Western Asset Global High Income Fund

EHI

Market cap $175M

The Western Asset Global High Income Fund offers a 14%+ yield but faces significant distribution coverage shortfalls, raising the risk of a cut. EHI now trades at an over 9% discount, making entry more attractive, though not at a historical extreme; further discount widening is possible if a cut occurs. The fund's portfolio is heavily tilted toward below-investment-grade and emerging market debt, but broad diversification across nearly 400 holdings.

We review the CEF market valuation and performance through the fourth week of April and highlight recent market action. CEF markets faced renewed risk aversion, with sector discounts widening to historical averages and MLPs and Convertibles led to the upside. Western Asset CEFs' NII remained largely stable; key drivers include short-term rate direction, liability management, and overdistribution.

NEW YORK--(BUSINESS WIRE)--Category: Financials.

NEW YORK--(BUSINESS WIRE)--Category: Fund Announcement.

Western Asset Global High Income Fund offers high-yield exposure with a 13.15% distribution yield, but coverage is weak, which adds some uncertainty. EHI's discount has widened a bit since our prior update, yet remains near its five-year average; a deeper discount would make entry more attractive. The fund's portfolio blends corporate high-yield and emerging market debt, resulting in higher duration and interest rate sensitivity.

NEW YORK--(BUSINESS WIRE)--Category: Fund Announcement.

Western Asset Global High Income Fund offers a 13.1% yield and global diversification, appealing to income-focused investors amid market volatility. EHI trades at a 6.73% discount to NAV but faces growth challenges due to high leverage (29.3% of assets) and sensitivity to interest rates. Recent quarterly results show strong earnings and a 167% dividend coverage rate, supporting payout sustainability for the near term.

NEW YORK--(BUSINESS WIRE)--Category: Financials.

NEW YORK--(BUSINESS WIRE)--Category: Fund Announcement.

EHI offers a high 12.7% yield and global diversification, but distribution coverage is declining and overdistribution risks NAV erosion. The fund has shifted to a higher allocation of junk-rated debt, which could suggest management's view of stable credit and limited rate cuts. I'd like to see a wider discount on this fund before considering it to be a good time to add.