finance Co., Inc. (a) (b)

  6.75%   01/15/30   11,933,656
170,000  
MGM Resorts International (b)

  6.75%   05/01/25   172,485
582,000  
MGM Resorts International (b)

  5.75%   06/15/25   585,047
284,000  
Scientific Games Holdings L.P./Scientific Games US FinCo, Inc. (a) (b)

  6.63%   03/01/30   263,962
2,694,000  
Station Casinos, LLC (a) (b)

  4.50%   02/15/28   2,444,502
4,431,000  
Station Casinos, LLC (a) (b)

  4.63%   12/01/31   3,766,272
        39,666,240
    Communications Equipment – 1.9%            
13,190,000  
CommScope Technologies, LLC (a) (b)

  6.00%   06/15/25   12,307,486
    Construction & Engineering – 0.7%            
5,605,000  
Pike Corp. (a) (b)

  5.50%   09/01/28   4,752,311
    Construction Materials – 1.0%            
74,000  
GYP Holdings III Corp. (a) (b)

  4.63%   05/01/29   62,076
1,718,000  
New Enterprise Stone & Lime Co., Inc. (a) (b)

  5.25%   07/15/28   1,523,555
5,167,000  
Summit Materials, LLC/Summit Materials Finance Corp. (a) (b)

  5.25%   01/15/29   4,883,486
        6,469,117
    Consumer Finance – 0.5%            
214,000  
Black Knight InfoServ, LLC (a) (b)

  3.63%   09/01/28   201,160
3,056,000  
FirstCash, Inc. (a) (b)

  4.63%   09/01/28   2,779,844
345,000  
PROG Holdings, Inc. (a) (b)

  6.00%   11/15/29   306,400
        3,287,404
    Electric Utilities – 3.5%            
13,275,000  
PG&E Corp. (b)

  5.00%   07/01/28   12,561,203
8,923,000  
PG&E Corp. (b)

  5.25%   07/01/30   8,248,154
1,588,000  
Vistra Operations Co., LLC (a) (b)

  5.00%   07/31/27   1,555,557
        22,364,914
    Electrical Components & Equipment – 0.0%            
333,000  
Sensata Technologies, Inc. (a) (b)

  3.75%   02/15/31   298,492
Page 8
See Notes to Financial Statements

First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments (Continued)
May 31, 2022
Principal
Value
  Description   Stated
Coupon
  Stated
Maturity
  Value
CORPORATE BONDS AND NOTES (Continued)
    Environmental & Facilities Services – 0.6%            
$2,559,000  
Allied Universal Holdco LLC/Allied Universal Finance Corp. (a) (b)

  9.75%   07/15/27   $2,404,104
1,975,000  
Allied Universal Holdco, LLC/Allied Universal Finance Corp. (a) (b)

  6.00%   06/01/29   1,603,107
        4,007,211
    Food Distributors – 0.2%            
512,000  
US Foods, Inc. (a) (b)

  6.25%   04/15/25   527,344
603,000  
US Foods, Inc. (a) (b)

  4.75%   02/15/29   566,760
        1,094,104
    Food Retail – 0.2%            
628,000  
Albertsons Cos., Inc./Safeway, Inc./New Albertsons L.P./Albertsons, LLC (a) (b)

  5.88%   02/15/28   616,709
954,000  
Safeway, Inc. (b)

  7.25%   02/01/31   963,540
        1,580,249
    Health Care Distributors – 0.5%            
579,000  
AdaptHealth, LLC (a) (b)

  6.13%   08/01/28   542,572
2,967,000  
AdaptHealth, LLC (a) (b)

  5.13%   03/01/30   2,564,453
309,000  
RP Escrow Issuer, LLC (a) (b)

  5.25%   12/15/25   282,191
        3,389,216
    Health Care Equipment – 0.2%            
652,000  
Baxter International, Inc. (a) (b)

  1.32%   11/29/24   619,118
565,000  
Embecta Corp. (a) (b)

  5.00%   02/15/30   500,958
        1,120,076
    Health Care Facilities – 5.8%            
1,510,000  
Acadia Healthcare Co., Inc. (a) (b)

  5.00%   04/15/29   1,477,716
1,467,000  
CHS/Community Health Systems, Inc. (a) (b)

  5.25%   05/15/30   1,258,994
1,000,000  
Encompass Health Corp. (b)

  4.75%   02/01/30   916,155
8,285,000  
Select Medical Corp. (a) (b)

