HYI - HYI: Discounted High Yield Term Fund
2024-06-14 17:04:07 ET
Summary
- Western Asset High Yield Defined Opportunity Fund is a term-structured, non-leveraged high-yield fund that is expected to liquidate in 2025.
- As the termination date approaches, the HYI fund's discount becomes more important in potentially generating alpha.
- HYI has a distribution yield of 9.96% and offers diversified exposure with meaningful allocations outside the U.S.
Written by Nick Ackerman, co-produced by Stanford Chemist.
We recently touched on the Western Asset High Yield Defined Opportunity Fund ( HIO ). That is a non-leveraged, high-yield fund where I came away with a fairly neutral or lukewarm feeling after doing a deep dive. That said, there is another interesting option in the space. Its sister fund, Western Asset High Yield Defined Opportunity Fund ( HYI ), which we've covered rather regularly and covering HIO, prompted my revisiting....
HYI: Discounted High Yield Term Fund