UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number

811-22444

 

Western Asset High Yield Defined Opportunity Fund Inc.

(Exact name of registrant as specified in charter)

 

620 Eighth Avenue, 47th Floor, New York, NY 10018

(Address of principal executive offices) (Zip code)

 

Marc A. De Oliveira.

Franklin Templeton

100 First Stamford Place

Stamford, CT 06902

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:

1-888-777-0102

 

Date of fiscal year end: May 31

 

Date of reporting period: May 31, 2024

 

 

ITEM 1.REPORT TO STOCKHOLDERS.

 

The Annual Report to Stockholders is filed herewith.

 

Annual Report
May 31, 2024
WESTERN ASSET
HIGH YIELD DEFINED OPPORTUNITY FUND INC. (HYI)

Fund objectives
The Fund’s primary investment objective is to provide high income. As a secondary investment objective, the Fund will seek capital appreciation.

The Fund seeks to achieve its investment objectives by investing, under normal market conditions, at least 80% of its net assets in a portfolio of high-yield corporate fixed-income securities with varying maturities. Corporate securities include those securities that are issued or originated by U.S. or foreign public or private corporations and other business entities.

The Fund has a limited term and as a fundamental policy intends to liquidate and distribute substantially all of its net assets to stockholders after making appropriate provisions for any liabilities of the Fund on or about September 30, 2025.
What’s inside

II
Western Asset High Yield Defined Opportunity Fund Inc.

Letter from the chairman
Dear Shareholder,
We are pleased to provide the annual report of Western Asset High Yield Defined Opportunity Fund Inc. for the twelve-month reporting period ended May 31, 2024. Please read on for a detailed look at prevailing economic and market conditions during the Fund’s reporting period and to learn how those conditions have affected Fund performance.
Special Shareholder Notice
Effective March 1, 2024, the named portfolio management team responsible for the day-to-day oversight of the Fund became as follows: Michael C. Buchanan, Walter Kilcullen and Christopher F. Kilpatrick.
As always, we remain committed to providing you with excellent service and a full spectrum of investment choices. We also remain committed to supplementing the support you receive from your financial advisor. One way we accomplish this is through our website, www.franklintempleton.com. Here you can gain immediate access to market and investment information, including:
Fund prices and performance,
Market insights and commentaries from our portfolio managers, and
A host of educational resources.
We look forward to helping you meet your financial goals.
Sincerely,
Jane Trust, CFA
Chairman, President and Chief Executive Officer
June 28, 2024
Western Asset High Yield Defined Opportunity Fund Inc.

III

(This page intentionally left blank.)

Fund overview
Q. What is the Fund’s investment strategy?
A. The Fund’s primary investment objective is to provide high income. As a secondary investment objective, the Fund will seek capital appreciation. We believe the extensive credit research and security selection expertise of Western Asset Management Company, LLC (Western Asset), the Fund’s subadviser, will be key factors in driving Fund performance.
The Fund seeks to achieve its investment objectives by investing, under normal market conditions, at least 80% of its net assets in a portfolio of high-yield corporate fixed income securities with varying maturities. Currently, the Fund focuses on lower-quality and higher-yielding opportunities in the below investment grade corporate debt markets. Under normal market conditions, the Fund may also invest up to 20% of its net assets in fixed income securities issued by U.S. or foreign governments, agencies and instrumentalities and/or fixed income securities that are of investment grade quality. The Fund has a limited term and as a fundamental policy intends to liquidate and distribute substantially all of its net assets to stockholders after making appropriate provisions for any liabilities of the Fund on or about September 30, 2025.
In purchasing securities and other investments for the Fund, Western Asset may take full advantage of the entire range of maturities offered by fixed income securities and may adjust the average maturity or duration of the Fund’s portfolio from time to time, depending on its assessment of the relative yields available on securities of different durations and its expectations of future changes in interest rates. The Fund is also permitted purchases of equity securities (including but not limited to common stock, preferred stock, convertible securities, warrants of U.S. and non-U.S. issuers). The Fund may utilize a variety of derivative instruments primarily for hedging and risk management purposes, although the Fund may also use derivative instruments for investment purposes.
At Western Asset, we utilize a fixed income team approach, with decisions derived from interaction among various investment management sector specialists. The sector teams are comprised of Western Asset’s senior portfolio management personnel, research analysts and an in-house economist. Under this team approach, management of client fixed income portfolios will reflect a consensus of interdisciplinary views within the Western Asset organization. The individuals responsible for development of investment strategy, day-to-day portfolio management, oversight and coordination of the Fund are Michael C. Buchanan, Walter Kilcullen and Christopher F. Kilpatrick.
Q. What were the overall market conditions during the Fund’s reporting period?
A. The fixed income market experienced periods of elevated volatility but modestly rose during the twelve months ended May 31, 2024. The market was impacted by several factors, including initial fears of an economic recession, persistent inflation, and shifting expectations for U.S. Federal Reserve (Fed) monetary policy. The market ended 2023 on a positive note, as the Fed indicated it would likely pivot from raising rates to cutting rates in 2024. However, since July 2023, the Fed has kept rates at a 22-year high and has taken a
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

1

Fund overview (cont’d)
measured approach, which has pushed back expectations for the timing of rate cuts. At the same time, there were signs that the central bank would orchestrate a “soft landing” for the economy.
Both short- and longer-term U.S. Treasury yields rose during the reporting period. Two-year yields began the reporting period at 4.40% and ended at 4.89%. Their low of 4.14% was on January 12, 2024, and their peak of 5.19% occurred on October 17 and 18, 2023. Ten-year yields began the reporting period at 3.64%, the lowest for the reporting period, and ended the reporting period at 4.51%. Their peak of 4.98% occurred on October 19, 2023.
For the twelve months ended May 31, 2024, the Bloomberg U.S. Aggregate Indexi returned 1.31%. Riskier fixed-income securities, including high-yield bonds and emerging market debt, produced significantly better results. For the reporting period, the Bloomberg U.S. Corporate High Yield — 2% Issuer Cap Indexii and the JPMorgan Emerging Markets Bond Index Global (EMBI Global)iii returned 11.23% and 9.71%, respectively.
Q. How did we respond to these changing market conditions?
A. A number of changes were made to the portfolio during the reporting period. We increased our opportunistic allocation to senior secured bank loans given their relatively high carry, or yield, compared with fixed-rate assets. In addition, we added more secured exposure while reducing unsecured fixed-rate exposure. We also trimmed our allocations to several emerging market overweight positions that had performed well.  
From a sector perspective, we marginally reduced the Fund’s overweight to energy issuers. We increased our exposure to health care, given improving valuations, in our view. From a quality ratings perspective, we maintained our higher quality bias. We are approaching the end of the term trust period for the Fund, and higher-quality issuers tend to be more liquid. We maintained an overweight in BB and investment-grade-rated bonds and an underweight to bonds rated CCC and below.
Performance review
For the twelve months ended May 31, 2024, Western Asset High Yield Defined Opportunity Fund Inc. returned 8.91% based on its net asset value (NAV)iv and 10.24% based on its New York Stock Exchange (NYSE) market price per share. The Fund’s unmanaged benchmarks, the Bloomberg U.S. Corporate High Yield — 2% Issuer Cap Index B Componentv, the Bloomberg U.S. Corporate High Yield — 2% Issuer Cap Index Caa Componentvi and the Composite Indexvii, returned 11.30%, 14.81% and 12.72%, respectively, for the same period.
The Fund has a practice of seeking to maintain a relatively stable level of distributions to shareholders. This practice has no impact on the Fund’s investment strategy and may reduce the Fund’s NAV. The Fund’s manager believes the practice helps maintain the Fund’s competitiveness and may benefit the Fund’s market price and premium/discount to the Fund’s NAV.

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Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

During the twelve-month period, the Fund made distributions to shareholders totaling $1.14 per share of which $0.14 will be treated as return of capital for tax purposes.* The performance table shows the Fund’s twelve-month total return based on its NAV and market price as of May 31, 2024. Past performance is no guarantee of future results.
Performance Snapshot as of May 31, 2024
Price Per Share
12-Month
Total Return**
$12.06 (NAV)
8.91
%†
$11.45 (Market Price)
10.24
%‡
All figures represent past performance and are not a guarantee of future results.
** Total returns are based on changes in NAV or market price, respectively. Returns reflect the deduction of all Fund expenses, including management fees, operating expenses, and other Fund expenses. Returns do not reflect the deduction of brokerage commissions or taxes that investors may pay on distributions or the sale of shares.
† Total return assumes the reinvestment of all distributions, including returns of capital, at NAV.
‡ Total return assumes the reinvestment of all distributions, including returns of capital, in additional shares in accordance with the Fund’s Dividend Reinvestment Plan.
Q. What were the leading contributors to performance?
A. Within our developed market, high-yield allocation, several positions were rewarded during the reporting period. The Fund’s front-end positioning (securities with a near-term maturity) in a stressed communications company, EchoStar Corp., helped results. EchoStar is pursuing a liability management exercise (LME), which is a strategy for managing debt. We felt the company had liquidity, as well as other options to satisfy the bond’s near-term maturity. We had an overweight allocation to the maturity of a March 2024 Dish Network Corp. (owned by EchoStar) bond, which was paid at par plus accrued interest during the reporting period. Issuers in the transportation space also posted positive fundamental results. At the same time, rating agency actions shifted to generally positive during the reporting period.
Examples of the Fund’s top-performing, overweight positions included: Norwegian Cruise Lines (NCL Corp. Ltd.), aircraft leasing company Global Aircraft Leasing Co., and Carnival Corp. Consumer-facing issuer overweight positions that outperformed for the Fund included private prison operator CoreCivic Inc. (CXW) and the European parking lot operator Apcoa Parking Holdings Gmbh. Both posted positive fundamental performance. In addition, CXW was able to access the capital markets to further extend their maturity profile. 
The Fund’s allocation to emerging markets also was beneficial. An overweight to Brazilian sovereign province Povincia De Cordoba was rewarded as the bond’s spread tightened during the reporting period. In the emerging market energy sector, commodity prices
*
For the tax character of distributions paid during the fiscal year ended May 31, 2023, please refer to page 43 of this report.
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

3

Fund overview (cont’d)
remained elevated due to geopolitical concerns and supply and demand dynamics. The Fund’s overweight positions that performed well were Argentina’s YPF SA., Brazil’s Petrobras Global Finance BV, and Columbian energy company Ecopetrol. Additionally, in emerging markets, the Fund’s overweight exposure to Mexican local sovereign debt performed well. Given heightened geopolitical uncertainty, manufacturing may shift away from China, which could benefit Mexico over the longer term, in our view.
The Fund’s overweight to secured bank loans also outperformed during the reporting period. Examples of positive contributors were technology company Redstone Holdco 2 LP, transportation company United Airlines, Inc. and gaming operator Caesars Entertainment, Inc.
Among the Fund’s allocation to investment-grade rated corporate debt, a handful of overweight positions were additive to returns. Outperformers included energy issuers Western Midstream Operating LP and Energy Transfer LP. Additionally, food and beverage issuer Pilgrim’s Pride performed well and its rating was upgraded by Moody’s Investor Services in September 2023.
Q. What were the leading detractors from performance?
A. The largest detractor from the Fund’s relative performance was our higher quality bias relative to the Bloomberg U.S. Corporate High Yield—2% Issuer Cap Index. While the Fund posted a gross positive return of about 10%, we were not able to keep up with the material CCC and below rated allocation of the custom benchmark. As a result, an overweight allocation in investment-grade and BB rated credits detracted from results. During the reporting period, issuers that were higher levered and had higher beta (risk) performed better. As previously mentioned, we are nearing the end of the Fund’s term trust and are scheduled to liquidate in 2025. Given the upcoming potential liquidation, we felt it was prudent to favor more liquid issuers.
Except for Dish Network Corp., which outperformed, issuers that either engaged in or were rumored to be contemplating an LME generally underperformed over the reporting period. Overweight allocations to global packaging company Ardagh and French wireless and cable service provider SFR (Altice France SA) were examples of such underperformers.
Within the Fund’s bank loan allocation, two issuer overweight positions were marginal detractors from Fund performance. An overweight allocation to secured debt of radio station operator iHeart Communications, Inc. detracted from returns. The company posted fundamental results that were roughly in-line with expectations, but management gave a downbeat outlook for the second half of 2024, which caught the market off guard. However, we believed iHeart Communications was positioned to benefit from the upcoming political advertising season. An overweight allocation to Weight Watchers International, Inc. secured loans was a small detractor. The company’s lead shareholder, Oprah Winfrey, stepped down as a member of the board of directors citing a “conflict of interest.” Weight Watchers also posted disappointing fundamental results during the reporting period.

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Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

Overall, our emerging market positions performed very well during the reporting period. We avoided dozens of Chinese property companies that have defaulted over the past several years. However, we had a small overweight in a formerly higher quality Chinese property operator called Country Garden Holdings Co. that detracted from returns.
Looking for additional information?
The Fund is traded under the symbol “HYI” and its closing market price is available in most newspapers under the NYSE listings. The daily NAV is available online under the symbol “XHYIX” on most financial websites. Barron’s and The Wall Street Journal’s Monday edition both carry closed-end fund tables that provide additional information. In addition, the Fund issues a quarterly press release that can be found on most major financial websites as well as www.franklintempleton.com.
In a continuing effort to provide information concerning the Fund, shareholders may call 1-888-777-0102 (toll free), Monday through Friday from 8:00 a.m. to 5:30 p.m. Eastern Time, for the Fund’s current NAV, market price and other information.
Thank you for your investment in the Western Asset High Yield Defined Opportunity Fund Inc. As always, we appreciate that you have chosen us to manage your assets and we remain focused on achieving the Fund’s investment goals.
Sincerely,
Western Asset Management Company, LLC
June 21, 2024
RISKS:The Fund is a non-diversified, limited term, closed-end management investment company designed primarily as a long-term investment and not as a trading vehicle. The Fund is not intended to be a complete investment program and, due to the uncertainty inherent in all investments, there can be no assurance that the Fund will achieve its investment objective. The Fund’s common stock is traded on the New York Stock Exchange. Similar to stocks, the Fund’s share price will fluctuate with market conditions and, at the time of sale, may be worth more or less than the original investment. Shares of closed-end funds often trade at a discount to their net asset value. Because the Fund is non-diversified, it may be more susceptible to economic, political or regulatory events than a diversified fund. The Fund’s investments are subject to a number of risks, including credit risk, inflation risk and interest rate risk. As interest rates rise, bond prices fall, reducing the value of the Fund’s share price. The Fund may invest in lower-rated high yield bonds, commonly known as “junk bonds,” which are subject to greater liquidity and credit risk (risk of default) than higher-rated obligations. The Fund is also permitted purchases of equity securities. Equity securities generally have greater price volatility than fixed income securities. Investments in foreign securities involve risks, including the possibility of losses due to changes in currency exchange rates and negative developments in the political, economic, or regulatory structure of specific countries or regions. These risks are greater in emerging markets. Emerging market countries tend to have economic, political and legal systems that are less developed and are less stable than those of more developed countries. The Fund may make
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

5

Fund overview (cont’d)
significant investments in derivative instruments. Derivative instruments can be illiquid, may disproportionately increase losses, and may have a potentially large impact on Fund performance. The Fund may invest in securities or engage in transactions that have the economic effects of leverage which can increase the risk and volatility of the Fund. The market values of securities or other assets will fluctuate, sometimes sharply and unpredictably, due to changes in general market conditions, overall economic trends or events, governmental actions or intervention, actions taken by the U.S. Federal Reserve or foreign central banks, market disruptions caused by trade disputes or other factors, political developments, armed conflicts, economic sanctions and countermeasures in response to sanctions, major cybersecurity events, investor sentiment, the global and domestic effects of a pandemic, and other factors that may or may not be related to the issuer of the security or other asset. The Fund may also invest in money market funds, including funds affiliated with the Fund’s manager and subadvisers. For more information on Fund risks, see Summary of information regarding the Fund - Principal Risk Factors in this report.
Portfolio holdings and breakdowns are as of May 31, 2024, and are subject to change and may not be representative of the portfolio managers’ current or future investments. Please refer to pages 11 through 27 for a list and percentage breakdown of the Fund’s holdings.
The mention of sector breakdowns is for informational purposes only and should not be construed as a recommendation to purchase or sell any securities. The information provided regarding such sectors is not a sufficient basis upon which to make an investment decision. Investors seeking financial advice regarding the appropriateness of investing in any securities or investment strategies discussed should consult their financial professional. The Fund’s top five sector holdings (as a percentage of net assets) as of May 31, 2024, were: consumer discretionary (24.6%), energy (13.1%), communication services (12.9%), industrials (12.0%) and financials (10.2%). The Fund’s portfolio composition is subject to change at any time.
All investments are subject to risk including the possible loss of principal. Past performance is no guarantee of future results. All index performance reflects no deduction for fees, expenses or taxes. Please note that an investor cannot invest directly in an index. 
The information provided is not intended to be a forecast of future events, a guarantee of future results or investment advice. Views expressed may differ from those of the firm as a whole. 

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Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

i
The Bloomberg U.S. Aggregate Index is a broad-based bond index comprised of government, corporate, mortgage- and asset-backed issues, rated investment grade or higher, and having at least one year to maturity.
ii
The Bloomberg U.S. Corporate High Yield—2% Issuer Cap Index is an index of the 2% Issuer Cap component of the Bloomberg Barclays U.S. Corporate High Yield Index, which covers the U.S. dollar-denominated, non-investment grade, fixed-rate, taxable corporate bond market.
iii
The JPMorgan Emerging Markets Bond Index Global (EMBI Global) tracks total returns for U.S. dollar-denominated debt instruments issued by emerging market sovereign and quasi-sovereign entities: Brady bonds, loans, Eurobonds and local market instruments.
iv
Net asset value (NAV) is calculated by subtracting total liabilities, including liabilities associated with financial leverage (if any), from the closing value of all securities held by the Fund (plus all other assets) and dividing the result (total net assets) by the total number of the common shares outstanding. The NAV fluctuates with changes in the market prices of securities in which the Fund has invested. However, the price at which an investor may buy or sell shares of the Fund is the Fund’s market price as determined by supply of and demand for the Fund’s shares.
v
The Bloomberg U.S. Corporate High Yield—2% Issuer Cap Index B Component is an index of the 2% Issuer Cap component of the Bloomberg U.S. Corporate High Yield Index and is comprised of B-rated securities included in this index.
vi
The Bloomberg U.S. Corporate High Yield—2% Issuer Cap Index Caa Component is an index of the 2% Issuer Cap component of the Bloomberg U.S. Corporate High Yield Index and is comprised of Caa-rated securities included in this index.
vii
The Composite Index reflects the blended rate of return of the following underlying and unmanaged indices: 60% the Bloomberg U.S. Corporate High Yield—2% Issuer Cap Index B Component and 40% the Bloomberg U.S. Corporate High Yield—2% Issuer Cap Index Caa Component.
Important data provider notices and terms available at www.franklintempletondatasources.com.
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

7

Fund at a glance(unaudited)
Investment breakdown (%) as a percent of total investments
The bar graph above represents the composition of the Fund’s investments as of May 31, 2024 and May 31, 2023 and does not include derivatives, such as forward foreign currency contracts. The Fund is actively managed. As a result, the composition of the Fund’s investments is subject to change at any time.

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Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

Fund performance (unaudited)
Net Asset Value
Average annual total returns1
Twelve Months Ended 5/31/24
8.91
%
Five Years Ended 5/31/24
2.34
Ten Years Ended 5/31/24
2.85
Cumulative total returns1
5/31/14 through 5/31/24
32.42
%
Market Price
Average annual total returns2
Twelve Months Ended 5/31/24
10.24
%
Five Years Ended 5/31/24
3.73
Ten Years Ended 5/31/24
3.91
Cumulative total returns2
5/31/14 through 5/31/24
46.70
%
All figures represent past performance and are not a guarantee of future results. Returns reflect the deduction of all Fund expenses, including management fees, operating expenses, and other Fund expenses. Returns do not reflect the deduction of brokerage commissions or taxes that investors may pay on distributions or the sale of shares.
1
Assumes the reinvestment of all distributions, including returns of capital, if any, at net asset value.
2
Assumes the reinvestment of all distributions, including returns of capital, if any, in additional shares in
accordance with the Fund’s Dividend Reinvestment Plan.
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

9

Fund performance (unaudited) (cont’d)
Historical performance
Value of $10,000 invested in
Western Asset High Yield Defined Opportunity Fund Inc. vs. Benchmark Indices† — May 2014 - May 2024
All figures represent past performance and are not a guarantee of future results. Returns reflect the deduction of all Fund expenses, including management fees, operating expenses, and other Fund expenses. Returns do not reflect the deduction of brokerage commissions or taxes that investors may pay on distributions or the sale of shares.
Hypothetical illustration of $10,000 invested in Western Asset High Yield Defined Opportunity Fund Inc. on May 31, 2014, assuming the reinvestment of all distributions, including returns of capital, if any, at net asset value and also assuming the reinvestment of all distributions, including returns of capital, if any, in additional shares in accordance with the Fund’s Dividend Reinvestment Plan through May 31, 2024. The hypothetical illustration also assumes a $10,000 investment in the Bloomberg U.S. Corporate High Yield — 2% Issuer Cap Index B Component, the Bloomberg U.S. Corporate High Yield — 2% Issuer Cap Index Caa Component and the Composite Index (each an Index and together, the “Indices”). The Bloomberg Corporate U.S. High Yield — 2% Issuer Cap Index B Component is an index of the 2% Issuer Cap component of the broader Bloomberg U.S. Corporate High Yield Index and is comprised of B-rated securities included in this index. The Bloomberg U.S. Corporate High Yield — 2% Issuer Cap Index Caa Component is an index of the 2% Issuer Cap component of the broader Bloomberg U.S. Corporate High Yield Index and is comprised of Caa-rated securities included in this index. The Composite Index reflects the blended rate of return of the following underlying indices: 60% Bloomberg U.S. Corporate High Yield — 2% Issuer Cap Index B Component and 40% Bloomberg U.S. Corporate High Yield — 2% Issuer Cap Index Caa Component. The Indices are unmanaged. Please note that an investor cannot invest directly in an index.

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Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

Schedule of investments
May 31, 2024
 Western Asset High Yield Defined Opportunity Fund Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
Corporate Bonds & Notes — 85.7%
Communication Services — 10.6%
Diversified Telecommunication Services — 2.2%
Altice Financing SA, Senior Secured Notes
5.000%
1/15/28
1,280,000
$1,012,478
  (a)
Altice Financing SA, Senior Secured Notes
5.750%
8/15/29
3,150,000
2,344,388
  (a)
Altice France Holding SA, Senior Secured
Notes
10.500%
5/15/27
2,550,000
945,954
  (a)
Altice France Holding SA, Senior Secured
Notes
6.000%
2/15/28
2,130,000
665,066
  (a)
Altice France SA, Senior Secured Notes
5.125%
7/15/29
1,380,000
928,122
  (a)
Altice France SA, Senior Secured Notes
5.500%
10/15/29
290,000
195,106
  (a)
Total Diversified Telecommunication Services
6,091,114
Entertainment — 0.9%
Allen Media LLC/Allen Media
Co-Issuer Inc., Senior Notes
10.500%
2/15/28
990,000
449,487
  (a)
Banijay Entertainment SASU, Senior
Secured Notes
8.125%
5/1/29
1,970,000
2,015,396
  (a)
Total Entertainment
2,464,883
Media — 3.2%
CCO Holdings LLC/CCO Holdings Capital
Corp., Senior Notes
4.250%
1/15/34
430,000
320,733
  (a)
Charter Communications Operating LLC/
Charter Communications Operating Capital
Corp., Senior Secured Notes
3.850%
4/1/61
1,500,000
883,931
  
Clear Channel Outdoor Holdings Inc., Senior
Notes
7.750%
4/15/28
720,000
621,744
  (a)
Clear Channel Outdoor Holdings Inc., Senior
Notes
7.500%
6/1/29
1,440,000
1,183,681
  (a)
DISH DBS Corp., Senior Notes
5.875%
11/15/24
1,307,000
1,245,813
  
DISH DBS Corp., Senior Notes
7.375%
7/1/28
2,820,000
1,254,557
  
DISH DBS Corp., Senior Notes
5.125%
6/1/29
3,400,000
1,357,233
  
iHeartCommunications Inc., Senior Secured
Notes
6.375%
5/1/26
550,000
421,455
  
Sirius XM Radio Inc., Senior Notes
3.875%
9/1/31
500,000
399,672
  (a)
Univision Communications Inc., Senior
Secured Notes
6.625%
6/1/27
1,000,000
966,970
  (a)
Total Media
8,655,789
Wireless Telecommunication Services — 4.3%
CSC Holdings LLC, Senior Notes
11.250%
5/15/28
1,200,000
969,480
  (a)
CSC Holdings LLC, Senior Notes
11.750%
1/31/29
1,110,000
882,820
  (a)
CSC Holdings LLC, Senior Notes
4.125%
12/1/30
2,300,000
1,420,615
  (a)
See Notes to Financial Statements.
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

11

Schedule of investments (cont’d)
May 31, 2024
 Western Asset High Yield Defined Opportunity Fund Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
Wireless Telecommunication Services — continued
CSC Holdings LLC, Senior Notes
4.625%
12/1/30
1,610,000
$678,613
  (a)
CSC Holdings LLC, Senior Notes
3.375%
2/15/31
600,000
351,999
  (a)
CSC Holdings LLC, Senior Notes
4.500%
11/15/31
2,870,000
1,758,408
  (a)
Sprint Capital Corp., Senior Notes
6.875%
11/15/28
4,288,000
4,531,550
  
Sprint Capital Corp., Senior Notes
8.750%
3/15/32
130,000
155,484
  
Sprint LLC, Senior Notes
7.625%
3/1/26
530,000
544,372
  
Vmed O2 UK Financing I PLC, Senior
Secured Notes
4.750%
7/15/31
540,000
448,680
  (a)
Total Wireless Telecommunication Services
11,742,021
 
Total Communication Services
28,953,807
Consumer Discretionary — 22.9%
Automobile Components — 4.6%
Adient Global Holdings Ltd., Senior Notes
4.875%
8/15/26
3,780,000
3,671,945
  (a)
American Axle & Manufacturing Inc.,
Senior Notes
6.500%
4/1/27
2,430,000
2,418,732
  
American Axle & Manufacturing Inc.,
Senior Notes
5.000%
10/1/29
500,000
455,818
  
Dornoch Debt Merger Sub Inc., Senior
Notes
6.625%
10/15/29
1,560,000
1,349,506
  (a)
Garrett Motion Holdings Inc./Garrett LX I
Sarl, Senior Notes
7.750%
5/31/32
390,000
392,896
  (a)
JB Poindexter & Co. Inc., Senior Notes
8.750%
12/15/31
3,130,000
3,209,781
  (a)
ZF North America Capital Inc., Senior Notes
6.875%
4/14/28
590,000
600,775
  (a)
ZF North America Capital Inc., Senior Notes
7.125%
4/14/30
580,000
598,767
  (a)
Total Automobile Components
12,698,220
Automobiles — 1.3%
Ford Motor Co., Senior Notes
3.250%
2/12/32
410,000
337,204
  
Mclaren Finance PLC, Senior Secured Notes
7.500%
8/1/26
1,500,000
1,308,000
  (a)
PM General Purchaser LLC, Senior Secured
Notes
9.500%
10/1/28
1,840,000
1,870,624
  (a)
Total Automobiles
3,515,828
Broadline Retail — 0.2%
Marks & Spencer PLC, Senior Notes
7.125%
12/1/37
570,000
601,964
  (a)
Distributors — 0.5%
Ritchie Bros Holdings Inc., Senior Notes
7.750%
3/15/31
1,230,000
1,285,409
  (a)
Diversified Consumer Services — 1.5%
APCOA Parking Holdings GmbH, Senior
Secured Notes
4.625%
1/15/27
520,000
EUR
551,620
  (b)
APCOA Parking Holdings GmbH, Senior
Secured Notes
4.625%
1/15/27
1,400,000
EUR
1,485,131
  (a)
See Notes to Financial Statements.