  6.25%   08/15/26   8,274,934
19,000,000  
Tenet Healthcare Corp. (a) (b)

  6.25%   02/01/27   19,065,265
1,358,000  
Tenet Healthcare Corp. (a) (b)

  5.13%   11/01/27   1,351,210
1,017,000  
Tenet Healthcare Corp. (a) (b)

  4.63%   06/15/28   980,200
4,309,000  
Tenet Healthcare Corp. (a) (b)

  6.13%   10/01/28   4,188,542
        37,513,016
    Health Care Services – 5.1%            
7,794,000  
DaVita, Inc. (a) (b)

  4.63%   06/01/30   6,787,419
10,550,000  
Global Medical Response, Inc. (a) (b)

  6.50%   10/01/25   10,147,834
1,978,000  
MEDNAX, Inc. (a) (b)

  5.38%   02/15/30   1,741,451
9,829,000  
Minerva Merger Sub, Inc. (a) (b)

  6.50%   02/15/30   9,109,222
282,000  
ModivCare Escrow Issuer, Inc. (a) (b)

  5.00%   10/01/29   255,637
905,000  
ModivCare, Inc. (a) (b)

  5.88%   11/15/25   896,267
409,000  
Team Health Holdings, Inc. (a) (b)

  6.38%   02/01/25   313,750
5,000,000  
US Renal Care, Inc. (a) (b)

  10.63%   07/15/27   3,665,025
        32,916,605
    Health Care Supplies – 2.1%            
14,961,000  
Mozart Debt Merger Sub, Inc. (a) (b)

  5.25%   10/01/29   13,250,060
330,000  
Owens & Minor, Inc. (a) (b)

  4.50%   03/31/29   298,964
        13,549,024
See Notes to Financial Statements
Page 9

First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments (Continued)
May 31, 2022
Principal
Value
  Description   Stated
Coupon
  Stated
Maturity
  Value
CORPORATE BONDS AND NOTES (Continued)
    Health Care Technology – 3.4%            
$15,046,000  
Change Healthcare Holdings, LLC/Change Healthcare Finance, Inc. (a) (b)

  5.75%   03/01/25   $14,980,324
397,000  
HealthEquity, Inc. (a) (b)

  4.50%   10/01/29   370,699
6,150,000  
Verscend Escrow Corp. (a) (b)

  9.75%   08/15/26   6,339,143
        21,690,166
    Hotels, Resorts & Cruise Lines – 0.3%            
294,000  
Boyne USA, Inc. (a) (b)

  4.75%   05/15/29   274,155
1,202,000  
Midwest Gaming Borrower, LLC/Midwest Gaming Finance Corp. (a) (b)

  4.88%   05/01/29   1,019,071
289,000  
Wyndham Hotels & Resorts, Inc. (a) (b)

  4.38%   08/15/28   273,447
575,000  
XHR L.P. (a) (b)

  4.88%   06/01/29   540,316
        2,106,989
    Household Products – 0.2%            
846,000  
Energizer Holdings, Inc. (a) (b)

  6.50%   12/31/27   800,037
650,000  
Energizer Holdings, Inc. (a) (b)

  4.38%   03/31/29   550,875
        1,350,912
    Independent Power Producers & Energy Traders – 1.6%            
8,770,000  
Calpine Corp. (a) (b)

  5.13%   03/15/28   8,201,309
333,000  
Calpine Corp. (a) (b)

  4.63%   02/01/29   295,421
2,083,000  
Calpine Corp. (a) (b)

  5.00%   02/01/31   1,857,786
        10,354,516
    Industrial Machinery – 1.1%            
6,597,000  
Gates Global, LLC/Gates Corp. (a) (b)

  6.25%   01/15/26   6,452,625
843,000  
TK Elevator U.S. Newco, Inc. (a) (b)

  5.25%   07/15/27   826,403
        7,279,028
    Insurance Brokers – 11.5%            
17,071,000  
Alliant Holdings Intermediate, LLC/Alliant Holdings Co-Issuer (a) (b)

  6.75%   10/15/27   16,506,889
210,000  
Alliant Holdings Intermediate, LLC/Alliant Holdings Co-Issuer (a) (b)

  5.88%   11/01/29   184,322
19,532,000  
AmWINS Group, Inc. (a) (b)

  4.88%   06/30/29   18,110,070
10,980,000  
AssuredPartners, Inc. (a) (b)

  7.00%   08/15/25   10,849,503
13,255,000  
AssuredPartners, Inc. (a) (b)

