HIO

Western Asset High Income Opportunity Fund

HIO

Market cap $378M

Overview Fund Activity

4.01 USD

+0.03

0.75%

At close Updated Sep 16, 4:00 PM EDT

1 day

0.75%

5 days

1.26%

1 month

1.78%

3 months

2.82%

6 months

-1.72%

Year to date

1.01%

1 year

-0.5%

5 years

-20.44%

10 years

-15.04%

About: Western Asset High Income Oppor Fd Inc is a diversified closed-end management investment company. The company's primary objective is to seek high current income and the secondary objective is capital appreciation. It invests a majority of its net assets in high-yield corporate debt securities and the rest in common stock equivalents, including options, warrants, and rights. The company invests in securities of companies from various sectors such as energy, technology, utilities, industrials, communications, finance, and capital goods among others.

Financials Asset Management

0

Funds holding %

of 7,463 funds

–

Analysts bullish %

Fund manager confidence

Based on 2025 Q2 regulatory disclosures by fund managers ($100M+ AUM)

100% more repeat investments, than reductions

Existing positions increased: 38 | Existing positions reduced: 19

1% more funds holding

Funds holding: 97 [Q1] → 98 (+1) [Q2]

8% more first-time investments, than exits

New positions opened: 14 | Existing positions closed: 13

1% more capital invested

Capital invested by funds: $101M [Q1] → $102M (+$1.17M) [Q2]

0.31% more ownership

Funds ownership: 26.63% [Q1] → 26.94% (+0.31%) [Q2]

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Financial journalist opinion

High-Yield Closed-End Funds (Part 4): HIO

HIO is a high-yield, diversified closed-end fund trading near its lowest valuation in the past year, offering attractive entry for value-seeking investors. The fund boasts a moderate BB credit rating, no leverage, and a 10.47% distribution rate on NAV, making it suitable for conservative, income-focused portfolios. HIO's historical total returns have consistently outperformed HYG, even when HYG is leveraged, underscoring its strong long-term performance.

High-Yield Closed-End Funds (Part 4): HIO

Western Asset High Income Opportunity Fund Inc. Announces Financial Position as of June 30, 2025

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

Western Asset High Income Opportunity Fund Inc. Announces Financial Position as of June 30, 2025

HIO: Limited Appeal Due To Poor NAV Growth And Weak Dividend Coverage

I rate HIO a sell due to weak underlying performance, poor NAV growth, and inconsistent distribution coverage in the current high interest rate environment. HIO offers an attractive 11% yield, but its focus on high-yield, below-investment-grade debt increases risk and makes distributions vulnerable to cuts. The fund's persistent NAV decline and frequent net realized losses raise concerns about long-term capital preservation and sustainability of payouts.

HIO: Limited Appeal Due To Poor NAV Growth And Weak Dividend Coverage

Western Asset High Income Opportunity Fund Inc. Announces Results of Annual Meeting of Stockholders

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

Western Asset High Income Opportunity Fund Inc. Announces Results of Annual Meeting of Stockholders

HIO: Junk Bond Focus Better Than Floaters For Rate Cuts

The Western Asset High Income Opportunity Fund offers a competitive 10.52% yield, outperforming major fixed-income indices and appealing to income-focused investors. Despite problems in the bond market, the fund's performance has been strong, with a 7.93% total return over the past six months. The fund is focused on investing in junk bonds instead of floating-rate securities, which is a better place to be in the current rate environment.

HIO: Junk Bond Focus Better Than Floaters For Rate Cuts

How To Get 11% Dividends And Wealth Protection In 2025

As I write this, the S&P 500 is sitting on a 28% total return for 2024. And of course, that could shoot even higher if we get the traditional Santa Claus rally.

How To Get 11% Dividends And Wealth Protection In 2025

HIO: High-Yield CEF With International Exposure

HIO is a well-diversified fixed income CEF with over 250 holdings, mainly in U.S. high-yield bonds, and minimal currency risk. The fund has shown robust returns, outperforming unleveraged peers, but lags over a longer time frame and has wider drawdowns. Current tight credit spreads suggest caution; consider lightening exposure and re-entering after a 10% price drop.

HIO: High-Yield CEF With International Exposure

HIO: Limited Protection Against A Resurgence Of Inflation And Limited Upside Potential

The Western Asset High Income Opportunity Fund offers a high yield of 10.76%, outperforming peers but with potential risks due to inflation. The fund primarily invests in junk bonds, but has the potential to invest in common stocks. It is not currently exercising this option. Bonds may not provide sufficient protection against a resurgence of inflation, which is quite possible once the Fed cuts rates.

HIO: Limited Protection Against A Resurgence Of Inflation And Limited Upside Potential

These Huge Dividends Are (Still) Cheap After The August 5 Crash

Think back just a couple weeks: The “yen carry trade” had investors running scared, and we had a terrific opportunity to buy stocks—better still our favorite income plays on stocks: closed-end funds (CEFs) yielding 8%+.

These Huge Dividends Are (Still) Cheap After The August 5 Crash

HIO: Non-Leveraged High-Yield Focused CEF

The Western Asset High Income Opportunity Fund (HIO) is an unleveraged option for high-yield exposure, currently trading at a discount. HIO's historical trading level suggests that waiting for a wider discount may be beneficial, which can especially happen during periods of greater market volatility. The fund's distribution yield is 11.30%, but investors should be aware of the fund's history of distribution cuts and a lack of coverage.

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