Western Asset High Income Opportunity Fund Inc. (HIO)

Frequently Asked Questions About Western Asset High Income Opportunity Fund Inc. (HIO)

Can HIO shares be bought and sold like stocks?

Yes, HIO shares are traded on the New York Stock Exchange under the ticker symbol 'HIO,' allowing investors to buy and sell shares throughout the trading day, similar to regular equities. This provides liquidity and the ability to react to market conditions in real-time.

Does HIO have a stated policy on leverage?

Yes, HIO may employ leverage to enhance its returns; however, the use of leverage entails increased risk. The fund seeks to manage its leverage responsibly, with a focus on maximizing income while maintaining sufficient risk control protocols to protect the interests of investors.

How does HIO approach credit research?

HIO employs a rigorous credit research process to evaluate potential investments. The investment team analyzes a range of factors, including the financial health of issuers, macroeconomic trends, and industry dynamics to assess creditworthiness. This disciplined approach aims to identify attractive opportunities while mitigating risk.

How does HIO generate income for its shareholders?

HIO generates income through the interest payments received from its portfolio of bonds and debt securities. This income is then distributed to shareholders in the form of dividends. The fund's strategy focuses on maximizing current income, making it attractive for investors seeking regular cash flow.

How does HIO perform compared to its benchmarks?

HIO's performance is typically evaluated against relevant benchmarks, such as high-yield bond indices. Its performance fluctuates based on market conditions and the manager's investment decisions. Investors should review historical performance data alongside benchmark returns to assess how effectively the fund has met its investment objectives.

How is HIO impacted by interest rate changes?

HIO's performance can be significantly impacted by changes in interest rates. Generally, rising interest rates tend to lead to a decrease in bond prices, negatively affecting the fund's net asset value. Conversely, falling interest rates can enhance the appeal of existing bonds, potentially increasing the fund's value, depending on the portfolio composition.

How often does HIO distribute dividends?

HIO typically distributes dividends on a monthly basis. These distributions are derived from the income generated by the fund's portfolio of investments, providing investors with a steady stream of income. The amount and frequency of dividends may vary depending on the fund's performance and income levels.

Is HIO suitable for all types of investors?

HIO may not be suitable for all investors, especially those with a low-risk tolerance or who require stable capital preservation. Given its focus on high-yield securities, it is often considered more appropriate for investors seeking income through higher-risk investments, thus appealing to those with an understanding of the associated risks.

What are the performance metrics investors should consider for HIO?

Investors considering HIO should evaluate various performance metrics such as total return, yield, distribution rates, and volatility. Analyzing these metrics in conjunction with benchmark comparisons provides a comprehensive view of the fund's performance and helps investors make informed decisions.

What are the risks associated with investing in HIO?

Investing in HIO involves several risks, including credit risk, interest rate risk, and market risk. Credit risk pertains to the potential for issuer defaults, particularly relevant in the high-yield sector. Interest rate risk arises from changes in interest rates, which can affect bond prices. Additionally, market risk reflects the overall volatility and fluctuations in the financial markets.

What does Western Asset High Income Opportunity Fund Inc. (NYSE:HIO) do?

Western Asset High Income Opportunity Fund Inc. is a closed-end management investment company that aims to provide high current income by investing primarily in a diversified portfolio of high-yield bonds and other debt securities. The fund seeks to take advantage of opportunities in the high-yield market, capitalizing on interest rate fluctuations and credit quality to maximize returns for its investors.

What is HIO's investment strategy?

HIO's investment strategy is centered around identifying undervalued high-yield securities and managing the portfolio actively to navigate changing market conditions. The investment team's approach combines bottom-up research with macroeconomic analysis to capitalize on opportunities while prudently managing credit and interest rate risk.

What is the distribution history of HIO?

HIO has a track record of regular monthly distributions, reflecting its commitment to providing high current income to shareholders. Investors interested in the fund's distribution history can review public filings or the fund's website to track past distributions and gain insight into trends over time.

What is the expense ratio of HIO?

The expense ratio of HIO represents the fund's operating expenses as a percentage of its average net assets. As of the last reporting period, HIO's expense ratio was competitive within the closed-end fund category, reflecting the management's effort to control costs while seeking to maximize investment returns for shareholders.

What is the investment objective of HIO?

The primary investment objective of HIO is to provide high current income. The fund aims to achieve this by investing in a diversified portfolio of high-yield and other fixed-income securities, with a secondary goal of capital appreciation over time as market conditions allow.

What resources are available for investors in HIO to stay informed?

Investors can access various resources to stay informed about HIO, including the official website, investor relations communications, annual reports, and filings with the Securities and Exchange Commission (SEC). Additionally, financial news outlets and industry analysts provide insights and updates on market conditions that could affect the fund.

What types of assets does HIO primarily invest in?

HIO primarily invests in high-yield bonds, also known as junk bonds, which are issued by companies with lower credit ratings. In addition, the fund can invest in other debt securities such as investment-grade bonds, bank loans, and convertible securities. This diversified approach aims to enhance returns while managing risk.

When was Western Asset High Income Opportunity Fund Inc. established?

Western Asset High Income Opportunity Fund Inc. was established in 2003. The fund was designed to provide investors with access to a diversified portfolio of high-yield debt investments, leveraging the expertise of Western Asset Management Company as the fund's investment advisor.

Who are the typical investors in HIO?

Typical investors in HIO include those seeking high current income, such as retirees and income-focused investors, along with institutional investors looking to diversify fixed-income portfolios. The fund attracts a diverse set of investors who are comfortable with higher risk in pursuit of attractive yields.

Who manages the Western Asset High Income Opportunity Fund Inc.?

The fund is managed by Western Asset Management Company, a global investment management firm with a strong reputation for fixed income investment strategies. The management team employs a research-driven approach, utilizing both quantitative and qualitative analysis to select securities that align with the fund's investment objectives.

What is the current price of Western Asset High Income Opportunity Fund Inc.?

The current price of Western Asset High Income Opportunity Fund Inc. is 3.950

When was Western Asset High Income Opportunity Fund Inc. last traded?

The last trade of Western Asset High Income Opportunity Fund Inc. was at 7:00 pm EDT on April 2nd, 2025