  5.63%   01/15/29   11,632,456
2,092,000  
BroadStreet Partners, Inc. (a) (b)

  5.88%   04/15/29   1,775,285
1,211,000  
GTCR AP Finance, Inc. (a) (b)

  8.00%   05/15/27   1,211,344
8,944,000  
HUB International Ltd. (a) (b)

  7.00%   05/01/26   8,939,349
4,934,000  
HUB International Ltd. (a) (b)

  5.63%   12/01/29   4,610,058
        73,819,276
    Integrated Telecommunication Services – 2.6%            
10,783,000  
Frontier Communications Holdings, LLC (a) (b)

  6.75%   05/01/29   9,522,090
571,000  
Frontier Communications Holdings, LLC (a) (b)

  6.00%   01/15/30   486,318
122,000  
Zayo Group Holdings, Inc. (a) (b)

  4.00%   03/01/27   106,665
8,267,000  
Zayo Group Holdings, Inc. (a) (b)

  6.13%   03/01/28   6,628,108
        16,743,181
    Interactive Home Entertainment – 0.3%            
1,899,000  
Playtika Holding Corp. (a) (b)

  4.25%   03/15/29   1,667,369
    Internet & Direct Marketing Retail – 1.2%            
8,270,000  
Cars.com, Inc. (a) (b)

  6.38%   11/01/28   7,414,238
Page 10
See Notes to Financial Statements

First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments (Continued)
May 31, 2022
Principal
Value
  Description   Stated
Coupon
  Stated
Maturity
  Value
CORPORATE BONDS AND NOTES (Continued)
    Investment Banking & Brokerage – 0.1%            
$500,000  
LPL Holdings, Inc. (a) (b)

  4.63%   11/15/27   $488,633
    Leisure Facilities – 0.0%            
283,000  
SeaWorld Parks & Entertainment, Inc. (a) (b)

  5.25%   08/15/29   253,923
    Managed Health Care – 2.2%            
2,832,000  
MPH Acquisition Holdings, LLC (a) (b)

  5.50%   09/01/28   2,681,097
12,978,000  
MPH Acquisition Holdings, LLC (a) (b)

  5.75%   11/01/28   11,575,773
        14,256,870
    Metal & Glass Containers – 0.7%            
1,163,000  
Owens-Brockway Glass Container, Inc. (a) (b)

  5.38%   01/15/25   1,141,136
3,183,000  
Owens-Brockway Glass Container, Inc. (a) (b)

  6.63%   05/13/27   3,144,597
        4,285,733
    Movies & Entertainment – 1.1%            
4,380,000  
Live Nation Entertainment, Inc. (a) (b)

  5.63%   03/15/26   4,345,968
2,620,000  
Live Nation Entertainment, Inc. (a) (b)

  4.75%   10/15/27   2,505,689
        6,851,657
    Paper Packaging – 2.1%            
12,280,000  
Graham Packaging Co., Inc. (a) (b)

  7.13%   08/15/28   10,094,285
3,153,000  
Pactiv Evergreen Group Issuer, Inc./Pactiv Evergreen Group Issuer, LLC (a) (b)

  4.00%   10/15/27   2,859,613
566,000  
Sealed Air Corp. (a) (b)

  5.00%   04/15/29   558,387
        13,512,285
    Personal Products – 0.2%            
1,389,000  
Prestige Brands, Inc. (a) (b)

  5.13%   01/15/28   1,336,586
    Pharmaceuticals – 2.0%            
1,530,000  
Bausch Health Americas, Inc. (a) (b)

  9.25%   04/01/26   1,284,894
3,975,000  
Bausch Health Americas, Inc. (a) (b)

  8.50%   01/31/27   3,164,696
667,000  
Emergent BioSolutions, Inc. (a) (b)

  3.88%   08/15/28   528,774
1,000,000  
Horizon Therapeutics USA, Inc. (a) (b)

  5.50%   08/01/27   1,004,770
1,161,000  
Organon & Co./Organon Foreign Debt Co-Issuer B.V. (a) (b)

  5.13%   04/30/31   1,114,328
7,350,000  
Par Pharmaceutical, Inc. (a) (b)

  7.50%   04/01/27   5,764,238
        12,861,700
    Research & Consulting Services – 1.5%            
1,124,000  
Clarivate Science Holdings Corp. (a) (b)

  4.88%   07/01/29   1,004,047
6,126,000  
CoreLogic, Inc. (a) (b)

