Western Asset High Income Fund II (NYSE:HIX) is a diversified, closed-end management investment company that seeks to generate high current income with a secondary goal of capital appreciation. As part of the Western Asset family of funds, HIX invests primarily in U.S. dollar-denominated, lower-rated, high-yield fixed-income securities. The fund employs a multi-sector approach, allocating assets across corporate high-yield bonds, senior loans, structured credit, and other non-investment grade debt instruments, with an emphasis on credit research and risk management.
Since its inception in January 2007, Western Asset High Income Fund II has pursued a flexible, value-oriented strategy that combines top-down macroeconomic analysis with bottom-up security selection. Portfolio managers leverage Western Asset’s global credit research platform to identify opportunities in both U.S. and international credit markets. The fund may also use derivatives to manage duration, hedge currency exposure, and enhance yield, allowing it to adapt to shifting market conditions and interest rate environments.
HIX’s geographic focus is primarily North America, but the fund retains the ability to invest up to 30% of its assets in non-U.S. issuers, providing exposure to developed markets in Europe and Asia. Its investments span an array of industries, including energy, telecommunications, healthcare, and financials, reflecting the broad scope of the high-yield market. Over the years, the fund has navigated multiple credit cycles and market dislocations, demonstrating resilience through a disciplined underwriting process and active portfolio adjustments.
Led by a team of seasoned fixed-income professionals at Western Asset Management Company, LLC, HIX benefits from the firm’s deep credit expertise and institutional infrastructure. The fund’s leadership emphasizes rigorous credit analysis, internal risk controls, and ongoing portfolio monitoring. Through its affiliation with one of the world’s largest fixed-income managers, Western Asset High Income Fund II aims to deliver a consistent income-oriented solution for investors seeking enhanced yield in a diversified, closed-end structure.
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