MHF - Western Asset Cuts: DMO Most Affected Sell Alert For MHF

As we had been expecting, Western released their distribution notices for the next three months.

Western Asset Mortgage Opp (DMO)

Recall that this fund, launched shortly after the 2008 Financial Crisis, piled into the non-agency mortgage backed securities similarly to PIMCO. As such, they were able to buy deeply-discounted mortgages at pennies on the dollar and hold. The big difference between this fund and say PIMCO Dynamic Income (PDI) was that DMO was a term fund. That meant that it was going to liquidate at some date in the future at