  4.50%   05/01/28   5,275,405
2,128,000  
Nielsen Finance, LLC/Nielsen Finance Co. (a) (b)

  5.63%   10/01/28   2,114,572
1,334,000  
Nielsen Finance, LLC/Nielsen Finance Co. (a) (b)

  5.88%   10/01/30   1,318,959
        9,712,983
    Restaurants – 0.8%            
5,088,000  
IRB Holding Corp. (a) (b)

  7.00%   06/15/25   5,150,939
    Security & Alarm Services – 0.3%            
2,000,000  
Brink’s (The) Co. (a) (b)

  4.63%   10/15/27   1,898,560
    Specialized Consumer Services – 1.2%            
2,794,000  
Aramark Services, Inc. (a) (b)

  6.38%   05/01/25   2,846,304
4,932,000  
Aramark Services, Inc. (a) (b)

  5.00%   02/01/28   4,810,031
        7,656,335
See Notes to Financial Statements
Page 11

First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments (Continued)
May 31, 2022
Principal
Value
  Description   Stated
Coupon
  Stated
Maturity
  Value
CORPORATE BONDS AND NOTES (Continued)
    Specialized Finance – 0.2%            
$1,448,000  
Park Intermediate Holdings, LLC/PK Domestic Property, LLC/PK Finance Co-Issuer (a) (b)

  4.88%   05/15/29   $1,377,569
    Specialty Chemicals – 0.3%            
1,705,000  
Avantor Funding, Inc. (a) (b)

  4.63%   07/15/28   1,662,034
    Specialty Stores – 0.0%            
150,000  
PetSmart, Inc./PetSmart Finance Corp. (a) (b)

  4.75%   02/15/28   138,263
150,000  
PetSmart, Inc./PetSmart Finance Corp. (a) (b)

  7.75%   02/15/29   138,937
        277,200
    Systems Software – 2.1%            
2,724,000  
Boxer Parent Co., Inc. (a) (b)

  9.13%   03/01/26   2,658,311
10,091,000  
SS&C Technologies, Inc. (a) (b)

  5.50%   09/30/27   10,196,400
652,000  
VMware, Inc. (b)

  1.00%   08/15/24   616,923
        13,471,634
    Technology Hardware, Storage & Peripherals – 0.1%            
833,000  
Xerox Holdings Corp. (a) (b)

  5.00%   08/15/25   818,447
    Trading Companies & Distributors – 0.7%            
1,035,000  
SRS Distribution, Inc. (a) (b)

  6.13%   07/01/29   889,406
3,884,000  
SRS Distribution, Inc. (a) (b)

  6.00%   12/01/29   3,352,766
        4,242,172
    Trucking – 1.0%            
2,889,000  
Hertz (The) Corp. (a) (b)

  4.63%   12/01/26   2,630,854
4,156,000  
Hertz (The) Corp. (a) (b)

  5.00%   12/01/29   3,644,230
        6,275,084
   
Total Corporate Bonds and Notes

  587,848,799
    (Cost $635,075,075)            
Principal
Value
  Description   Rate (c)   Stated
Maturity (d)
  Value
SENIOR FLOATING-RATE LOAN INTERESTS – 37.9%
    Aerospace & Defense – 0.5%            
213,940  
Atlantic Aviation FBO, Inc. (KKR Apple Bidco, LLC), 2nd Lien Term Loan, 1 Mo. LIBOR + 5.75%, 0.50% Floor (b)

  6.81%   07/31/29   207,789
2,744,788  
Peraton Corp., Term Loan B, 1 Mo. LIBOR + 3.75%, 0.75% Floor (b)

  4.81%   02/01/28   2,656,268
        2,864,057
    Application Software – 14.0%            
3,500,000  
Epicor Software Corp., Second Lien Term Loan, 1 Mo. LIBOR + 7.75%, 1.00% Floor (b)

  8.81%   07/30/28   3,465,000
8,742,418  
Gainwell Acquisition Corp. (fka Milano), Term Loan B, 3 Mo. LIBOR + 4.00%, 0.75% Floor (b)

  5.01%   10/01/27   8,523,858
10,665,139  
Greeneden U.S. Holdings II, LLC (Genesys Telecommunications Laboratories, Inc.), Initial Dollar Term Loan, 1 Mo. LIBOR + 4.00%, 0.75% Floor (b)

  5.06%   12/01/27   10,343,265
2,981,588  
Hyland Software, Inc., 2nd Lien Term Loan, 1 Mo. LIBOR + 6.25%, 0.75% Floor (b)