12
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

 Western Asset High Yield Defined Opportunity Fund Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
 
Diversified Consumer Services — continued
Carriage Services Inc., Senior Notes
4.250%
5/15/29
550,000
$488,149
  (a)
Service Corp. International, Senior Notes
7.500%
4/1/27
1,030,000
1,065,029
  
WW International Inc., Senior Secured
Notes
4.500%
4/15/29
1,250,000
526,500
  (a)
Total Diversified Consumer Services
4,116,429
Hotels, Restaurants & Leisure — 13.4%
888 Acquisitions Ltd., Senior Secured Notes
7.558%
7/15/27
2,000,000
EUR
2,154,560
  (a)
Caesars Entertainment Inc., Senior Notes
8.125%
7/1/27
1,500,000
1,530,175
  (a)
Carnival Corp., Senior Notes
7.625%
3/1/26
960,000
965,805
  (a)
Carnival Holdings Bermuda Ltd., Senior
Notes
10.375%
5/1/28
1,650,000
1,787,386
  (a)
Carnival PLC, Senior Notes
1.000%
10/28/29
2,410,000
EUR
2,116,761
  
Carrols Restaurant Group Inc., Senior Notes
5.875%
7/1/29
1,494,000
1,543,897
  (a)
Full House Resorts Inc., Senior Secured
Notes
8.250%
2/15/28
2,170,000
2,053,855
  (a)
Hilton Domestic Operating Co. Inc., Senior
Notes
3.625%
2/15/32
1,250,000
1,060,900
  (a)
IRB Holding Corp., Senior Secured Notes
7.000%
6/15/25
620,000
620,569
  (a)
Las Vegas Sands Corp., Senior Notes
3.200%
8/8/24
750,000
748,594
  
Light & Wonder International Inc., Senior
Notes
7.000%
5/15/28
1,000,000
1,006,389
  (a)
Melco Resorts Finance Ltd., Senior Notes
5.375%
12/4/29
670,000
604,429
  (a)
NCL Corp. Ltd., Senior Notes
3.625%
12/15/24
2,500,000
2,467,767
  (a)
NCL Corp. Ltd., Senior Notes
5.875%
3/15/26
811,000
797,908
  (a)
NCL Corp. Ltd., Senior Notes
7.750%
2/15/29
1,729,000
1,778,053
  (a)
NCL Corp. Ltd., Senior Secured Notes
8.125%
1/15/29
690,000
721,379
  (a)
NCL Finance Ltd., Senior Notes
6.125%
3/15/28
2,020,000
1,978,925
  (a)
Pinnacle Bidco PLC, Senior Secured Notes
10.000%
10/11/28
900,000
GBP
1,219,241
  (a)
Royal Caribbean Cruises Ltd., Senior Notes
5.375%
7/15/27
1,220,000
1,196,098
  (a)
Royal Caribbean Cruises Ltd., Senior Notes
5.500%
4/1/28
993,000
970,696
  (a)
Saga PLC, Senior Notes
5.500%
7/15/26
350,000
GBP
422,127
  (b)
Sands China Ltd., Senior Notes
4.625%
6/18/30
790,000
730,940
  
Sizzling Platter LLC/Sizzling Platter Finance
Corp., Senior Secured Notes
8.500%
11/28/25
800,000
807,009
  (a)
Viking Cruises Ltd., Senior Notes
9.125%
7/15/31
1,720,000
1,854,122
  (a)
Viking Ocean Cruises Ship VII Ltd., Senior
Secured Notes
5.625%
2/15/29
450,000
431,872
  (a)
Wheel Bidco Ltd., Senior Secured Notes
6.750%
7/15/26
890,000
GBP
972,476
  (a)
Wynn Macau Ltd., Senior Notes
5.625%
8/26/28
880,000
822,995
  (a)
See Notes to Financial Statements.
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

13

Schedule of investments (cont’d)
May 31, 2024
 Western Asset High Yield Defined Opportunity Fund Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
 
Hotels, Restaurants & Leisure — continued
Wynn Macau Ltd., Senior Notes
5.125%
12/15/29
2,020,000
$1,815,679
  (a)
Wynn Resorts Finance LLC/Wynn Resorts
Capital Corp., Senior Notes
7.125%
2/15/31
1,500,000
1,541,116
  (a)
Total Hotels, Restaurants & Leisure
36,721,723
Specialty Retail — 1.4%
Global Auto Holdings Ltd./AAG FH UK Ltd.,
Senior Notes
8.750%
1/15/32
450,000
433,130
  (a)
Michaels Cos. Inc., Senior Secured Notes
5.250%
5/1/28
2,130,000
1,729,846
  (a)
NMG Holding Co. Inc./Neiman Marcus
Group LLC, Senior Secured Notes
7.125%
4/1/26
490,000
487,640
  (a)
Sally Holdings LLC/Sally Capital Inc., Senior
Notes
6.750%
3/1/32
1,110,000
1,090,028
  
Total Specialty Retail
3,740,644
 
Total Consumer Discretionary
62,680,217
Consumer Staples — 0.3%
Food Products — 0.3%
FAGE International SA/FAGE USA Dairy
Industry Inc., Senior Notes
5.625%
8/15/26
700,000
697,082
  (a)
 
Energy — 13.1%
Energy Equipment & Services — 0.5%
Noble Finance II LLC, Senior Notes
8.000%
4/15/30
570,000
588,380
  (a)
Sunnova Energy Corp., Senior Notes
5.875%
9/1/26
1,000,000
710,595
  (a)
Total Energy Equipment & Services
1,298,975
Oil, Gas & Consumable Fuels — 12.6%
Apache Corp., Senior Notes
5.100%
9/1/40
760,000
653,861
  
Berry Petroleum Co. LLC, Senior Notes
7.000%
2/15/26
900,000
887,046
  (a)
Continental Resources Inc., Senior Notes
3.800%
6/1/24
180,000
180,000
  
Continental Resources Inc., Senior Notes
4.375%
1/15/28
130,000
124,922
  
Continental Resources Inc., Senior Notes
4.900%
6/1/44
550,000
455,067
  
Crescent Energy Finance LLC, Senior Notes
9.250%
2/15/28
460,000
487,302
  (a)
Crescent Energy Finance LLC, Senior Notes
7.625%
4/1/32
530,000
540,507
  (a)
Ecopetrol SA, Senior Notes
5.875%
5/28/45
2,560,000
1,840,228
  
Ecopetrol SA, Senior Notes
5.875%
11/2/51
1,500,000
1,039,731
  
Energy Transfer LP, Junior Subordinated
Notes (6.625% to 2/15/28 then 3 mo. USD
LIBOR + 4.155%)
6.625%
2/15/28
950,000
897,231
  (c)(d)
EQM Midstream Partners LP, Senior Notes
4.500%
1/15/29
520,000
484,984
  (a)
EQM Midstream Partners LP, Senior Notes
7.500%
6/1/30
530,000
560,131
  (a)
EQM Midstream Partners LP, Senior Notes
4.750%
1/15/31
110,000
101,083
  (a)
See Notes to Financial Statements.

14
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

 Western Asset High Yield Defined Opportunity Fund Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
 
Oil, Gas & Consumable Fuels — continued
EQT Corp., Senior Notes
3.900%
10/1/27
740,000
$706,134
  
Hilcorp Energy I LP/Hilcorp Finance Co.,
Senior Notes
8.375%
11/1/33
800,000
856,359
  (a)
Kinder Morgan Inc., Senior Notes
7.750%
1/15/32
810,000
910,538
  
MEG Energy Corp., Senior Notes
7.125%
2/1/27
342,000
347,327
  (a)
NGPL PipeCo LLC, Senior Notes
7.768%
12/15/37
790,000
904,346
  (a)
Northern Oil & Gas Inc., Senior Notes
8.125%
3/1/28
760,000
773,277
  (a)
Occidental Petroleum Corp., Senior Notes
6.950%
7/1/24
196,000
196,051
  
Occidental Petroleum Corp., Senior Notes
2.900%
8/15/24
690,000
687,078
  
Occidental Petroleum Corp., Senior Notes
5.875%
9/1/25
530,000
530,218
  
Occidental Petroleum Corp., Senior Notes
5.550%
3/15/26
440,000
439,716
  
Occidental Petroleum Corp., Senior Notes
6.200%
3/15/40
540,000
544,533
  
Pan American Energy LLC, Senior Notes
8.500%
4/30/32
750,000
781,571
  (a)
Petrobras Global Finance BV, Senior Notes
6.750%
1/27/41
4,140,000
3,989,661
  
Petroleos del Peru SA, Senior Notes
4.750%
6/19/32
1,000,000
725,638
  (a)
Puma International Financing SA, Senior
Notes
7.750%
4/25/29
460,000
467,719
  (a)
Range Resources Corp., Senior Notes
4.875%
5/15/25
420,000
416,651
  
Range Resources Corp., Senior Notes
8.250%
1/15/29
440,000
458,400
  
Rockies Express Pipeline LLC, Senior Notes
7.500%
7/15/38
570,000
581,228
  (a)
Rockies Express Pipeline LLC, Senior Notes
6.875%
4/15/40
590,000
561,152
  (a)
SilverBow Resources Inc., Secured Notes (3
mo. Term SOFR + 7.750%)
13.079%
12/15/28
690,000
693,544
  (a)(d)
Summit Midstream Holdings LLC/Summit
Midstream Finance Corp., Secured Notes
9.500%
10/15/26
990,000
1,016,357
  (a)
Targa Resources Partners LP/Targa
Resources Partners Finance Corp., Senior
Notes
6.500%
7/15/27
560,000
563,721
  
Venture Global LNG Inc., Senior Secured
Notes
9.875%
2/1/32
700,000
751,044
  (a)
Vital Energy Inc., Senior Notes
7.875%
4/15/32
730,000
741,706
  (a)
Western Midstream Operating LP, Senior
Notes
4.050%
2/1/30
180,000
166,856
  
Western Midstream Operating LP, Senior
Notes
5.300%
3/1/48
540,000
464,455
  
Western Midstream Operating LP, Senior
Notes
5.250%
2/1/50
3,840,000
3,337,483
  
Williams Cos. Inc., Senior Notes
4.550%
6/24/24
530,000
529,527
  
Williams Cos. Inc., Senior Notes
7.500%
1/15/31
330,000
363,743
  
See Notes to Financial Statements.
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

15

Schedule of investments (cont’d)
May 31, 2024
 Western Asset High Yield Defined Opportunity Fund Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
 
Oil, Gas & Consumable Fuels — continued
Williams Cos. Inc., Senior Notes
5.750%
6/24/44
1,620,000
$1,592,306
  
YPF SA, Senior Notes
8.500%
7/28/25
1,150,000
1,135,451
  (a)
Total Oil, Gas & Consumable Fuels
34,485,883
 
Total Energy
35,784,858
Financials — 9.6%
Banks — 6.3%
Banco Mercantil del Norte SA, Junior
Subordinated Notes (6.625% to 1/24/32
then 10 year Treasury Constant Maturity
Rate + 5.034%)
6.625%
1/24/32
2,140,000
1,923,715
  (a)(c)(d)
Barclays PLC, Junior Subordinated Notes
(8.000% to 6/15/24 then 5 year Treasury
Constant Maturity Rate + 5.672%)
8.000%
6/15/24
1,900,000
1,903,234
  (c)(d)
BBVA Bancomer SA, Subordinated Notes
(5.125% to 1/17/28 then 5 year Treasury
Constant Maturity Rate + 2.650%)
5.125%
1/18/33
800,000
737,241
  (a)(d)
BNP Paribas SA, Junior Subordinated Notes
(7.750% to 8/16/29 then 5 year Treasury
Constant Maturity Rate + 4.899%)
7.750%
8/16/29
810,000
830,950
  (a)(c)(d)
Citigroup Inc., Junior Subordinated Notes (3
mo. Term SOFR + 3.685%)
9.007%
8/15/24
1,470,000
1,476,314
  (c)(d)
Comerica Bank, Senior Notes
2.500%
7/23/24
360,000
358,245
  
Credit Agricole SA, Junior Subordinated
Notes (8.125% to 12/23/25 then USD 5
year ICE Swap Rate + 6.185%)
8.125%
12/23/25
1,330,000
1,359,063
  (a)(c)(d)
HSBC Holdings PLC, Subordinated Notes
(8.113% to 11/3/32 then SOFR + 4.250%)
8.113%
11/3/33
990,000
1,122,761
  (d)
Intesa Sanpaolo SpA, Subordinated Notes
5.017%
6/26/24
2,100,000
2,097,325
  (a)
Intesa Sanpaolo SpA, Subordinated Notes
5.710%
1/15/26
1,840,000
1,822,982
  (a)
Lloyds Banking Group PLC, Junior
Subordinated Notes (7.500% to 9/27/25
then USD 5 year ICE Swap Rate + 4.496%)
7.500%
9/27/25
440,000
439,211
  (c)(d)
Lloyds Banking Group PLC, Junior
Subordinated Notes (8.000% to 3/27/30
then 5 year Treasury Constant Maturity
Rate + 3.913%)
8.000%
9/27/29
2,030,000
2,052,799
  (c)(d)
UniCredit SpA, Subordinated Notes
(7.296% to 4/2/29 then USD 5 year ICE
Swap Rate + 4.914%)
7.296%
4/2/34
1,200,000
1,234,254
  (a)(d)
Total Banks
17,358,094
See Notes to Financial Statements.

16
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

 Western Asset High Yield Defined Opportunity Fund Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
 
Capital Markets — 0.9%
Credit Suisse AG AT1 Claim
6,220,000
$186,600
  *(e)(f)
StoneX Group Inc., Senior Secured Notes
7.875%
3/1/31
370,000
378,943
  (a)
UBS Group AG, Junior Subordinated Notes
(6.875% to 8/7/25 then USD 5 year ICE
Swap Rate + 4.590%)
6.875%
8/7/25
1,290,000
1,280,084
  (b)(c)(d)
UBS Group AG, Junior Subordinated Notes
(9.250% to 11/13/28 then 5 year Treasury
Constant Maturity Rate + 4.745%)
9.250%
11/13/28
540,000
577,896
  (a)(c)(d)
Total Capital Markets
2,423,523
Consumer Finance — 0.5%
Navient Corp., Senior Notes
5.875%
10/25/24
590,000
589,299
  
Navient Corp., Senior Notes
6.750%
6/15/26
700,000
699,211
  
Total Consumer Finance
1,288,510
Financial Services — 1.7%
Boost Newco Borrower LLC, Senior Secured
Notes
7.500%
1/15/31
380,000
394,125
  (a)
Boost Newco Borrower LLC/GTCR W Dutch
Finance Sub BV, Senior Secured Notes
8.500%
1/15/31
110,000
GBP
150,848
  (a)
Global Aircraft Leasing Co. Ltd., Senior
Notes (6.500% Cash or 7.250% PIK)
6.500%
9/15/24
1,745,166
1,661,659
  (a)(g)
Jane Street Group/JSG Finance Inc., Senior
Secured Notes
7.125%
4/30/31
1,130,000
1,151,169
  (a)
VistaJet Malta Finance PLC/Vista
Management Holding Inc., Senior Notes
7.875%
5/1/27
1,000,000
906,288
  (a)
VistaJet Malta Finance PLC/Vista
Management Holding Inc., Senior Notes
6.375%
2/1/30
610,000
490,283
  (a)
Total Financial Services
4,754,372
Mortgage Real Estate Investment Trusts (REITs) — 0.2%
Starwood Property Trust Inc., Senior Notes
7.250%
4/1/29
540,000
537,708
  (a)
 
Total Financials
26,362,207
Health Care — 6.6%
Health Care Providers & Services — 4.3%
CHS/Community Health Systems Inc.,
Senior Secured Notes
6.000%
1/15/29
500,000
448,193
  (a)
CHS/Community Health Systems Inc.,
Senior Secured Notes
4.750%
2/15/31
3,120,000
2,465,954
  (a)
CHS/Community Health Systems Inc.,
Senior Secured Notes
10.875%
1/15/32
1,790,000
1,851,744
  (a)(h)
HCA Inc., Senior Notes
7.500%
11/15/95
1,000,000
1,102,507
  
See Notes to Financial Statements.
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

17

Schedule of investments (cont’d)
May 31, 2024
 Western Asset High Yield Defined Opportunity Fund Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
 
Health Care Providers & Services — continued
Legacy LifePoint Health LLC, Senior
Secured Notes
4.375%
2/15/27
530,000
$500,940
  (a)
LifePoint Health Inc., Senior Secured Notes
11.000%
10/15/30
1,000,000
1,102,895
  (a)
Sotera Health Holdings LLC, Senior Secured
Notes
7.375%
6/1/31
690,000
684,917
  (a)
Tenet Healthcare Corp., Secured Notes
6.250%
2/1/27
500,000
501,151
  
Tenet Healthcare Corp., Senior Notes
6.125%
10/1/28
2,780,000
2,756,185
  
Tenet Healthcare Corp., Senior Notes
6.875%
11/15/31
250,000
261,552
  
U.S. Renal Care Inc., Senior Secured Notes
10.625%
6/28/28
161,000
142,888
  (a)
Total Health Care Providers & Services
11,818,926
Pharmaceuticals — 2.3%
Bausch Health Cos. Inc., Senior Secured
Notes
4.875%
6/1/28
990,000
726,234
  (a)
Cidron Aida Finco Sarl, Senior Secured
Notes
5.000%
4/1/28
1,540,000
EUR
1,607,278
  (a)
Endo Finance Holdings Inc., Senior Secured
Notes
8.500%
4/15/31
700,000
718,388
  (a)
Par Pharmaceutical Inc., Escrow
300,000
0
  *(a)(e)(f)(i)
Teva Pharmaceutical Finance Netherlands
III BV, Senior Notes
3.150%
10/1/26
530,000
496,232
  
Teva Pharmaceutical Finance Netherlands
III BV, Senior Notes
5.125%
5/9/29
1,610,000
1,541,304
  
Teva Pharmaceutical Finance Netherlands
III BV, Senior Notes
4.100%
10/1/46
1,570,000
1,060,984
  
Total Pharmaceuticals
6,150,420
 
Total Health Care
17,969,346
Industrials — 10.2%
Aerospace & Defense — 1.5%
Bombardier Inc., Senior Notes
7.500%
2/1/29
290,000
300,245
  (a)
Bombardier Inc., Senior Notes
7.250%
7/1/31
2,480,000
2,534,830
  (a)
TransDigm Inc., Senior Secured Notes
7.125%
12/1/31
1,340,000
1,376,135
  (a)
Total Aerospace & Defense
4,211,210
Commercial Services & Supplies — 2.6%
Allied Universal Holdco LLC/Allied
Universal Finance Corp., Senior Secured
Notes
6.625%
7/15/26
80,000
80,019
  (a)
CoreCivic Inc., Senior Notes
4.750%
10/15/27
1,410,000
1,327,724
  
CoreCivic Inc., Senior Notes
8.250%
4/15/29
1,650,000
1,724,282
  
Garda World Security Corp., Senior Notes
9.500%
11/1/27
776,000
777,250
  (a)
GEO Group Inc., Senior Notes
10.250%
4/15/31
670,000
705,535
  (a)
See Notes to Financial Statements.

18
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

 Western Asset High Yield Defined Opportunity Fund Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
 
Commercial Services & Supplies — continued
GEO Group Inc., Senior Secured Notes
8.625%
4/15/29
490,000
$504,710
  (a)
GFL Environmental Inc., Senior Secured
Notes
6.750%
1/15/31
910,000
929,353
  (a)
Madison IAQ LLC, Senior Notes
5.875%
6/30/29
1,000,000
927,713
  (a)
Total Commercial Services & Supplies
6,976,586
Construction & Engineering — 0.8%
Brundage-Bone Concrete Pumping
Holdings Inc., Secured Notes
6.000%
2/1/26
530,000
523,857
  (a)
Tutor Perini Corp., Senior Notes
11.875%
4/30/29
1,500,000
1,603,008
  (a)
Total Construction & Engineering
2,126,865
Machinery — 0.8%
Titan International Inc., Senior Secured
Notes
7.000%
4/30/28
1,040,000
1,007,740
  
TK Elevator Holdco GmbH, Senior Notes
6.625%
7/15/28
990,000
EUR
1,037,826
  (a)
Total Machinery
2,045,566
Passenger Airlines — 4.0%
American Airlines Group Inc., Senior Notes
3.750%
3/1/25
3,290,000
3,219,092
  (a)
American Airlines Inc., Senior Secured
Notes
8.500%
5/15/29
1,540,000
1,589,360
  (a)
Delta Air Lines Inc., Senior Notes
2.900%
10/28/24
460,000
455,131
  
Delta Air Lines Inc., Senior Notes
7.375%
1/15/26
370,000
378,664
  
Delta Air Lines Inc., Senior Secured Notes
7.000%
5/1/25
3,220,000
3,250,741
  (a)
Spirit Loyalty Cayman Ltd./Spirit IP Cayman
Ltd., Senior Secured Notes
8.000%
9/20/25
1,836,000
1,380,012
  (a)
Spirit Loyalty Cayman Ltd./Spirit IP Cayman
Ltd., Senior Secured Notes
8.000%
9/20/25
1,010,000
759,157
  (a)
Total Passenger Airlines
11,032,157
Trading Companies & Distributors — 0.5%
H&E Equipment Services Inc., Senior Notes
3.875%
12/15/28
650,000
583,493
  (a)
United Rentals North America Inc., Senior
Notes
5.500%
5/15/27
327,000
324,043
  
United Rentals North America Inc., Senior
Notes
4.875%
1/15/28
610,000
587,757
  
Total Trading Companies & Distributors
1,495,293
 
Total Industrials
27,887,677
Information Technology — 4.1%
Communications Equipment — 1.2%
CommScope Inc., Senior Secured Notes
4.750%
9/1/29
600,000
433,500
  (a)
See Notes to Financial Statements.
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

19

Schedule of investments (cont’d)
May 31, 2024
 Western Asset High Yield Defined Opportunity Fund Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
 
Communications Equipment — continued
CommScope Technologies LLC, Senior
Notes
5.000%
3/15/27
3,170,000
$1,307,625
  (a)
Viasat Inc., Senior Notes
7.500%
5/30/31
2,150,000
1,467,713
  (a)
Total Communications Equipment
3,208,838
Electronic Equipment, Instruments & Components — 0.1%
EquipmentShare.com Inc., Secured Notes
8.625%
5/15/32
320,000
331,782
  (a)
Semiconductors & Semiconductor Equipment — 0.3%
Amkor Technology Inc., Senior Notes
6.625%
9/15/27
1,000,000
1,000,566
  (a)
Software — 1.3%
Cloud Software Group Inc., Senior Secured
Notes
8.250%
6/30/32
3,430,000
3,466,776
  (a)
Technology Hardware, Storage & Peripherals — 1.2%
Seagate HDD Cayman, Senior Notes
4.750%
1/1/25
2,350,000
2,331,423
  
Seagate HDD Cayman, Senior Notes
4.875%
6/1/27
210,000
204,051
  
Vericast Corp., Senior Secured Notes
11.000%
9/15/26
650,000
700,375
  (a)
Total Technology Hardware, Storage & Peripherals
3,235,849
 
Total Information Technology
11,243,811
Materials — 5.9%
Chemicals — 0.4%
Anagram Holdings LLC/Anagram
International Inc., Secured Notes
10.000%
8/15/26
611,256
12,209
  *(j)
Sasol Financing USA LLC, Senior Notes
8.750%
5/3/29
1,070,000
1,071,156
  (a)
Total Chemicals
1,083,365
Construction Materials — 0.5%
Smyrna Ready Mix Concrete LLC, Senior
Secured Notes
8.875%
11/15/31
1,240,000
1,306,673
  (a)
Containers & Packaging — 2.3%
ARD Finance SA, Senior Secured Notes
(6.500% Cash or 7.250% PIK)
6.500%
6/30/27
3,000,000
700,632
  (a)(g)
Ardagh Metal Packaging Finance USA LLC/
Ardagh Metal Packaging Finance PLC,
Senior Notes
4.000%
9/1/29
1,100,000
909,269
  (a)
Ardagh Packaging Finance PLC/Ardagh
Holdings USA Inc., Senior Notes
5.250%
8/15/27
2,255,000
1,327,180
  (a)
Ardagh Packaging Finance PLC/Ardagh
Holdings USA Inc., Senior Notes
5.250%
8/15/27
1,380,000
812,199
  (a)
Mauser Packaging Solutions Holding Co.,
Senior Secured Notes
7.875%
4/15/27
2,000,000
2,040,220
  (a)
Pactiv LLC, Senior Notes
8.375%
4/15/27
410,000
428,151
  
Total Containers & Packaging
6,217,651
See Notes to Financial Statements.

20
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

 Western Asset High Yield Defined Opportunity Fund Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
 
Metals & Mining — 2.7%
ArcelorMittal SA, Senior Notes
7.000%
10/15/39
2,020,000
$2,192,656
  
First Quantum Minerals Ltd., Secured Notes
9.375%
3/1/29
510,000
532,813
  (a)
Freeport-McMoRan Inc., Senior Notes
5.400%
11/14/34
280,000
273,333
  
Freeport-McMoRan Inc., Senior Notes
5.450%
3/15/43
1,120,000
1,055,052
  
Teck Resources Ltd., Senior Notes
6.000%
8/15/40
260,000
258,436
  
Vale Overseas Ltd., Senior Notes
6.875%
11/21/36
2,220,000
2,348,647
  
Vale Overseas Ltd., Senior Notes
6.875%
11/10/39
750,000
795,766
  
Total Metals & Mining
7,456,703
 
Total Materials
16,064,392
Real Estate — 1.7%
Health Care REITs — 0.1%
Diversified Healthcare Trust, Senior Notes
4.375%
3/1/31
346,000
250,372
  
Hotel & Resort REITs — 1.1%
Service Properties Trust, Senior Notes
4.500%
3/15/25
250,000
247,502
  
Service Properties Trust, Senior Notes
5.250%
2/15/26
500,000
481,296
  
Service Properties Trust, Senior Notes
8.875%
6/15/32
2,410,000
2,255,888
  (h)
Total Hotel & Resort REITs
2,984,686
Real Estate Management & Development — 0.2%
Add Hero Holdings Ltd., Senior Secured
Notes (7.500% Cash or 8.500% PIK)
8.500%
9/30/29
100,223
5,512
  (b)(g)
Add Hero Holdings Ltd., Senior Secured
Notes (8.000% Cash or 9.000% PIK)
9.000%
9/30/30
77,280
2,125
  (b)(g)
Add Hero Holdings Ltd., Senior Secured
Notes (8.800% Cash or 9.800% PIK)
9.800%
9/30/31
100,848
2,521
  (b)(g)
China Aoyuan Group Ltd., Senior Notes,
Step bond (0.000% to 9/30/31 then
1.000%)
0.000%
3/30/2173
152,810
1,528
  (b)
China Aoyuan Group Ltd., Senior Secured
Notes (5.500% PIK)
5.500%
9/30/31
39,251
295
  (b)(g)
Country Garden Holdings Co. Ltd., Senior
Secured Notes
1/27/24
1,750,000
150,938
  *(b)(k)
Cushman & Wakefield US Borrower LLC,
Senior Secured Notes
8.875%
9/1/31
290,000
305,107
  (a)
Total Real Estate Management & Development
468,026
Specialized REITs — 0.3%
Iron Mountain Inc., Senior Notes
7.000%
2/15/29
830,000
841,816
  (a)
 
Total Real Estate
4,544,900
See Notes to Financial Statements.
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

21

Schedule of investments (cont’d)
May 31, 2024
 Western Asset High Yield Defined Opportunity Fund Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
 
Utilities — 0.7%
Electric Utilities — 0.2%
Vistra Operations Co. LLC, Senior Notes
7.750%
10/15/31
650,000
$675,832
  (a)
Gas Utilities — 0.5%
Suburban Propane Partners LP/Suburban
Energy Finance Corp., Senior Notes
5.875%
3/1/27
1,390,000
1,369,717
  
 
Total Utilities
2,045,549
Total Corporate Bonds & Notes (Cost — $232,174,230)
234,233,846
Senior Loans — 6.9%
Communication Services — 0.6%
Media — 0.6%
iHeartCommunications Inc., New Term Loan
(1 mo. Term SOFR + 3.114%)
8.444%
5/1/26
2,020,000
1,596,921
  (d)(l)(m)
 
Consumer Discretionary — 1.7%
Automobile Components — 0.3%
First Brands Group LLC, 2022 Incremental
Term Loan (3 mo. Term SOFR + 5.262%)
10.591%
3/30/27
828,059
823,919
  (d)(l)(m)
Diversified Consumer Services — 0.3%
WW International Inc., Initial Term Loan (1
mo. Term SOFR + 3.614%)
8.944%
4/13/28
1,350,000
618,050
  (d)(l)(m)
Hotels, Restaurants & Leisure — 1.1%
Caesars Entertainment Inc., Incremental
Term Loan B1 (3 mo. Term SOFR + 2.750%)
8.097%
2/6/31
2,050,000
2,058,969
  (d)(l)(m)
Fertitta Entertainment LLC, Initial Term Loan
B (1 mo. Term SOFR + 3.750%)
9.071%
1/27/29
997,456
1,001,615
  (d)(l)(m)
Total Hotels, Restaurants & Leisure
3,060,584
 
Total Consumer Discretionary
4,502,553
Consumer Staples — 0.3%
Beverages — 0.3%
Triton Water Holdings Inc., First Lien Initial
Term Loan (3 mo. Term SOFR + 3.512%)
8.814%
3/31/28
797,949
797,721
  (d)(l)(m)
 
Financials — 0.5%
Banks — 0.2%
Mercury Borrower Inc., First Lien Initial
Term Loan (1 mo. Term SOFR + 3.614%)
8.944%
8/2/28
498,692
500,096
  (d)(l)(m)
Consumer Finance — 0.1%
Blackhawk Network Holdings Inc., Term
Loan B (1 mo. Term SOFR + 5.000%)
10.329%
3/12/29
350,000
351,881
  (d)(l)(m)
See Notes to Financial Statements.

