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 811-08709

Western Asset High Income Fund II Inc.

(Exact name of registrant as specified in charter)

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

(Address of principal executive offices) (Zip code)

George P. Hoyt.

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: April 30

Date of reporting period: October 31, 2022

ITEM 1. REPORT TO STOCKHOLDERS.

The Semi-Annual Report to Stockholders is filed herewith.

Semi-Annual Report October 31, 2022

WESTERN ASSET

HIGH INCOME FUND II INC. (HIX)

INVESTMENT PRODUCTS: NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE

What’s inside
Letter from the chairman	III
Performance review	IV
Fund at a glance	1
Schedule of investments	2
Statement of assets and liabilities	19
Statement of operations	20
Statements of changes in net assets	21
Statement of cash flows	22
Financial highlights	24
Notes to financial statements	26
Board approval of management and subadvisory agreements	43
Dividend reinvestment plan	50

Fund objectives

The Fund seeks to maximize current income. As a secondary objective, the Fund seeks capital appreciation to the extent consistent with its objective of seeking to maximize current income.

Under normal market conditions, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in high-yield debt securities. In addition, the Fund may invest up to 35% of its total assets in debt securities of issuers located in emerging market countries.

II Western Asset High Income Fund II Inc.

Letter from the chairman

Dear Shareholder,

We are pleased to provide the semi-annual report of Western Asset High Income Fund II Inc. for the six-month reporting period ended October 31, 2022. Please read on for Fund performance information during the Fund’s reporting period.

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

November 30, 2022

Western Asset High Income Fund II Inc. III

Performance review

For the six months ended October 31, 2022, Western Asset High Income Fund II Inc. returned -11.68% based on its net asset value (“NAV”)ⁱ and -10.18% 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 Indexⁱⁱ and the JPMorgan Emerging Markets Bond Index Globalⁱⁱⁱ, returned -4.71% and -9.26%, respectively, for the same period. The Lipper High Yield (Leveraged) Closed-End Funds Category Average^iv returned -8.70% over the same time frame. Please note that Lipper performance returns are based on each fund’s NAV.

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.

During this six-month period, the Fund made distributions to shareholders totaling $0.29 per share. As of October 31, 2022, the Fund estimates that 87% of the distributions were sourced from net investment income and 13% constituted a return of capital.* The performance table shows the Fund’s six-month total return based on its NAV and market price as of October 31, 2022. Past performance is no guarantee of future results.

Performance Snapshot as of October 31, 2022  (unaudited)
Price Per Share	6-Month Total Return**
$4.89 (NAV)		-11.68	%†
$4.56 (Market Price)		-10.18	%‡

All figures represent past performance and are not a guarantee of future results. Performance figures for periods shorter than one year represent cumulative figures and are not annualized.

** 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, if any, at NAV.

‡ Total return assumes the reinvestment of all distributions, including returns of capital, if any, in additional shares in accordance with the Fund’s Dividend Reinvestment Plan.

* These estimates are not for tax purposes. The Fund will issue a Form 1099 with final composition of the distributions for tax purposes after year-end. A return of capital is not taxable and results in a reduction in the tax basis of a shareholder’s investment. For more information about a distribution’s composition, please refer to the Fund’s distribution press release or, if applicable, the Section 19 notice located in the press release section of our website, www.franklintempleton.com.

IV Western Asset High Income Fund II Inc.

Performance review (cont’d)

Looking for additional information?

The Fund is traded under the symbol “HIX” and its closing market price is available in most newspapers under the NYSE listings. The daily NAV is available online under the symbol “XHGIX” 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 Western Asset High Income Fund II 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,

Jane Trust, CFA

Chairman, President and Chief Executive Officer

November 30, 2022

RISKS: The Fund is a diversified 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. Diversification does not assure against market loss. The Fund’s investments are subject to a number of risks, such as credit risk, inflation risk and interest rate risk. As interest rates rise, bond prices fall, reducing the value of the Fund’s holdings. The Fund may use derivatives, such as options and futures, which can be illiquid, may disproportionately increase losses, and have a potentially large impact on Fund performance. High-yield bonds, known as “junk bonds,” involve greater credit and liquidity risks than investment grade bonds. Foreign securities are subject to certain risks not associated with domestic investing, such as currency fluctuations and changes in political and economic conditions which could result in significant fluctuations. These risks are magnified 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 is also permitted purchases of equity securities. Equity securities generally

Western Asset High Income Fund II Inc. V

have greater price volatility than fixed income securities. Leverage may result in greater volatility of NAV and the market price of common shares and increases a shareholder’s risk of loss. The Fund may also invest in money market funds, including funds affiliated with the Fund’s manager and subadvisers.

