Item 1.		Schedule of Investments.

The Schedule(s) of Investments is attached herewith.

FLAHERTY & CRUMRINE/CLAYMORE PREFERRED SECURITIES INCOME FUND

To the Shareholders of Flaherty & Crumrine/Claymore Preferred Securities Income Fund:

     During the third fiscal quarter of 2011¹, total return on net asset value² of the Fund was -2.6%; the fiscal year-to-date return was a more pleasing +8.8%. Prior to this most recent quarter, the Fund had nine consecutive quarters of positive returns.

     There was good news on the Fund’s dividend during the quarter — a combination of very low borrowing cost on the Fund’s leverage and relatively high income earned from the Fund’s investment portfolio led to another increase in your monthly dividend. The new rate of $0.136 (beginning in August) is 4.6% higher than the previous level.

     The Federal Reserve has indicated short-term interest rates are likely to stay at present levels at least through mid-2013. The Fund’s borrowing rate is not directly tied to the Fed’s short-term rate target, but the correlation is high, so borrowing costs should remain at or near current levels over the same period.

     On the flip side, however, the task of projecting portfolio income has become more difficult, due both to the sharp decline in interest rates and changes in the regulatory environment in which many preferred issuers operate. For instance, bank regulators here and abroad have yet to issue final guidelines for bank capital; until they do, it is hard to predict when issuers may call outstanding preferreds. We think eventually portfolio income could fall (as higher dividend paying securities are called), but we are working hard to minimize the impact.

     Conditions in financial markets are largely a tale of two houses — an ongoing economic drag from the residential housing market and a struggle of governments to get their financial houses in order. While there is a detailed discussion of these topics in our Quarterly Economic Update on the Fund’s website, our thoughts are summarized here.

     The drop in home prices and rise in foreclosures have eroded household wealth, pushed up savings, and slowed consumer spending, thus short-circuiting the cyclical recovery the economy normally would experience coming out of a deep recession. The resulting sluggish economic growth has encouraged companies to focus on reducing debt, lowering costs, and improving productivity. This has led to an unusual combination of strong profit growth and improving credit quality for corporations, but little improvement in employment. Finally, rising savings, limited demand for new investment, and highly accommodative monetary policy have pushed US Treasury rates to 60-year lows. As long as households seek to reduce indebtedness, which we expect will continue for some time, these conditions are likely to persist.

     At the same time, the deleveraging that began in the household sector has spread to the government sector. Investors are questioning governments’ ability and willingness to sustain current budgets and obligations, most visibly in the sovereign debt crisis boiling over in Europe. The uncertainty over how that situation will be resolved — and its short and long-term impact on the global economy — has sent many investors to the sidelines and out of risky assets. Although politicians are moving toward resolution of these issues, the solutions are often unpopular, and progress is likely to be slow.

     As of August 31, 13% of the Fund’s portfolio consisted of securities issued or guaranteed by banks and insurance companies based in Europe. Each of these companies has operations throughout the world, but is tied most closely to economic conditions in the Eurozone. We believe these issuers are well capitalized and well managed, and therefore better able to handle market turbulence.

     At the end of the day, we believe long-term investors will continue to earn attractive returns on preferred securities, although there may be some bumps along the way. We will continue to manage the Fund as we always have — in quiet times and in crisis — with a disciplined eye on credit fundamentals, relative value and risk management.

     We encourage you to visit the Fund’s website www.fcclaymore.com for a more in-depth discussion of conditions in the preferred markets as well as the broader economy.

Sincerely,
Donald F. Crumrine		Robert M. Ettinger
Chairman		President
October 14, 2011

Flaherty & Crumrine/Claymore Preferred Securities Income Fund Incorporated
PORTFOLIO OVERVIEW
August 31, 2011 (Unaudited)

Fund Statistics
Net Asset Value		$	16.56
Market Price		$	17.43
Premium			5.25	%
Yield on Market Price			9.36	%
Common Stock Shares Outstanding			43,003,183

Moody’s Ratings		% of Net Assets†
AAA			0.5	%
A			8.2	%
BBB			74.0	%
BB			13.0	%
Below “BB”			2.1	%
Not Rated*			0.5	%
Below Investment Grade**			8.5	%

