Western Asset Diversified Income Fund

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

Western Asset Diversified Income Fund Announces Financial Position as of September 30, 2024

Western Asset Diversified Income Fund (WDI) is a multi-sector fixed-income CEF that's been performing quite strongly, though with the trade-off of a narrowing discount. WDI's distribution yield is quite attractive at 11.85%, but coverage is tight, and with the Fed cutting rates, that will likely face even more pressure. Alternative multi-sector fixed-income funds are also richly valued, which I believe still makes WDI worth holding despite the less appealing discount and tight distribution coverage.

WDI: Attractive Monthly Distribution, But Watching Coverage As Discount Narrows

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As a retired income investor, I focus on high-yield CEFs for reliable monthly distributions and potential capital gains from NAV discounts. Five CEFs to avoid currently: GOF, VVR, ARDC, WDI, IGR, due to high relative premiums or unfavorable market conditions. Recommended CEFs to buy/add: AOD, ASGI, JRI, MEGI, OPP, FSCO, offering high yields and potential for capital gains with favorable market conditions.

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WDI offers an attractive 11.6% dividend yield, making it appealing for income-focused investors seeking supplemental income amid a low-return forecast for the S&P 500. The fund's diverse portfolio, primarily composed of high-yield credit investments, CLOs, and bank loans, supports its high distribution yield despite higher risk. Future interest rate cuts could enhance WDI's valuation and borrower environment, potentially boosting NAV growth and maintaining strong net investment income.

WDI: Interest Rate Cuts Are A Positive Catalyst

Nuveen Preferred & Income Term Fund

Putnam High Income Securities Fund

We review the CEF market valuation and performance through the third week of August and highlight recent market action. CEFs had a strong week, with most sectors finishing in the green, supported by lower Treasury yields. Tortoise plans to merge three MLP-focused CEFs into a new ETF, potentially eliminating discounts but don't call it an arbitrage.

CEF Weekly Review: Not Everything Is An Arbitrage

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OFS Credit Company Inc

Oxford Lane Capital

We review CEF market valuation and performance through the second week of August and highlight recent market action. CEFs were mixed, with MLP funds recovering while REIT funds struggled. The CEF, High Income Securities Fund, is implementing a novel strategy to get its initiatives approved by shareholders.

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Western Asset Diversified Income Fund is a relatively new CEF selling at a discount, with high current income and capital appreciation objectives. WDI pays a monthly distribution, has a termination date of 6/4/2033, and has shown strong performance in 2023 and 2024. WDI's valuations show a discount to NAV, but historical discounts have been deeper, making it a potential buy during volatile periods like September-October.

WDI: 12% Yield, 3% Discount, Monthly Payer

We provide an update on the Western Asset Diversified Income Fund. Western Asset Diversified Income Fund recently increased its distribution, reflecting its record level of net income. WDI trades at a 7.6% discount and a 12.5% current yield.

WDI: Another Distribution Hike For This 12.5%-Yielding Credit Fund

Western Asset Diversified Income Fund Announces Financial Position as of March 31, 2024

Western Asset Diversified Income Fund continues to perform well and is nearing our 'Buy' discount target. WDI's distribution is fully covered by net investment income, but coverage may decrease with expected rate cuts in the future. WDI's portfolio is diversified with a focus on high-yield credit, collateralized loan obligations, commercial MBS, and bank loans.

WDI: Fully Covered ~12% Yield

Western Asset Mortgage Opportunity Fund

We review CEF market valuation and performance through the fourth week of April and highlight recent market action. CEFs were mostly up on the week, however remain in the red through the month. Investors should evaluate funds based on historic total NAV return and individual features, rather than price behavior.

CEF Weekly Review: Price Chart Is Not A Good Guide To CEF Allocation

NEW YORK--(BUSINESS WIRE)--Category: Fund Announcement.

Western Asset Diversified Income Fund Announces Results of Annual Meeting of Shareholders

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Total Annual Passive Dividend Income  $10,898.00    ALERT: Today Could Be Your Best Shot At Early Retirement (Sponsored) If you want to retire before 65, pay attention.