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.

ⁱ  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.

ⁱⁱ  The Bloomberg U.S. Corporate High Yield — 2% Issuer Cap Index is an index of the 2% Issuer Cap component of the Bloomberg 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 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  Lipper, Inc., a wholly-owned subsidiary of Refinitiv, provides independent insight on global collective investments. Returns are based on the six-month period ended October 31, 2022, including the reinvestment of all distributions, including returns of capital, if any, calculated among the 38 funds in the Fund’s Lipper category.

VI Western Asset High Income Fund II Inc.

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 October 31, 2022 and April 30, 2022 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.

Western Asset High Income Fund II Inc. 2022 Semi-Annual Report 1

Schedule of investments (unaudited)

October 31, 2022

Western Asset High Income Fund II Inc.

(Percentages shown based on Fund net assets)

Security	Rate			Maturity Date		Face Amount†			Value
Corporate Bonds & Notes — 129.0%
Communication Services — 23.6%
Diversified Telecommunication Services — 5.8%
Altice Financing SA, Senior Secured Notes		5.000	%		1/15/28		3,260,000		$	2,586,268	(a)
Altice Financing SA, Senior Secured Notes		5.750	%		8/15/29		2,490,000			1,960,576	(a)
Altice France Holding SA, Senior Notes		6.000	%		2/15/28		3,940,000			2,557,517	(a)
Altice France Holding SA, Senior Secured Notes		8.000	%		5/15/27		420,000	EUR		304,035	(b)
Altice France Holding SA, Senior Secured Notes		10.500	%		5/15/27		4,030,000			3,149,163	(a)(c)
Altice France SA, Senior Secured Notes		5.125	%		7/15/29		2,690,000			2,030,950	(a)(c)
Telecom Italia Capital SA, Senior Notes		6.000	%		9/30/34		2,010,000			1,471,682	(c)
Telecom Italia Capital SA, Senior Notes		7.200	%		7/18/36		1,796,000			1,403,098
Telecom Italia Capital SA, Senior Notes		7.721	%		6/4/38		300,000			239,231
Telecom Italia SpA, Senior Notes		5.303	%		5/30/24		2,925,000			2,756,812	(a)(c)
Total Diversified Telecommunication Services										18,459,332
Interactive Media & Services — 0.2%
Match Group Holdings II LLC, Senior Notes		3.625	%		10/1/31		780,000			595,686	(a)
Media — 10.8%
CCO Holdings LLC/CCO Holdings Capital Corp., Senior Notes		4.250	%		1/15/34		22,810,000			16,801,390	(a)(c)
Clear Channel Outdoor Holdings Inc., Senior Notes		7.750	%		4/15/28		470,000			384,556	(a)
Clear Channel Outdoor Holdings Inc., Senior Notes		7.500	%		6/1/29		940,000			741,190	(a)
DirecTV Financing LLC/DirecTV Financing Co-Obligor Inc., Senior Secured Notes		5.875	%		8/15/27		1,910,000			1,723,689	(a)(c)
DISH DBS Corp., Senior Notes		5.875	%		11/15/24		2,140,000			1,976,076
DISH DBS Corp., Senior Notes		7.750	%		7/1/26		7,659,000			6,476,795	(c)
DISH DBS Corp., Senior Notes		7.375	%		7/1/28		2,410,000			1,831,142
DISH DBS Corp., Senior Notes		5.125	%		6/1/29		1,180,000			795,501
UPC Holding BV, Senior Secured Notes		5.500	%		1/15/28		2,500,000			2,197,469	(a)
VZ Secured Financing BV, Senior Secured Notes		5.000	%		1/15/32		1,820,000			1,453,625	(a)
Total Media										34,381,433
Wireless Telecommunication Services — 6.8%
CSC Holdings LLC, Senior Notes		4.625	%		12/1/30		9,580,000			6,913,574	(a)(c)
CSC Holdings LLC, Senior Notes		5.000	%		11/15/31		3,380,000			2,414,747	(a)
Sprint Capital Corp., Senior Notes		6.875	%		11/15/28		2,200,000			2,273,678	(c)
Sprint Capital Corp., Senior Notes		8.750	%		3/15/32		5,170,000			6,074,983	(c)

See Notes to Financial Statements.