22
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

 Western Asset High Yield Defined Opportunity Fund Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
 
Financial Services — 0.2%
Boost Newco Borrower LLC, Initial USD
Term Loan (3 mo. Term SOFR + 3.000%)
8.309%
1/31/31
600,000
$603,291
  (d)(l)(m)
 
Total Financials
1,455,268
Health Care — 1.0%
Health Care Equipment & Supplies — 1.0%
Medline Borrower LP, Term Loan B (1 mo.
Term SOFR + 2.750%)
8.079%
10/23/28
2,750,000
2,771,409
  (d)(l)(m)(n)
 
Industrials — 1.8%
Aerospace & Defense — 0.4%
Transdigm Inc., Term Loan J (3 mo. Term
SOFR + 3.250%)
8.559%
2/28/31
997,500
1,002,612
  (d)(l)(m)
Building Products — 0.2%
ACProducts Holdings Inc., Initial Term Loan
(3 mo. Term SOFR + 4.512%)
9.814%
5/17/28
498,718
424,604
  (d)(l)(m)
Commercial Services & Supplies — 0.7%
Allied Universal Holdco LLC, USD Term
Loan
5/12/28
2,000,000
2,002,510
  (n)
Machinery — 0.3%
TK Elevator Midco GmbH, USD Term Loan
Facility B2
4/30/30
798,000
804,276
  (n)
Passenger Airlines — 0.2%
United Airlines Inc., Term Loan B (1 mo.
Term SOFR + 2.750%)
8.071%
2/22/31
580,000
583,004
  (d)(l)(m)
 
Total Industrials
4,817,006
Information Technology — 0.7%
IT Services — 0.3%
Redstone Holdco 2 LP, First Lien Initial Term
Loan (1 mo. Term SOFR + 4.864%)
10.194%
4/27/28
1,100,000
957,781
  (d)(l)(m)
Software — 0.4%
DCert Buyer Inc., Second Lien Initial Term
Loan (1 mo. Term SOFR + 7.000%)
12.329%
2/19/29
500,000
455,835
  (d)(l)(m)
Modena Buyer LLC, Term Loan
4/18/31
560,000
548,915
  (n)
Total Software
1,004,750
 
Total Information Technology
1,962,531
Materials — 0.3%
Metals & Mining — 0.3%
Arctic Canadian Diamond Co. Ltd., Second
Lien Term Loan
10.000%
12/31/27
895,944
893,388
  (e)(f)(l)(m)
 
Total Senior Loans (Cost — $19,365,938)
18,796,797
See Notes to Financial Statements.
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

23

Schedule of investments (cont’d)
May 31, 2024
 Western Asset High Yield Defined Opportunity Fund Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
 
Sovereign Bonds — 4.4%
Angola — 0.4%
Angolan Government International Bond,
Senior Notes
8.000%
11/26/29
1,200,000
$1,091,250
  (a)
Argentina — 0.5%
Provincia de Buenos Aires, Senior Notes,
Step bond (6.375% to 9/1/24 then 6.625%)
6.375%
9/1/37
49,085
21,781
  (a)
Provincia de Cordoba, Senior Notes
6.990%
6/1/27
1,405,000
1,180,200
  (a)
Provincia de Cordoba, Senior Notes
6.875%
2/1/29
410,000
311,600
  (a)
Total Argentina
1,513,581
Bahamas — 0.5%
Bahamas Government International Bond,
Senior Notes
6.950%
11/20/29
1,500,000
1,347,957
  (a)
Dominican Republic — 0.8%
Dominican Republic International Bond,
Senior Notes
9.750%
6/5/26
25,000,000
DOP
427,124
  (b)
Dominican Republic International Bond,
Senior Notes
4.500%
1/30/30
230,000
209,845
  (a)
Dominican Republic International Bond,
Senior Notes
4.875%
9/23/32
1,170,000
1,050,530
  (a)
Dominican Republic International Bond,
Senior Notes
13.625%
2/3/33
21,000,000
DOP
423,705
  (b)
Total Dominican Republic
2,111,204
Jordan — 0.3%
Jordan Government International Bond,
Senior Notes
7.750%
1/15/28
750,000
759,756
  (a)
Mexico — 1.9%
Mexican Bonos, Bonds
7.750%
5/29/31
100,380,000
MXN
5,294,200
  
 
Total Sovereign Bonds (Cost — $10,915,328)
12,117,948
Convertible Bonds & Notes — 1.7%
Communication Services — 1.7%
Media — 1.7%
DISH Network Corp., Senior Notes
0.000%
12/15/25
4,740,000
3,628,550
  
DISH Network Corp., Senior Notes
3.375%
8/15/26
1,440,000
928,691
  
 
Total Communication Services
4,557,241
Real Estate — 0.0%††
Real Estate Management & Development — 0.0%††
China Aoyuan Group Ltd., Senior Notes
0.000%
9/30/28
13,656
173
  (b)
 
Total Convertible Bonds & Notes (Cost — $4,992,413)
4,557,414
See Notes to Financial Statements.

24
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

 Western Asset High Yield Defined Opportunity Fund Inc.
(Percentages shown based on Fund net assets)
Security
 
 
Shares
Value
Common Stocks — 0.1%
Health Care — 0.0%††
Pharmaceuticals — 0.0%††
Endo Inc.
1,739
$49,272
  *
Endo International PLC
58
1,643
  *
 
Total Health Care
50,915
Materials — 0.1%
Metals & Mining — 0.1%
Arctic Canadian Diamond Co. Ltd.
906
124,642
  *(e)(f)
 
Real Estate — 0.0%††
Real Estate Management & Development — 0.0%††
China Aoyuan Group Ltd.
38,203
840
  *
 
Total Common Stocks (Cost — $47,958)
176,397
  
 
 
 
Expiration
Date
Warrants
 
Warrants — 0.0%††
Industrials — 0.0%††
Passenger Airlines — 0.0%††
flyExclusive Inc. (Cost — $12,469)
5/28/28
13,023
7,683
  *
Total Investments before Short-Term Investments (Cost — $267,508,336)
269,890,085
 
 
Rate
Maturity
Date
Face
Amount†
 
Short-Term Investments — 2.3%
U.S. Treasury Bills — 1.4%
U.S. Treasury Bills
1.342%
6/4/24
1,750,000
1,749,745
  (o)
U.S. Treasury Bills
2.699%
6/6/24
2,000,000
1,999,127
  (o)
 
Total U.S. Treasury Bills (Cost — $3,747,778)
3,748,872
 
 
 
Shares
 
Money Market Funds — 0.9%
Western Asset Premier Institutional
Government Reserves, Premium Shares
(Cost — $2,543,966)
5.262%
2,543,966
2,543,966
  (p)(q)
 
Total Short-Term Investments (Cost — $6,291,744)
6,292,838
Total Investments — 101.1% (Cost — $273,800,080)
276,182,923
Liabilities in Excess of Other Assets — (1.1)%
(2,982,935
)
Total Net Assets — 100.0%
$273,199,988
See Notes to Financial Statements.
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

25

Schedule of investments (cont’d)
May 31, 2024
 Western Asset High Yield Defined Opportunity Fund Inc.
Face amount denominated in U.S. dollars, unless otherwise noted.
††
Represents less than 0.1%.
*
Non-income producing security.
(a)
Security is exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in
transactions that are exempt from registration, normally to qualified institutional buyers. This security has been
deemed liquid pursuant to guidelines approved by the Board of Directors.
(b)
Security is exempt from registration under Regulation S of the Securities Act of 1933. Regulation S applies to
securities offerings that are made outside of the United States and do not involve direct selling efforts in the
United States. This security has been deemed liquid pursuant to guidelines approved by the Board of Directors.
(c)
Security has no maturity date. The date shown represents the next call date.
(d)
Variable rate security. Interest rate disclosed is as of the most recent information available. Certain variable rate
securities are not based on a published reference rate and spread but are determined by the issuer or agent and
are based on current market conditions. These securities do not indicate a reference rate and spread in their
description above.
(e)
Security is fair valued in accordance with procedures approved by the Board of Directors(Note 1).
(f)
Security is valued using significant unobservable inputs(Note 1).
(g)
Payment-in-kind security for which the issuer has the option at each interest payment date of making interest
payments in cash or additional securities.
(h)
Securities traded on a when-issued or delayed delivery basis.
(i)
Value is less than $1.
(j)
The coupon payment on this security is currently in default as of May 31, 2024.
(k)
The maturity principal is currently in default as of May 31, 2024.
(l)
Interest rates disclosed represent the effective rates on senior loans. Ranges in interest rates are attributable to
multiple contracts under the same loan.
(m)
Senior loans may be considered restricted in that the Fund ordinarily is contractually obligated to receive approval
from the agent bank and/or borrower prior to the disposition of a senior loan.
(n)
All or a portion of this loan has not settled as of May 31, 2024. Interest rates are not effective until settlement
date. Interest rates shown, if any, are for the settled portion of the loan.
(o)
Rate shown represents yield-to-maturity.
(p)
Rate shown is one-day yield as of the end of the reporting period.
(q)
In this instance, as defined in the Investment Company Act of 1940, an Affiliated Company represents Fund
ownership of at least 5% of the outstanding voting securities of an issuer, or a company which is under common
ownership or control with the Fund. At May 31, 2024, the total market value of investments in Affiliated
Companies was $2,543,966 and the cost was $2,543,966 (Note 7).
Abbreviation(s) used in this schedule:
DOP
Dominican Peso
EUR
Euro
GBP
British Pound
ICE
Intercontinental Exchange
LIBOR
London Interbank Offered Rate
MXN
Mexican Peso
PIK
Payment-In-Kind
SOFR
Secured Overnight Financing Rate
USD
United States Dollar
See Notes to Financial Statements.

26
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

 Western Asset High Yield Defined Opportunity Fund Inc.
At May 31, 2024, the Fund had the following open forward foreign currency contracts:
Currency
Purchased
Currency
Sold
Counterparty
Settlement
Date
Unrealized
Appreciation
(Depreciation)
USD
6,198,208
EUR
5,800,263
Bank of America N.A.
7/19/24
$(109,520
)
GBP
1,124,800
USD
1,414,219
BNP Paribas SA
7/19/24
19,413
GBP
1,110,288
USD
1,405,388
Citibank N.A.
7/19/24
9,748
USD
3,759,982
GBP
2,997,153
Citibank N.A.
7/19/24
(60,087
)
USD
815,218
MXN
13,607,612
JPMorgan Chase & Co.
7/19/24
19,463
USD
1,870,205
MXN
31,080,000
JPMorgan Chase & Co.
7/19/24
52,690
Net unrealized depreciation on open forward foreign currency contracts
$(68,293
)
Abbreviation(s) used in this table:
EUR
Euro
GBP
British Pound
MXN
Mexican Peso
USD
United States Dollar
See Notes to Financial Statements.
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

27

Statement of assets and liabilities
May 31, 2024
Assets:
Investments in unaffiliated securities, at value (Cost — $271,256,114)
$273,638,957
Investments in affiliated securities, at value (Cost — $2,543,966)
2,543,966
Foreign currency, at value (Cost — $233,017)
189,454
Cash
465,323
Interest receivable
4,536,037
Receivable for securities sold
2,409,176
Unrealized appreciation on forward foreign currency contracts
101,314
Dividends receivable from affiliated investments
7,264
Prepaid expenses
7,464
Total Assets
283,898,955
Liabilities:
Payable for securities purchased
8,046,896
Distributions payable
2,152,755
Investment management fee payable
185,678
Unrealized depreciation on forward foreign currency contracts
169,607
Directors’ fees payable
10,692
Accrued expenses
133,339
Total Liabilities
10,698,967
Total Net Assets
$273,199,988
Net Assets:
Par value ($0.001 par value; 22,660,581 shares issued and outstanding; 100,000,000
common shares authorized)
$22,661
Paid-in capital in excess of par value
415,318,897
Total distributable earnings (loss)
(142,141,570
)
Total Net Assets
$273,199,988
Shares Outstanding
22,660,581
Net Asset Value
$12.06
See Notes to Financial Statements.

28
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

Statement of operations
For the Year Ended May 31, 2024
Investment Income:
Interest
$26,735,669
Dividends from affiliated investments
151,252
Less: Foreign taxes withheld
(14,215
)
Total Investment Income
26,872,706
Expenses:
Investment management fee(Note 2)
2,227,241
Directors’ fees
95,655
Legal fees
69,074
Transfer agent fees 
62,982
Fund accounting fees
61,691
Audit and tax fees
51,218
Shareholder reports
47,365
Stock exchange listing fees
12,483
Custody fees
4,375
Insurance
1,880
Interest expense
103
Miscellaneous expenses
10,431
Total Expenses
2,644,498
Less: Fee waivers and/or expense reimbursements (Note 2)
(2,471
)
Net Expenses
2,642,027
Net Investment Income
24,230,679
Realized and Unrealized Gain (Loss) on Investments, Forward Foreign Currency Contracts and
Foreign Currency Transactions (Notes 1, 3 and 4):
Net Realized Gain (Loss) From:
Investment transactions in unaffiliated securities
(17,399,485
)
Forward foreign currency contracts
242,017
Foreign currency transactions
6,161
Net Realized Loss
(17,151,307
)
Change in Net Unrealized Appreciation (Depreciation) From:
Investments in unaffiliated securities
16,843,663
Forward foreign currency contracts
(314,866
)
Foreign currencies
(29,825
)
Change in Net Unrealized Appreciation (Depreciation)
16,498,972
Net Loss on Investments, Forward Foreign Currency Contracts and Foreign Currency
Transactions
(652,335
)
Increase in Net Assets From Operations
$23,578,344
See Notes to Financial Statements.
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

29

Statements of changes in net assets
For the Years Ended May 31,
2024
2023
Operations:
Net investment income
$24,230,679
$24,167,461
Net realized loss
(17,151,307
)
(20,432,728
)
Change in net unrealized appreciation (depreciation)
16,498,972
(10,949,821
)
Increase (Decrease) in Net Assets From Operations
23,578,344
(7,215,088
)
Distributions to Shareholders From(Note 1):
Total distributable earnings
(22,541,586
)
(24,363,283
)
Return of capital
(3,257,486
)
(1,333,816
)
Decrease in Net Assets From Distributions to Shareholders
(25,799,072
)
(25,697,099
)
Decrease in Net Assets
(2,220,728
)
(32,912,187
)
Net Assets:
Beginning of year
275,420,716
308,332,903
End of year
$273,199,988
$275,420,716
See Notes to Financial Statements.

30
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

Financial highlights
For a share of capital stock outstanding throughout each year ended May 31:
 
20241
20231
20221
20211
20201
Net asset value, beginning of year
$12.15
$13.61
$15.89
$14.75
$16.04
Income (loss) from operations:
Net investment income
1.07
1.07
0.96
0.99
1.13
Net realized and unrealized gain (loss)
(0.02
)
(1.40
)
(2.11
)
1.28
(1.32
)
Total income (loss) from operations
1.05
(0.33)
(1.15)
2.27
(0.19)
Less distributions from:
Net investment income
(1.00
)
(1.07
)
(0.98
)
(0.94
)
(1.02
)
Return of capital
(0.14
)
(0.06
)
(0.15
)
(0.19
)
(0.08
)
Total distributions
(1.14
)
(1.13
)
(1.13
)
(1.13
)
(1.10
)
Anti-dilutive impact of repurchase plan
0.00
2,3
Net asset value, end of year
$12.06
$12.15
$13.61
$15.89
$14.75
Market price, end of year
$11.45
$11.44
$12.86
$15.48
$14.15
Total return, based on NAV4,5
8.91
%
(2.36
)%
(7.69
)%
15.83
%
(1.28
)%
Total return, based on Market Price6
10.24
%
(2.41
)%
(10.32
)%
17.99
%
5.48
%
Net assets, end of year (millions)
$273
$275
$308
$360
$334
Ratios to average net assets:
Gross expenses
0.95
%
0.95
%
0.92
%
0.93
%
0.91
%
Net expenses7,8
0.95
0.95
0.92
0.93
0.89
Net investment income
8.70
8.38
6.32
6.31
7.15
Portfolio turnover rate
46
%
62
%
55
%
48
%
64
%
1
Per share amounts have been calculated using the average shares method.
2
Amount represents less than $0.005 or greater than $(0.005) per share.
3
The repurchase plan was completed at an average repurchase price of $11.07 for 98,024 shares and $1,040,253 for
the year ended May 31, 2020.
4
Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements.
In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total
return would have been lower. Past performance is no guarantee of future results.
5
The total return calculation assumes that distributions are reinvested at NAV. Past performance is no guarantee of
future results.
6
The total return calculation assumes that distributions are reinvested in accordance with the Fund’s dividend
reinvestment plan. Past performance is no guarantee of future results. 
7
The manager has agreed to waive the Fund’s management fee to an extent sufficient to offset the net management
fee payable in connection with any investment in an affiliated money market fund.
8
Reflects fee waivers and/or expense reimbursements.
See Notes to Financial Statements.
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

31

Notes to financial statements
1. Organization and significant accounting policies
Western Asset High Yield Defined Opportunity Fund Inc. (the Fund) was incorporated in Maryland on July 20, 2010 and is registered as a non-diversified, limited-term, closed-end management investment company under the Investment Company Act of 1940, as amended (the 1940 Act). The Fund’s primary investment objective is to provide high income. As a secondary investment objective, the Fund will seek capital appreciation. The Fund seeks to achieve its investment objectives by investing, under normal market conditions, at least 80% of its net assets in a portfolio of high-yield corporate fixed income securities with varying maturities. Corporate securities include those securities that are issued or originated by U.S. or foreign public or private corporations and other business entities. The Fund intends to liquidate on or about September 30, 2025 and distribute substantially all of its net assets to stockholders, after making appropriate provisions for any liabilities of the Fund.
The Fund follows the accounting and reporting guidance in Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services – Investment Companies (ASC 946). The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”), including, but not limited to, ASC 946. Estimates and assumptions are required to be made regarding assets, liabilities and changes in net assets resulting from operations when financial statements are prepared. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ. Subsequent events have been evaluated through the date the financial statements were issued.
(a) Investment valuation.The valuations for fixed income securities (which may include, but are not limited to, corporate, government, municipal, mortgage-backed, collateralized mortgage obligations and asset-backed securities) and certain derivative instruments are typically the prices supplied by independent third party pricing services, which may use market prices or broker/dealer quotations or a variety of valuation techniques and methodologies. The independent third party pricing services typically use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Investments in open-end funds are valued at the closing net asset value per share of each fund on the day of valuation. Futures contracts are valued daily at the settlement price established by the board of trade or exchange on which they are traded. Equity securities for which market quotations are available are valued at the last reported sales price or official closing price on the primary market or exchange on which they trade. When the Fund holds securities or other assets that are denominated in a foreign currency, the Fund will normally use the currency exchange rates as of 4:00 p.m. (Eastern Time). If independent third party pricing services are unable to supply prices for a portfolio investment, or if the prices supplied are deemed by the manager to be unreliable, the market price may be determined by the manager using quotations from one or more broker/dealers or at the transaction price if the security has recently been purchased and no value has yet been obtained from a pricing service or pricing broker. When reliable prices are not readily available, such as when the value of a security has been significantly affected by events after the close of the exchange

32
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund values these securities as determined in accordance with procedures approved by the Fund’s Board of Directors.
Pursuant to policies adopted by the Board of Directors, the Fund’s manager has been designated as the valuation designee and is responsible for the oversight of the daily valuation process. The Fund’s manager is assisted by the Global Fund Valuation Committee (the Valuation Committee). The Valuation Committee is responsible for making fair value determinations, evaluating the effectiveness of the Fund’s pricing policies, and reporting to the Fund’s manager and the Board of Directors. When determining the reliability of third party pricing information for investments owned by the Fund, the Valuation Committee, among other things, conducts due diligence reviews of pricing vendors, monitors the daily change in prices and reviews transactions among market participants.
The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making fair value determinations. Examples of possible methodologies include, but are not limited to, multiple of earnings; discount from market of a similar freely traded security; discounted cash-flow analysis; book value or a multiple thereof; risk premium/yield analysis; yield to maturity; and/or fundamental investment analysis. The Valuation Committee will also consider factors it deems relevant and appropriate in light of the facts and circumstances. Examples of possible factors include, but are not limited to, the type of security; the issuer’s financial statements; the purchase price of the security; the discount from market value of unrestricted securities of the same class at the time of purchase; analysts’ research and observations from financial institutions; information regarding any transactions or offers with respect to the security; the existence of merger proposals or tender offers affecting the security; the price and extent of public trading in similar securities of the issuer or comparable companies; and the existence of a shelf registration for restricted securities.
For each portfolio security that has been fair valued pursuant to the policies adopted by the Board of Directors, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such back testing monthly and fair valuation occurrences are reported to the Board of Directors quarterly.
The Fund uses valuation techniques to measure fair value that are consistent with the market approach and/or income approach, depending on the type of security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable securities. The income approach uses valuation techniques to discount estimated future cash flows to present value.
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

33

Notes to financial statements (cont’d)
GAAP establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These inputs are summarized in the three broad levels listed below:
Level 1 — unadjusted quoted prices in active markets for identical investments
Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities carried at fair value:
ASSETS
Description
Quoted Prices
(Level 1)
Other Significant
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
Long-Term Investments†:
Corporate Bonds & Notes:
Financials
$26,175,607
$186,600
$26,362,207
Health Care
17,969,346
0
*
17,969,346
Other Corporate Bonds &
Notes
189,902,293
189,902,293
Senior Loans:
Materials
893,388
893,388
Other Senior Loans
17,903,409
17,903,409
Sovereign Bonds
12,117,948
12,117,948
Convertible Bonds & Notes
4,557,414
4,557,414
Common Stocks:
Health Care
50,915
50,915
Materials
124,642
124,642
Real Estate
$840
840
Warrants
7,683
7,683
Total Long-Term Investments
8,523
268,676,932
1,204,630
269,890,085
Short-Term Investments†:
U.S. Treasury Bills
3,748,872
3,748,872
Money Market Funds
2,543,966
2,543,966
Total Short-Term Investments
2,543,966
3,748,872
6,292,838
Total Investments
$2,552,489
$272,425,804
$1,204,630
$276,182,923
Other Financial Instruments:
Forward Foreign Currency
Contracts††
$101,314
$101,314
Total
$2,552,489
$272,527,118
$1,204,630
$276,284,237

34
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

LIABILITIES
Description
Quoted Prices
(Level 1)
Other Significant
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
Other Financial Instruments:
Forward Foreign Currency
Contracts††
$169,607
$169,607
See Schedule of Investments for additional detailed categorizations.
*
Amount represents less than $1.
††
Reflects the unrealized appreciation (depreciation) of the instruments.
(b) Forward foreign currency contracts.The Fund enters into a forward foreign currency contract to hedge against foreign currency exchange rate risk on its non-U.S. dollar denominated securities or to facilitate settlement of a foreign currency denominated portfolio transaction. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price with delivery and settlement at a future date. The contract is marked-to-market daily and the change in value is recorded by the Fund as an unrealized gain or loss. When a forward foreign currency contract is closed, through either delivery or offset by entering into another forward foreign currency contract, the Fund recognizes a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value of the contract at the time it is closed.
Forward foreign currency contracts involve elements of market risk in excess of the amounts reflected on the Statement of Assets and Liabilities. The Fund bears the risk of an unfavorable change in the foreign exchange rate underlying the forward foreign currency contract. Risks may also arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts.
(c) Foreign currency translation.Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the respective dates of such transactions.
The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.
Net realized foreign exchange gains or losses arise from sales of foreign currencies, including gains and losses on forward foreign currency contracts, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

35

Notes to financial statements (cont’d)
the values of assets and liabilities, other than investments in securities, on the date of valuation, resulting from changes in exchange rates.
Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar denominated transactions as a result of, among other factors, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.
(d) Loan participations.The Fund may invest in loans arranged through private negotiation between one or more financial institutions. The Fund’s investment in any such loan may be in the form of a participation in or an assignment of the loan. In connection with purchasing participations, the Fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement related to the loan, or any rights of offset against the borrower and the Fund may not benefit directly from any collateral supporting the loan in which it has purchased the participation.
The Fund assumes the credit risk of the borrower, the lender that is selling the participation and any other persons interpositioned between the Fund and the borrower. In the event of the insolvency of the lender selling the participation, the Fund may be treated as a general creditor of the lender and may not benefit from any offset between the lender and the borrower.
(e) Credit and market risk.The Fund invests in high-yield and emerging market instruments that are subject to certain credit and market risks. The yields of high-yield and emerging market debt obligations reflect, among other things, perceived credit and market risks. The Fund’s investments in securities rated below investment grade typically involve risks not associated with higher rated securities including, among others, greater risk related to timely and ultimate payment of interest and principal, greater market price volatility and less liquid secondary market trading. The consequences of political, social, economic or diplomatic changes may have disruptive effects on the market prices of investments held by the Fund. The Fund’s investments in non-U.S. dollar denominated securities may also result in foreign currency losses caused by devaluations and exchange rate fluctuations.
(f) Foreign investment risks.The Fund’s investments in foreign securities may involve risks not present in domestic investments. Since securities may be denominated in foreign currencies, may require settlement in foreign currencies or may pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Fund. Foreign investments may also subject the Fund to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which affect the market and/or credit risk of the investments.
(g) Counterparty risk and credit-risk-related contingent features of derivative instruments.The Fund may invest in certain securities or engage in other transactions where the Fund is exposed to counterparty credit risk in addition to broader market risks. The Fund may invest in securities of issuers, which may also be considered counterparties

36
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

as trading partners in other transactions. This may increase the risk of loss in the event of default or bankruptcy by the counterparty or if the counterparty otherwise fails to meet its contractual obligations. The Fund’s subadviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. Market events and changes in overall economic conditions may impact the assessment of such counterparty risk by the subadviser. In addition, declines in the values of underlying collateral received may expose the Fund to increased risk of loss.
With exchange traded and centrally cleared derivatives, there is less counterparty risk to the Fund since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, the credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default of the clearing broker or clearinghouse. 
The Fund has entered into master agreements, such as an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement, with certain of its derivative counterparties that govern over-the-counter (OTC) derivatives and provide for general obligations, representations, agreements, collateral posting terms, netting provisions in the event of default or termination and credit related contingent features. The credit related contingent features include, but are not limited to, a percentage decrease in the Fund’s net assets or net asset value per share over a specified period of time. If these credit related contingent features were triggered, the derivatives counterparty could terminate the positions and demand payment or require additional collateral.
Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. However, absent an event of default by the counterparty or a termination of the agreement, the terms of the ISDA Master Agreements do not result in an offset of reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities across transactions between the Fund and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction.
Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearinghouse for exchange traded derivatives while collateral terms are contract specific for OTC traded derivatives. Cash collateral that has been pledged to cover obligations of the Fund under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Schedule of Investments.
As of May 31, 2024, the Fund held forward foreign currency contracts with credit related contingent features which had a liability position of $169,607. If a contingent feature in the
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