  7.31%   07/10/25   2,942,470
8,940,488  
Hyland Software, Inc., Term Loan B, 1 Mo. LIBOR + 3.50%, 0.75% Floor (b)

  4.56%   07/01/24   8,708,304
Page 12
See Notes to Financial Statements

First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments (Continued)
May 31, 2022
Principal
Value
  Description   Rate (c)   Stated
Maturity (d)
  Value
SENIOR FLOATING-RATE LOAN INTERESTS (Continued)
    Application Software (Continued)            
$10,927,143  
Internet Brands, Inc. (WebMD/MH Sub I, LLC), 2020 June New Term Loan, 1 Mo. LIBOR + 3.75%, 1.00% Floor (b)

  4.81%   09/15/24   $10,533,766
9,551,587  
Internet Brands, Inc. (WebMD/MH Sub I, LLC), 2nd Lien Term Loan, 1 Mo. LIBOR + 6.25%, 0.00% Floor (b)

  7.31%   02/23/29   9,217,281
6,549,215  
Internet Brands, Inc. (WebMD/MH Sub I, LLC), Initial Term Loan, 1 Mo. LIBOR + 3.50%, 0.00% Floor (b)

  4.56%   09/13/24   6,300,869
452,552  
ION Trading Technologies Limited, Term Loan B, 1 Mo. LIBOR + 4.75%, 0.00% Floor (b)

  5.81%   04/01/28   432,671
6,571,210  
LogMeIn, Inc. (GoTo Group, Inc.), Term Loan B, 1 Mo. LIBOR + 4.75%, 0.00% Floor (b)

  5.68%   08/31/27   5,651,240
4,149,773  
Micro Focus International (MA Financeco, LLC), Term Loan B4, 3 Mo. LIBOR + 4.25%, 1.00% Floor (b)

  5.25%   06/05/25   3,921,535
3,538,182  
RealPage, Inc., Second Lien Term Loan, 1 Mo. LIBOR + 6.50%, 0.75% Floor (b)

  7.56%   04/22/29   3,447,959
14,290,576  
SolarWinds Holdings, Inc., Initial Term Loan, 1 Mo. LIBOR + 2.75%, 0.00% Floor (b)

  3.81%   02/05/24   13,872,577
2,878,188  
Solera Holdings, Inc. (Polaris Newco), Term Loan B, 1 Mo. LIBOR + 4.00%, 0.50% Floor (b)

  5.06%   06/04/28   2,741,128
        90,101,923
    Broadcasting – 0.0%            
167,660  
Diamond Sports Group, LLC, Priority Term Loan, 1 Mo. LIBOR + 8.00%, 1.00% Floor (b)

  9.00%   05/25/26   168,331
    Cable & Satellite – 0.2%            
1,566,380  
Cablevision (aka CSC Holdings, LLC), 2017 Refinancing Term Loan, 6 Mo. LIBOR + 2.25%, 0.00% Floor (b)

  3.12%   07/17/25   1,486,103
    Casinos & Gaming – 1.3%            
8,873,115  
Golden Nugget, Inc. (Fertitta Entertainment, LLC), Initial Term Loan B, 1 Mo. SOFR + 4.00%, 0.50% Floor (b)

  5.03%   01/27/29   8,478,882
    Education Services – 0.0%            
142,291  
Ascensus Holdings, Inc. (Mercury), Second Lien Term Loan, 3 Mo. LIBOR + 6.50%, 0.50% Floor

  7.50%   08/02/29   134,465
    Electronic Equipment & Instruments – 0.4%            
2,967,465  
Verifone Systems, Inc., Term Loan B, 3 Mo. LIBOR + 4.00%, 0.00% Floor (b)

  5.52%   08/20/25   2,633,625
    Environmental & Facilities Services – 1.1%            
7,649,878  
Packers Holdings, LLC (PSSI), Term Loan B, 6 Mo. LIBOR + 3.25%, 0.75% Floor (b)

  4.00%   03/15/28   7,229,135
    Health Care Distributors – 0.3%            
2,056,119  
Radiology Partners, Inc., Term Loan B, 1 Mo. LIBOR + 4.25%, 0.00% Floor (b)

  5.18%-5.21%   07/09/25   1,909,251
    Health Care Services – 5.0%            
977,982  
Civitas Solutions (National Mentor Holdings, Inc.), Term Loan B, 1 Mo. LIBOR + 3.75%, 0.75% Floor (b)