2 Western Asset High Income Fund II Inc. 2022 Semi-Annual Report

Western Asset High Income Fund II Inc.

(Percentages shown based on Fund net assets)

Security	Rate			Maturity Date		Face Amount†			Value
Wireless Telecommunication Services — continued
Sprint Corp., Senior Notes		7.875	%		9/15/23		110,000		$	111,952	(c)
Vmed O2 UK Financing I PLC, Senior Secured Notes		4.750	%		7/15/31		4,700,000			3,806,906	(a)(c)
Total Wireless Telecommunication Services										21,595,840
Total Communication Services										75,032,291
Consumer Discretionary — 23.7%
Auto Components — 4.4%
Adient Global Holdings Ltd., Senior Notes		4.875	%		8/15/26		2,143,000			1,923,482	(a)(c)
American Axle & Manufacturing Inc., Senior Notes		6.500	%		4/1/27		5,801,000			5,345,332	(c)
American Axle & Manufacturing Inc., Senior Notes		5.000	%		10/1/29		1,170,000			952,482
JB Poindexter & Co. Inc., Senior Notes		7.125	%		4/15/26		6,100,000			5,823,426	(a)(c)
Total Auto Components										14,044,722
Automobiles — 0.3%
Ford Motor Credit Co. LLC, Senior Notes		3.625	%		6/17/31		1,110,000			865,578
Diversified Consumer Services — 4.7%
APCOA Parking Holdings GmbH, Senior Secured Notes		4.625	%		1/15/27		2,190,000	EUR		1,754,496	(b)
APCOA Parking Holdings GmbH, Senior Secured Notes		4.625	%		1/15/27		670,000	EUR		536,764	(a)
Carriage Services Inc., Senior Notes		4.250	%		5/15/29		3,100,000			2,390,224	(a)(c)
Prime Security Services Borrower LLC/Prime Finance Inc., Secured Notes		6.250	%		1/15/28		1,500,000			1,381,590	(a)
Service Corp. International, Senior Notes		7.500	%		4/1/27		2,090,000			2,171,262
StoneMor Inc., Senior Secured Notes		8.500	%		5/15/29		6,440,000			5,466,175	(a)(c)
WW International Inc., Senior Secured Notes		4.500	%		4/15/29		2,270,000			1,251,252	(a)
Total Diversified Consumer Services										14,951,763
Hotels, Restaurants & Leisure — 13.1%
888 Acquisitions Ltd., Senior Secured Notes		7.558	%		7/15/27		2,460,000	EUR		2,094,456	(a)
888 Acquisitions Ltd., Senior Secured Notes		7.558	%		7/15/27		1,500,000	EUR		1,277,108	(b)
Carnival Corp., Senior Notes		7.625	%		3/1/26		3,790,000			2,856,239	(a)(c)
Carnival Corp., Senior Notes		6.000	%		5/1/29		2,310,000			1,535,994	(a)
Carnival Holdings Bermuda Ltd., Senior Notes		10.375	%		5/1/28		50,000			50,719	(a)
Carrols Restaurant Group Inc., Senior Notes		5.875	%		7/1/29		1,000,000			704,015	(a)
Full House Resorts Inc., Senior Secured Notes		8.250	%		2/15/28		1,580,000			1,376,923	(a)
IRB Holding Corp., Senior Secured Notes		7.000	%		6/15/25		1,480,000			1,480,873	(a)

See Notes to Financial Statements.

Western Asset High Income Fund II Inc. 2022 Semi-Annual Report 3

Schedule of investments (unaudited) (cont’d)

October 31, 2022

Western Asset High Income Fund II Inc.