Industry Categories		% of Net Assets†

Top 10 Holdings by Issuer		% of Net Assets†
Liberty Mutual Group			5.4	%
Banco Santander			5.2	%
Capital One Financial			4.2	%
Metlife			3.8	%
HSBC Plc			3.3	%
Dominion Resources			3.3	%
Axis Capital			2.8	%
Enbridge Energy Partners			2.7	%
Wells Fargo			2.7	%
Puget Energy			2.6	%

			% of Net Assets***†
Holdings Generating Qualified Dividend Income (QDI) for Individuals			33	%
Holdings Generating Income Eligible for the Corporate Dividend Received Deduction (DRD)			18	%

Flaherty & Crumrine/Claymore Preferred Securities Income Fund Incorporated
PORTFOLIO OF INVESTMENTS
August 31, 2011 (Unaudited)

Shares/$ Par						Value
Preferred Securities — 93.3%
				Banking — 36.5%
$	17,750,000			Astoria Capital Trust I, 9.75% 11/01/29, Series B		$	18,496,636	(1)
	2,046,320			Banco Santander, 10.50% Pfd., Series 10			56,082,060	**(1)(2)
				Bank of America Corporation:
	128,305			8.20% Pfd			3,194,794	*
	103,235			8.625% Pfd			2,601,522	*(1)
$	2,815,000			BankAmerica Institutional, Series A, 8.07% 12/31/26, 144A****			2,815,000
				Barclays Bank PLC:
$	14,750,000			6.278%			10,924,219	**(1)(2)
	3,300			7.75% Pfd., Series 4			80,091	**(2)
	529,700			8.125% Pfd., Series 5			13,067,699	**(1)(2)
	28,500			BB&T Capital Trust V, 8.95% Pfd. 09/15/63			766,830
	143,290			BB&T Capital Trust VI, 9.60% Pfd. 08/01/64			3,858,800	(1)
$	8,490,000			BBVA International Preferred, 5.919%			6,286,225	**(1)(2)
$	13,500,000			BNP Paribas, 7.195%, 144A****			11,745,000	**(1)(2)
$	34,990,000			Capital One Capital III, 7.686% 08/15/36			35,077,475	(1)
$	5,362,000			Capital One Capital V, 10.25% 08/15/39			5,599,805
$	5,350,000			Capital One Capital VI, 8.875% 05/15/40			5,447,338	(1)
	341,100			Citigroup Capital XIII, 7.875% Pfd. 10/30/40			8,889,919	(1)
$	35,100,000			Colonial BancGroup, 7.114%, 144A****			1,360,125	(3)††
	15,000			Countrywide Capital IV, 6.75% Pfd. 04/01/33			331,407
	28,800			FBOP Corporation, Adj. Rate Pfd., 144A****			22,464	*(3)(4)†
$	8,785,000			Fifth Third Capital Trust IV, 6.50% 04/15/37			8,192,012	(1)
	93,625			Fifth Third Capital Trust V, 7.25% Pfd. 08/15/67			2,351,860
	513,700			Fifth Third Capital Trust VI, 7.25% Pfd. 11/15/67			12,874,606	(1)
	7,850			First Republic Preferred Capital Corporation, 10.50% Pfd., 144A****			8,016,812
	14,500			First Tennessee Bank, Adj. Rate Pfd., 3.75%(5), 144A****			9,411,406	*
$	1,500,000			Fleet Capital Trust II, 7.92% 12/11/26			1,481,250
	8			FT Real Estate Securities Company, 9.50% Pfd., 144A****			7,668,000
				Goldman Sachs:
$	2,550,000			Capital I, 6.345% 02/15/34			2,365,449	(1)
$	4,362,000			Capital II, 5.793%			3,162,450	(1)
	3,600			STRIPES Custodial Receipts, Adj. Rate, 10.70%(5), Pvt.			1,706,400	*(3)(4)
	714,400			HSBC Holdings PLC, 8.00% Pfd., Series 2			19,054,834	**(1)(2)
$	1,500,000			HSBC USA Capital Trust II, 8.38% 05/15/27, 144A****			1,527,040	(1)
				HSBC USA, Inc.:
	500,000			6.50% Pfd., Series H			12,525,750	*(1)
	3,750			$2.8575 Pfd			175,430	*
	98,825			ING Groep NV, 8.50% Pfd			2,420,224	**(2)