  4.81%   03/01/28   872,849
1,219,463  
Civitas Solutions (National Mentor Holdings, Inc.), Term Loan B, 3 Mo. LIBOR + 3.75%, 0.75% Floor (b)

  4.76%   03/01/28   1,088,371
69,714  
Civitas Solutions (National Mentor Holdings, Inc.), Term Loan C, 3 Mo. LIBOR + 3.75%, 0.75% Floor

  4.76%   03/01/28   62,220
2,944,214  
Envision Healthcare Corporation, Initial Term Loan, 1 Mo. LIBOR + 3.75%, 0.00% Floor

  4.81%   10/10/25   1,139,264
See Notes to Financial Statements
Page 13

First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments (Continued)
May 31, 2022
Principal
Value
  Description   Rate (c)   Stated
Maturity (d)
  Value
SENIOR FLOATING-RATE LOAN INTERESTS (Continued)
    Health Care Services (Continued)            
$342,093  
Help at Home (HAH Group Holding Company, LLC), Delayed Draw Term Loan, 1 Mo. LIBOR + 5.00%, 1.00% Floor

  6.00%   10/29/27   $328,410
2,703,603  
Help at Home (HAH Group Holding Company, LLC), Initial Term Loan, 1 Mo. LIBOR + 5.00%, 1.00% Floor (b)

  6.00%   10/29/27   2,595,459
487,313  
SCP Health (Onex TSG Intermediate Corp.), Term Loan B, 1 Mo. LIBOR + 4.75%, 0.75% Floor (b)

  5.81%   02/28/28   463,922
1,297,567  
Surgery Centers Holdings, Inc., 2021 Term Loan B, 1 Mo. LIBOR + 3.75%, 0.75% Floor (b)

  4.60%   08/31/26   1,240,435
8,666,195  
Team Health, Inc., Term Loan B, 1 Mo. LIBOR + 2.75%, 1.00% Floor (b)

  3.81%   02/06/24   7,787,182
5,381,874  
U.S. Anesthesia Partners Intermediate Holdings, Inc., New Term Loan B, 3 Mo. LIBOR + 4.25%, 0.50% Floor (b)

  4.75%   09/30/28   5,140,281
14,229,708  
U.S. Renal Care, Inc., Term Loan B, 1 Mo. LIBOR + 5.00%, 0.00% Floor (b)

  5.81%   06/28/26   11,334,389
        32,052,782
    Health Care Technology – 3.5%            
3,339,817  
Ciox Health (Healthport/CT Technologies Intermediate Holdings, Inc.), New Term Loan B, 1 Mo. LIBOR + 4.25%, 0.75% Floor (b)

  5.31%   12/16/25   3,177,702
2,860,427  
Clario (fka eResearch Technology, Inc.), Incremental Term Loan B, 1 Mo. LIBOR + 4.50%, 1.00% Floor (b)

  5.50%   02/04/27   2,750,615
2,036,804  
Press Ganey (Azalea TopCo, Inc.), 2021 Term Loan, 1 Mo. LIBOR + 3.75%, 0.75% Floor (b)

  4.81%   07/25/26   1,965,516
5,143  
Press Ganey (Azalea TopCo, Inc.), 2021 Term Loan, 3 Mo. LIBOR + 3.75%, 0.75% Floor (b)

  4.99%   07/25/26   4,963
14,929,324  
Verscend Technologies, Inc. (Cotiviti), New Term Loan B-1, 1 Mo. LIBOR + 4.00%, 0.00% Floor (b)

  5.06%   08/27/25   14,593,415
        22,492,211
    Insurance Brokers – 1.4%            
22,737  
HUB International Limited, New Term Loan B-3, 2 Mo. LIBOR + 3.25%, 0.75% Floor (b)

  4.18%   04/25/25   21,976
8,958,415  
HUB International Limited, New Term Loan B-3, 3 Mo. LIBOR + 3.25%, 0.75% Floor (b)

  4.35%   04/25/25   8,658,577
        8,680,553
    Integrated Telecommunication Services – 0.4%            
2,042,331  
Frontier Communications Corp., Term Loan B, 3 Mo. LIBOR + 3.75%, 0.75% Floor (b)

  4.81%   10/08/27   1,945,321
457,799  
Numericable (Altice France S.A. or SFR), Term Loan B-13, 3 Mo. LIBOR + 4.00%, 0.00% Floor (b)