(Percentages shown based on Fund net assets)

Security	Rate			Maturity Date		Face Amount†			Value
Hotels, Restaurants & Leisure — continued
Las Vegas Sands Corp., Senior Notes		3.200	%		8/8/24		600,000		$	571,568
Las Vegas Sands Corp., Senior Notes		3.900	%		8/8/29		120,000			97,110
Melco Resorts Finance Ltd., Senior Notes		5.375	%		12/4/29		1,840,000			1,031,320	(a)
NCL Corp. Ltd., Senior Notes		3.625	%		12/15/24		4,815,000			4,188,555	(a)(c)
NCL Corp. Ltd., Senior Notes		5.875	%		3/15/26		2,370,000			1,945,379	(a)
NCL Corp. Ltd., Senior Notes		7.750	%		2/15/29		3,620,000			2,892,163	(a)(c)
NCL Finance Ltd., Senior Notes		6.125	%		3/15/28		2,220,000			1,729,369	(a)
Royal Caribbean Cruises Ltd., Senior Notes		5.375	%		7/15/27		4,720,000			3,680,943	(a)(c)
Royal Caribbean Cruises Ltd., Senior Notes		5.500	%		4/1/28		2,910,000			2,249,139	(a)(c)
Saga PLC, Senior Notes		3.375	%		5/12/24		1,165,000	GBP		1,179,413	(b)
Saga PLC, Senior Notes		5.500	%		7/15/26		970,000	GBP		745,450	(b)
Sands China Ltd., Senior Notes		3.350	%		3/8/29		4,280,000			2,873,630
Sands China Ltd., Senior Notes		4.875	%		6/18/30		1,280,000			914,809
Wynn Macau Ltd., Senior Notes		5.500	%		1/15/26		590,000			410,050	(a)
Wynn Macau Ltd., Senior Notes		5.625	%		8/26/28		2,700,000			1,654,425	(a)
Wynn Macau Ltd., Senior Notes		5.125	%		12/15/29		2,490,000			1,512,401	(a)
Wynn Resorts Finance LLC/Wynn Resorts Capital Corp., Senior Notes		7.750	%		4/15/25		2,640,000			2,577,960	(a)(c)
Total Hotels, Restaurants & Leisure										41,630,011
Multiline Retail — 0.5%
Marks & Spencer PLC, Senior Notes		3.750	%		5/19/26		1,800,000	GBP		1,714,938	(b)
Specialty Retail — 0.7%
Guitar Center Inc., Senior Secured Notes		8.500	%		1/15/26		190,000			166,398	(a)
Michaels Cos. Inc., Senior Notes		7.875	%		5/1/29		3,790,000			2,123,082	(a)
Total Specialty Retail										2,289,480
Total Consumer Discretionary										75,496,492
Consumer Staples — 2.6%
Food & Staples Retailing — 1.0%
Bellis Acquisition Co. PLC, Senior Secured Notes		3.250	%		2/16/26		3,190,000	GBP		2,990,500	(b)
Food Products — 1.6%
Bellis Finco PLC, Senior Notes		4.000	%		2/16/27		1,000,000	GBP		806,510	(a)
FAGE International SA/FAGE USA Dairy Industry Inc., Senior Notes		5.625	%		8/15/26		2,500,000			2,196,358	(a)(c)
Pilgrim’s Pride Corp., Senior Notes		5.875	%		9/30/27		2,245,000			2,197,406	(a)(c)
Total Food Products										5,200,274
Total Consumer Staples										8,190,774

See Notes to Financial Statements.

4 Western Asset High Income Fund II Inc. 2022 Semi-Annual Report

Western Asset High Income Fund II Inc.

(Percentages shown based on Fund net assets)