37

Notes to financial statements (cont’d)
master agreements would have been triggered, the Fund would have been required to pay this amount to its derivatives counterparties.
(h) Security transactions and investment income.Security transactions are accounted for on a trade date basis. Interest income (including interest income from payment-in-kind securities) is recorded on the accrual basis. Amortization of premiums and accretion of discounts on debt securities are recorded to interest income over the lives of the respective securities, except for premiums on certain callable debt securities, which are amortized to the earliest call date. Paydown gains and losses on mortgage- and asset-backed securities are recorded as adjustments to interest income. Dividend income is recorded on the ex-dividend date for dividends received in cash and/or securities. Foreign dividend income is recorded on the ex-dividend date or as soon as practicable after the Fund determines the existence of a dividend declaration after exercising reasonable due diligence. The cost of investments sold is determined by use of the specific identification method. To the extent any issuer defaults or a credit event occurs that impacts the issuer, the Fund may halt any additional interest income accruals and consider the realizability of interest accrued up to the date of default or credit event.
(i) Distributions to shareholders.Distributions from net investment income of the Fund, if any, are declared quarterly and paid on a monthly basis. Shareholders will be informed of the tax characteristics of the distributions after the close of the fiscal year. Distributions of net realized gains, if any, are declared at least annually. Distributions to shareholders of the Fund are recorded on the ex-dividend date and are determined in accordance with income tax regulations, which may differ from GAAP.
(j) Compensating balance arrangements.The Fund has an arrangement with its custodian bank whereby a portion of the custodian’s fees is paid indirectly by credits earned on the Fund’s cash on deposit with the bank.
(k) Federal and other taxes.It is the Fund’s policy to comply with the federal income and excise tax requirements of the Internal Revenue Code of 1986 (the “Code”), as amended, applicable to regulated investment companies. Accordingly, the Fund intends to distribute its taxable income and net realized gains, if any, to shareholders in accordance with timing requirements imposed by the Code. Therefore, no federal or state income tax provision is required in the Fund’s financial statements.
Management has analyzed the Fund’s tax positions taken on income tax returns for all open tax years and has concluded that as of May 31, 2024, no provision for income tax is required in the Fund’s financial statements. The Fund’s federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.
Under the applicable foreign tax laws, a withholding tax may be imposed on interest, dividends and capital gains at various rates.
(l) Reclassification.GAAP requires that certain components of net assets be reclassifiedto reflect permanent differences between financial and tax reporting. These

38
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

reclassifications have no effect on net assets or net asset value per share. During the current year, the following reclassifications have been made:
 
Total Distributable
Earnings (Loss)
Paid-in
Capital
(a)
$(28,606)
$28,606
(a)
Reclassifications are due to prior year adjustment regarding return of capital distribution. 
2. Investment management agreement and other transactions with affiliates
Franklin Templeton Fund Adviser, LLC (“FTFA”) (formerly known as Legg Mason Partners Fund Advisor, LLC prior to November 30, 2023) is the Fund’s investment manager. Western Asset Management Company, LLC (“Western Asset”) is the Fund’s subadviser. Western Asset Management Company Pte. Ltd. (“Western Asset Singapore), Western Asset Management Company Ltd (“Western Asset Japan”) and Western Asset Management Company Limited (“Western Asset London”) serve as additional subadvisers to the Fund, under additional subadvisory agreements with Western Asset. FTFA, Western Asset, Western Asset Singapore, Western Asset Japan and Western Asset London are indirect, wholly-owned subsidiaries of Franklin Resources, Inc. (“Franklin Resources”).
FTFA provides administrative and certain oversight services to the Fund. The Fund pays FTFA an investment management fee, calculated daily and paid monthly, at an annual rate of 0.80% of the Fund’s average daily net assets.
FTFA delegates to Western Asset the day-to-day portfolio management of the Fund. Western Asset Singapore, Western Asset Japan and Western Asset London provide certain subadvisory services to the Fund relating to currency transactions and investments in non-U.S. dollar denominated debt securities. For its services, FTFA pays Western Asset a fee monthly, at an annual rate equal to 70% of the net management fee it receives from the Fund. In turn, Western Asset pays Western Asset Singapore, Western Asset Japan and Western Asset London a monthly subadvisory fee in an amount equal to 100% of the management fee paid to Western Asset on the assets that Western Asset allocates to each such non-U.S. subadviser to manage.
The manager has agreed to waive the Fund’s management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund (the affiliated money market fund waiver).
During the year ended May 31, 2024, fees waived and/or expenses reimbursed amounted to $2,471, all of which was an affiliated money market fund waiver.
All officers and one Director of the Fund are employees of Franklin Resources or its affiliates and do not receive compensation from the Fund.
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

39

Notes to financial statements (cont’d)
3. Investments
During the year ended May 31, 2024, the aggregate cost of purchases and proceeds from sales of investments (excluding short-term investments) and U.S. Government & Agency Obligations were as follows: 
 
Investments
U.S. Government &
Agency Obligations
Purchases
$123,411,454
$979,492
Sales
130,109,023
1,403,847
At May 31, 2024, the aggregate cost of investments and the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were as follows:
 
Cost
Gross
Unrealized
Appreciation
Gross
Unrealized
Depreciation
Net
Unrealized
Depreciation
Securities
$276,986,851
$15,948,205
$(16,752,133)
$(803,928)
Forward foreign currency contracts
101,314
(169,607)
(68,293)
4. Derivative instruments and hedging activities
Below is a table, grouped by derivative type, that provides information about the fair value and the location of derivatives within the Statement of Assets and Liabilities at May 31, 2024.
ASSET DERIVATIVES1
 
Foreign
Exchange Risk
Forward foreign currency contracts
$101,314

LIABILITY DERIVATIVES1
 
Foreign
Exchange Risk
Forward foreign currency contracts
$169,607
1
Generally, the balance sheet location for asset derivatives is receivables/net unrealized appreciation and for
liability derivatives is payables/net unrealized depreciation.
The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Statement of Operations for the year ended May 31, 2024. The first table provides additional detail about the amounts and sources of gains (losses) realized on derivatives during the period. The second table provides additional information about the change in net unrealized appreciation (depreciation) resulting from the Fund’s derivatives and hedging activities during the period.
AMOUNT OF NET REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED
 
Foreign
Exchange Risk
Forward foreign currency contracts
$242,017

40
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report


CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED
 
Foreign
Exchange Risk
Forward foreign currency contracts
$(314,866
)
During the year ended May 31, 2024, the volume of derivative activity for the Fund was as follows:
 
Average Market
Value
Forward foreign currency contracts (to buy)
$1,042,958
Forward foreign currency contracts (to sell)
13,225,500
The following table presents the Fund’s OTC derivative assets and liabilities by counterparty net of amounts available for offset under an ISDA Master Agreement and net of the related collateral pledged (received) by the Fund as of May 31, 2024.
Counterparty
Gross Assets
Subject to
Master
Agreements1
Gross
Liabilities
Subject to
Master
Agreements1
Net Assets
(Liabilities)
Subject to
Master
Agreements
Collateral
Pledged
(Received)
Net
Amount2
Bank of America N.A.
$(109,520)
$(109,520)
$(109,520)
BNP Paribas SA
$19,413
19,413
19,413
Citibank N.A.
9,748
(60,087)
(50,339)
(50,339)
JPMorgan Chase & Co.
72,153
72,153
72,153
Total
$101,314
$(169,607)
$(68,293)
$(68,293)
1
Absent an event of default or early termination, derivative assets and liabilities are presented gross and not
offset in the Statement of Assets and Liabilities.
2
Represents the net amount receivable (payable) from (to) the counterparty in the event of default.
5. Distributions subsequent to May 31, 2024
The following distributions have been declared by the Fund’s Board of Directors and are payable subsequent to the period end of this report:
Record Date
Payable Date
Amount
5/23/2024
6/3/2024
$0.0950
6/21/2024
7/1/2024
$0.0950
7/24/2024
8/1/2024
$0.0950
8/23/2024
9/3/2024
$0.0950
6. Stock repurchase program
On November 16, 2015, the Fund announced that the Fund’s Board of Directors (the “Board”) had authorized the Fund to repurchase in the open market up to approximately 10% of the Fund’s outstanding common stock when the Fund’s shares are trading at a discount to net asset value. The Board has directed management of the Fund to repurchase shares of common stock at such times and in such amounts as management reasonably believes may enhance stockholder value. The Fund is under no obligation to purchase shares at any
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

41

Notes to financial statements (cont’d)
specific discount levels or in any specific amounts. During the years ended May 31, 2024 and May 31, 2023, the Fund did not repurchase any shares.
Since the commencement of the stock repurchase program through May 31, 2024, the Fund repurchased 131,926 shares or 0.58% of its common shares outstanding for a total amount of $1,485,604.
7. Transactions with affiliated company
As defined by the 1940 Act, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control with the Fund. The following company was considered an affiliated company for all or some portion of the year ended May 31, 2024. The following transactions were effected in such company for the year ended May 31, 2024.
 
Affiliate
Value at

May 31,
2023
Purchased
Sold
Cost
Shares
Proceeds
Shares
Western Asset
Premier
Institutional
Government
Reserves, Premium
Shares
$1,550,948
$96,984,205
96,984,205
$95,991,187
95,991,187

(cont’d)
Realized
Gain (Loss)
Dividend
Income
Net Increase
(Decrease) in
Unrealized
Appreciation
(Depreciation)
Affiliate
Value at
May 31,
2024
Western Asset
Premier
Institutional
Government
Reserves, Premium
Shares
$151,252
$2,543,966
8. Income tax information and distributions to shareholders
The tax character of distributions paid during the fiscal years ended May 31, was as follows:
 
2024
2023
Distributions paid from:
Ordinary income
$22,541,586
$24,363,283
Tax return of capital
3,257,486
1,333,816
Total distributions paid
$25,799,072
$25,697,099

42
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

As of May 31, 2024, the components of distributable earnings (loss) on a tax basis were as follows:
Deferred capital losses*
$(139,024,086)
Other book/tax temporary differences(a)
(2,202,326)
Unrealized appreciation (depreciation)(b)
(915,158)
Total distributable earnings (loss) — net
$(142,141,570)
*
These capital losses have been deferred in the current year as either short-term or long-term losses. The losses
will be deemed to occur on the first day of the next taxable year in the same character as they were originally
deferred and will be available to offset future taxable capital gains.
(a)
Other book/tax temporary differences are attributable to the tax deferral of losses on straddles, the realization
for tax purposes of unrealized gains (losses) on foreign currency contracts, the difference between cash and
accrual basis distributions paid and book/tax differences in the timing of the deductibility of various expenses.
(b)
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable to the tax
deferral of losses on wash sales, the difference between book and tax amortization methods for premium on
fixed income securities, book/tax differences in the accrual of interest income on securities in default and other
book/tax basis adjustments.
9. Recent accounting pronouncement
In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04, Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In January 2021 and December 2022, the FASB issued ASU No. 2021-01 and ASU No. 2022-06, with further amendments to Topic 848. The amendments in the ASUs provide optional temporary accounting recognition and financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of the London Interbank Offered Rate (LIBOR) and other interbank-offered based reference rates as of the end of 2021 for certain LIBOR settings and 2023 for the remainder. The ASUs are effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2024. Management has reviewed the requirements and believes the adoption of these ASUs will not have a material impact on the financial statements.
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

43

Report of independent registered public accounting firm
To the Board of Directors and Shareholders of Western Asset High Yield Defined Opportunity Fund Inc.
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Western Asset High Yield Defined Opportunity Fund Inc. (the Fund) as of May 31, 2024, the related statement of operations for the year ended May 31, 2024, the statement of changes in net assets for each of the two years in the period ended May 31, 2024, including the related notes, and the financial highlights for each of the five years in the period ended May 31, 2024 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of May 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended May 31, 2024 and the financial highlights for each of the five years in the period ended May 31, 2024 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management.  Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of May 31, 2024 by correspondence with the custodian, agent banks and brokers; when replies were not received, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Baltimore, Maryland
July 19, 2024
We have served as the auditor of one or more investment companies in the Franklin Templeton Group of Funds since 1948.

44
Western Asset High Yield Defined Opportunity Fund Inc. 2024 Annual Report

Board approval of management and
subadvisory agreements (unaudited)
Background
The Investment Company Act of 1940, as amended (the “1940 Act”), requires that the Board of Directors (the “Board”) of Western Asset High Yield Defined Opportunity Fund Inc. (the “Fund”), including a majority of its members who are not considered to be “interested persons” under the 1940 Act (the “Independent Directors”) voting separately, approve on an annual basis the continuation of the investment management agreement (the “Management Agreement”) between the Fund and the Fund’s manager, Franklin Templeton Fund Adviser, LLC (formerly known as Legg Mason Partners Fund Advisor, LLC) (the “Manager”), and the sub-advisory agreements (individually, a “Sub-Advisory Agreement,” and collectively, the “Sub-Advisory Agreements”) with the Manager’s affiliates, Western Asset Management Company, LLC (“Western Asset”), Western Asset Management Company Limited (“Western Asset London”), Western Asset Management Company Pte. Ltd. (“Western Asset Singapore”) and Western Asset Management Company Ltd (“Western Asset Japan,” and with Western Asset, Western Asset London and Western Asset Singapore, collectively, the “Sub-Advisers”), with respect to the Fund.
At an in-person meeting (the “Contract Renewal Meeting”) held on May 20-21, 2024, the Board, including the Independent Directors, considered and approved the continuation of each of the Management Agreement and the Sub-Advisory Agreements for an additional one-year period.  To assist in its consideration of the renewal of each of the Management Agreement and the Sub-Advisory Agreements, the Board received and considered extensive information (together with the information provided at the Contract Renewal Meeting, the “Contract Renewal Information”) about the Manager and the Sub-Advisers, as well as the management and sub-advisory arrangements for the Fund and the other closed-end funds in the same complex under the Board’s purview (the “Franklin Templeton Closed-end Funds”), certain portions of which are discussed below. 
A presentation made by the Manager and the Sub-Advisers to the Board at the Contract Renewal Meeting in connection with the Board’s evaluation of each of the Management Agreement and the Sub-Advisory Agreements encompassed the Fund and other Franklin Templeton Closed-end Funds.  In addition to the Contract Renewal Information, the Board received performance and other information throughout the year related to the respective services rendered by the Manager and the Sub-Advisers to the Fund.  The Board’s evaluation took into account the information received throughout the year and also reflected the knowledge and experience gained as members of the Boards of the Fund and other Franklin Templeton Closed-end Funds with respect to the services provided to the Fund by the Manager and the Sub-Advisers.  The information received and considered by the Board (including its various committees) in conjunction with both the Contract Renewal Meeting and throughout the year was both written and oral.  The contractual arrangements discussed below are the product of multiple years of review and negotiation and information received and considered by the Board during each of those years.
Western Asset High Yield Defined Opportunity Fund Inc.

45

Board approval of management and
subadvisory agreements (unaudited) (cont’d)
At a meeting held on April 26, 2024, the Independent Directors, in preparation for the Contract Renewal Meeting, met in a private session with their independent legal counsel to review the Contract Renewal Information regarding the Franklin Templeton Closed-end Funds, including the Fund, received to date.  No representatives of the Manager or the Sub-Advisers participated in this meeting.  Following the April 26, 2024 meeting, the Independent Directors submitted certain questions and requests for additional information to Fund management.  The Independent Directors also met in private sessions with their independent legal counsel to consider the Contract Renewal Information and Fund management’s responses to the Independent Directors’ questions and requests for additional information in advance of and during the Contract Renewal Meeting.  The discussion below reflects all of these reviews.
The Manager provides the Fund with investment advisory and administrative services pursuant to the Management Agreement and the Sub-Advisers together provide the Fund with investment sub-advisory services pursuant to the Sub-Advisory Agreements.  The discussion below covers both the advisory and administrative functions being rendered by the Manager, each such function being encompassed by the Management Agreement, and the investment sub-advisory functions being rendered by the Sub-Advisers pursuant to the Sub-Advisory Agreements.
Board Approval of Management Agreement and Sub-Advisory Agreements
The Independent Directors were advised by separate independent legal counsel throughout the process.  Prior to voting, the Independent Directors received a memorandum discussing the legal standards for their consideration of the proposed continuation of the Management Agreement and the Sub-Advisory Agreements.  The Independent Directors considered the Management Agreement and each Sub-Advisory Agreement separately during the course of their review.  In doing so, they noted the respective roles of the Manager and the Sub-Advisers in providing services to the Fund.
In approving the continuation of the Management Agreement and Sub-Advisory Agreements, the Board, including the Independent Directors, considered a variety of factors, including those factors discussed below.  No single factor reviewed by the Board was identified by the Board as the principal factor in determining whether to approve the continuation of the Management Agreement and the Sub-Advisory Agreements.  Each Director may have attributed different weight to the various factors in evaluating the Management Agreement and the Sub-Advisory Agreements.
After considering all relevant factors and information, the Board, exercising its reasonable business judgment, determined that the continuation of the Management Agreement and Sub-Advisory Agreements were in the best interests of the Fund’s stockholders and approved the continuation of each such agreement for an additional one-year period.

46
Western Asset High Yield Defined Opportunity Fund Inc.

Nature, Extent and Quality of the Services under the Management Agreement and Sub-Advisory Agreements
The Board received and considered Contract Renewal Information regarding the nature, extent, and quality of services provided to the Fund by the Manager and the Sub-Advisers under the Management Agreement and the Sub-Advisory Agreements, respectively, during the past year.  The Board noted information received at regular meetings throughout the year related to the services provided by the Manager in its management of the Fund’s affairs and the Manager’s role in coordinating the activities of the Sub-Advisers and the Fund’s other service providers.  The Board observed that the scope of services provided by the Manager and the Sub-Advisers, and of the undertakings required of the Manager and Sub-Advisers in connection with those services, including maintaining and monitoring their respective compliance programs as well as the Fund’s compliance programs had expanded over time as a result of regulatory, market and other developments.  The Board also noted that on a regular basis it received and reviewed information from the Manager and the Sub-Advisers regarding the Fund’s compliance policies and procedures established pursuant to Rule 38a-1 under the 1940 Act.  The Board also considered the risks borne by the Manager, the Sub-Advisers and their respective affiliates on behalf of the Fund, including entrepreneurial, operational, reputational, litigation and regulatory risks, as well as the Manager’s and the Sub-Advisers’ risk management processes.
The Board reviewed the qualifications, backgrounds, and responsibilities of the Manager’s senior personnel and the Sub-Advisers’ portfolio management teams primarily responsible for the day-to-day portfolio management of the Fund.  The Board also considered, based on its knowledge of the Manager and its affiliates, the financial resources of Franklin Resources, Inc., the parent organization of the Manager and the Sub-Advisers.  The Board recognized the importance of having a fund manager with significant resources. 
The Board considered the division of responsibilities between the Manager and the Sub-Advisers under the Management Agreement and the Sub-Advisory Agreements, respectively, including the Manager’s coordination and oversight of the services provided to the Fund by the Sub-Advisers and other fund service providers and Western Asset’s coordination and oversight of the services provided to the Fund by Western Asset London, Western Asset Singapore and Western Asset Japan.  The Management Agreement permits the Manager to delegate certain of its responsibilities, including its investment advisory duties thereunder, provided that the Manager, in each case, will supervise the activities of the delegee. 
In reaching its determinations regarding continuation of the Management Agreement and the Sub-Advisory Agreements, the Board took into account that Fund stockholders, in pursuing their investment goals and objectives, may have purchased their shares of the
Western Asset High Yield Defined Opportunity Fund Inc.

47

Board approval of management and
subadvisory agreements (unaudited) (cont’d)
Fund based upon the reputation and the investment style, philosophy and strategy of the Manager and the Sub-Advisers, as well as the resources available to the Manager and the Sub-Advisers.
The Board concluded that, overall, the nature, extent, and quality of the management and other services provided (and expected to be provided) to the Fund, under the Management Agreement and the Sub-Advisory Agreements were satisfactory.
Fund Performance
The Board received and considered information regarding Fund performance, including information and analyses (the “Broadridge Performance Information”) for the Fund, as well as for a group of comparable funds (the “Performance Universe”) selected by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent third-party provider of investment company data.  The Board was provided with a description of the methodology Broadridge used to determine the similarity of the Fund with the funds included in the Performance Universe.  It was noted that while the Board found the Broadridge Performance Information generally useful, they recognized its limitations, including that the data may vary depending on the end date selected, and that the results of the performance comparisons may vary depending on the selection of the peer group and its composition over time.  The Board also noted that Board members had received and discussed with the Manager and the Sub-Advisers information throughout the year at periodic intervals comparing the Fund’s performance against its benchmark and against the Fund’s peers.  In addition, the Board considered the Fund’s performance in view of overall financial market conditions.
The Broadridge Performance Information comparing the Fund’s performance to that of its Performance Universe, consisting of the Fund and all non-leveraged closed-end high yield funds, regardless of asset size, showed, among other data, that based on net asset value per share, the Fund’s performance was above the median for the 1-year period ended December 31, 2023, was equal to the median for the 3- and 10-year periods ended December 31, 2023, and was below the median for the 5-year period ended December 31, 2023.  The Board noted the explanations from the Manager and the Sub-Advisers regarding the Fund’s relative performance versus the Performance Universe for the various periods.  The Board also took into account the limited size of the Performance Universe.
Based on the reviews and discussions of Fund performance and considering other relevant factors, including those noted above, the Board concluded, under the circumstances, that continuation of the Management Agreement and the Sub-Advisory Agreements for an additional one-year period would be consistent with the interests of the Fund and its stockholders.

48
Western Asset High Yield Defined Opportunity Fund Inc.

Management and Sub-Advisory Fees and Expense Ratios
The Board reviewed and considered the contractual management fee (the “Contractual Management Fee”) and the actual management fee (the “Actual Management Fee”) payable by the Fund to the Manager under the Management Agreement and the sub-advisory fees (the “Sub-Advisory Fees”) payable by the Manager to the Sub-Advisers under the Sub-Advisory Agreements in view of the nature, extent and overall quality of the management, investment advisory and other services provided by the Manager and the Sub-Advisers, respectively.  The Board noted that the Sub-Advisory Fee payable to  Western Asset under its Sub-Advisory Agreement with the Manager is paid by the Manager, not the Fund, and, accordingly, that the retention of Western Asset does not increase the fees or expenses otherwise incurred by the Fund’s stockholders.  Similarly, the Board noted that the Sub-Advisory Fees payable to Western Asset London, Western Asset Singapore and Western Asset Japan under their Sub-Advisory Agreements with Western Asset are paid by Western Asset, not the Fund, and, accordingly, that the retention of Western Asset London, Western Asset Singapore and Western Asset Japan does not increase the fees or expenses otherwise incurred by the Fund’s stockholders.
In addition, the Board received and considered information and analyses prepared by Broadridge (the “Broadridge Expense Information”) comparing the Contractual Management Fee and the Actual Management Fee and the Fund’s total actual expenses with those of funds in an expense universe (the “Expense Universe”) selected and provided by Broadridge.  The comparison was based upon the constituent funds’ latest fiscal years.  It was noted that while the Board found the Broadridge Expense Information generally useful, they recognized its limitations, including that the data may vary depending on the selection of the peer group.
The Broadridge Expense Information showed that the Fund’s Contractual Management Fee was equal to the median.  The Broadridge Expense Information also showed that the Fund’s Actual Management Fee was below the median.  The Broadridge Expense Information also showed that the Fund’s actual total expenses were equal to the median.  The Board took into account management’s discussion of the Fund’s expenses and noted the limited size of the Expense Universe. 
The Board also reviewed Contract Renewal Information regarding fees charged by the Manager and/or the Sub-Advisers to other U.S. clients investing primarily in an asset class similar to that of the Fund, including, where applicable, institutional and separate accounts.  The Manager reviewed with the Board the differences in services provided to these different types of accounts, noting that the Fund is provided with certain administrative services, office facilities, and Fund officers, and that the Fund is subject not only to heightened regulatory requirements relative to institutional clients but also to requirements for listing on the New York Stock Exchange, and that the Manager
Western Asset High Yield Defined Opportunity Fund Inc.

49

Board approval of management and
subadvisory agreements (unaudited) (cont’d)
coordinates and oversees the provision of services to the Fund by other fund service providers.  The Board considered the fee comparisons in view of the different services provided in managing these other types of clients and funds.
The Board considered the overall management fee, the fees of the Sub-Advisers and the amount of the management fee retained by the Manager after payment of the subadvisory fees in each case in view of the services rendered for those amounts.  The Board also received an analysis of complex-wide management fees provided by the Manager, which, among other things, set out a framework of fees based on asset classes.
Taking all of the above into consideration, as well as the factors identified below, the Board determined that the management fee and the Sub-Advisory Fees were reasonable in view of the nature, extent and overall quality of the management, investment advisory and other services provided by the Manager and the Sub-Advisers to the Fund under the Management Agreement and the Sub-Advisory Agreements, respectively.
Manager Profitability
The Board, as part of the Contract Renewal Information, received an analysis of the profitability to the Manager and its affiliates in providing services to the Fund for the Manager’s fiscal years ended September 30, 2023 and September 30, 2022.  The Board also received profitability information with respect to the Franklin Templeton fund complex as a whole.  In addition, the Board received Contract Renewal Information with respect to the Manager’s revenue and cost allocation methodologies used in preparing such profitability data.  It was noted that the allocation methodologies had been reviewed by an outside consultant. The profitability to each of the Sub-Advisers was not considered to be a material factor in the Board’s considerations since the Sub-Advisory Fee is paid by the Manager in the case of Western Asset and by Western Asset in the case of Western Asset London, Western Asset Singapore and Western Asset Japan, not the Fund, although the Board noted the affiliation of the Manager with the Sub-Advisers.  The profitability of the Manager and its affiliates was considered by the Board to be reasonable in view of the nature, extent and quality of services provided to the Fund.
Economies of Scale
The Board received and discussed Contract Renewal Information concerning whether the Manager realizes economies of scale if the Fund’s assets grow.  The Board noted that because the Fund is a closed-end fund it has limited ability to increase its assets.  The Board determined that the management fee structure was appropriate under the circumstances.  For similar reasons as stated above with respect to the Sub-Advisers’ profitability and the costs of the Sub-Advisers’ provision of services, the Board did not consider the potential for economies of scale in the Sub-Advisers’ management of the Fund to be a material factor in the Board’s consideration of the Sub-Advisory Agreements.

50
Western Asset High Yield Defined Opportunity Fund Inc.

Other Benefits to the Manager and the Sub-Advisers
The Board considered other benefits received by the Manager, the Sub-Advisers and their affiliates as a result of their relationship with the Fund, including the opportunity to offer additional products and services to the Fund’s stockholders.  In view of the costs of providing investment management and other services to the Fund and the ongoing commitment of the Manager and the Sub-Advisers to the Fund, the Board considered that the ancillary benefits that the Manager and its affiliates, including the Sub-Advisers, were reasonable.
Western Asset High Yield Defined Opportunity Fund Inc.