Flaherty & Crumrine/Claymore Preferred Securities Income Fund Incorporated
PORTFOLIO OF INVESTMENTS (Continued)
August 31, 2011 (Unaudited)

Shares/$ Par						Value
Preferred Securities — (Continued)
				Banking — (Continued)
$	5,900,000			JPMorgan Chase Capital XVIII, 6.95% 08/17/36, Series R		$	5,841,861	(1)
$	6,500,000			JPMorgan Chase Capital XXVII, 7.00% 11/01/39, Series AA			6,524,680	(1)
	241,593			Keycorp Capital IX, 6.75% Pfd. 12/15/66			6,160,622	(1)
	279,600			Keycorp Capital X, 8.00% Pfd. 03/15/68			7,202,496	(1)
$	17,800,000			Lloyds Banking Group PLC, 6.657%, 144A****			10,235,000	**(2)†
$	3,150,000			MBNA Capital, 8.278% 12/01/26, Series A			3,161,812
$	9,265,000			National City Preferred Capital Trust I, 12.00%			10,070,944
$	4,767,000			NB Capital Trust IV, 8.25% 04/15/27			4,802,752	(1)
	164,520			PNC Financial Services, 9.875% Pfd., Series L			4,637,408	*(1)
$	2,500,000			PNC Preferred Funding Trust III, 8.70%, 144A****			2,563,125	(1)
	8,641			Sovereign REIT, 12.00% Pfd., Series A, 144A****			10,575,245
	33,400			SunTrust Capital IX, 7.875% Pfd. 03/15/68			848,778
	60			Union Planters Preferred Funding, 7.75% Pfd., Series A, 144A****			4,533,750
	535,705			Wachovia Preferred Funding, 7.25% Pfd., Series A			13,918,955	(1)
				Washington Mutual:
$	2,100,000			9.75%, 144A****			52,500	††
$	10,050,000			6.534%, 144A****			251,250	††
$	11,067,000			Webster Capital Trust IV, 7.65% 06/15/37			11,266,272	(1)
				Wells Fargo & Company:
	11,173			7.50% Pfd., Series L			11,630,758	*(1)
	100,000			8.00% Pfd., Series J			2,900,000	*(1)
$	1,000,000			Wells Fargo Capital XV, 9.75%			1,037,500
							397,796,640
				Financial Services — 3.4%
$	1,340,000			Ameriprise Financial, Inc., 7.518% 06/01/66			1,356,750	(1)
	7,000			AMMC CLO V Ltd., Adj. Rate, Pvt.			1,540,000	(3)(4)
$	5,230,000			Claudius, Ltd. — Credit Suisse AG, 7.875%, Series B			5,203,850	(2)
$	7,000,000			Gulf Stream-Compass 2005 Composite Notes, 144A****			5,017,530	(3)(4)
				Heller Financial, Inc.:
	150,000			6.687% Pfd., Series C			14,962,500	*(1)
	31,730			6.95% Pfd., Series D			3,211,673	*(1)
	112,726			HSBC Finance Corporation, 6.36% Pfd., Series B			2,594,107	*(1)
				Lehman Brothers Holdings, Inc.:
	34,000			5.67% Pfd., Series D			10,540	*††
	471,500			7.95% Pfd			13,202	*††
	20,000			Lehman Capital Trust III, 6.375% Pfd., Series K			3,050	††
$	3,000,000			Schwab Capital Trust I, 7.50% 11/15/37			2,946,786	(1)
							36,859,988

Flaherty & Crumrine/Claymore Preferred Securities Income Fund Incorporated
PORTFOLIO OF INVESTMENTS (Continued)
August 31, 2011 (Unaudited)