Want $10,500 In Passive Income, Invest $5,000 Into Each of These Dividend Stocks

Western Asset Diversified Income Fund (NYSE: WDI) Announces Portfolio Management Team Update

Western Asset Diversified Income Fund has seen a decline in share price, but when factoring in dividends, the decline is only 6.5%. WDI is currently trading at a modest 7% discount to its Net Asset Value, presenting a compelling opportunity for investors. WDI offers a substantial 13.45% dividend yield, with its fund holding an average YTM of 13.05% with an average duration of 14+ years.

WDI: Modest Income Exposure

Western Asset High Income Fund

Western Asset High Yield Defined Opportunity Fund Inc

The Western Asset High Income Fund II is undergoing a rights offering, which has pushed the fund to a deep discount.

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Western Asset High Income Opportunity Fund Inc

Western Asset Municipal High Income Fund

Western Asset Managed Municipals Fund

Western Asset

NEW YORK--(BUSINESS WIRE)--Category: Distribution Related.

Franklin Templeton Fund Adviser, LLC Announces Distributions for the Months of March, April and May 2024

Western Asset Diversified Income Fund has posted strong Q3 2023 financial results, showing once again a fully supported distribution from net investment income. The fund carries a portfolio that consists of mostly below-investment-grade issuances, but it is diversified across hundreds of holdings and instruments. With the possibility of rate cuts in the future, distribution coverage may come under pressure, but most do not anticipate aggressive cuts (i.e., not returning to a zero rate environment).

WDI: Latest Financials Continue To Support Strong Distribution

Western Asset Diversified Income Fund Announces Financial Position as of September 30, 2023

The Western Asset Diversified Income Fund offers a competitive 12.56% current yield, making it attractive for income-seeking investors. The WDI closed-end fund has delivered a reasonable performance compared to other investments and indices, with a 3.43% total return since February 8, 2023. The fund's holdings include a variety of debt securities, providing diversification and potential performance in a rising interest rate environment.

WDI: Great Fund, But Now Is Not The Time To Buy

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Nuveen Core Plus Impact Fund

Nuveen Variable Rate Preferred & Income Fund

PIMCO Dynamic Income Opportunities Fund

Pimco Municipal Income Fund

RiverNorth Flexible Mncpl Inm Fnd II Inc

Thornburg Income Builder Opportunities Trust

In 2021, a dozen closed-end funds, or CEFs, were launched, but none of them performed well, with all of them experiencing negative total returns since inception. The CEFs trade at wide discounts to NAV, with an average discount of -12.5%, and offer high yield income with annual yields as high as 12.9%. The hybrid funds with global allocations and higher yielding taxable fixed income funds have performed better than municipal fixed income funds and equity funds.

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If you're looking for a sustainable high-yield fund, Western Asset Diversified Income Fund could be it. WDI offers a high distribution yield, growing monthly distribution, and strong distribution coverage, which could mean even more increases in the distribution. WDI is trading at a deep discount, making it an attractive investment option in the high-yield leveraged CEF space.

WDI: Attractive Discount, ~12% Distribution Yield, And Solid Coverage

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PIMCO Income Strategy Fund II

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We provide a July update for the PIMCO CEF taxable suite. Taxable coverage fell for the second straight month while tax-exempt coverage remained stable. PIMCO is doing a tender offer of their very expensive auction-rate preferreds.

PIMCO CEF Update: ARPS Go On The Chopping Block

Western Asset Diversified Income Fund has raised its distributions due to its substantial floating-rate asset base and stable borrowings. WDI has a duration north of 5.0, which is beneficial given the high level of longer-term yields and potential drop in yields. WDI trades at a 12.1% current yield and a 9.1% discount, making it an attractive option in the credit CEF space.

WDI: Floating-Rate Exposure And Duration - A Compelling Combination In This 12%-Yielding CEF

News for Western Asset Diversified Income Fund ETF (WDI)