Western Asset Emerging Markets Debt Fund Inc. (NYSE:EMD) Short Interest Update

Key Points

• Short interest fell sharply: Shares sold short dropped 47.5% to 143,715 as of September 15, representing 0.5% of outstanding shares and a 0.7-day days-to-cover ratio.
• Dividend increased substantially: EMD declared a monthly dividend of $0.095 per share, up from $0.033, implying annualized dividends of $1.14 and a 12.2% yield.
• Shares remain near their 12-month low: The stock opened at $9.35, compared with a 12-month range of $9.28 to $11.30, while institutional investors collectively own 33.05% of the fund.

Western Asset Emerging Markets Debt Fund Inc. (NYSE:EMD - Get Free Report) was the recipient of a large decline in short interest during the month of September. As of September 15th, there was short interest totaling 143,715 shares, a decline of 47.5% from the August 31st total of 273,726 shares. Currently, 0.5% of the company's shares are sold short. Based on an average trading volume of 204,892 shares, the days-to-cover ratio is presently 0.7 days.

Western Asset Emerging Markets Debt Fund Stock Performance

Western Asset Emerging Markets Debt Fund stock opened at $9.35 on Tuesday. The company has a 50-day moving average price of $10.36 and a 200 day moving average price of $10.46. Western Asset Emerging Markets Debt Fund has a 12-month low of $9.28 and a 12-month high of $11.30.

Western Asset Emerging Markets Debt Fund Increases Dividend

The company also recently declared a monthly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Wednesday, September 23rd will be given a dividend of $0.0950 per share. This represents a $1.14 annualized dividend and a dividend yield of 12.2%. The ex-dividend date of this dividend is Wednesday, September 23rd. This is a boost from Western Asset Emerging Markets Debt Fund's previous monthly dividend of $0.0330.

Institutional Investors Weigh In On Western Asset Emerging Markets Debt Fund

A number of institutional investors and hedge funds have recently added to or reduced their stakes in EMD. NewEdge Advisors LLC increased its holdings in Western Asset Emerging Markets Debt Fund by 16.6% in the 2nd quarter. NewEdge Advisors LLC now owns 108,981 shares of the company's stock valued at $1,170,000 after purchasing an additional 15,533 shares during the last quarter. Rareview Capital LLC lifted its stake in Western Asset Emerging Markets Debt Fund by 8.4% during the second quarter. Rareview Capital LLC now owns 311,012 shares of the company's stock worth $3,126,000 after purchasing an additional 24,208 shares in the last quarter. IMC Chicago LLC acquired a new position in Western Asset Emerging Markets Debt Fund during the second quarter worth $184,000. Comprehensive Money Management Services LLC acquired a new stake in shares of Western Asset Emerging Markets Debt Fund in the second quarter valued at $892,000. Finally, Papamarkou Wellner Asset Management inc. purchased a new stake in shares of Western Asset Emerging Markets Debt Fund in the 2nd quarter valued at $215,000. Hedge funds and other institutional investors own 33.05% of the company's stock.

About Western Asset Emerging Markets Debt Fund

Western Asset Emerging Markets Debt Fund, Inc NYSE: EMD is a closed-end investment company that seeks to provide investors with high current income and opportunities for total return through capital appreciation. The fund is managed by Western Asset Management Company, LLC, an investment manager specializing in fixed-income strategies.

The fund invests primarily in debt securities issued by governments, government-related entities and companies in emerging-market countries. Its portfolio may include sovereign and corporate bonds, loans and other fixed-income instruments denominated in both local currencies and major foreign currencies.

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