Shares/$ Par						Value
Preferred Securities — (Continued)
				Insurance — 22.5%
$	4,566,000			Ace Capital Trust II, 9.70% 04/01/30		$	6,118,376	(1)(2)
$	455,000			AON Corporation, 8.205% 01/01/27			522,756	(1)
				Arch Capital Group Ltd.:
	117,750			7.875% Pfd., Series B			2,995,266	**(1)(2)
	100,000			8.00% Pfd., Series A			2,518,750	**(1)(2)
				AXA SA:
$	7,150,000			6.379%, 144A****			5,577,000	**(1)(2)
$	1,350,000			6.463%, 144A****			1,053,000	**(2)
				Axis Capital Holdings:
	117,707			7.25% Pfd., Series A			2,976,987	**(1)(2)
	281,505			7.50% Pfd., Series B			27,508,331	(1)(2)
	37,000			Corts Provident Financing Trust I, 8.50% Pfd.			994,375	(1)
	558,000			Delphi Financial Group, 7.376% Pfd. 05/15/37			13,357,125	(1)
$	20,919,000			Everest Re Holdings, 6.60% 05/15/37			19,088,588	(1)
$	4,650,000			Great West Life & Annuity Insurance, 7.153% 05/16/46, 144A****			4,452,375	(1)
$	35,418,000			Liberty Mutual Group, 10.75% 06/15/58, 144A****			43,918,319	(1)
$	6,600,000			MetLife Capital Trust IV, 7.875% 12/15/37, 144A****			6,765,000	(1)
$	13,285,000			MetLife Capital Trust X, 9.25% 04/08/38, 144A****			15,742,725	(1)
$	13,520,000			MetLife, Inc., 10.75% 08/01/39			18,570,058	(1)
	14,000			PartnerRe Ltd., 7.250% Pfd., Series E			353,920	**(2)
				Principal Financial Group:
	77,000			5.563% Pfd., Series A			7,452,160	*(1)
	383,000			6.518% Pfd., Series B			9,790,438	*(1)
				Renaissancere Holdings Ltd.:
	148,749			6.08% Pfd., Series C			3,381,065	**(1)(2)
	183,019			6.60% Pfd., Series D			4,494,947	**(1)(2)
	407,200			Scottish Re Group Ltd., 7.25% Pfd			3,753,895	**(2)†
$	7,500,000			Stancorp Financial Group, 6.90% 06/01/67			6,686,692	(1)
$	7,425,000			USF&G Capital, 8.312% 07/01/46, 144A****			9,175,600	(1)
$	13,000,000			USF&G Capital I, 8.50% 12/15/45, 144A****			16,382,925	(1)
$	12,200,000			XL Capital Ltd., 6.50%, Series E			10,888,500	(1)(2)
							244,519,173
				Utilities — 25.1%
	320,000			Alabama Power Company, 6.45% Pfd.			8,900,000	*(1)
				Baltimore Gas & Electric Company:
	10,000			6.70% Pfd., Series 1993			1,005,938	*(1)
	15,000			7.125% Pfd., Series 1993			1,516,875	*

Flaherty & Crumrine/Claymore Preferred Securities Income Fund Incorporated
PORTFOLIO OF INVESTMENTS (Continued)
August 31, 2011 (Unaudited)