51

Additional information (unaudited)
Information about Directors and Officers
The business and affairs of Western Asset High Yield Defined Opportunity Fund Inc. (the “Fund”) are conducted by management under the supervision and subject to the direction of its Board of Directors. The business address of each Director is c/o Jane Trust, Franklin Templeton, 280 Park Avenue, 8th Floor, New York, New York 10017.
Information pertaining to the Directors and officers of the Fund is set forth below. The Fund’s annual proxy statement includes additional information about Directors and is
available, without charge, upon request by calling the Fund at 1-888-777-0102. 
Independent Directors
Robert D. Agdern
Year of birth
1950
Position(s) held with Fund1
Director and Member of Nominating, Audit, Compensation and
Pricing and Valuation Committees, and Compliance Liaison,
Class III
Term of office1 and length of time served
Since 2015
Principal occupation(s) during the past five years
Member of the Advisory Committee of the Dispute Resolution
Research Center at the Kellogg Graduate School of Business,
Northwestern University (2002 to 2016); formerly, Deputy
General Counsel responsible for western hemisphere matters
for BP PLC (1999 to 2001); Associate General Counsel at Amoco
Corporation responsible for corporate, chemical, and refining
and marketing matters and special assignments (1993 to 1998)
(Amoco merged with British Petroleum in 1998 forming BP PLC)
Number of portfolios in fund complex overseen by Director
(including the Fund)
18
Other board memberships held by Director during the past five
years
None
Carol L. Colman
Year of birth
1946
Position(s) held with Fund1
Director and Member of Nominating, Audit and Compensation
Committees, and Chair of Pricing and Valuation Committee,
Class I
Term of office1 and length of time served
Since 2010
Principal occupation(s) during the past five years
President, Colman Consulting Company (consulting)
Number of portfolios in fund complex overseen by Director
(including the Fund)
18
Other board memberships held by Director during the past five
years
None

52
Western Asset High Yield Defined Opportunity Fund Inc.

Independent Directors (cont’d)
Daniel P. Cronin
Year of birth
1946
Position(s) held with Fund1
Director and Member of Audit, Compensation and Pricing and
Valuation Committees, and Chair of Nominating Committee,
Class I
Term of office1 and length of time served
Since 2010
Principal occupation(s) during the past five years
Retired; formerly, Associate General Counsel, Pfizer Inc. (prior to
and including 2004)
Number of portfolios in fund complex overseen by Director
(including the Fund)
18
Other board memberships held by Director during the past five
years
None
Paolo M. Cucchi
Year of birth
1941
Position(s) held with Fund1
Director and Member of Nominating, Audit, and Pricing and
Valuation Committees, and Chair of Compensation Committee,
Class I
Term of office1 and length of time served
Since 2010
Principal occupation(s) during the past five years
Emeritus Professor of French and Italian (since 2014) and
formerly, Vice President and Dean of The College of Liberal Arts
(1984 to 2009) and Professor of French and Italian (2009 to 2014)
at Drew University
Number of portfolios in fund complex overseen by Director
(including the Fund)
18
Other board memberships held by Director during the past five
years
None
Western Asset High Yield Defined Opportunity Fund Inc.

53

Additional information (unaudited) (cont’d)
Information about Directors and Officers
Independent Directors (cont’d)
Eileen A. Kamerick
Year of birth
1958
Position(s) held with Fund1
Lead Independent Director and Member of Nominating,
Compensation, Pricing and Valuation and Audit Committees,
Class III
Term of office1 and length of time served
Since 2013
Principal occupation(s) during the past five years
Chief Executive Officer, The Governance Partners, LLC
(consulting firm) (since 2015); National Association of Corporate
Directors Board Leadership Fellow (since 2016, with Directorship
Certification since 2019) and NACD 2022 Directorship 100
honoree; Adjunct Professor, Georgetown University Law Center
(since 2021); Adjunct Professor, The University of Chicago Law
School (since 2018); Adjunct Professor, University of Iowa
College of Law (since 2007); formerly, Chief Financial Officer,
Press Ganey Associates (health care informatics company) (2012
to 2014); Managing Director and Chief Financial Officer,
Houlihan Lokey (international investment bank) and President,
Houlihan Lokey Foundation (2010 to 2012)
Number of portfolios in fund complex overseen by Director
(including the Fund)
18
Other board memberships held by Director during the past five
years
Director, VALIC Company I (since October 2022); Director of ACV
Auctions Inc. (since 2021); Director of Associated Banc-Corp
(financial services company) (since 2007); formerly, Director of
Hochschild Mining plc (precious metals company) (2016
to 2023); formerly Trustee of AIG Funds and Anchor Series Trust
(2018 to 2021)
Nisha Kumar
Year of birth
1970
Position(s) held with Fund1
Director and Member of Nominating, Compensation and Pricing
and Valuation Committees, and Chair of the Audit Committee,
Class II
Term of office1 and length of time served
Since 2019
Principal occupation(s) during the past five years
Formerly, Managing Director and the Chief Financial Officer and
Chief Compliance Officer of Greenbriar Equity Group, LP (2011
to 2021); formerly, Chief Financial Officer and Chief
Administrative Officer of Rent the Runway, Inc. (2011); Executive
Vice President and Chief Financial Officer of AOL LLC, a
subsidiary of Time Warner Inc. (2007 to 2009); Member of the
Council of Foreign Relations
Number of portfolios in fund complex overseen by Director
(including the Fund)
18
Other board memberships held by Director during the past five
years
Director of Birkenstock Holding plc (since 2023); Director of The
India Fund, Inc. (since 2016); formerly, Director of Aberdeen
Income Credit Strategies Fund (2017 to 2018); and Director of
The Asia Tigers Fund, Inc. (2016 to 2018)

54
Western Asset High Yield Defined Opportunity Fund Inc.

Interested Director and Officer
Jane Trust, CFA2
Year of birth
1962
Position(s) held with Fund1
Director, Chairman, President and Chief Executive Officer, Class II
Term of office1 and length of time served
Since 2015
Principal occupation(s) during the past five years
Senior Vice President, Fund Board Management, Franklin
Templeton (since 2020); Officer and/or Trustee/Director of 121
funds associated with FTFA or its affiliates (since 2015);
President and Chief Executive Officer of FTFA (since 2015);
formerly, Senior Managing Director (2018 to 2020) and
Managing Director (2016 to 2018) of Legg Mason & Co., LLC
(“Legg Mason & Co.”); and Senior Vice President of FTFA (2015)
Number of portfolios in fund complex overseen by Director
(including the Fund)
Trustee/Director of Franklin Templeton funds consisting of 121
portfolios; Trustee of Putnam Family of Funds consisting of 105
portfolios
Other board memberships held by Director during the past five
years
None
Additional Officers
Fred Jensen
 
Franklin Templeton
280 Park Avenue, 8th Floor, New York, NY 10017
 
Year of birth
1963
Position(s) held with Fund1
Chief Compliance Officer
Term of office1 and length of time served
Since 2020
Principal occupation(s) during the past five years
Director - Global Compliance of Franklin Templeton (since 2020);
Managing Director of Legg Mason & Co. (2006 to 2020); Director
of Compliance, Legg Mason Office of the Chief Compliance
Officer (2006 to 2020); formerly, Chief Compliance Officer of
Legg Mason Global Asset Allocation (prior to 2014); Chief
Compliance Officer of Legg Mason Private Portfolio Group (prior
to 2013); formerly, Chief Compliance Officer of The Reserve
Funds (investment adviser, funds and broker-dealer) (2004) and
Ambac Financial Group (investment adviser, funds and broker-
dealer) (2000 to 2003)
Marc A. De Oliveira
 
Franklin Templeton
100 First Stamford Place, 6th Floor, Stamford, CT 06902
 
Year of birth
1971
Position(s) held with Fund1
Secretary and Chief Legal Officer
Term of office1 and length of time served
Since 2023
Principal occupation(s) during the past five years
Associate General Counsel of Franklin Templeton (since 2020);
Secretary and Chief Legal Officer of certain funds associated
with Legg Mason & Co. or its affiliates since 2020); Assistant
Secretary of certain funds associated with Legg Mason & Co. or
its affiliates (since 2006); formerly, Managing Director (2016
to 2020) and Associate General Counsel of Legg Mason & Co.
(2005 to 2020)
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Additional information (unaudited) (cont’d)
Information about Directors and Officers
Additional Officers (cont’d)
Thomas C. Mandia
 
Franklin Templeton
100 First Stamford Place, 6th Floor, Stamford, CT 06902
 
Year of birth
1962
Position(s) held with Fund1
Senior Vice President
Term of office1 and length of time served
Since 2022
Principal occupation(s) during the past five years
Senior Associate General Counsel of Franklin Templeton
(since 2020); Secretary of FTFA (since 2006); Assistant Secretary
of certain funds associated with Legg Mason & Co. or its
affiliates (since 2006); Secretary of LM Asset Services, LLC
(“LMAS”) (since 2002) and Legg Mason Fund Asset
Management, Inc. (“LMFAM”) (since 2013) (formerly registered
investment advisers); formerly, Managing Director and Deputy
General Counsel of Legg Mason & Co. (2005 to 2020) and
Assistant Secretary of certain funds in the fund complex (2006
to 2022)
Christopher Berarducci
 
Franklin Templeton
280 Park Avenue, 8th Floor, New York, NY 10017
 
Year of birth
1974
Position(s) held with Fund1
Treasurer and Principal Financial Officer
Term of office1 and length of time served
Since 2019
Principal occupation(s) during the past five years
Vice President, Fund Administration and Reporting, Franklin
Templeton (since 2020); Treasurer (since 2010) and Principal
Financial Officer (since 2019) of certain funds associated with
Legg Mason & Co. or its affiliates; formerly, Managing
Director (2020), Director (2015 to 2020), and Vice President (2011
to 2015) of Legg Mason & Co.
Jeanne M. Kelly
 
Franklin Templeton
280 Park Avenue, 8th Floor, New York, NY 10017
 
Year of birth
1951
Position(s) held with Fund1
Senior Vice President
Term of office1 and length of time served
Since 2010
Principal occupation(s) during the past five years
U.S. Fund Board Team Manager, Franklin Templeton (since 2020);
Senior Vice President of certain funds associated with Legg
Mason & Co. or its affiliates (since 2007); Senior Vice President
of FTFA (since 2006); President and Chief Executive Officer of
LMAS and LMFAM (since 2015); formerly, Managing Director of
Legg Mason & Co. (2005 to 2020); Senior Vice President of
LMFAM (2013 to 2015)
FTFA, referenced above, was formerly known as LMPFA prior to November 30, 2023.
Directors who are not “interested persons” of the Fund within the meaning of Section 2(a)(19) of the Investment Company Act of 1940, as amended (the “1940 Act”).
1
The Fund’s Board of Directors is divided into three classes: Class I, Class II and Class III. The terms of office of the Class I, II and III Directors expire at the Annual Meetings of Stockholders in the year 2024, year 2025 and year 2026, respectively, or thereafter in each case when their respective successors are duly elected and

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qualified. The Fund’s executive officers are chosen each year, to hold office until their successors are duly elected and qualified.
2
Ms. Trust is an “interested person” of the Fund as defined in the 1940 Act because Ms. Trust is an officer of FTFA and certain of its affiliates.
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Annual chief executive officer and
principal financial officer certifications (unaudited)
The Fund’s Chief Executive Officer (“CEO”) has submitted to the NYSE the required annual certification and the Fund also has included the Certifications of the Fund’s CEO and Principal Financial Officer required by Section 302 of the Sarbanes-Oxley Act in the Fund’s Form N-CSR filed with the SEC for the period of this report.

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Other shareholder communications regarding accounting matters (unaudited)
The Fund’s Audit Committee has established guidelines and procedures regarding the receipt, retention and treatment of complaints regarding accounting, internal accounting controls or auditing matters (collectively, “Accounting Matters”). Persons with complaints or concerns regarding Accounting Matters may submit their complaints to the Chief Compliance Officer (“CCO”). Persons who are uncomfortable submitting complaints to the CCO, including complaints involving the CCO, may submit complaints directly to the Fund’s Audit Committee Chair. Complaints may be submitted on an anonymous basis.
The CCO may be contacted at:
Franklin Resources Inc.
Compliance Department
280 Park Ave, 8th Floor
New York, NY 10017
Complaints may also be submitted by telephone at 1-800-742-5274. Complaints submitted through this number will be received by the CCO.
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Summary of information regarding the Fund (unaudited)
Investment Objectives
The Fund’s primary investment objective is to provide high income. As a secondary investment objective, the Fund will seek capital appreciation. There can be no assurance the Fund will achieve its investment objectives.
Principal Investment Policies and Strategies
The Fund seeks to achieve its investment objectives by investing, under normal market conditions, at least 80% of its net assets in a portfolio of high-yield corporate fixed income securities with varying maturities. “High-yield” refers to below investment grade quality (also commonly referred to as “junk bonds”). High-yield fixed income securities of below investment grade quality are regarded as having predominately speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. “Fixed income securities” include bonds, debentures, notes, commercial paper and other similar types of debt instruments, as well as preferred stock, convertible securities, Senior Loans, Second Lien Loans, loan participations, payment-in-kind securities, zero-coupon bonds, mortgage-backed securities, asset-backed securities, bank certificates of deposit, fixed time deposits and bankers’ acceptances. Corporate securities are those securities that are issued or originated by U.S. or foreign public or private corporations and other business entities, and do not include securities issued by governments, agencies or supranational entities. Certain fixed income instruments, such as convertible securities, may also include the right to participate in equity appreciation, and Western Asset will generally evaluate those instruments based primarily on their debt characteristics.
The Fund may invest in derivative instruments primarily for hedging and risk management purposes, although the Fund may also use derivative instruments for investment purposes. Investing in derivative instruments is not a principal investment strategy of the Fund. Derivative instruments include options contracts, futures contracts, options on futures contracts, indexed securities, currency forwards, credit linked notes, credit default swaps and other swap agreements. The Fund may use derivative instruments to gain exposure to or hedge its exposure to high-yield securities primarily through the use of credit default swaps, but may also use other derivative instruments, provided that the Fund’s exposure to credit derivative instruments, as measured by the total notional amount of all such instruments, will not exceed 20% of its net assets. With respect to this limitation, the Fund may net derivatives with opposite exposure to the same underlying instrument. Notwithstanding the foregoing limitation, the Fund may invest without limit in derivative instruments related to currencies and interest rates, subject to the requirements of the 1940 Act provided that such currency and interest rate derivatives are used for hedging purposes only. To the extent that the security or index underlying the derivative or synthetic instrument is or is composed of corporate high-yield fixed income securities, the Fund will include such derivative and synthetic instruments for the purposes of the Fund’s policy to invest at least 80% of its net assets in a portfolio of high-yield corporate fixed income

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securities. Credit derivatives, by their design, have a high correlation to the underlying securities. The Fund may not change its policy to invest, under normal market conditions, at least 80% of its net assets in a portfolio of high-yield corporate fixed income securities with varying maturities unless it provides shareholders with at least 60 days’ written notice of such change.
Below investment grade fixed income securities are rated below “BBB-” by S&P or Fitch, below “Baa3” by Moody’s or comparably rated by another NRSRO or, if unrated, determined by Western Asset to be of comparable quality. Below investment grade fixed income securities are commonly referred to as “high-yield” or “junk” bonds and are regarded as having predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. In the event that a security receives different ratings from different NRSROs, the Fund will treat the security as being rated in the lowest rating category received from an NRSRO.
Under normal market conditions, the Fund may also invest up to 20% of its net assets in fixed income securities issued by U.S. or foreign governments, agencies and instrumentalities and/or fixed income securities that are investment grade quality.
The Fund may invest up to 20% of its net assets in securities that, at the time of investment, are considered Illiquid Securities.
The Fund may invest up to 20% of its net assets in government debt securities, including those of emerging market issuers or of other non-US issuers.
No more than 10% of the Fund’s net assets may be invested in any issuer, except securities issued by the U.S. government and its agencies.
The Fund may purchase equity securities (including but not limited to common stock, preferred stock, convertible securities, and warrants of U.S. and non-U.S. issuers) directly.  The Fund may sell certain equities or fixed income securities short including, but not limited to, U.S. Treasuries, for investment and/or hedging purposes. 
The Fund may lend portfolio securities so long as the terms and the structure of such loans are not inconsistent with the requirements of the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund does not currently intend to make loans of portfolio securities with a value in excess of 33 1/3% of the value of its net assets (including such loans).
Temporary Defensive Strategies. At times Western Asset may judge that conditions in the markets for fixed income securities make pursuing the Fund’s primary investment strategy inconsistent with the best interests of its shareholders. At such times Western Asset may, temporarily, use alternative strategies, primarily designed to reduce fluctuations in the value of the Fund’s assets. If the Fund takes a temporary defensive position, it may be
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Summary of information regarding the Fund (unaudited) (cont’d)
unable to achieve its investment objectives. In implementing these “defensive” strategies, the Fund may invest all or a portion of its assets in obligations of the U.S. government, its agencies or instrumentalities; other investment grade debt securities; investment grade commercial paper; certificates of deposit and bankers’ acceptances; repurchase agreements with respect to any of the foregoing investments; or any other fixed income securities that Western Asset considers consistent with this strategy. It is impossible to predict if, when or for how long the Fund will use these alternative strategies. There can be no assurance that such strategies will be successful.
Other Investment Companies. The Fund may invest in securities of other closed-end or open-end investment companies, including exchange traded funds (“ETFs”),  that invest primarily in bonds or other securities and instruments of the types in which the Fund may invest directly to the extent permitted by the 1940 Act. The Fund will not consider an investment in securities of other closed-end or open-end investment companies toward meeting its policy of investing at least 80% of its net assets in high-yield securities unless such closed-end or open-end investment company has a policy of investing at least 80% of its net assets in high-yield securities.
The Fund may invest in other investment companies during periods when it has large amounts of uninvested cash, such as during periods when there is a shortage of attractive bonds available in the market, or when Western Asset believes share prices of other investment companies offer attractive values. The Fund may invest in investment companies, including money market funds, that are advised by Western Asset or its affiliates to the extent permitted by applicable law and/or pursuant to exemptive relief from the SEC. As a shareholder in an investment company, the Fund will bear its ratable share of that investment company’s expenses, and would remain subject to payment of the Fund’s management fees and other expenses with respect to assets so invested. Shareholders would therefore be subject to duplicative expenses to the extent the Fund invests in other investment companies. Western Asset will take expenses into account when evaluating the investment merits of an investment in an investment company relative to available bond investments. In addition, the securities of other investment companies may also be leveraged and will therefore be subject to the same leverage risks described herein. The net asset value and market value of leveraged shares will be more volatile and the yield to shareholders will tend to fluctuate more than the yield generated by unleveraged shares. Other investment companies may have investment policies that differ from those of the Fund. In addition, to the extent the Fund invests in other investment companies, the Fund will be dependent upon the investment and research abilities of persons other than Western Asset.

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The Fund has a limited term and as a fundamental policy intends to liquidate and distribute substantially all of its net assets to shareholders after making appropriate provisions for any liabilities of the Fund on or about September 30, 2025.
Principal Risk Factors
There is no assurance that the Fund will meet its investment objectives. You may lose money on your investment in the Fund. The value of the Fund’s shares may go up or down, sometimes rapidly and unpredictably. Market conditions, financial conditions of issuers represented in the Fund’s portfolio, investment strategies, portfolio management, and other factors affect the volatility of the Fund’s shares. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency.
The following section includes a summary of the principal risks of investing in the Fund.
Investment and Market Risk. An investment in the Fund is subject to investment risk, including the possible loss of the entire amount that you invest. Your investment in Common Stock represents an indirect investment in the fixed income securities and other assets owned by the Fund, most of which could be purchased directly. The value of the Fund’s portfolio securities may move up or down, sometimes rapidly and unpredictably. The Fund intends to take advantage of that Western Assets believes to be current market dislocations by buying debt and other securities at depressed prices, but if such dislocations do not persist during the period when the Fund is investing the net proceeds of this offering, the Fund’s returns may be adversely affected. In addition, if the current global economic downturn continues or deteriorates further, the ability of issuers to service their obligations could be materially and adversely affected. At any point in time, your Common Stock may be worth less than your original investment, even after taking into account the reinvestment of Fund dividends and distributions.
Below Investment Grade (High-Yield or Junk Bond) Securities Risk. High yield bonds, often called “junk” bonds, have a higher risk of issuer default or may be in default and are considered speculative. Changes in economic conditions or developments regarding the individual issuer are more likely to cause price volatility and weaken the capacity of such securities to make principal and interest payments than is the case for higher grade debt securities. The value of lower-quality debt securities often fluctuates in response to company, political, or economic developments and can decline significantly over short as well as long periods of time or during periods of general or regional economic difficulty. High yield bonds may also have lower liquidity as compared to higher-rated securities, which means the Fund may have difficulty selling them at times, and it may have to apply a greater degree of judgment in establishing a price for purposes of valuing Fund shares. High yield bonds generally are issued by less creditworthy issuers. Issuers of high yield bonds may have a larger amount of outstanding debt relative to their assets than issuers of
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Summary of information regarding the Fund (unaudited) (cont’d)
investment grade bonds. In the event of an issuer’s bankruptcy, claims of other creditors may have priority over the claims of high yield bond holders, leaving few or no assets available to repay high yield bond holders. The Fund may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with a defaulting issuer. High yield bonds frequently have redemption features that permit an issuer to repurchase the security from the Fund before it matures. If the issuer redeems high yield bonds, the Fund may have to invest the proceeds in bonds with lower yields and may lose income.
Fixed Income Securities Risk. In addition to the risks described elsewhere in this section with respect to valuations and liquidity, fixed income securities, including high-yield securities, are also subject to certain risks, including:
Issuer Risk. The value of fixed income securities may decline for a number of reasons that directly relate to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods and services.
Interest Rate Risk. The market price of the Fund’s investments will change in response to changes in interest rates and other factors. During periods of declining interest rates, the market price of fixed income securities generally rises. Conversely, during periods of rising interest rates, the market price of such securities generally declines. The magnitude of these fluctuations in the market price of fixed income securities is generally greater for securities with longer maturities. Fluctuations in the market price of the Fund’s securities will not affect interest income derived from securities already owned by the Fund, but will be reflected in the Fund’s net asset value. The Fund may utilize certain strategies, including investments in structured notes or interest rate swap or cap transactions, for the purpose of reducing the interest rate sensitivity of the portfolio and decreasing the Fund’s exposure to interest rate risk, although there is no assurance that it will do so or that such strategies will be successful.
Prepayment Risk. During periods of declining interest rates, the issuer of a security may exercise its option to prepay principal earlier than scheduled, forcing the Fund to reinvest the proceeds from such prepayment in lower yielding securities, which may result in a decline in the Fund’s income and distributions to shareholders. This is known as prepayment or “call” risk. Debt securities frequently have call features that allow the issuer to redeem the security at dates prior to its stated maturity at a specified price (typically greater than par) only if certain prescribed conditions are met (“call protection”). An issuer may choose to redeem a debt security if, for example, the issuer can refinance the debt at a lower cost due to declining interest rates or an improvement in the credit standing of the issuer. Senior Loans and Second Lien Loans typically do not have call protection. For premium bonds (bonds acquired at prices that exceed their par or principal value) purchased by the Fund, prepayment risk may be enhanced.

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Reinvestment Risk. Reinvestment risk is the risk that income from the Fund’s portfolio will decline if and when the Fund invests the proceeds from matured, traded or called fixed income securities at market interest rates that are below the portfolio’s current earnings rate. A decline in income could affect the Fund’s Common Stock price or its overall return.
Credit Risk. Credit risk is the risk that one or more fixed income securities in the Fund’s portfolio will decline in price or fail to pay interest or principal when due because the issuer of the security experiences a decline in its financial status. If the recent adverse conditions in the credit markets continue to adversely affect the broader global economy, the credit quality of issuers of fixed income securities in which the Fund may invest would be more likely to decline, all other things being equal. Changes by an NRSRO in its rating of securities and in the ability of an issuer to make scheduled payments may also affect the value of the Fund’s investments. To the extent the Fund invests in below investment grade securities, it will be exposed to a greater amount of credit risk than a fund which invests solely in investment grade securities. The prices of lower grade securities are generally more sensitive to negative developments, such as a decline in the issuer’s revenues or a general economic downturn, than are the prices of higher grade securities. Fixed income securities of below investment grade quality are predominantly speculative with respect to the issuer’s capacity to pay interest and repay principal when due and therefore involve a greater risk of default.
Foreign Securities and Emerging Markets Risk. A fund that invests in foreign (non-U.S.) securities may experience more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies. The securities markets of many foreign countries are relatively small, with a limited number of companies representing a small number of industries. Investments in foreign securities (including those denominated in U.S. dollars) are subject to economic and political developments in the countries and regions where the issuers operate or are domiciled, or where the securities are traded, such as changes in economic or monetary policies. Values may also be affected by restrictions on receiving the investment proceeds from a foreign country. Less information may be publicly available about foreign companies than about U.S. companies. Foreign companies are generally not subject to the same accounting, auditing and financial reporting standards as are U.S. companies. In addition, the Fund’s investments in foreign securities may be subject to the risk of nationalization or expropriation of assets, imposition of currency exchange controls or restrictions on the repatriation of foreign currency, confiscatory taxation, political or financial instability and adverse diplomatic developments. In addition, there may be difficulty in obtaining or enforcing a court judgment abroad. Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to non-U.S. withholding taxes, and special U.S. tax considerations may apply.
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Summary of information regarding the Fund (unaudited) (cont’d)
The risks of foreign investment are greater for investments in emerging markets. “Emerging market country” is defined as any country which is, at the time of investment, it is (i) represented in the J.P. Morgan Emerging Markets Bond Index Global Diversified or the J.P. Morgan Corporate Emerging Market Bond Index Broad or (ii) categorized by the World Bank in its annual categorization as middle- or low-income. Emerging market countries typically have economic and political systems that are less fully developed, and that can be expected to be less stable, than those of more advanced countries. Low trading volumes may result in a lack of liquidity and in price volatility. Emerging market countries may have policies that restrict investment by foreigners, that require governmental approval prior to investments by foreign persons, or that prevent foreign investors from withdrawing their money at will. An investment in emerging market securities should be considered speculative.
Foreign Currency Risk. The value of investments denominated in foreign currencies increases or decreases as the rates of exchange between those currencies and the U.S. dollar change. Currency conversion costs and currency fluctuations could erase investment gains or add to investment losses. Currency exchange rates can be volatile, and are affected by factors such as general economic conditions, the actions of the U.S. and foreign governments or central banks, the imposition of currency controls and speculation. The fund may be unable or may choose not to hedge its foreign currency exposure.
Repurchase Agreements Risk. Subject to its investment objective and policies, the Fund may invest in repurchase agreements for leverage or investment purposes. Repurchase agreements typically involve the acquisition by the Fund of debt securities from a selling financial institution such as a bank, savings and loan association or broker-dealer. The agreement provides that the Fund will sell the securities back to the institution at a fixed time in the future. The Fund does not bear the risk of a decline in the value of the underlying security unless the seller defaults under its repurchase obligation. In the event of the bankruptcy or other default of a seller of a repurchase agreement, the Fund could experience both delays in liquidating the underlying securities and losses, including (1) possible decline in the value of the underlying security during the period in which the Fund seeks to enforce its rights thereto; (2) possible lack of access to income on the underlying security during this period; and (3) expenses of enforcing its rights. While repurchase agreements involve certain risks not associated with direct investments in debt securities, the Fund follows procedures approved by the Fund’s Board of Directors that are designed to minimize such risks. These procedures include effecting repurchase transactions only with large, well-capitalized and well-established financial institutions whose financial condition will be continually monitored by Western Asset. In addition, as described above, the value of the collateral underlying the repurchase agreement will be at least equal to the repurchase price, including any accrued interest earned on the repurchase agreement. In the event of a default or bankruptcy by a selling financial institution, the Fund generally will seek to liquidate such collateral. However, the exercise of the Fund’s right to liquidate such

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collateral could involve certain costs or delays and, to the extent that proceeds from any sale upon a default of the obligation to repurchase were less than the repurchase price, the Fund could suffer a loss.
Derivatives Risk. The Fund may utilize a variety of derivative instruments, primarily for hedging and risk management purposes although the Fund may also use derivative instruments for investment purposes. Derivative instruments include options contracts, derivative instruments related to currencies, forward contracts, futures contracts, options on futures contracts, indexed securities, credit linked notes, credit default swaps and other swap agreements. A derivative is a financial contract whose value depends on changes in the value of one or more underlying assets or reference rates. Derivatives are subject to a number of risks described elsewhere in this prospectus, such as liquidity risk, interest rate risk, credit risk and management risk. Derivatives are also subject to counterparty risk, which is the risk that the other party in the transaction will not fulfill its contractual obligation. Changes in the credit quality of the companies that serve as the Fund’s counterparties with respect to its derivative transactions will affect the value of those instruments. By using derivatives that expose the Fund to counterparties, the Fund assumes the risk that its counterparties could experience financial hardships that could call into question their continued ability to perform their obligations. In addition, in the event of the insolvency of a counterparty to a derivative transaction, the derivative transaction would typically be terminated at its fair market value. If the Fund is owed this fair market value in the termination of the derivative transaction and its claim is unsecured, the Fund will be treated as a general creditor of such counterparty, and will not have any claim with respect to the underlying security. As a result, concentrations of such derivatives in any one counterparty would subject the Fund to an additional degree of risk with respect to defaults by such counterparty. Derivatives also involve the risk of mispricing or improper valuation and the risk that changes in the value of a derivative may not correlate perfectly with an underlying asset, interest rate or index. Suitable derivative transactions may not be available in all circumstances and there can be no assurance that the Fund will engage in these transactions to reduce exposure to other risks when that would be beneficial. If the Fund invests in a derivative instrument, it could lose more than the principal amount invested. Derivative instruments can be illiquid, may disproportionately increase losses, and may have a potentially large impact on Fund performance.
Registered investment companies are subject to regulatory limitations on their use of derivative investments and certain financing transactions (e.g. reverse repurchase agreements) by registered investment companies. Among other things, Rule 18f-4 requires funds that invest in derivative instruments beyond a specified limited amount to apply a value at risk (VaR) based limit to their use of certain derivative instruments and financing transactions and to adopt and implement a derivatives risk management program. A fund that uses derivative instruments in a limited amount is not
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Summary of information regarding the Fund (unaudited) (cont’d)
subject to the full requirements of Rule 18f-4. Compliance with Rule 18f-4 by the Fund could, among other things, make derivatives more costly, limit their availability or utility, or otherwise adversely affect their performance. Rule 18f-4 may limit the Fund’s ability to use derivatives as part of its investment strategy and may not work as intended to limit losses from derivatives.
Leverage Risk. As a fundamental policy, the Fund will not leverage its capital structure by issuing senior securities such as preferred shares or debt instruments. However, the Fund may borrow for temporary or emergency purposes as permitted by the 1940 Act. The Fund may take on leveraging risk by, among other things, purchasing securities on a when-issued or delayed delivery basis, entering into credit default swaps or futures contracts, engaging in short sales or writing options on portfolio securities. When the Fund engages in transactions that have a leveraging effect on the Fund’s portfolio, the value of the Fund will be more volatile and all other risks will tend to be compounded. This is because leverage generally magnifies the effect of any increase or decrease in the value of the Fund’s underlying asset or creates investment risk with respect to a larger pool of assets than the Fund would otherwise have. Engaging in such transactions may cause the Fund to liquidate positions when it may not be advantageous to do so to satisfy its obligations or meet segregation requirements.
Liquidity Risk. Liquidity risk exists when particular investments are difficult to sell. Securities may become illiquid after purchase by the Fund, particularly during periods of market turmoil. When the Fund holds illiquid investments, the portfolio may be harder to value, especially in changing markets, and if the Fund is forced to sell these investments in order to segregate assets or for other cash needs, the Fund may suffer a loss.
Management Risk. The Fund is subject to management risk because it is an actively managed investment portfolio. Western Asset, the Non-U.S. Subadvisers and each individual portfolio manager may not be successful in selecting the best performing securities or investment techniques, and the Fund’s performance may lag behind that of similar funds.
Government Intervention in Financial Markets Risk.  U.S. federal and state governments and foreign governments, their regulatory agencies or self-regulatory organizations may take additional actions that affect the regulation of the securities in which the Fund invests, or the issuers of such securities, in ways that are unforeseeable. Legislation or regulation may also change the way in which the Fund itself is regulated. Such legislation or regulation could limit or preclude the Fund’s ability to achieve its investment objectives. Western Asset will monitor developments and seek to manage the Fund’s portfolio in a manner consistent with achieving the Fund’s investment objectives, but there can be no assurance that it will be successful in doing so.