Security	Rate			Maturity Date		Face Amount†		Value
Energy — 21.7%
Energy Equipment & Services — 0.3%
Sunnova Energy Corp., Senior Notes		5.875	%		9/1/26		1,000,000	$	881,555	(a)
Oil, Gas & Consumable Fuels — 21.4%
Apache Corp., Senior Notes		5.100	%		9/1/40		1,130,000		917,549	(c)
Blue Racer Midstream LLC/Blue Racer Finance Corp., Senior Notes		7.625	%		12/15/25		190,000		188,068	(a)(c)
Continental Resources Inc., Senior Notes		3.800	%		6/1/24		330,000		318,392	(c)
Continental Resources Inc., Senior Notes		4.375	%		1/15/28		240,000		215,760	(c)
Continental Resources Inc., Senior Notes		4.900	%		6/1/44		1,320,000		938,419	(c)
Ecopetrol SA, Senior Notes		5.875	%		5/28/45		8,960,000		5,472,499	(d)
Energy Transfer LP, Junior Subordinated Notes (6.625% to 2/15/28 then 3 mo. USD LIBOR + 4.155%)		6.625	%		2/15/28		4,081,000		2,938,320	(c)(e)(f)
Energy Transfer LP, Junior Subordinated Notes (6.750% to 5/15/25 then 5 year Treasury Constant Maturity Rate + 5.134%)		6.750	%		5/15/25		2,100,000		1,803,501	(c)(e)(f)
Energy Transfer LP, Junior Subordinated Notes (7.125% to 5/15/30 then 5 year Treasury Constant Maturity Rate + 5.306%)		7.125	%		5/15/30		3,930,000		3,269,249	(c)(e)(f)
EQM Midstream Partners LP, Senior Notes		4.500	%		1/15/29		1,960,000		1,670,802	(a)(c)
EQM Midstream Partners LP, Senior Notes		7.500	%		6/1/30		950,000		925,157	(a)
EQM Midstream Partners LP, Senior Notes		4.750	%		1/15/31		460,000		385,524	(a)
EQT Corp., Senior Notes		3.900	%		10/1/27		730,000		657,011	(c)
Howard Midstream Energy Partners LLC, Senior Notes		6.750	%		1/15/27		1,000,000		908,757	(a)
Kinder Morgan Inc., Senior Notes		7.750	%		1/15/32		1,950,000		2,122,369	(c)
NGPL PipeCo LLC, Senior Notes		7.768	%		12/15/37		1,900,000		1,897,283	(a)(c)
Occidental Petroleum Corp., Senior Notes		6.950	%		7/1/24		1,000,000		1,026,005	(c)
Occidental Petroleum Corp., Senior Notes		2.900	%		8/15/24		1,640,000		1,581,665	(c)
Occidental Petroleum Corp., Senior Notes		5.875	%		9/1/25		1,190,000		1,200,377	(c)
Occidental Petroleum Corp., Senior Notes		5.550	%		3/15/26		980,000		996,087
Occidental Petroleum Corp., Senior Notes		6.200	%		3/15/40		1,330,000		1,282,492	(c)
Petrobras Global Finance BV, Senior Notes		6.750	%		1/27/41		6,620,000		5,758,341	(c)
Petroleos del Peru SA, Senior Notes		5.625	%		6/19/47		3,000,000		1,929,645	(a)
Petroleos Mexicanos, Senior Notes		6.500	%		6/2/41		1,000,000		632,045
Petroleos Mexicanos, Senior Notes		5.500	%		6/27/44		2,970,000		1,692,618
Range Resources Corp., Senior Notes		4.875	%		5/15/25		1,009,000		975,521
Range Resources Corp., Senior Notes		8.250	%		1/15/29		710,000		738,794	(c)
Rockies Express Pipeline LLC, Senior Notes		6.875	%		4/15/40		1,430,000		1,169,605	(a)(c)

See Notes to Financial Statements.

Western Asset High Income Fund II Inc. 2022 Semi-Annual Report 5

Schedule of investments (unaudited) (cont’d)

October 31, 2022

Western Asset High Income Fund II Inc.

(Percentages shown based on Fund net assets)