  5.41%   08/14/26   430,761
        2,376,082
    Movies & Entertainment – 1.7%            
5,894,462  
Cineworld Group PLC (Crown), Incremental Term Loan B, 3 Mo. LIBOR + 2.75%, 1.00% Floor

  3.75%   09/30/26   3,982,475
668,911  
Cineworld Group PLC (Crown), New Priority Term Loan, 6 Mo. LIBOR + 8.25%, 1.00% Floor

  10.08%   05/23/24   703,193
1,284,417  
Cineworld Group PLC (Crown), Priority Term Loan B-1, Fixed Rate at 15.25% (b) (e)

  15.25%   05/23/24   1,461,024
2,011,576  
Cineworld Group PLC (Crown), Term Loan B, 6 Mo. LIBOR + 2.50%, 1.00% Floor (b)

  4.00%   02/28/25   1,414,399
914,905  
PUG, LLC (Stubhub/Viagogo), Incremental Term Loan B-2, 1 Mo. LIBOR + 4.25%, 0.50% Floor (b)

  5.31%   02/13/27   887,458
Page 14
See Notes to Financial Statements

First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments (Continued)
May 31, 2022
Principal
Value
  Description   Rate (c)   Stated
Maturity (d)
  Value
SENIOR FLOATING-RATE LOAN INTERESTS (Continued)
    Movies & Entertainment (Continued)            
$2,302,900  
PUG, LLC (Stubhub/Viagogo), Term Loan B, 1 Mo. LIBOR + 3.50%, 0.00% Floor (b)

  4.26%   02/12/27   $2,181,998
        10,630,547
    Pharmaceuticals – 1.3%            
1,196,398  
Akorn, Inc., Exit Take Back Term Loan, 3 Mo. LIBOR + 7.50%, 1.00% Floor (b) (f)

  8.50%   09/30/25   1,186,433
849,651  
Mallinckrodt International Finance S.A., 2017 Term Loan B, 3 Mo. LIBOR + 5.25%, 0.75% Floor (g)

  6.25%   09/24/24   732,909
118,923  
Mallinckrodt International Finance S.A., 2018 Incremental Term Loan, 3 Mo. LIBOR + 5.50%, 0.75% Floor (g)

  6.91%   02/24/25   102,082
5,990,047  
Nestle Skin Health (Sunshine Lux VII S.A.R.L./Galderma), 2021 Term Loan B-3, 3 Mo. LIBOR + 3.75%, 0.75% Floor (b)

  4.76%   10/02/26   5,733,313
602,471  
Padagis, LLC, Term Loan B, 3 Mo. LIBOR + 4.75%, 0.50% Floor (b)

  5.72%   07/06/28   580,631
        8,335,368
    Restaurants – 1.2%            
7,883,812  
Portillo’s Holdings, LLC, Term Loan B-3, 1 Mo. LIBOR + 5.50%, 1.00% Floor (b)

  6.56%   08/30/24   7,739,302
    Soft Drinks – 0.1%            
403,269  
Tropicana (Naked Juice, LLC/Bengal Debt Merger Sub, LLC), 2nd Lien Term Loan, 3 Mo. SOFR + 6.00%, 0.50% Floor (b)

  6.75%   01/24/30   385,626
    Specialized Consumer Services – 2.9%            
1,939,082  
Asurion, LLC, 2nd Lien Term Loan B-4, 1 Mo. LIBOR + 5.25%, 0.00% Floor (b)

  6.31%   01/20/29   1,735,478
19,029,860  
Asurion, LLC, Second Lien Term Loan B-3, 1 Mo. LIBOR + 5.25%, 0.00% Floor (b)

  6.31%   01/31/28   17,063,505
        18,798,983
    Specialized Finance – 0.4%            
2,740,165  
WCG Purchaser Corp. (WIRB-Copernicus Group), Term Loan B, 3 Mo. LIBOR + 4.00%, 1.00% Floor (b)

  5.01%   01/08/27   2,635,135
    Specialty Stores – 0.4%            
1,984,411  
Bass Pro Group, LLC (Great Outdoors Group, LLC), Term Loan B, 1 Mo. LIBOR + 3.75%, 0.75% Floor (b)

  4.81%   03/05/28   1,879,237
914,716  
PetSmart, Inc., Initial Term Loan B, 3 Mo. LIBOR + 3.75%, 0.75% Floor (b)

  4.50%   02/12/28   857,318
        2,736,555
    Systems Software – 1.8%            
5,807,561  
Applied Systems, Inc., 2nd Lien Term Loan, 3 Mo. LIBOR + 5.50%, 0.75% Floor (b)