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Limited Term Risk. Unless the termination date is amended by shareholders in accordance with the Articles, the Fund will be terminated on or about September 30, 2025. As the assets of the Fund will be liquidated in connection with its termination, the Fund may be required to sell portfolio securities when it otherwise would not, including at times when market conditions are not favorable, which may cause the Fund to lose money. As the Fund approaches its termination date, the portfolio composition of the Fund may change, which may cause the Fund’s returns to decrease and the market price of the Common Stock to fall. Rather than reinvesting the proceeds of its securities, the Fund may distribute the proceeds in one or more liquidating distributions prior to the final liquidation, which may cause the Fund’s fixed expenses to increase when expressed as a percentage of net assets attributable to Common Stock, or the Fund may invest the proceeds in lower yielding securities or hold the proceeds in cash or cash equivalents, which may adversely affect the performance of the Fund. Upon its termination, the Fund will distribute substantially all of its net assets to shareholders which may be more than, equal to or less than $20 per share. In addition, other provisions of the Articles may permit the Fund (with shareholder approval) to take certain actions that could have the effect of changing the termination date, such as through merger, consolidation or liquidation.
Asset-Backed, Mortgage-Backed or Mortgage-Related Securities Risk. To the extent the Fund invests in asset-backed, mortgage-backed or mortgage-related securities, its exposure to prepayment and extension risks may be greater than other investments in fixed income securities. Mortgage derivatives held by the Fund may have especially volatile prices and may have a disproportionate effect on the Fund’s share price. Rising interest rates tend to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates. In addition, mortgage-related securities are subject to prepayment risk—the risk that borrowers may pay off their mortgages sooner than expected, particularly when interest rates decline. This can reduce the Fund’s returns because the Fund may have to reinvest that money at lower prevailing interest rates. The Fund’s investments in other asset-backed securities are subject to risks similar to those associated with mortgage-backed securities.
Market Price Discount from Net Asset Value Risk. Shares of closed-end investment companies frequently trade at a discount from their net asset value. This risk is separate and distinct from the risk that the Fund’s net asset value could decrease as a result of its investment activities and may be a greater risk to investors expecting to sell their Common Stock in a relatively short period following completion of this offering. Whether investors will realize gains or losses upon the sale of the Common Stock will depend not upon the Fund’s net asset value but upon whether the market price of the Common Stock at the time of sale is above or below the investor’s purchase price for the Common Stock. Because the market price of the Common Stock will be determined by factors such as relative supply of and demand for the Common Stock in the market, general market and economic conditions
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Summary of information regarding the Fund (unaudited) (cont’d)
and other factors beyond the control of the Fund, the Fund cannot predict whether the Common Stock will trade at, above or below net asset value or at, above or below the initial public offering price. The Fund’s Common Stock is designed primarily for long-term investors and you should not view the Fund as a vehicle for trading purposes.
Non-Diversification Risk. The Fund is classified as “non-diversified” under the 1940 Act. As a result, it can invest a greater portion of its assets in obligations of a single issuer than a “diversified” fund. The Fund may therefore be more susceptible than a diversified fund to being adversely affected by any single corporate, economic, political or regulatory occurrence. The Fund intends to qualify for the special tax treatment available to “regulated investment companies” under Subchapter M of the Code, and thus intends to satisfy the diversification requirements of Subchapter M, including the less stringent diversification requirement that applies to the percent of its total assets that are represented by cash and cash items (including receivables), U.S. government securities, the securities of other regulated investment companies and certain other securities.
Anti-Takeover Provisions. The Fund’s Charter and Bylaws include provisions that are designed to limit the ability of other entities or persons to acquire control of the Fund for short-term objectives, including by converting the Fund to open-end status or changing the composition of the Board, that may be detrimental to the Fund’s ability to achieve its primary investment objective. The Fund’s Bylaws also contains a provision providing that the Fund is subject to the provisions of the Maryland Control Share Acquisition Act. There can be no assurance, however, that such provisions will be sufficient to deter professional arbitrageurs that seek to cause the Fund to take actions that may not be consistent with its investment objective or aligned with the interests of long-term shareholders, such as liquidating debt investments prior to maturity, triggering taxable events for shareholders and decreasing the size of the Fund. Such provisions may limit the ability of shareholders to sell their shares at a premium over prevailing market prices by discouraging a third party from seeking to obtain control of the Fund. There can be no assurance, however, that such provisions will be sufficient to deter activist investors that seek to cause the Fund to take actions that may not be aligned with the interests of long-term shareholders.
U.S. Government Debt Securities Risk. U.S. government debt securities generally do not involve the credit risks associated with investments in other types of debt securities, although, as a result, the yields available from U.S. government debt securities are generally lower than the yields available from other securities. Like other debt securities, however, the values of U.S. government securities change as interest rates fluctuate. Fluctuations in the value of portfolio securities will not affect interest income on existing portfolio securities but will be reflected in the Fund’s net asset value. Since the magnitude of these fluctuations will generally be greater at times when the Fund’s average maturity is longer, under certain market conditions the Fund may, for temporary defensive purposes,

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accept lower current income from short-term investments rather than investing in higher yielding long-term securities.
Non-U.S. Government Debt Securities Risk. The Fund intends to invest in non-U.S. government debt securities. The ability of a government issuer, especially in an emerging market country, to make timely and complete payments on its debt obligations will be strongly influenced by the government issuer’s balance of payments, including export performance, its access to international credits and investments, fluctuations of interest rates and the extent of its foreign reserves. A country whose exports are concentrated in a few commodities or whose economy depends on certain strategic imports could be vulnerable to fluctuations in international prices of these commodities or imports. To the extent that a country receives payment for its exports in currencies other than U.S. dollars, its ability to make debt payments denominated in U.S. dollars could be adversely affected. If a government issuer cannot generate sufficient earnings from foreign trade to service its external debt, it may need to depend on continuing loans and aid from foreign governments, commercial banks, and multinational organizations. There are no bankruptcy proceedings similar to those in the United States by which defaulted non-U.S. government debt may be collected. Additional factors that may influence a government issuer’s ability or willingness to service debt include, but are not limited to, a country’s cash flow situation, the availability of sufficient foreign exchange on the date a payment is due, the relative size of its debt service burden to the economy as a whole, and the issuer’s policy towards the International Monetary Fund, the International Bank for Reconstruction and Development and other international agencies to which a government debtor may be subject.
Senior Loans Risk. The Fund may invest in Senior Loans issued by banks, other financial institutions, and other investors to corporations, partnerships, limited liability companies and other entities to finance leveraged buyouts, recapitalizations, mergers, acquisitions, stock repurchases, debt refinancings and, to a lesser extent, for general operating and other purposes. An investment in Senior Loans involves risk that the borrowers under Senior Loans may default on their obligations to pay principal or interest when due. In the event a borrower fails to pay scheduled interest or principal payments on a Senior Loan held by the Fund, the Fund will experience a reduction in its income and a decline in the market value of the Senior Loan, which will likely reduce dividends and lead to a decline in the net asset value of the Fund. If the Fund acquires a Senior Loan from another lender, for example, by acquiring a participation, the Fund may also be subject to credit risks with respect to that lender.
The Fund will generally invest in Senior Loans that are secured with specific collateral. However, there can be no assurance that liquidation of collateral would satisfy the borrower’s obligation in the event of non-payment or that such collateral could be readily liquidated. In the event of the bankruptcy of a borrower, the Fund could experience delays
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and limitations on its ability to realize the benefits of the collateral securing the Senior Loan. Senior Loans are typically structured as floating rate instruments in which the interest rate payable on the obligation fluctuates with interest rate changes. As a result, the yield on Senior Loans will generally decline in a falling interest rate environment causing the Fund to experience a reduction in the income it receives from a Senior Loan. Senior Loans are generally of below investment grade quality and may be unrated at the time of investment; are generally not registered with the SEC or state securities commissions; and are generally not listed on any securities exchange. In addition, the amount of public information available on Senior Loans is generally less extensive than that available for other types of assets.
Second Lien Loans Risk. Second Lien Loans generally are subject to similar risks as those associated with investments in Senior Loans. Because Second Lien Loans are subordinated or unsecured and thus lower in priority of payment to Senior Loans, they are subject to the additional risk that the cash flow of the borrower and property securing the loan or debt, if any, may be insufficient to meet scheduled payments after giving effect to the senior secured obligations of the borrower. This risk is generally higher for subordinated unsecured loans or debt, which are not backed by a security interest in any specific collateral. Second Lien Loans generally have greater price volatility than Senior Loans and may be less liquid. There is also a possibility that originators will not be able to sell participations in Second Lien Loans, which would create greater credit risk exposure for the holders of such loans. Second Lien Loans share the same risks as other below investment grade securities.
Loan Participations and Assignments Risk. The Fund may invest in participations in loans or assignments of all or a portion of loans from third parties. In connection with purchasing participations, the Fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement relating to the loan, nor any rights of set-off against the borrower, and the Fund may not directly benefit from any collateral supporting the loan in which it has purchased the participation. As a result, the Fund may be subject to the credit risk of both the borrower and the lender that is selling the participation. In the event of the insolvency of the lender selling a participation, the Fund may be treated as a general creditor of the lender and may not benefit from any set-off between the lender and the borrower. Certain participations may be structured in a manner designed to avoid purchasers of participations being subject to the credit risk of the lender with respect to the participation, but even under such a structure, in the event of the lender’s insolvency, the lender’s servicing of the participation may be delayed and the assignability of the participation impaired. The Fund will acquire participations only if the lender interpositioned between the Fund and the borrower is determined by Western Asset to be creditworthy.
Common Stock Risk. The Fund may purchase equity securities (including but not limited to common stock, preferred stock, convertible securities, and warrants of U.S. and non-U.S.

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issuers) directly. An adverse event, such as an unfavorable earnings report, may depress the value of a particular common stock held by the Fund. In addition, the prices of common stocks are sensitive to general movements in the stock market, and a drop in the stock market may depress the prices of common stocks to which the Fund has exposure. Common stock prices fluctuate for several reasons including changes in investors’ perceptions of the financial condition of an issuer or the general condition of the relevant stock market, or when political or economic events affecting an issuer occur. In addition, common stock prices may be particularly sensitive to rising interest rates, as the cost of capital rises and borrowing costs increase. The value of the common stocks in which the Fund may invest will be affected by changes in the stock markets generally, which may be the result of domestic or international political or economic news, changes in interest rates or changing investor sentiment. At times, stock markets can be volatile and stock prices can change substantially. The common stocks of smaller companies are more sensitive to these changes than those of larger companies. Common stock risk will affect the Fund’s net asset value per share, which will fluctuate as the value of the securities held by the Fund change.
Preferred Stock Risk. The Fund may invest in preferred stock. Preferred stocks are unique securities that combine some of the characteristics of both common stocks and bonds. Preferred stocks generally pay a fixed rate of return and are sold on the basis of current yield, like bonds. However, because they are equity securities, preferred stock provides equity ownership of a company, and the income is paid in the form of dividends. Preferred stocks typically have a yield advantage over common stocks as well as comparably-rated fixed income investments. Preferred stocks are typically subordinated to bonds and other debt instruments in a company’s capital structure, in terms of priority to corporate income, and therefore will be subject to greater credit risk than those debt instruments. Unlike interest payments on debt securities, preferred stock dividends are payable only if declared by the issuer’s board of directors. Preferred stocks also may be subject to optional or mandatory redemption provisions. Certain of the preferred stocks in which the Fund may invest may be convertible preferred stocks, which have risks similar to convertible securities as described below in “—Convertible Securities Risk.”
Convertible Securities Risk. The Fund may invest in convertible securities. A convertible security is a bond, debenture, note, preferred stock or other security that may be converted into or exchanged for a prescribed amount of common stock or other equity security of the same or a different issuer within a particular period of time at a specified price or formula. Before conversion, convertible securities have characteristics similar to nonconvertible income securities in that they ordinarily provide a stable stream of income with generally higher yields than those of common stocks of the same or similar issuers, but lower yields than comparable nonconvertible securities. Similar to traditional fixed income securities, the market values of convertible securities tend to decline as interest rates increase and, conversely, to increase as interest rates decline. However, when the market price of the
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common stock underlying a convertible security exceeds the conversion price, the convertible security tends to reflect the market price of the underlying common stock. As the market price of the underlying common stock declines, the convertible security tends to trade increasingly on a yield basis and thus may not decline in price to the same extent as the underlying common stock. The credit standing of the issuer and other factors also may have an effect on the convertible security’s investment value. Convertible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated to comparable nonconvertible securities. Convertible securities may be subject to redemption at the option of the issuer at a price established in the convertible security’s governing instrument.
Short Sales Risk. To the extent the Fund makes use of short sales for investment and/or risk management purposes, the Fund may be subject to risks associated with selling short. Short sales are transactions in which the Fund sells securities or other instruments that the Fund does not own. Short sales expose the Fund to the risk that it will be required to cover its short position at a time when the securities have appreciated in value, thus resulting in a loss to the Fund. The Fund may engage in short sales where it does not own or have the right to acquire the security sold short at no additional cost. The Fund’s loss on a short sale theoretically could be unlimited in a case where the Fund is unable, for whatever reason, to close out its short position. In addition, the Fund’s short selling strategies may limit its ability to benefit from increases in the markets. If the Fund engages in short sales, it will segregate liquid assets, enter into offsetting transactions, own positions covering its obligations or otherwise cover such obligations; however, such segregation and cover requirements will not limit or offset losses on related positions. Short selling also involves a form of financial leverage that may exaggerate any losses realized by the Fund. Also, there is the risk that the counterparty to a short sale may fail to honor its contractual terms, causing a loss to the Fund.
Risk of Short Economic Exposure Through Derivatives. The use by the Fund of derivatives such as options, forwards or futures contracts for investment and/or risk management purposes may subject the Fund to risks associated with short economic exposure through such derivatives. Taking a short economic position through derivatives exposes the Fund to the risk that it will be obligated to make payments to its counterparty if the underlying asset appreciates in value, thus resulting in a loss to the Fund. The Fund’s loss on a short position using derivatives theoretically could be unlimited.
Counterparty Risk. Changes in the credit quality of the companies that serve as the Fund’s counterparties with respect to derivatives or other transactions supported by another party’s credit will affect the value of those instruments. Certain entities that have served as counterparties in the markets for these transactions have recently incurred significant financial hardships including bankruptcy and losses as a result of exposure to sub-prime

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mortgages and other lower quality credit investments that have experienced recent defaults or otherwise suffered extreme credit deterioration. If a counterparty becomes bankrupt or otherwise fails to perform its obligations under a derivative contract due to financial difficulties, the Fund may experience significant delays in obtaining any recovery under the derivative contract in a bankruptcy or other reorganization proceeding. The Fund may obtain only a limited recovery or may obtain no recovery in such circumstances.
Credit Default Swap Risk. The Fund may invest in credit default swap transactions for hedging or investment purposes. Credit default swap agreements involve greater risks than if the Fund had invested in the reference obligation directly since, in addition to general market risks, credit default swaps are subject to illiquidity risk, counterparty risk and credit risk. The “buyer” in a credit default contract is obligated to pay the “seller” a periodic stream of payments over the term of the contract, provided that no event of default on an underlying reference obligation has occurred. If an event of default occurs, the seller must pay the buyer the full notional value, or “par value,” of the reference obligation through either physical settlement or cash settlement. The Fund may be either the buyer or seller in a credit default swap transaction. If the Fund is a buyer and no event of default occurs, the Fund will have made a series of periodic payments and recover nothing of monetary value. However, if an event of default occurs, the Fund (if the buyer) will receive the full notional value of the reference obligation either through a cash payment in exchange for the asset or a cash payment in addition to owning the reference assets. As a seller, the Fund receives a fixed rate of income throughout the term of the contract, which typically is between six months and five years, provided that there is no event of default. The sale of a credit default swap is a form of leverage. The Fund currently intends to segregate assets on the Fund’s records in the form of cash, cash equivalents or liquid securities in an amount equal to the notional value of the credit default swaps of which it is the seller or otherwise cover such obligations. If such assets are not fully segregated or otherwise covered by the Fund, the use of credit default swap transactions could then be considered senior securities for purposes of the 1940 Act.
Structured Notes and Related Instruments Risk. The Fund may invest in “structured” notes and other related instruments, which are privately negotiated debt obligations where the principal and/or interest is determined by reference to the performance of a benchmark asset, market or interest rate (an “embedded index”), such as selected securities, an index of securities or specified interest rates, or the differential performance of two assets or markets, such as indexes reflecting bonds. Structured instruments may be issued by corporations, including banks, as well as by governmental agencies. Structured instruments frequently are assembled in the form of medium-term notes, but a variety of forms are available and may be used in particular circumstances. The terms of such structured instruments normally provide that their principal and/or interest payments are to be adjusted upwards or downwards (but ordinarily not below zero) to reflect changes in the
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embedded index while the structured instruments are outstanding. As a result, the interest and/or principal payments that may be made on a structured product may vary widely, depending on a variety of factors, including the volatility of the embedded index and the effect of changes in the embedded index on principal and/or interest payments. The rate of return on structured notes may be determined by applying a multiplier to the performance or differential performance of the referenced index(es) or other asset(s). Application of a multiplier involves leverage that will serve to magnify the potential for gain and the risk of loss.
Inflation/Deflation Risk. Inflation risk is the risk that the value of certain assets or income from the Fund’s investments will be worth less in the future as inflation decreases the value of money. As inflation increases, the real value of the Common Stock and distributions on the Common Stock can decline. In addition, during any periods of rising inflation, the dividend rates or borrowing costs associated with the Fund’s use of leverage would likely increase, which would tend to further reduce returns to shareholders. Deflation risk is the risk that prices throughout the economy decline over time—the opposite of inflation. Deflation may have an adverse effect on the creditworthiness of issuers and may make issuer defaults more likely, which may result in a decline in the value of the Fund’s portfolio.
Risks of Futures and Options on Futures. The use by the Fund of futures contracts and options on futures contracts to hedge interest rate risks involves special considerations and risks, as described below.
Successful use of hedging transactions depends upon Western Asset’s ability to correctly predict the direction of changes in interest rates. There can be no assurance that any particular hedging strategy will succeed.
There might be imperfect correlation, or even no correlation, between the price movements of a futures or option contract and the movements of the interest rates being hedged. Such a lack of correlation might occur due to factors unrelated to the interest rates being hedged, such as market liquidity and speculative or other pressures on the markets in which the hedging instrument is traded.
Hedging strategies, if successful, can reduce risk of loss by wholly or partially offsetting the negative effect of unfavorable movements in the interest rates being hedged. However, hedging strategies can also reduce opportunity for gain by offsetting the positive effect of favorable movements in the hedged interest rates.
There is no assurance that a liquid secondary market will exist for any particular futures contract or option thereon at any particular time. If the Fund were unable to liquidate a futures contract or an option on a futures contract position due to the absence of a liquid secondary market or the imposition of price limits, it could incur substantial losses. The Fund would continue to be subject to market risk with respect to the position.

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There is no assurance that the Fund will use hedging transactions. For example, if the Fund determines that the cost of hedging will exceed the potential benefit to the Fund, the Fund will not enter into such transactions.
When-Issued and Delayed-Delivery Transactions Risk. The Fund may purchase fixed income securities on a when-issued basis, and may purchase or sell those securities for delayed delivery. When-issued and delayed-delivery transactions occur when securities are purchased or sold by the Fund with payment and delivery taking place in the future to secure an advantageous yield or price. Securities purchased on a when-issued or delayed-delivery basis may expose the Fund to counterparty risk of default as well as the risk that securities may experience fluctuations in value prior to their actual delivery. The Fund will not accrue income with respect to a when-issued or delayed-delivery security prior to its stated delivery date. Purchasing securities on a when-issued or delayed-delivery basis can involve the additional risk that the price or yield available in the market when the delivery takes place may not be as favorable as that obtained in the transaction itself.
Portfolio Turnover Risk. Changes to the investments of the Fund may be made regardless of the length of time particular investments have been held. A high portfolio turnover rate may result in increased transaction costs for the Fund in the form of increased dealer spreads and other transactional costs, which may have an adverse impact on the Fund’s performance. In addition, high portfolio turnover may result in the realization of net short-term capital gains by the Fund which, when distributed to shareholders, will be taxable as ordinary income. A high portfolio turnover may increase the Fund’s current and accumulated earnings and profits, resulting in a greater portion of the Fund’s distributions being treated as a dividend to the Fund’s shareholders. The portfolio turnover rate of the Fund will vary from year to year, as well as within a given year.
Temporary Defensive Strategies Risk. When Western Asset anticipates unusual market or other conditions, the Fund may temporarily depart from its principal investment strategies as a defensive measure and invest all or a portion of its assets in obligations of the U.S. government, its agencies or instrumentalities; other investment grade debt securities; investment grade commercial paper; certificates of deposit and bankers’ acceptances; repurchase agreements with respect to any of the foregoing investments or any other fixed income securities that Western Asset considers consistent with this strategy. To the extent that the Fund invests defensively, it may not achieve its investment objectives.
Rating Agency Risk. Credit ratings are issued by rating agencies which are private services that provide ratings of the credit quality of debt obligations, including convertible securities. Ratings assigned by a rating agency are not absolute standards of credit quality and do not evaluate market risks or the liquidity of securities. Rating agencies may fail to make timely changes in credit ratings and an issuer’s current financial condition may be better or worse than a rating indicates. In addition, in recent years there have been instances in which the
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initial rating assigned by a rating agency to a security failed to take account of adverse economic developments which subsequently occurred, leading to losses that were not anticipated based on the initial rating. To the extent that the issuer of a security pays a rating agency for the analysis of its security, an inherent conflict of interest may exist that could affect the reliability of the rating. The ratings of a debt security may change over time. As a result, debt instruments held by the Fund could receive a higher rating or a lower rating during the period in which they are held. The Fund will not necessarily sell a security when its rating is reduced below its rating at the time of purchase.
Market Events Risk.  The market values of securities or other assets will fluctuate, sometimes sharply and unpredictably, due to factors such as economic events, governmental actions or intervention, actions taken by the U.S. Federal Reserve or foreign central banks, market disruptions caused by trade disputes, labor strikes or other factors, political developments, armed conflicts, economic sanctions and countermeasures in response to sanctions, major cybersecurity events, the global and domestic effects of widespread or local health, weather or climate events, and other factors that may or may not be related to the issuer of the security or other asset. Economies and financial markets throughout the world are increasingly interconnected. Economic, financial or political events, trading and tariff arrangements, public health events, terrorism, wars, natural disasters and other circumstances in one country or region could have profound impacts on global economies or markets. As a result, whether or not the fund invests in securities of issuers located in or with significant exposure to the countries or markets directly affected, the value and liquidity of the fund’s investments may be negatively affected. Following Russia’s invasion of Ukraine in 2022, Russian stocks lost all, or nearly all, of their market value. Other securities or markets could be similarly affected by past or future geopolitical or other events or conditions. Furthermore, events involving limited liquidity, defaults, non-performance or other adverse developments that affect one industry, such as the financial services industry, or concerns or rumors about any events of these kinds, have in the past and may in the future lead to market-wide liquidity problems, may spread to other industries, and could negatively affect the value and liquidity of the fund’s investments.
The long-term impact of the COVID-19 pandemic and its subsequent variants on economies, markets, industries and individual issuers is not known. Some sectors of the economy and individual issuers have experienced or may experience particularly large losses. Periods of extreme volatility in the financial markets, reduced liquidity of many instruments, increased government debt, inflation, and disruptions to supply chains, consumer demand and employee availability, may continue for some time. The U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, took extraordinary actions to support local and global economies and the financial markets in response to the COVID-19 pandemic. This and other government intervention into the economy and financial markets may not work as intended, and have resulted in a large expansion of government

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deficits and debt, the long term consequences of which are not known. In addition, the COVID-19 pandemic, and measures taken to mitigate its effects, could result in disruptions to the services provided to the fund by its service providers.
Raising the ceiling on U.S. government debt has become increasingly politicized. Any failure to increase the total amount that the U.S. government is authorized to borrow could lead to a default on U.S. government obligations, with unpredictable consequences for economies and markets in the U.S. and elsewhere. Recently, inflation and interest rates have increased and may rise further. These circumstances could adversely affect the value and liquidity of the fund’s investments, impair the fund’s ability to satisfy redemption requests, and negatively impact the fund’s performance.
The United States and other countries are periodically involved in disputes over trade and other matters, which may result in tariffs, investment restrictions and adverse impacts on affected companies and securities.  For example, the United States has imposed tariffs and other trade barriers on Chinese exports, has restricted sales of certain categories of goods to China, and has established barriers to investments in China.  Trade disputes may adversely affect the economies of the United States and its trading partners, as well as companies directly or indirectly affected and financial markets generally. The United States government has prohibited U.S. persons from investing in Chinese companies designated as related to the Chinese military. These and possible future restrictions could limit the fund’s opportunities for investment and require the sale of securities at a loss or make them illiquid. Moreover, the Chinese government is involved in a longstanding dispute with Taiwan that has included threats of invasion. If the political climate between the United States and China does not improve or continues to deteriorate, if China were to attempt unification of Taiwan by force, or if other geopolitical conflicts develop or get worse, economies, markets and individual securities may be severely affected both regionally and globally, and the value of the fund’s assets may go down.
Operational Risk. The valuation of the Fund’s investments may be negatively impacted because of the operational risks arising from factors such as processing errors and human errors, inadequate or failed internal or external processes, failures in systems and technology, changes in personnel, and errors caused by third party service providers or trading counterparties. It is not possible to identify all of the operational risks that may affect the Fund or to develop processes and controls that completely eliminate or mitigate the occurrence of such failures. The Fund and its shareholders could be negatively impacted as a result.
Valuation Risk. The sales price the Fund could receive for any particular portfolio investment may differ from the Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair value methodology. These differences may increase significantly and affect Fund investments more broadly during
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periods of market volatility.  The Fund’s ability to value its investments may be impacted by technological issues and/or errors by pricing services or other third party service providers. The valuation of the Fund’s investments involves subjective judgment.
Cybersecurity Risk. Like other funds and business enterprises, the fund, the manager, the subadvisers, Authorized Participants, the relevant listing exchange and their service providers are subject to the risk of cyber incidents occurring from time to time. Cybersecurity incidents, whether intentionally caused by third parties or otherwise, may allow an unauthorized party to gain access to fund assets, fund or customer data (including private shareholder information) or proprietary information, cause the fund, the manager, the subadvisers, Authorized Participants, the relevant listing exchange and/or their service providers (including, but not limited to, fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality, or prevent fund investors from purchasing, redeeming or exchanging shares, receiving distributions or receiving timely information regarding the fund or their investment in the fund. The fund, the manager, and the subadvisers have limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the fund, the manager, and/or the subadvisers. Cybersecurity incidents may result in financial losses to the fund and its shareholders, and substantial costs may be incurred in order to prevent or mitigate any future cybersecurity incidents. Issuers of securities in which the fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.
New ways to carry out cyber attacks continue to develop. There is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the fund’s ability to plan for or respond to a cyber attack.
More Information
For a complete list of the Fund’s fundamental investment restrictions and more detailed descriptions of the Fund’s investment policies, strategies and risks, see the Fund’s registration statement on Form N-2 that was declared effective by the SEC on October 26, 2010. The Fund’s fundamental investment restrictions may not be changed without the approval of the holders of a majority of the outstanding voting securities, as defined in the 1940 Act.

