HIX Stock Recent News

Western Asset High Income Fund II (HIX) offers a high dividend yield of 14.3%, but its inconsistent earnings history raises concerns about dividend sustainability. HIX's performance is heavily influenced by the interest rate environment, with higher rates negatively impacting its price and NAV over the past five years. The fund's leverage strategy and significant exposure to below-investment-grade credit increase its risk, especially in a prolonged high-interest-rate environment.

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

It's a party on Wall Street! While the suits fawn over the hot “Trump trade” stocks, we dividend investors are going to dumpster dive.

HIX, a high-leverage fixed-income CEF, blends U.S. high-yield and emerging market bonds, making it a high beta play in the fixed-income space. With credit spreads at historic lows, leveraging up is imprudent; HIX's high beta nature magnifies risks in market downturns. HIX experienced a -36% drawdown in 2022. HIX's distribution is unsustainable, relying heavily on the return of capital, which erodes NAV and heightens vulnerability in market sell-offs.

In recent years, many conservative investors relying on fixed-income securities for their income needs have found their buying power cut anywhere from 15% to over 100% on some items, due to inflation.

Western Asset High Income Fund II offers a high 13.42% yield but has a concerning performance trend, with a 50.11% share price decline over ten years. The HIX closed-end fund's high leverage (32.28%) and unsustainable distribution strategy pose significant risks, despite its attractive yield compared to peers. The fund's global bond focus, including emerging markets, is appealing as it could offer a degree of protection against the long term U.S. dollar decline.

It's finally happening: Management fees on our favorite 8%+ paying assets—closed-end funds (CEFs)—are falling. And some are sending their already soaring dividends even higher, too.

Western Asset High Income Fund II has a current yield of 13.27%, outperforming its peers in terms of yield. The HIX closed-end fund's share price has declined by 34.90% over the past three years, underperforming the Bloomberg High Yield Very Liquid Index. The fund has consistently paid out a larger distribution than the junk bond index, which may be appealing to income-focused investors.

5 out of 22 closed-end fund sectors positive on price and 1 out of 22 sectors positive on NAV. Saba targets BSTZ, while PDX moves to a monthly distribution. First Trust MLP CEF mergers are approved by shareholders.

Markets were flat, but upcoming events like the jobs report, PMIs, and ECB meeting are important.