Shares/$ Par						Value
Preferred Securities — (Continued)
				Utilities — (Continued)
	462,029			Calenergy Capital Trust III, 6.50% Pfd. 09/01/27		$	22,870,436	(1)
$	18,533,000			COMED Financing III, 6.35% 03/15/33 .			16,456,766	(1)
	146,100			Constellation Energy Group, 8.625% Pfd. 06/15/63, Series A .			3,949,083	(1)
$	19,675,000			Dominion Resources Capital Trust I, 7.83% 12/01/27			19,875,508	(1)
$	15,262,000			Dominion Resources, Inc., 7.50% 06/30/66 .			15,659,224	(1)
	294,975			Entergy Arkansas, Inc., 6.45% Pfd			7,374,375	*(1)
	102,000			Entergy Louisiana, Inc., 6.95% Pfd.			10,043,818	*(1)
				FPL Group Capital, Inc.:
$	20,470,000			6.65% 06/15/67			19,828,020	(1)
$	4,000,000			7.30% 09/01/67, Series D			4,134,976	(1)
	165,000			Georgia Power Company, 6.50% Pfd., Series 2007A			17,655,000	*(1)
	20,000			Gulf Power Company, 6.45% Pfd., Series 2007A .			2,151,424	*
	119,805			Indianapolis Power & Light Company, 5.65% Pfd.			11,216,743	*
	343,606			Interstate Power & Light Company, 8.375% Pfd., Series B .			10,071,951	*(1)
$	2,386,000			PECO Energy Capital Trust III, 7.38% 04/06/28, Series D .			2,450,711	(1)
$	24,500,000			PECO Energy Capital Trust IV, 5.75% 06/15/33			21,475,426	(1)
$	4,485,000			PPL Capital Funding, 6.70% 03/30/67, Series A			4,332,954	(1)
	268,000			PPL Electric Utilities Corporation, 6.25% Pfd.			6,775,388	*(1)
$	28,015,000			Puget Sound Energy, Inc., 6.974% 06/01/67			28,355,074	(1)
				Southern California Edison:
	124,750			6.00% Pfd., Series C			12,268,389	*(1)
	9,345			6.125% Pfd			943,845	*
	139,000			6.50% Pfd., Series D			14,025,976	*(1)
$	10,000,000			WPS Resources Corporation, 6.11% 12/01/66 .			9,560,480	(1)
							272,898,380
				Energy — 4.9%
$	28,500,000			Enbridge Energy Partners LP, 8.05% 10/01/37			29,916,877	(1)
				Enterprise Products Partners:
$	565,000			7.00% 06/01/67			544,946	(1)
$	21,396,000			8.375% 08/01/66, Series A			22,407,945	(1)
							52,869,768
				Real Estate Investment Trust (REIT) — 0.1%
				PS Business Parks, Inc.:
	34,947			6.70% Pfd., Series P			883,506	(1)
	25,000			6.875% Pfd., Series R			637,500
							1,521,006

Flaherty & Crumrine/Claymore Preferred Securities Income Fund Incorporated
PORTFOLIO OF INVESTMENTS (Continued)
August 31, 2011 (Unaudited)

Shares/$ Par						Value
Preferred Securities — (Continued)
				Miscellaneous Industries — 0.8%
	105,400			Ocean Spray Cranberries, Inc., 6.25% Pfd., 144A****		$	9,189,563	*(1)
							9,189,563
				Total Preferred Securities
				(Cost $1,049,382,681)			1,015,654,518
Corporate Debt Securities — 4.4%
				Banking — 0.4%
$	4,900,000			Goldman Sachs Group, 6.75% 10/01/37, Sub Notes			4,665,006	(1)
							4,665,006
				Financial Services — 0.1%
$	4,726,012			Lehman Brothers, Guaranteed Note, Variable Rate, 5.843%, 12/16/16, 144A****			800,114	(3)(4)††
							800,114
				Insurance — 1.6%
$	15,750,000			Liberty Mutual Insurance, 7.697% 10/15/97, 144A****			14,608,220	(1)
$	2,500,000			UnumProvident Corporation, 7.25% 03/15/28			2,742,192	(1)
							17,350,412
				Utilities — 1.9%
				Southern Union Company:
$	9,300,000			7.60% 02/01/24, Senior Notes			11,325,605	(1)
$	7,587,000			8.25% 11/15/29, Senior Notes			9,365,620	(1)
							20,691,225
				Miscellaneous Industries — 0.4%
	16,500			Corp-Backed Trust Certificates, 7.00% 11/15/28, Series Sprint			408,705	(1)
				Pulte Homes, Inc.:
	58,240			7.375% 06/01/46			1,285,502	(1)
$	3,550,000			7.875% 06/15/32			3,053,000	(1)
							4,747,207
				Total Corporate Debt Securities
				(Cost $48,976,665)			48,253,964

Flaherty & Crumrine/Claymore Preferred Securities Income Fund Incorporated
PORTFOLIO OF INVESTMENTS (Continued)
August 31, 2011 (Unaudited)