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Dividend reinvestment plan (unaudited)
Unless you elect to receive distributions in cash (i.e., opt-out), all dividends, including any capital gain dividends and return of capital distributions, on your Common Stock will be automatically reinvested by Computershare Trust Company, N.A., as agent for the stock- holders (the “Plan Agent”), in additional shares of Common Stock under the Fund’s Dividend Reinvestment Plan (the “Plan”). You may elect not to participate in the Plan by contacting the Plan Agent. If you do not participate, you will receive all cash distributions paid by check mailed directly to you by Computershare Trust Company, N.A., as dividend paying agent.
If you participate in the Plan, the number of shares of Common Stock you will receive will be determined as follows:
(1) If the market price of the Common Stock (plus $0.03 per share commission) on the payment date (or, if the payment date is not a NYSE trading day, the immediately preceding trading day) is equal to or exceeds the net asset value per share of the Common Stock at the close of trading on the NYSE on the payment date, the Fund will issue new Common Stock at a price equal to the greater of (a) the net asset value per share at the close of trading on the NYSE on the payment date or (b) 95% of the market price per share of the Common Stock on the payment date.
(2) If the net asset value per share of the Common Stock exceeds the market price of the Common Stock (plus $0.03 per share commission) at the close of trading on the NYSE on the payment date, the Plan Agent will receive the dividend or distribution in cash and will buy Common Stock in the open market, on the NYSE or elsewhere, for your account as soon as practicable commencing on the trading day following the payment date and terminating no later than the earlier of (a) 30 days after the dividend or distribution payment date, or (b) the payment date for the next succeeding dividend or distribution to be made to the stockholders; except when necessary to comply with applicable provisions of the federal securities laws. If during this period: (i) the market price (plus $0.03 per share commission) rises so that it equals or exceeds the net asset value per share of the Common Stock at the close of trading on the NYSE on the payment date before the Plan Agent has completed the open market purchases or (ii) if the Plan Agent is unable to invest the full amount eligible to be reinvested in open market purchases, the Plan Agent will cease purchasing Common Stock in the open market and the Fund shall issue the remaining Common Stock at a price per share equal to the greater of (a) the net asset value per share at the close of trading on the NYSE on the day prior to the issuance of shares for reinvestment or (b) 95% of the then current market price per share.
Common Stock in your account will be held by the Plan Agent in non-certificated form. Any proxy you receive will include all shares of Common Stock you have received under the Plan. You may withdraw from the Plan (i.e., opt-out) by notifying the Plan Agent in writing at P.O. Box 43006, Providence, RI 02940-3078 or by calling the Plan Agent at 1-888-888-0151. Such withdrawal will be effective immediately if notice is received by the Plan Agent not less than ten business days prior to any dividend or distribution record date; otherwise such
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withdrawal will be effective as soon as practicable after the Plan Agent’s investment of the most recently declared dividend or distribution on the Common Stock.
Plan participants who sell their shares will be charged a service charge (currently $5.00 per transaction) and the Plan Agent is authorized to deduct brokerage charges actually incurred from the proceeds (currently $0.05 per share commission). There is no service charge for reinvestment of your dividends or distributions in Common Stock. However, all participants will pay a pro rata share of brokerage commissions incurred by the Plan Agent when it makes open market purchases. Because all dividends and distributions will be automatically reinvested in additional shares of Common Stock, this allows you to add to your investment through dollar cost averaging, which may lower the average cost of your Common Stock over time. Dollar cost averaging is a technique for lowering the average cost per share over time if the Fund’s net asset value declines. While dollar cost averaging has definite advantages, it cannot assure profit or protect against loss in declining markets.
Automatically reinvesting dividends and distributions does not mean that you do not have to pay income taxes due upon receiving dividends and distributions. Investors will be subject to income tax on amounts reinvested under the Plan.
The Fund reserves the right to amend or terminate the Plan if, in the judgment of the Board of Directors, the change is warranted. The Plan may be terminated, amended or supplemented by the Fund upon notice in writing mailed to stockholders at least 30 days prior to the record date for the payment of any dividend or distribution by the Fund for which the termination or amendment is to be effective. Upon any termination, you will be sent cash for any fractional share of Common Stock in your account. You may elect to notify the Plan Agent in advance of such termination to have the Plan Agent sell part or all of your Common Stock on your behalf. Additional information about the Plan and your account may be obtained from the Plan Agent at P.O. Box 43006, Providence, RI 02940-3078 or by calling the Plan Agent at 1-888-888-0151.

82
Western Asset High Yield Defined Opportunity Fund Inc.

Important tax information (unaudited)
By mid-February, tax information related to a shareholder’s proportionate share of distributions paid during the preceding calendar year will be received, if applicable. Please also refer to www.franklintempleton.com for per share tax information related to any distributions paid during the preceding calendar year. Shareholders are advised to consult with their tax advisors for further information on the treatment of these amounts on their tax returns.
The following tax information for the Fund is required to be furnished to shareholders with respect to income earned and distributions paid during its fiscal year.
The Fund hereby reports the following amounts, or if subsequently determined to be different, the maximum allowable amounts, for the fiscal year ended May 31, 2024:
 
Pursuant to:
Amount Reported
Qualified Net Interest Income (QII)
§871(k)(1)(C)
$13,922,323
Section 163(j) Interest Earned
§163(j)
$23,377,078
Interest Earned from Federal Obligations
Note (1)
$80,082
Note (1) - The law varies in each state as to whether and what percentage of dividend income attributable to Federal obligations is exempt from state income tax. Shareholders are advised to consult with their tax advisors to determine if any portion of the dividends received is exempt from state income taxes.
Western Asset High Yield Defined Opportunity Fund Inc.

83

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Western Asset
High Yield Defined Opportunity Fund Inc.
Directors
Robert D. Agdern
Carol L. Colman
Daniel P. Cronin
Paolo M. Cucchi
Eileen A. Kamerick
Nisha Kumar
Jane Trust
Chairman
Officers
Jane Trust
President and Chief Executive
Officer
Christopher Berarducci
Treasurer and Principal Financial
Officer
Fred Jensen
Chief Compliance Officer
Marc A. De Oliveira*
Secretary and Chief Legal Officer
Thomas C. Mandia
Senior Vice President
Jeanne M. Kelly
Senior Vice President
Western Asset High Yield Defined Opportunity Fund Inc.
620 Eighth Avenue
47th Floor
New York, NY 10018
Investment manager
Franklin Templeton Fund Adviser, LLC**
Subadvisers
Western Asset Management Company, LLC
Western Asset Management Company Limited
Western Asset Management Company Ltd
Western Asset Management Company Pte. Ltd.
Custodian
The Bank of New York Mellon
Transfer agent
Computershare Inc.
P.O. Box 43006
Providence, RI 02940-3078
Independent registered 
public accounting firm
PricewaterhouseCoopers LLP
Baltimore, MD
Legal counsel
Simpson Thacher & Bartlett LLP
900 G Street NW
Washington, DC 20001
New York Stock
Exchange Symbol
HYI
*
Effective September 7, 2023, Mr. De Oliveira became Secretary and Chief Legal Officer.
**
Formerly known as Legg Mason Partners Fund Advisor, LLC.

Franklin Templeton Funds Privacy and Security Notice


Your Privacy and the Security of Your Personal Information is Very Important to Us
This Privacy and Security Notice (the “Privacy Notice”) addresses the Funds’ privacy and data protection practices with respect to nonpublic personal information the Fund receives. The Legg Mason Funds include the Western Asset Money Market Funds (Funds) sold by the Funds’ distributor, Franklin Distributors, LLC, as well as Legg Mason-sponsored closed-end funds. The provisions of this Privacy Notice apply to your information both while you are a shareholder and after you are no longer invested with the Funds.
The Type of Nonpublic Personal Information the Funds Collect About You
The Funds collect and maintain nonpublic personal information about you in connection with your shareholder account. Such information may include, but is not limited to:
Personal information included on applications or other forms;
Account balances, transactions, and mutual fund holdings and positions;
Bank account information, legal documents, and identity verification documentation; and
Online account access user IDs, passwords, security challenge question responses.
How the Funds Use Nonpublic Personal Information About You
The Funds do not sell or share your nonpublic personal information with third parties or with affiliates for their marketing purposes, unless you have authorized the Funds to do so. The Funds do not disclose any nonpublic personal information about you except as may be required to perform transactions or services you have authorized or as permitted or required by law. The Funds may disclose information about you to:
Employees, agents, and affiliates on a “need to know” basis to enable the Funds to conduct ordinary business or to comply with obligations to government regulators;
Service providers, including the Funds’ affiliates, who assist the Funds as part of the ordinary course of business (such as printing, mailing services, or processing or servicing your account with us) or otherwise perform services on the Funds’ behalf, including companies that may perform statistical analysis, market research and marketing services solely for the Funds;
Permit access to transfer, whether in the United States or countries outside of the United States to such Funds’ employees, agents and affiliates and service providers as required to enable the Funds to conduct ordinary business, or to comply with obligations to government regulators;
The Funds’ representatives such as legal counsel, accountants and auditors to enable the Funds to conduct ordinary business, or to comply with obligations to government regulators;
Fiduciaries or representatives acting on your behalf, such as an IRA custodian or trustee of a grantor trust.
NOT PART OF THE ANNUAL REPORT

Franklin Templeton Funds Privacy and Security Notice 
(cont’d) 
Except as otherwise permitted by applicable law, companies acting on the Funds’ behalf, including those outside the United States, are contractually obligated to keep nonpublic personal information the Funds provide to them confidential and to use the information the Funds share only to provide the services the Funds ask them to perform.
The Funds may disclose nonpublic personal information about you when necessary to enforce their rights or protect against fraud, or as permitted or required by applicable law, such as in connection with a law enforcement or regulatory request, subpoena, or similar legal process. In the event of a corporate action or in the event a Fund service provider changes, the Funds may be required to disclose your nonpublic personal information to third parties. While it is the Funds’ practice to obtain protections for disclosed information in these types of transactions, the Funds cannot guarantee their privacy policy will remain unchanged.
Keeping You Informed of the Funds’ Privacy and Security Practices
The Funds will notify you annually of their privacy policy as required by federal law. While the Funds reserve the right to modify this policy at any time, they will notify you promptly if this privacy policy changes.
The Funds’ Security Practices
The Funds maintain appropriate physical, electronic and procedural safeguards designed to guard your nonpublic personal information. The Funds’ internal data security policies restrict access to your nonpublic personal information to authorized employees, who may use your nonpublic personal information for Fund business purposes only.
Although the Funds strive to protect your nonpublic personal information, they cannot ensure or warrant the security of any information you provide or transmit to them, and you do so at your own risk. In the event of a breach of the confidentiality or security of your nonpublic personal information, the Funds will attempt to notify you as necessary so you can take appropriate protective steps. If you have consented to the Funds using electronic communications or electronic delivery of statements, they may notify you under such circumstances using the most current email address you have on record with them.
In order for the Funds to provide effective service to you, keeping your account information accurate is very important. If you believe that your account information is incomplete, not accurate or not current, if you have questions about the Funds’ privacy practices, or our use of your nonpublic personal information, write the Funds using the contact information on your account statements, email the Funds by clicking on the Contact Us section of the Funds’ website at www.franklintempleton.com, or contact the Funds at 1-877-721-1926 for the Western Asset Money Market Funds or 1-888-777-0102 for the Legg Mason-sponsored closed-end funds. For additional information related to certain state privacy rights, please visit https://www.franklintempleton.com/help/privacy-policy.
Revised December 2023.
NOT PART OF THE ANNUAL REPORT

Western Asset High Yield Defined Opportunity Fund Inc.
Western Asset High Yield Defined Opportunity Fund Inc.
620 Eighth Avenue
47th Floor
New York, NY 10018
Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940, as amended, that from time to time the Fund may purchase, at market prices, shares of its stock.
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Forms N-PORT are available on the SEC’s website at www.sec.gov. To obtain information on Form N-PORT, shareholders can call the Fund at 1-888-777-0102.
Information on how the Fund voted proxies relating to portfolio securities during the prior 12-month period ended June 30th of each year and a description of the policies and procedures that the Fund uses to determine how to vote proxies related to portfolio transactions are available (1) without charge, upon request, by calling 1-888-777-0102, (2) at www.franklintempleton.com and (3) on the SEC’s website at www.sec.gov.
Quarterly performance, semi-annual and annual reports, current net asset value and other information regarding the Fund may be found on Franklin Templeton’s website, which can be accessed at www.franklintempleton.com. Any reference to Franklin Templeton’s website in this report is intended to allow investors public access to information regarding the Fund and does not, and is not intended to, incorporate Franklin Templeton’s website in this report.
This report is transmitted to the shareholders of Western Asset High Yield Defined Opportunity Fund Inc. for their information. This is not a prospectus, circular or representation intended for use in the purchase of shares of the Fund or any securities mentioned in this report.
Computershare Inc.
P.O. Box 43006
Providence, RI 02940-3078
WASX0139777/24

 

ITEM 2.CODE OF ETHICS.

 

The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller.

 

ITEM 3.AUDIT COMMITTEE FINANCIAL EXPERT.

 

The Board of Directors of the registrant has determined that Eileen A. Kamerick and Nisha Kumar, are the members of the Board’s Audit Committee, possesses the technical attributes identified in Instruction 2(b) of Item 3 to Form N-CSR to qualify as an “audit committee financial experts”.

 

Item 4.Principal Accountant Fees and Services.

 

(a) Audit Fees. The aggregate fees billed in the previous fiscal years ending May 31, 2023 and May 31, 2024 (the “Reporting Periods”) for professional services rendered by the Registrant’s principal accountant (the “Auditor”) for the audit of the Registrant’s annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $47,206 in May 31, 2023 and $47,206 in May 31, 2024.

 

(b) Audit-Related Fees. The aggregate fees billed in the Reporting Period for assurance and related services by the Auditor that are reasonably related to the performance of the Registrant’s financial statements were $0 in May 31, 2023 and $0 in May 31, 2024.

 

(c) Tax Fees. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice and tax planning (“Tax Services”) were $10,000 in May 31, 2023 and $10,000 in May 31, 2024. These services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments, and (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held.

 

There were no fees billed for tax services by the Auditors to service affiliates during the Reporting Periods that required pre-approval by the Audit Committee.

 

(d) All Other Fees. The aggregate fees for other fees billed in the Reporting Periods for products and services provided by the Auditor, other than the services reported in paragraphs (a) through (c) of this Item for the Western Asset High Yield Defined Opportunity Fund Inc. were $0 in May 31, 2023 and $0 in May 31, 2024.

 

All Other Fees. There were no other non-audit services rendered by the Auditor to Franklin Templeton Fund Advisor, LLC (“FTFA”), and any entity controlling, controlled by or under common control with FTFA that provided ongoing services to Western Asset High Yield Defined Opportunity Fund Inc. requiring pre-approval by the Audit Committee in the Reporting Period.

 

(e) Audit Committee’s pre-approval policies and procedures described in paragraph (c) (7) of Rule 2-01 of Regulation S-X.

 

(1) The Charter for the Audit Committee (the “Committee”) of the Board of each registered investment company (the “Fund”) advised by FTFA or one of their affiliates (each, an “Adviser”) requires that the Committee shall approve (a) all audit and permissible non-audit services to be provided to the Fund and (b) all permissible non-audit services to be provided by the Fund’s independent auditors to the Adviser and any Covered Service Providers if the engagement relates directly to the operations and financial reporting of the Fund. The Committee may

 

implement policies and procedures by which such services are approved other than by the full Committee.

 

The Committee shall not approve non-audit services that the Committee believes may impair the independence of the auditors. As of the date of the approval of this Audit Committee Charter, permissible non-audit services include any professional services (including tax services), that are not prohibited services as described below, provided to the Fund by the independent auditors, other than those provided to the Fund in connection with an audit or a review of the financial statements of the Fund. Permissible non-audit services may not include: (i) bookkeeping or other services related to the accounting records or financial statements of the Fund; (ii) financial information systems design and implementation; (iii) appraisal or valuation services, fairness opinions or contribution-in-kind reports; (iv) actuarial services; (v) internal audit outsourcing services; (vi) management functions or human resources; (vii) broker or dealer, investment adviser or investment banking services; (viii) legal services and expert services unrelated to the audit; and (ix) any other service the Public Company Accounting Oversight Board determines, by regulation, is impermissible.

 

Pre-approval by the Committee of any permissible non-audit services is not required so long as: (i) the aggregate amount of all such permissible non-audit services provided to the Fund, the Adviser and any service providers controlling, controlled by or under common control with the Adviser that provide ongoing services to the Fund (“Covered Service Providers”) constitutes not more than 5% of the total amount of revenues paid to the independent auditors during the fiscal year in which the permissible non-audit services are provided to (a) the Fund, (b) the Adviser and (c) any entity controlling, controlled by or under common control with the Adviser that provides ongoing services to the Fund during the fiscal year in which the services are provided that would have to be approved by the Committee; (ii) the permissible non-audit services were not recognized by the Fund at the time of the engagement to be non-audit services; and (iii) such services are promptly brought to the attention of the Committee and approved by the Committee (or its delegate(s)) prior to the completion of the audit.

 

(2) None of the services described in paragraphs (b) through (d) of this Item were performed in reliance on paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

 

(f) N/A

 

(g) Non-audit fees billed by the Auditor for services rendered to Western Asset High Yield Defined Opportunity Fund Inc., FTFA and any entity controlling, controlled by, or under common control with FTFA that provides ongoing services to Western Asset High Yield Defined Opportunity Fund Inc. during the reporting period were $350,359 in May 31, 2023 and $342,635 in May 31, 2024.

 

(h) Yes. Western Asset High Yield Defined Opportunity Fund Inc.’s Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates, which were not pre-approved (not requiring pre-approval), is compatible with maintaining the Accountant’s independence. All services provided by the Auditor to the Western Asset High Yield Defined Opportunity Fund Inc. or to Service Affiliates, which were required to be pre-approved, were pre-approved as required.

 

(i) Not applicable.

 

(j) Not applicable.

 

ITEM 5.AUDIT COMMITTEE OF LISTED REGISTRANTS.

 

a)Registrant has a separately-designated standing Audit Committee established in accordance with Section 3(a)58(A) of the Exchange Act. The Audit Committee consists of the following Board members:

 

Robert D. Agdern

Carol L. Colman

Daniel P. Cronin

Paolo M. Cucchi

Eileen A. Kamerick

Nisha Kumar

 

b)Not applicable

 

ITEM 6. SCHEDULE OF INVESTMENTS.

 

Included herein under Item 1.

 

ITEM 7. FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.

 

Not applicable.

 

ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.

 

Not applicable.

 

ITEM 9. PROXY DISCLOSURES FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.

 

Not applicable.

 

ITEM 10. REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES.

 

Not applicable.

 

ITEM 11. STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT.

 

Not applicable.

 

ITEM 12. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
 
 

Western Asset Management Company, LLC

Proxy Voting Policies and Procedures

NOTE

The policy below relating to proxy voting and corporate actions is a global policy for Western Asset Management Company, LLC (“Western Asset” or the “Firm”) and all Western Asset affiliates, including Western Asset Management Company Limited (“Western Asset Limited”), Western Asset Management Company Ltd (“Western Asset Japan”) and Western Asset Management Company Pte. Ltd. (“Western Asset Singapore”), as applicable. As compliance with the policy is monitored by Western Asset, the policy has been adopted from the US Compliance Manual and all defined terms are those defined in the US Compliance Manual rather than the compliance manual of any other Western Asset affiliate.

BACKGROUND

An investment adviser is required to adopt and implement policies and procedures that we believe are reasonably designed to ensure that proxies are voted in the best interest of clients, in accordance with fiduciary duties and Rule 206(4)-6 under the Investment Advisers Act of 1940 (“Advisers Act”). The authority to vote the proxies of our clients is established through investment management agreements or comparable documents. In addition to SEC requirements governing advisers, long-standing fiduciary standards and responsibilities have been established for ERISA accounts. Unless a manager of ERISA assets has been expressly precluded from voting proxies, the Department of Labor has determined that the responsibility for these votes lies with the investment manager.

POLICY

As a fixed income only manager, the occasion to vote proxies is very rare. However, the Firm has adopted and implemented policies and procedures that we believe are reasonably designed to ensure that proxies are voted in the best interest of clients, in accordance with our fiduciary duties and Rule 206(4)-6 under the Advisers Act. In addition to SEC requirements governing advisers, our proxy voting policies reflect the long-standing fiduciary standards and responsibilities for ERISA accounts. Unless a manager of ERISA assets has been expressly precluded from voting proxies, the Department of Labor has determined that the responsibility for these votes lies with the investment manager.

While the guidelines included in the procedures are intended to provide a benchmark for voting standards, each vote is ultimately cast on a case-by-case basis, taking into consideration the Firm’s contractual obligations to our clients and all other relevant facts and circumstances at the time of the vote (such that these guidelines may be overridden to the extent the Firm deems appropriate).

In exercising its voting authority, Western Asset will not consult or enter into agreements with officers, directors or employees of Franklin Resources (Franklin Resources includes Franklin Resources, Inc. and organizations operating as Franklin Resources) or any of its affiliates (other than Western Asset affiliated companies) regarding the voting of any securities owned by its clients.

PROCEDURES

Responsibility and Oversight

The Regulatory Affairs Group is responsible for administering and overseeing the proxy voting process. The gathering of proxies is coordinated through the Corporate Actions area of Investment Operations Group (“Corporate Actions”). Research analysts and portfolio managers are responsible for determining appropriate voting positions on each proxy utilizing any applicable guidelines contained in these procedures.

Client Authority

The Investment Management Agreement for each client is reviewed at account start-up for proxy voting instructions. If an agreement is silent on proxy voting, but contains an overall delegation of discretionary authority or if the account represents assets of an ERISA plan, Western Asset will assume responsibility for proxy voting. The Regulatory Affairs Group maintains a matrix of proxy voting authority.

 
 

Proxy Gathering

Registered owners of record, client custodians, client banks and trustees (“Proxy Recipients”) that receive proxy materials on behalf of clients should forward them to Corporate Actions. Proxy Recipients for new clients (or, if Western Asset becomes aware that the applicable Proxy Recipient for an existing client has changed, the Proxy Recipient for the existing client) are notified at start-up of appropriate routing to Corporate Actions of proxy materials received and reminded of their responsibility to forward all proxy materials on a timely basis. If Western Asset personnel other than Corporate Actions receive proxy materials, they should promptly forward the materials to Corporate Actions.

Proxy Voting

Once proxy materials are received by Corporate Actions, they are forwarded to the Regulatory Affairs Group for coordination and the following actions:

 

Proxies are reviewed to determine accounts impacted.
Impacted accounts are checked to confirm Western Asset voting authority.
The Regulatory Affairs Group reviews proxy issues to determine any material conflicts of interest. (See Conflicts of Interest section of these procedures for further information on determining material conflicts of interest.)
If a material conflict of interest exists, (i) to the extent reasonably practicable and permitted by applicable law, the client is promptly notified, the conflict is disclosed and Western Asset obtains the client’s proxy voting instructions, and (ii) to the extent that it is not reasonably practicable or permitted by applicable law to notify the client and obtain such instructions (e.g., the client is a mutual fund or other commingled vehicle or is an ERISA plan client), Western Asset seeks voting instructions from an independent third party.
The Regulatory Affairs Group provides proxy material to the appropriate research analyst or portfolio manager to obtain their recommended vote. Research analysts and portfolio managers determine votes on a case-by-case basis taking into account the voting guidelines contained in these procedures. For avoidance of doubt, depending on the best interest of each individual client, Western Asset may vote the same proxy differently for different clients. The analyst’s or portfolio manager’s basis for their decision is documented and maintained by the Regulatory Affairs Group.
Portfolio Compliance Group votes the proxy pursuant to the instructions received in (d) or (e) and returns the voted proxy as indicated in the proxy materials.

Timing

Western Asset’s Legal and Compliance Department personnel act in such a manner to ensure that, absent special circumstances, the proxy gathering and proxy voting steps noted above can be completed before the applicable deadline for returning proxy votes.

Recordkeeping

Western Asset maintains records of proxies voted pursuant to Rule 204-2 of the Advisers Act and ERISA DOL Bulletin 94-2. These records include:

 

A copy of Western Asset’s proxy voting policies and procedures.
Copies of proxy statements received with respect to securities in client accounts.
A copy of any document created by Western Asset that was material to making a decision how to vote proxies.
Each written client request for proxy voting records and Western Asset’s written response to both verbal and written client requests.
A proxy log including:
   
1.Issuer name;
2.Exchange ticker symbol of the issuer’s shares to be voted;
3.Committee on Uniform Securities Identification Procedures (“CUSIP”) number for the shares to be voted;
4.A brief identification of the matter voted on;
5.Whether the matter was proposed by the issuer or by a shareholder of the issuer;
6.Whether a vote was cast on the matter;
7.A record of how the vote was cast; and
 
 
8.Whether the vote was cast for or against the recommendation of the issuer’s management team.

Records are maintained in an easily accessible place for a period of not less than five (5) years with the first two (2) years in Western Asset’s offices.

Disclosure

Western Asset’s proxy policies and procedures are described in the Firm’s Form ADV Part 2A. Clients are provided with a copy of these policies and procedures upon request. In addition, clients may receive reports on how their proxies have been voted, upon request.

Conflicts of Interest

All proxies are reviewed by the Regulatory Affairs Group for material conflicts of interest. Issues to be reviewed include, but are not limited to:

 

1.Whether Western Asset (or, to the extent required to be considered by applicable law, its affiliates) manages assets for the company or an employee group of the company or otherwise has an interest in the company;
2.Whether Western Asset or an officer or director of Western Asset or the applicable portfolio manager or analyst responsible for recommending the proxy vote (together, “Voting Persons”) is a close relative of or has a personal or business relationship with an executive, director or person who is a candidate for director of the company or is a participant in a proxy contest; and
3.Whether there is any other business or personal relationship where a Voting Person has a personal interest in the outcome of the matter before shareholders.