  6.51%   09/19/25   5,685,196
1,839,348  
BMC Software Finance, Inc. (Boxer Parent), 2021 Replacement Dollar Term Loan, 1 Mo. LIBOR + 3.75%, 0.00% Floor (b)

  4.81%   10/02/25   1,762,335
4,263,071  
Misys Financial Software Ltd. (Almonde, Inc.) (Finastra), Term Loan B, 3 Mo. LIBOR + 3.50%, 1.00% Floor (b)

  4.74%   06/13/24   4,009,076
        11,456,607
   
Total Senior Floating-Rate Loan Interests

  243,325,523
    (Cost $256,602,322)            
See Notes to Financial Statements
Page 15

First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments (Continued)
May 31, 2022
Principal
Value
  Description   Stated
Coupon
  Stated
Maturity
  Value
FOREIGN CORPORATE BONDS AND NOTES – 11.3%
    Application Software – 0.2%            
$1,721,000  
ION Trading Technologies S.A.R.L. (a) (b)

  5.75%   05/15/28   $1,537,524
    Auto Parts & Equipment – 0.2%            
958,000  
Clarios Global L.P./Clarios US Finance Co. (a) (b)

  8.50%   05/15/27   957,282
    Building Products – 2.8%            
16,450,000  
Cemex S.A.B. de C.V. (a)

  7.38%   06/05/27   17,127,904
973,000  
Cemex S.A.B. de C.V. (a)

  5.45%   11/19/29   938,264
        18,066,168
    Data Processing & Outsourced Services – 0.7%            
5,748,000  
Paysafe Finance PLC/Paysafe Holdings US Corp. (a) (b)

  4.00%   06/15/29   4,488,872
    Environmental & Facilities Services – 0.4%            
715,000  
Allied Universal Holdco, LLC/Allied Universal Finance Corp./Atlas Luxco 4 S.A.R.L. (a) (b)

  4.63%   06/01/28   640,483
477,000  
Allied Universal Holdco, LLC/Allied Universal Finance Corp./Atlas Luxco 4 S.A.R.L. (a) (b)

  4.63%   06/01/28   423,188
473,000  
GFL Environmental, Inc. (a) (b)

  3.75%   08/01/25   460,645
585,000  
GFL Environmental, Inc. (a) (b)

  4.00%   08/01/28   527,049
716,000  
GFL Environmental, Inc. (a) (b)

  4.75%   06/15/29   654,021
        2,705,386
    Integrated Telecommunication Services – 1.5%            
2,511,000  
Altice France S.A. (a) (b)

  5.50%   01/15/28   2,239,234
1,000,000  
Altice France S.A. (a) (b)

  5.13%   01/15/29   855,000
4,590,000  
Altice France S.A. (a) (b)

  5.13%   07/15/29   4,015,332
3,069,000  
Altice France S.A. (a) (b)

  5.50%   10/15/29   2,668,066
        9,777,632
    Life Sciences Tools & Services – 0.1%            
946,000  
Grifols Escrow Issuer S.A. (a)

  4.75%   10/15/28   866,370
    Pharmaceuticals – 3.5%            
1,003,000  
Bausch Health Cos., Inc. (a) (b)

  6.13%   02/01/27   916,742
3,000,000  
Bausch Health Cos., Inc. (a)

  5.00%   01/30/28   1,917,915
732,000  
Bausch Health Cos., Inc. (a) (b)

  4.88%   06/01/28   628,221
616,000  
Bausch Health Cos., Inc. (a)

  5.00%   02/15/29   371,017
8,150,000  
Bausch Health Cos., Inc. (a) (b)

  7.25%   05/30/29   5,407,647
7,500,000  
Bausch Health Cos., Inc. (a)

  5.25%   01/30/30   4,401,037
770,000  
Bausch Health Cos., Inc. (a)

  5.25%   02/15/31   452,814
81,000  
Cheplapharm Arzneimittel GmbH (a) (b)

  5.50%   01/15/28   73,329
17,584,000  
Endo Dac/Endo Finance, LLC/Endo Finco, Inc. (a)

  9.50%   07/31/27   4,308,080
5,600,000  
Mallinckrodt International Finance S.A./Mallinckrodt CB, LLC (a) (b) (g)

  10.00%   04/15/25   3,898,132
        22,374,934
    Research & Consulting Services – 0.2%            
977,000  
Nielsen Co. Luxembourg (The) S.A.R.L. (a) (b)