Shares/$ Par						Value
U.S. Government Agencies — 0.5%
				Fannie Mae — 0.5%
$	4,989,000			Fannie Mae Interest STRIPS, Zero Coupon, 05/15/29		$	2,496,585
$	5,010,000			Fannie Mae Principal STRIPS, Zero Coupon, 01/15/30			2,424,394
							4,920,979
				Total U.S. Government Agencies
				(Cost $4,008,047)			4,920,979
Common Stock — 0.4%
				Banking — 0.2%
	54,740			CIT Group, Inc.			1,892,362	*†
							1,892,362
				Utilities — 0.2%
	29,950			Exelon Corporation			1,291,444	*
	46,587			PPL Corporation			1,345,433	*
							2,636,877
				Total Common Stock
				(Cost $13,358,656)			4,529,239
Money Market Fund — 0.2%
	2,202,379			BlackRock Liquidity Funds, T-Fund			2,202,379
				Total Money Market Fund
				(Cost $2,202,379)			2,202,379

Total Investments (Cost $1,117,928,428***)							98.8	%			1,075,561,079
Other Assets And Liabilities (Net)							1.2	%			12,649,873
Total Managed Assets							100.0	%‡		$	1,088,210,952
Loan Principal Balance											(376,075,000	)
Total Net Assets Available To Common Stock										$	712,135,952

Flaherty & Crumrine/Claymore Preferred Securities Income Fund Incorporated

PORTFOLIO OF INVESTMENTS (Continued)

August 31, 2011 (Unaudited)

ABBREVIATIONS:

CLO		—		Collaterized Loan Obligation
Corts		—		Corporate-Backed Trust Securities
Pfd.		—		Preferred Securities
Pvt.		—		Private Placement Securities
REIT		—		Real Estate Investment Trust
STRIPS		—		Separate Trading of Registered Interest and Principal of Securities
STRIPES		—		Structured Residual Interest Preferred Enhanced Securities

Flaherty & Crumrine/Claymore Preferred Securities Income Fund Incorporated
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE TO COMMON STOCK⁽¹⁾
For the period from December 1, 2010 through August 31, 2011 (Unaudited)

		Value
OPERATIONS:
Net investment income		$	53,014,156
Net realized gain/(loss) on investments sold during the period			11,939,714
Change in net unrealized appreciation/depreciation of investments			(3,871,489	)
Net increase in net assets resulting from operations.			61,082,381
DISTRIBUTIONS:
Dividends paid from net investment income to Common Stock Shareholders(2)			(52,196,807	)
Total Distributions to Common Stock Shareholders.			(52,196,807	)
FUND SHARE TRANSACTIONS:
Increase from shares issued under the Dividend Reinvestment and Cash Purchase Plan			2,623,039
Net increase in net assets available to Common Stock resulting from Fund share transactions			2,623,039
NET INCREASE IN NET ASSETS AVAILABLE TO COMMON STOCK FOR THE PERIOD		$	11,508,613
NET ASSETS AVAILABLE TO COMMON STOCK:
Beginning of period.		$	700,627,339
Net increase in net assets during the period			11,508,613
End of period		$	712,135,952

Flaherty & Crumrine/Claymore Preferred Securities Income Fund Incorporated
FINANCIAL HIGHLIGHTS⁽¹⁾
For the period from December 1, 2010 through August 31, 2011 (Unaudited)
For a Common Stock share outstanding throughout the period.

PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period		$	16.35
INVESTMENT OPERATIONS:
Net investment income			1.24
Net realized and unrealized gain/(loss) on investments.			0.19
Total from investment operations			1.43
DISTRIBUTIONS TO COMMON STOCK SHAREHOLDERS:
From net investment income			(1.22	)
Total distributions to Common Stock Shareholders			(1.22	)
Net asset value, end of period		$	16.56
Market value, end of period		$	17.43
Common Stock shares outstanding, end of period			43,003,183
RATIOS TO AVERAGE NET ASSETS AVAILABLE TO COMMON STOCK SHAREHOLDERS:
Net investment income†			9.74	%*
Operating expenses including interest expense			1.65	%*
Operating expenses excluding interest expense			1.02	%*
SUPPLEMENTAL DATA:††
Portfolio turnover rate			11	%**
Total managed assets, end of period (in 000’s)		$	1,088,211
Ratio of operating expenses including interest expense to total managed assets			1.10	%*
Ratio of operating expenses excluding interest expense to total managed assets			0.68	%*

Flaherty & Crumrine/Claymore Preferred Securities Income Fund Incorporated
FINANCIAL HIGHLIGHTS (Continued)
Per Share of Common Stock (Unaudited)