Voting Guidelines

Western Asset’s substantive voting decisions are based on the particular facts and circumstances of each proxy vote and are evaluated by the designated research analyst or portfolio manager. The examples outlined below are meant as guidelines to aid in the decision making process.

Situations can arise in which more than one Western Asset client invests in instruments of the same issuer or in which a single client may invest in instruments of the same issuer but in multiple accounts or strategies. Multiple clients or the same client in multiple accounts or strategies may have different investment objectives, investment styles, or investment professionals involved in making decisions. While there may be differences, votes are always cast in the best interests of the client and the investment objectives agreed with Western Asset. As a result, there may be circumstances where Western Asset casts different votes on behalf of different clients or on behalf of the same client with multiple accounts or strategies.

 

Guidelines are grouped according to the types of proposals generally presented to shareholders. Part I deals with proposals which have been approved and are recommended by a company’s board of directors; Part II deals with proposals submitted by shareholders for inclusion in proxy statements; Part III addresses issues relating to voting shares of investment companies; and Part IV addresses unique considerations pertaining to foreign issuers.

 

I.Board Approved Proposals

The vast majority of matters presented to shareholders for a vote involve proposals made by a company itself that have been approved and recommended by its board of directors. In view of the enhanced corporate governance practices currently being implemented in public companies, Western Asset generally votes in support of decisions reached by independent boards of directors. More specific guidelines related to certain board-approved proposals are as follows:

1.Matters relating to the Board of Directors

Western Asset votes proxies for the election of the company’s nominees for directors and for board-approved proposals on other matters relating to the board of directors with the following exceptions:

 

a.Votes are withheld for the entire board of directors if the board does not have a majority of independent directors or the board does not have nominating, audit and compensation committees composed solely of independent directors.
 
 
b.Votes are withheld for any nominee for director who is considered an independent director by the company and who has received compensation from the company other than for service as a director.
c.Votes are withheld for any nominee for director who attends less than 75% of board and committee meetings without valid reasons for absences.
d.Votes are cast on a case-by-case basis in contested elections of directors.

 

2.Matters relating to Executive Compensation

Western Asset generally favors compensation programs that relate executive compensation to a company’s long-term performance. Votes are cast on a case-by-case basis on board-approved proposals relating to executive compensation, except as follows:

a.Except where the firm is otherwise withholding votes for the entire board of directors, Western Asset votes for stock option plans that will result in a minimal annual dilution.
b.Western Asset votes against stock option plans or proposals that permit replacing or repricing of underwater options.
c.Western Asset votes against stock option plans that permit issuance of options with an exercise price below the stock’s current market price.
d.Except where the firm is otherwise withholding votes for the entire board of directors, Western Asset votes for employee stock purchase plans that limit the discount for shares purchased under the plan to no more than 15% of their market value, have an offering period of 27 months or less and result in dilution of 10% or less.

 

3.Matters relating to Capitalization

The Management of a company’s capital structure involves a number of important issues, including cash flows, financing needs and market conditions that are unique to the circumstances of each company. As a result, Western Asset votes on a case-by-case basis on board-approved proposals involving changes to a company’s capitalization except where Western Asset is otherwise withholding votes for the entire board of directors.

 

a.Western Asset votes for proposals relating to the authorization of additional common stock.
b.Western Asset votes for proposals to effect stock splits (excluding reverse stock splits).
c.Western Asset votes for proposals authorizing share repurchase programs.
4.Matters relating to Acquisitions, Mergers, Reorganizations and Other Transactions

Western Asset votes these issues on a case-by-case basis on board-approved transactions.

 

5.Matters relating to Anti-Takeover Measures

Western Asset votes against board-approved proposals to adopt anti-takeover measures except as follows:

 

a.Western Asset votes on a case-by-case basis on proposals to ratify or approve shareholder rights plans.
b.Western Asset votes on a case-by-case basis on proposals to adopt fair price provisions.
6.Other Business Matters

Western Asset votes for board-approved proposals approving such routine business matters such as changing the company’s name, ratifying the appointment of auditors and procedural matters relating to the shareholder meeting.

a.Western Asset votes on a case-by-case basis on proposals to amend a company’s charter or bylaws.
b.Western Asset votes against authorization to transact other unidentified, substantive business at the meeting.
 
 
7.Reporting of Financially Material Information

Western Asset generally believes issuers should disclose information that is material to their business. This principle extends to Environmental, Social and Governance matters. What qualifies as “material” can vary, so votes are cast on a case by case basis but consistent with the overarching principle.

 

II.Shareholder Proposals

SEC regulations permit shareholders to submit proposals for inclusion in a company’s proxy statement. These proposals generally seek to change some aspect of a company’s corporate governance structure or to change some aspect of its business operations. Western Asset votes in accordance with the recommendation of the company’s board of directors on all shareholder proposals, except as follows:

 

1.Western Asset votes for shareholder proposals to require shareholder approval of shareholder rights plans.
2.Western Asset votes for shareholder proposals that are consistent with Western Asset’s proxy voting guidelines for board-approved proposals.
3.Western Asset votes on a case-by-case basis on other shareholder proposals where the firm is otherwise withholding votes for the entire board of directors.

Environmental or social issues that are the subject of a proxy vote will be considered on a case by case basis. Constructive proposals that seek to advance the health of the issuer and the prospect for risk-adjusted returns to Western Assets clients are viewed more favorably than proposals that advance a single issue or limit the ability of management to meet its operating objectives.

 

III.Voting Shares of Investment Companies

Western Asset may utilize shares of open or closed-end investment companies to implement its investment strategies. Shareholder votes for investment companies that fall within the categories listed in Parts I and II above are voted in accordance with those guidelines.

 

1.Western Asset votes on a case-by-case basis on proposals relating to changes in the investment objectives of an investment company taking into account the original intent of the fund and the role the fund plays in the clients’ portfolios.
2.Western Asset votes on a case-by-case basis all proposals that would result in increases in expenses (e.g., proposals to adopt 12b-1 plans, alter investment advisory arrangements or approve fund mergers) taking into account comparable expenses for similar funds and the services to be provided.
IV.Voting Shares of Foreign Issuers

In the event Western Asset is required to vote on securities held in non-U.S. issuers – i.e. issuers that are incorporated under the laws of a foreign jurisdiction and that are not listed on a U.S. securities exchange or the NASDAQ stock market, the following guidelines are used, which are premised on the existence of a sound corporate governance and disclosure framework. These guidelines, however, may not be appropriate under some circumstances for foreign issuers and therefore apply only where applicable.

 

1.Western Asset votes for shareholder proposals calling for a majority of the directors to be independent of management.
2.Western Asset votes for shareholder proposals seeking to increase the independence of board nominating, audit and compensation committees.
3.Western Asset votes for shareholder proposals that implement corporate governance standards similar to those established under U.S. federal law and the listing requirements of U.S. stock exchanges, and that do not otherwise violate the laws of the jurisdiction under which the company is incorporated.
4.Western Asset votes on a case-by-case basis on proposals relating to (1) the issuance of common stock in excess of 20% of a company’s outstanding common stock where shareholders do not have preemptive rights, or (2) the issuance of common stock in excess of 100% of a company’s outstanding common stock where shareholders have preemptive rights.
 
 
V.Environmental, Social and Governance Matters

Western Asset considers ESG matters as part of the overall investment process where appropriate. The Firm seeks to identify and consider material risks to the investment thesis, including material risks presented by ESG factors. While Western Asset is primarily a fixed income manager, opportunities to vote proxies are considered on the investment merits of the instruments and strategies involved.

As a general proposition, Western Asset votes to encourage disclosure of information material to their business. This principle extends to ESG matters. What qualifies as “material” can vary, so votes are cast on a case by case basis but consistent with the overarching principle. Western Asset recognizes that objective standards and criteria may not be available or universally agreed and that there may be different views and subjective analysis regarding factors and their significance.

As a general matter, Western Asset votes to encourage management and governance practices that enhance the strength of the issuer, build value for investors, and mitigate risks that might threaten their ability to operate and navigate competitive pressures.

Targeted environmental or social issues that are the subject of a proxy vote will be considered on a case by case basis. Constructive proposals that seek to advance the health of the issuer and the prospect for risk-adjusted returns to Western Assets clients are viewed more favorably than proposals that advance a single issue or limit the ability of management to meet its operating objectives.

Situations can arise in which different clients and strategies have explicit ESG objectives beyond generally taking into account material ESG risks. Votes may be cast for such clients with the ESG objectives in mind. Votes involving ESG proposals that are not otherwise addressed in this policy will be voted on a case-by-case basis consistent with the Firm’s fiduciary duties to its clients, the potential consequences to the investment thesis for that issuer, and the specific facts and circumstances of each proposal.

 

Retirement Accounts

For accounts subject to ERISA, as well as other retirement accounts, Western Asset is presumed to have the responsibility to vote proxies for the client. The Department of Labor has issued a bulletin that states that investment managers have the responsibility to vote proxies on behalf of Retirement Accounts unless the authority to vote proxies has been specifically reserved to another named fiduciary. Furthermore, unless Western Asset is expressly precluded from voting the proxies, the Department of Labor has determined that the responsibility remains with the investment manager.

 

In order to comply with the Department of Labor’s position, Western Asset will be presumed to have the obligation to vote proxies for its retirement accounts unless Western Asset has obtained a specific written instruction indicating that: (a) the right to vote proxies has been reserved to a named fiduciary of the client, and (b) Western Asset is precluded from voting proxies on behalf of the client. If Western Asset does not receive such an instruction, Western Asset will be responsible for voting proxies in the best interests of the retirement account client and in accordance with any proxy voting guidelines provided by the client.

 

ITEM 13.INVESTMENT PROFESSIONALS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

 

 
 

(a)(1): As of the date of filing this report:

 

NAME AND

ADDRESS

LENGTH OF

TIME SERVED

PRINCIPAL OCCUPATION(S) DURING

PAST 5 YEARS

Michael C. Buchanan

 

Western Asset

385 East

Colorado Blvd.

Pasadena,

CA 91101

Since 2010 Responsible for the day-to-day management with other members of the Fund’s portfolio management team; Became Co-Chief Investment Officer of Western Asset in September 2023 with S. Kenneth Leech, with whom he leads the Global and US Strategy Committees; employed by Western Asset Management as an investment professional for at least the past five years; Managing Director and head of U.S. Credit Products from 2003-2005 at Credit Suisse Asset Management

Christopher F. Kilpatrick

 

Western Asset

385 East

Colorado Blvd.

Pasadena,

CA 91101

Since 2012 Responsible for the day-to-day management with other members of the Fund’s portfolio management team; employed by Western Asset Management as an investment professional for at least the past five years.

Walter Kilcullen

 

Western Asset

385 East
Colorado Blvd.

Pasadena,

CA 91101

Since March 1, 2024 Responsible for the day-to-day management with other members of the Fund’s portfolio management team;  employed by Western Asset Management as an investment professional since 2002

 

(a)(2): DATA TO BE PROVIDED BY FINANCIAL CONTROL

 

The following tables set forth certain additional information with respect to the fund’s investment professionals for the fund. Unless noted otherwise, all information is provided as of May 31, 2024.

 

Other Accounts Managed by Investment Professionals

 

The table below identifies the number of accounts (other than the fund) for which the fund’s investment professionals have day-to-day management responsibilities and the total assets in such accounts, within each of the following categories: registered investment companies, other pooled investment vehicles, and other accounts. For each category, the number of accounts and total assets in the accounts where fees are based on performance is also indicated.

 

Name of PM Type of Account Number of  Accounts Managed Total Assets Managed Number of Accounts Managed for which Advisory Fee is Performance-Based Assets Managed for which Advisory Fee is Performance-Based
Michael C. Buchanan ‡ Other Registered Investment Companies 75  $111.63 billion None None   
Other Pooled Vehicles 286  $68.00 billion 22  $2.56 billion
Other Accounts 574  $173.55 billion 20  $11.26 billion
Christopher Kilpatrick ‡ Other Registered Investment Companies 8  $3.03 billion None None   
Other Pooled Vehicles 6 $483 million    3 $326 million
Other Accounts None None    None None   
 
 
Walter Kilcullen‡ Other Registered Investment Companies 10  $4.86 billion None None   
Other Pooled Vehicles 18  $7.60 billion 3 $326 million   
Other Accounts 21  $3.43 billion None None   

 

‡ The numbers above reflect the overall number of portfolios managed by employees of Western Asset Management Company (“Western Asset”). They are involved in the management of all the Firm’s portfolios, but they are not solely responsible for particular portfolios. Western Asset’s investment discipline emphasizes a team approach that combines the efforts of groups of specialists working in different market sectors. They are responsible for overseeing implementation of Western Asset’s overall investment ideas and coordinating the work of the various sector teams. This structure ensures that client portfolios benefit from a consensus that draws on the expertise of all team members.

 

(a)(3): As of May 31, 2024: Investment Professional Compensation

 

Conflicts of Interest

The Subadviser has adopted compliance policies and procedures to address a wide range of potential conflicts of interest that could directly impact client portfolios. For example, potential conflicts of interest may arise in connection with the management of multiple portfolios (including portfolios managed in a personal capacity). These could include potential conflicts of interest related to the knowledge and timing of a portfolio’s trades, investment opportunities and broker selection. Portfolio managers are privy to the size, timing, and possible market impact of a portfolio’s trades.

It is possible that an investment opportunity may be suitable for both a portfolio and other accounts managed by a portfolio manager, but may not be available in sufficient quantities for both the portfolio and the other accounts to participate fully. Similarly, there may be limited opportunity to sell an investment held by a portfolio and another account. A conflict may arise where the portfolio manager may have an incentive to treat an account preferentially as compared to a portfolio because the account pays a performance-based fee or the portfolio manager, the Subadviser or an affiliate has an interest in the account. The Subadviser has adopted procedures for allocation of portfolio transactions and investment opportunities across multiple client accounts on a fair and equitable basis over time. Eligible accounts that can participate in a trade generally share the same price on a pro-rata allocation basis, taking into account differences based on factors such as cash availability, investment restrictions and guidelines, and portfolio composition versus strategy.

With respect to securities transactions, the Subadviser determines which broker or dealer to use to execute each order, consistent with their duty to seek best execution of the transaction. However, with respect to certain other accounts (such as pooled investment vehicles that are not registered investment companies and other accounts managed for organizations and individuals), the Subadviser may be limited by the client with respect to the selection of brokers or dealers or may be instructed to direct trades through a particular broker or dealer. In these cases, trades for a portfolio in a particular security may be placed separately from, rather than aggregated with, such other accounts. Having separate transactions with respect to a security may temporarily affect the market price of the security or the execution of the transaction, or both, to the possible detriment of a portfolio or the other account(s) involved. Additionally, the management of multiple portfolios and/or other accounts may result in a portfolio manager devoting unequal time and attention to the management of each portfolio and/or other account. The Subadviser’s team approach to portfolio management and block trading approach seeks to limit this potential risk.

 
 

The Subadviser also maintains a gift and entertainment policy to address the potential for a business contact to give gifts or host entertainment events that may influence the business judgment of an employee. Employees are permitted to retain gifts of only a nominal value and are required to make reimbursement for entertainment events above a certain value. All gifts (except those of a de minimis value) and entertainment events that are given or sponsored by a business contact are required to be reported in a gift and entertainment log which is reviewed on a regular basis for possible issues.

Employees of the Subadviser have access to transactions and holdings information regarding client accounts and the Subadviser’s overall trading activities. This information represents a potential conflict of interest because employees may take advantage of this information as they trade in their personal accounts. Accordingly, the Subadviser maintains a Code of Ethics that is compliant with Rule 17j-1 under the 1940 Act and Rule 204A-1 under the Advisers Act to address personal trading. In addition, the Code of Ethics seeks to establish broader principles of good conduct and fiduciary responsibility in all aspects of the Subadviser’s business. The Code of Ethics is administered by the Legal and Compliance Department and monitored through the Subadviser’s compliance monitoring program.

The Subadviser may also face other potential conflicts of interest with respect to managing client assets, and the description above is not a complete description of every conflict of interest that could be deemed to exist. The Subadviser also maintains a compliance monitoring program and engages independent auditors to conduct a SOC1/ISAE 3402 audit on an annual basis. These steps help to ensure that potential conflicts of interest have been addressed.

 

Investment Professional Compensation

 

With respect to the compensation of the Fund’s investment professionals, the Subadviser’s compensation system assigns each employee a total compensation range, which is derived from annual market surveys that benchmark each role with its job function and peer universe. This method is designed to reward employees with total compensation reflective of the external market value of their skills, experience and ability to produce desired results. Standard compensation includes competitive base salaries, generous employee benefits and a retirement plan.

In addition, the Subadviser’s employees are eligible for bonuses. These are structured to closely align the interests of employees with those of the Subadviser, and are determined by the professional’s job function and pre-tax performance as measured by a formal review process. All bonuses are completely discretionary. The principal factor considered is an investment professional’s investment performance versus appropriate peer groups and benchmarks (e.g., a securities index and with respect to the Fund, the benchmark set forth in the Fund’s Prospectus to which the Fund’s average annual total returns are compared or, if none, the benchmark set forth in the Fund’s annual report). Performance is reviewed on a 1, 3 and 5 year basis for compensation—with 3 and 5 years having a larger emphasis. The Subadviser may also measure an investment professional’s pre-tax investment performance against other benchmarks, as it determines appropriate. Because investment professionals are generally responsible for multiple accounts (including the Fund) with similar investment strategies, they are generally compensated on the performance of the aggregate group of similar accounts, rather than a specific account. Other factors that may be considered when making bonus decisions include client service, business development, length of service to the Subadviser, management or supervisory responsibilities, contributions to developing business strategy and overall contributions to the Subadviser’s business.

Finally, in order to attract and retain top talent, all investment professionals are eligible for additional incentives in recognition of outstanding performance. These are determined based upon the factors described above and include long-term incentives that vest over a set period of time past the award date.

 

(a)(4): Investment Professional Securities Ownership

 

The table below identifies the dollar range of securities beneficially owned by each investment professional as of May 31, 2024:

 
 

Investment Professional(s)

 

Dollar Range of
Portfolio
Securities
Beneficially
Owned

Michael C. Buchanan   A
Christopher F. Kilpatrick   A
Walter Kilcullen  

A

 

Dollar Range ownership is as follows:
A: none
B: $1 - $10,000
C: 10,001 - $50,000
D: $50,001 - $100,000
E: $100,001 - $500,000
F: $500,001 - $1 million
G: over $1 million

 

ITEM 14.PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS

 

Not applicable.

 

ITEM 15.SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

 

Not applicable.

 

ITEM 16.CONTROLS AND PROCEDURES.

 

(a)The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a- 3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934.

 

(b)There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are likely to materially affect the registrant’s internal control over financial reporting.

 

ITEM 17.DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

 

Not applicable

 

ITEM 18.RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION.

 

(a)Not applicable.

 

(b)Not applicable.

 

 
 

ITEM 19.EXHIBITS.

 

(a) (1) Code of Ethics attached hereto.

Exhibit 99.CODE ETH

 

(a) (2) Certifications pursuant to section 302 of the Sarbanes-Oxley Act of 2002 attached hereto.

Exhibit 99.CERT

 

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto.

Exhibit 99.906CERT

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this Report to be signed on its behalf by the undersigned, there unto duly authorized.

 

Western Asset High Yield Defined Opportunity Fund Inc.

 

By: /s/ Jane Trust  
  Jane Trust  
  Chief Executive Officer  
     
Date: July 25, 2024  

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By: /s/ Jane Trust  
  Jane Trust  
  Chief Executive Officer  
     
Date: July 25, 2024  

 

By: /s/ Christopher Berarducci  
  Christopher Berarducci  
  Principal Financial Officer  
     
Date: July 25, 2024  
 

Code of Conduct for Principal Executive and Financial Officers (SOX)

 

Covered Officers and Purpose of the Code

 

The Funds’ code of ethics (the “Code”) for investment companies within the Legg Mason family of mutual funds (each a “Fund,” and collectively, the “Funds”) applies to each Fund’s Principal Executive Officer, Principal Financial Officer, and Controller (the “Covered Officers”) for the purpose of promoting:

 

honest and ethical conduct, including ethical handling of actual or apparent conflicts of interest between personal and professional relationships;
full, fair, accurate, timely and understandable disclosure in reports and documents a registrant files with, or submits to, the Securities and Exchange Commission (“SEC”) and in other public communications made by the Funds;
compliance with applicable laws and governmental rules and regulations;
prompt internal reporting of Code violations to appropriate persons identified in the Code; and
accountability for adherence to the Code.

 

Each Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest.

 

Covered Officers Should Ethically Handle Actual and Apparent Conflicts of Interest

 

A “conflict of interest” occurs when a Covered Officer’s private interest interferes with the interests of, or his or her service to, a Fund. For example, a conflict of interest would arise if a Covered Officer, or a member of his or her family, receives improper personal benefits as a result of his or her position with a Fund.

 

Certain conflicts of interest arise out of the relationships between Covered Officers and a Fund and already are subject to conflict of interest provisions in the Investment Company Act of 1940 (“Investment Company Act”) and the Investment Advisers Act of 1940 (“Investment Advisers Act”). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with a Fund because of their status as “affiliated persons” of the Fund. The Funds’ and the investment advisers’ compliance programs and procedures are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of the parameters of this Code.

 

Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a result of, the contractual relationship between a Fund and an investment adviser of which Covered Officers are also officers or employees. As a result, this Code recognizes Covered Officers will, in the normal course of their duties (whether formally for a Fund or for the adviser, or for both), be involved in establishing policies and

 

 

implementing decisions that will have different effects on the adviser and the Funds. The participation of Covered Officers in such activities is inherent in the contractual relationship between a Fund and an adviser and is consistent with the performance by Covered Officers of their duties as officers of the Funds. Thus, if performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically. In addition, it is recognized by the Funds’ Boards of Directors/Trustees (“Boards”) that Covered Officers may also be officers or employees of one or more other investment companies covered by this or other codes and that such service, by itself does not give rise to a conflict of interest.

 

Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the Investment Advisers Act. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of a Fund.

 

Each Covered Officer must:

 

not use his or her personal influence or personal relationships improperly to influence investment decisions or financial reporting by a Fund;

 

not cause a Fund to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than the benefit the Fund; and,

 

not use material non-public knowledge of portfolio transactions made or contemplated for the Trust to trade personally or cause others to trade personally in contemplation of the market effect of such transactions.

 

There are some actual or potential conflict of interest situations that, if material, should always be discussed with the Chief Compliance Officer (“CCO”) or designate that has been appointed by the Board of the Funds. Examples of these include:

 

service as a director on the board of any public company (other than the Funds or their investment advisers or any affiliated person thereof);

 

the receipt of any non-nominal gifts (i.e., in excess of $100);

 

the receipt of any entertainment from any company with which a Fund has current or prospective business dealings unless such entertainment is business-related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety;

 

any ownership interest in, or any consulting or employment relationship with, any of the Funds’ service providers (other than their investment advisers, or principal underwriter, or any affiliated person thereof);
 

 

a direct or indirect financial interest in commissions, transaction charges or spreads paid by a Fund for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officer’s employment, such as compensation or equity ownership.

 

Disclosure and Compliance

 

Each Covered Officer should:

 

familiarize him or herself with the disclosure requirements generally applicable to the Funds;

 

not knowingly misrepresent, or cause others to misrepresent, facts about a Fund to others, whether within or outside the Fund, including to the Fund’s Directors/Trustees and auditors, and to governmental regulators and self-regulatory organizations; and

 

to the extent appropriate within his or her area of responsibility, consult with other officers and employees of the Funds and the advisers with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Funds file with, or submit to, the SEC and in other public communications made by the Funds.

 

It is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations.

 

Reporting and Accountability

 

Each Covered Officer must:

 

upon adoption of the Code (or thereafter as applicable, upon becoming a Covered Officer), affirm in writing to the Board that he or she has received, read, and understands the Code;

 

annually thereafter affirm to the Board that he or she has complied with the requirements of the Code;

 

not retaliate against any other Covered Officer or any employee of the Funds or their advisers or any affiliated persons thereof or service providers of the Funds for reports of potential violations that are made in good faith;

 

notify the CCO promptly if he or she knows of any violation of this Code, of which failure to do so is itself a violation; and
 

 

report at least annually, if necessary, any employment position, including officer or directorships, held by the Covered Officer or any immediate family member of a Covered Officer with affiliated persons of or Service Providers to the Funds.

 

The CCO is responsible for applying this Code to specific situations in which questions are presented and has the authority to interpret this Code in any particular situation. However, approvals or waivers sought by a Covered Officer will be considered by the Compliance Committee or Audit Committee, (the “Committee”) responsible for oversight of the Fund’s code of ethics under Rule 17j-1 under the Investment Company Act. If a Covered Officer seeking an approval or waiver sits on the Committee, the Covered Person shall recuse him or herself from any such deliberations. Any approval or waiver granted by the Committee will be reported promptly to the Chair of the Audit Committees of the Funds.

 

The Funds will follow these procedures in investigating and enforcing this Code:

 

the CCO will take all appropriate action to investigate any potential violations reported to him, which actions may include the use of internal or external counsel, accountants or other personnel;

 

if, after such investigation, the CCO believes that no violation has occurred, the CCO is not required to take any further action;

 

any matter that the CCO believes is a violation will be reported to the Committee;

 

if the Committee concurs that a violation has occurred, it will inform the Board, which will consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures; notification to appropriate personnel of the investment adviser or its board; or a recommendation to dismiss the Covered Officer;

 

the Committee will be responsible for granting waivers, as appropriate; and,

 

any changes to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules.

 

Other Policies and Procedures

 

This Code shall be the sole code of ethics adopted by the Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the Funds, the Funds’ advisers, principal underwriter, or other service providers govern or purport to govern the behavior or activities of Covered Officers subject to this Code, they are superseded by this Code to the extent they overlap or conflict with the provisions of this Code. The Funds’ and their investment advisers’ and principal underwriter’s codes of ethics under Rule 17j-1 under the Investment Company Act are separate requirements applying to Covered Officers and others, and are not part of this Code.

 

 

Confidentiality

 

All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the appropriate Board and Fund counsel, and the board of Directors/Trustees and fund counsel of any other investment company for whom a Covered Officer serves in a similar capacity.

 

Annual Report

 

No less than annually, the CCO shall provide the Board with a written report describing any issues having arisen since the prior year’s report.

 

Internal Use

 

This Code is intended solely for the internal use by the Funds and does not constitute an admission by or on behalf of any Fund, as to any fact, circumstance or legal consideration.

 

CERTIFICATIONS PURSUANT TO SECTION 302

EX-99.CERT

 

CERTIFICATIONS

 

I, Jane Trust certify that:

 

1.I have reviewed this report on Form N-CSR of Western Asset High Yield Defined Opportunity Fund Inc.;

 

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

 

4.The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

 

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.The registrant’s other certifying officers and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: July 25, 2024 /s/ Jane Trust
    Jane Trust
    Chief Executive Officer
 

CERTIFICATIONS

 

I, Christopher Berarducci, certify that:

 

1.I have reviewed this report on Form N-CSR of Western Asset High Yield Defined Opportunity Fund Inc.;

 

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.Based on my knowledge, the financial information included in this report, and the financial statements on which the financial information is based, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

 

4.The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

 

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.The registrant’s other certifying officers and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: July 25, 2024 /s/ Christopher Berarducci
    Christopher Berarducci
    Principal Financial Officer
 

CERTIFICATIONS PURSUANT TO SECTION 906

EX-99.906CERT

 

CERTIFICATION

 

Jane Trust, Chief Executive Officer, and Christopher Berarducci, Principal Financial Officer of Western Asset High Yield Defined Opportunity Fund Inc. (the “Registrant”), each certify to the best of their knowledge that:

 

1.       The Registrant’s periodic report on Form N-CSR for the period ended May 31, 2024 the “Form N-CSR”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

 

2.       The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

 

Chief Executive Officer Principal Financial Officer
Western Asset High Yield Defined Opportunity Western Asset High Yield Defined Opportunity
Fund Inc. Fund Inc.
   

 

/s/ Jane Trust   /s/ Christopher Berarducci
Jane Trust   Christopher Berarducci
Date:  July 25, 2024   Date:  July 25, 2024

 

This certification is being furnished to the Securities and Exchange Commission solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Form N-CSR with the Commission.

 

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