Security	Rate			Maturity Date		Face Amount†		Value
Oil, Gas & Consumable Fuels — continued
Summit Midstream Holdings LLC/Summit Midstream Finance Corp., Secured Notes		8.500	%		10/15/26		1,630,000	$	1,566,789	(a)(c)
Targa Resources Partners LP/Targa Resources Partners Finance Corp., Senior Notes		6.500	%		7/15/27		1,150,000		1,143,934	(c)
Targa Resources Partners LP/Targa Resources Partners Finance Corp., Senior Notes		6.875	%		1/15/29		270,000		269,638	(c)
Transportadora de Gas del Sur SA, Senior Notes		6.750	%		5/2/25		1,560,000		1,361,412	(a)
Western Midstream Operating LP, Senior Notes		4.300	%		2/1/30		2,690,000		2,371,302	(c)
Western Midstream Operating LP, Senior Notes		5.300	%		3/1/48		1,540,000		1,246,923	(c)
Western Midstream Operating LP, Senior Notes		5.500	%		2/1/50		10,952,000		8,550,178	(c)
Williams Cos. Inc., Senior Notes		4.550	%		6/24/24		1,280,000		1,259,070	(c)
Williams Cos. Inc., Senior Notes		7.500	%		1/15/31		780,000		830,702	(c)
Williams Cos. Inc., Senior Notes		5.750	%		6/24/44		3,900,000		3,489,161	(c)
YPF SA, Senior Notes		8.500	%		7/28/25		1,520,000		1,097,790	(a)
YPF SA, Senior Notes		6.950	%		7/21/27		2,320,000		1,413,251	(a)
Total Oil, Gas & Consumable Fuels									68,212,005
Total Energy									69,093,560
Financials — 21.4%
Banks — 12.1%
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		8,490,000		6,380,235	(a)(c)(e)(f)
Bank of America Corp., Junior Subordinated Notes (5.875% to 3/15/28 then 3 mo. USD LIBOR + 2.931%)		5.875	%		3/15/28		2,500,000		2,155,000	(e)(f)
Barclays PLC, Junior Subordinated Notes (7.750% to 9/15/23 then USD 5 year ICE Swap Rate + 4.842%)		7.750	%		9/15/23		2,080,000		1,963,000	(c)(e)(f)
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		2,850,000		2,688,826	(e)(f)
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		830,000		673,323	(a)(f)

See Notes to Financial Statements.

6 Western Asset High Income Fund II Inc. 2022 Semi-Annual Report

Western Asset High Income Fund II Inc.

(Percentages shown based on Fund net assets)

Security	Rate			Maturity Date		Face Amount†		Value
Banks — continued
BNP Paribas SA, Junior Subordinated Notes (7.375% to 8/19/25 then USD 5 year ICE Swap Rate + 5.150%)		7.375	%		8/19/25		1,820,000	$	1,764,972	(a)(c)(e)(f)
Citigroup Inc., Junior Subordinated Notes (5.950% to 5/15/25 then 3 mo. USD LIBOR + 3.905%)		5.950	%		5/15/25		2,500,000		2,266,074	(e)(f)
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		2,510,000		2,505,728	(a)(c)(e)(f)
HSBC Holdings PLC, Subordinated Notes (8.113% to 11/3/32 then SOFR + 4.250%)		8.113	%		11/3/33		1,730,000		1,729,073	(f)(g)
Intesa Sanpaolo SpA, Subordinated Notes		5.017	%		6/26/24		2,180,000		2,058,751	(a)(c)
Intesa Sanpaolo SpA, Subordinated Notes		5.710	%		1/15/26		4,250,000		3,962,006	(a)(c)
Intesa Sanpaolo SpA, Subordinated Notes (4.198% to 6/1/31 then 1 year Treasury Constant Maturity Rate + 2.600%)		4.198	%		6/1/32		2,250,000		1,525,274	(a)(f)
Lloyds Banking Group PLC, Junior Subordinated Notes (6.750% to 6/27/26 then 5 year Treasury Constant Maturity Rate + 4.815%)		6.750	%		6/27/26		3,820,000		3,481,968	(c)(e)(f)
TC Ziraat Bankasi AS, Senior Notes		5.125	%		9/29/23		2,530,000		2,491,660	(a)
UniCredit SpA, Subordinated Notes (7.296% to 4/2/29 then USD 5 year ICE Swap Rate + 4.914%)		7.296	%		4/2/34		3,390,000		2,878,967	(a)(f)
Total Banks									38,524,857
Capital Markets — 4.9%
Credit Suisse Group AG, Junior Subordinated Notes (6.375% to 8/21/26 then 5 year Treasury Constant Maturity Rate + 4.822%)		6.375	%		8/21/26		1,490,000		1,114,679	(a)(e)(f)
Credit Suisse Group AG, Junior Subordinated Notes (7.250% to 9/12/25 then USD 5 year ICE Swap Rate + 4.332%)		7.250	%		9/12/25		7,660,000		5,998,929	(a)(e)(f)
Credit Suisse Group AG, Junior Subordinated Notes (9.750% to 12/23/27 then 5 year Treasury Constant Maturity Rate + 6.383%)		9.750	%		6/23/27		3,520,000		3,353,247	(a)(c)(e)(f)

See Notes to Financial Statements.

Western Asset High Income Fund II Inc. 2022 Semi-Annual Report 7

Schedule of investments (unaudited) (cont’d)

October 31, 2022

Western Asset High Income Fund II Inc.