		Total												Dividend
		Dividends				Net Asset				NYSE				Reinvestment
		Paid				Value				Closing Price				Price(1)
December 31, 2010 - Extra		$	0.0400			$	16.34			$	16.21			$	16.28
December 31, 2010			0.1300				16.34				16.21				16.28
January 31, 2011			0.1300				16.56				16.58				16.56
February 28, 2011			0.1300				16.88				17.01				16.88
March 31, 2011			0.1300				16.91				17.08				16.91
April 29, 2011			0.1300				17.24				17.83				17.24
May 31, 2011			0.1300				17.41				18.16				17.41
June 30, 2011			0.1300				17.12				17.80				17.12
July 29, 2011			0.1300				17.19				17.45				17.19
August 31, 2011			0.1360				16.56				17.43				16.56

Flaherty & Crumrine/Claymore Preferred Securities Income Fund Incorporated
NOTES TO FINANCIAL STATEMENTS (Unaudited)

1. Aggregate Information for Federal Income Tax Purposes

     At August 31, 2011, the aggregate cost of securities for federal income tax purposes was $1,119,531,243, the aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost was $87,124,155 and the aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value was $131,094,319.

2. Additional Accounting Standards

Fair Value Measurement: The inputs and valuation techniques used to measure fair value of the Fund’s investments are summarized into three levels as described in the hierarchy below:

	•		Level 1 — quoted prices in active markets for identical securities
	•		Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
	•		Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

     The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. Transfers in and out of levels are recognized at market value at the end of the period. A summary of the inputs used to value the Fund’s investments as of August 31, 2011 is as follows:

										Level 2				Level 3
		Total				Level 1				Significant				Significant
		Value at				Quoted				Observable				Unobservable
		August 31, 2011				Price				Inputs				Inputs
Preferred Securities
Banking		$	397,796,640			$	292,580,757			$	103,833,294			$	1,382,589
Financial Services			36,859,988				2,594,107				27,708,351				6,557,530
Insurance			244,519,173				140,501,370				104,017,803				—
Utilities			272,898,380				67,536,688				205,361,692				—
Energy			52,869,768				52,324,822				544,946				—
Real Estate Investment Trust (REIT)			1,521,006				1,521,006				—				—
Miscellaneous Industries			9,189,563				—				9,189,563				—
Corporate Debt Securities			48,253,964				27,050,438				20,403,412				800,114
U.S. Government Agencies
Fannie Mae			4,920,979				—				4,920,979				—
Common Stock
Banking			1,892,362				1,892,362				—				—
Utilities			2,636,877				2,636,877				—				—
Money Market Fund			2,202,379				2,202,379				—				—
Total Investments		$	1,075,561,079			$	590,840,806			$	475,980,040			$	8,740,233

The Fund did not have any significant transfers in and out of Level 1 and Level 2 during the period.

Flaherty & Crumrine/Claymore Preferred Securities Income Fund Incorporated
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

     The valuation of the Fund’s investments in Level 2 and Level 3 is based primarily on market information, where available. This includes, but is not limited to, prices provided by third-party providers, observable trading activity (including the recency, depth, and consistency of such information with quoted levels), and the depth and consistency of broker-quoted prices. In the event market information is not directly available, comparable information may be observed for securities that are similar in many respects to those being valued. The Fund may employ an income approach for certain securities that also takes into account credit risk, interest rate risk, and potential recovery prospects.

     The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:

						Preferred Securities
										Financial				Corporate Debt
		Total Investments				Banking				Services				Securities
Balance as of 11/30/10		$	6,068,024			$	127,411			$	5,291,259			$	649,354
Accrued discounts/premiums			—				—				—				—
Realized gain/(loss)			—				—				—				—
Change in unrealized appreciation/ (depreciation)			1,312,084				(104,947	)			1,266,271				150,760
Purchases			—				—				—				—
Sales			—				—				—				—
Transfer in			1,360,125				1,360,125	(1)			—				—
Transfer out			—				—				—				—
Balance as of 8/31/11		$	8,740,233			$	1,382,589			$	6,557,530			$	800,114

     For the period ended August 31, 2011 total change in unrealized gain/(loss) on Level 3 securities still held at period-end and included in the change in net assets was $1,312,084.