HIO Stock Recent News

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%+.

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.

HIO: Unlevered Junk Bond Fund Paying More Than It Earns.

Western Asset High Income Opportunity Fund is a fixed income CEF. The fund focuses on U.S. high yield and has a middle of the road credit build, with no excessive risk taken via CCC credits.