(Percentages shown based on Fund net assets)

Security	Rate			Maturity Date		Face Amount†		Value
Capital Markets — continued
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		2,350,000	$	2,235,729	(b)(e)(f)
UBS Group AG, Junior Subordinated Notes (7.000% to 1/31/24 then USD 5 year ICE Swap Rate + 4.344%)		7.000	%		1/31/24		2,820,000		2,734,591	(a)(c)(e)(f)
Total Capital Markets									15,437,175
Consumer Finance — 0.9%
Navient Corp., Senior Notes		5.875	%		10/25/24		1,170,000		1,133,028	(c)
Navient Corp., Senior Notes		6.750	%		6/15/26		1,990,000		1,881,217	(c)
Total Consumer Finance									3,014,245
Diversified Financial Services — 3.1%
Global Aircraft Leasing Co. Ltd., Senior Notes (6.500% Cash or 7.250% PIK)		6.500	%		9/15/24		8,380,000		6,747,181	(a)(h)
Huarong Finance 2017 Co. Ltd., Senior Notes (3 mo. USD LIBOR + 1.325%)		5.068	%		7/3/23		880,000		851,506	(b)(f)
Huarong Finance 2019 Co. Ltd., Senior Notes		2.500	%		2/24/23		1,220,000		1,198,650	(b)
Huarong Finance 2019 Co. Ltd., Senior Notes		2.125	%		9/30/23		690,000		643,425	(b)
Huarong Finance II Co. Ltd., Senior Notes		4.875	%		11/22/26		450,000		333,563	(b)
Total Diversified Financial Services									9,774,325
Insurance — 0.4%
MetLife Capital Trust IV, Junior Subordinated Notes		7.875	%		12/15/37		1,100,000		1,154,781	(a)(c)
Total Financials									67,905,383
Health Care — 10.4%
Health Care Providers & Services — 3.1%
CHS/Community Health Systems Inc., Senior Secured Notes		8.000	%		12/15/27		650,000		527,842	(a)
CHS/Community Health Systems Inc., Senior Secured Notes		4.750	%		2/15/31		1,460,000		980,193	(a)
HCA Inc., Senior Notes		7.500	%		11/15/95		2,205,000		2,167,519	(c)
Legacy LifePoint Health LLC, Senior Secured Notes		4.375	%		2/15/27		1,280,000		1,012,259	(a)
Tenet Healthcare Corp., Secured Notes		6.250	%		2/1/27		2,430,000		2,323,517	(a)(c)
Tenet Healthcare Corp., Senior Notes		6.125	%		10/1/28		3,390,000		2,939,554	(a)(c)
Total Health Care Providers & Services									9,950,884
Pharmaceuticals — 7.3%
Bausch Health Cos. Inc., Senior Notes		5.250	%		1/30/30		3,420,000		1,333,390	(a)

See Notes to Financial Statements.

8 Western Asset High Income Fund II Inc. 2022 Semi-Annual Report

Western Asset High Income Fund II Inc.

(Percentages shown based on Fund net assets)

Security	Rate			Maturity Date		Face Amount†			Value
Pharmaceuticals — continued
Bausch Health Cos. Inc., Senior Notes		5.250	%		2/15/31		1,970,000		$	777,864	(a)
Bausch Health Cos. Inc., Senior Secured Notes		4.875	%		6/1/28		1,180,000			725,257	(a)
Cidron Aida Finco Sarl, Senior Secured Notes		5.000	%		4/1/28		1,651,000	EUR		1,287,576	(a)
Cidron Aida Finco Sarl, Senior Secured Notes		6.250	%		4/1/28		289,000	GBP		254,187	(a)
Par Pharmaceutical Inc., Senior Secured Notes		7.500	%		4/1/27		1,050,000			805,142	*(a)(i)
Teva Pharmaceutical Finance Co. BV, Senior Notes		2.950	%		12/18/22		8,318,000			8,253,706	(c)
Teva Pharmaceutical Finance Netherlands III BV, Senior Notes		6.000	%		4/15/24		1,160,000			1,148,841	(c)
Teva Pharmaceutical Finance Netherlands III BV, Senior Notes		3.150	%		10/1/26		2,500,000			2,116,850	(c)
Teva Pharmaceutical Finance Netherlands III BV, Senior Notes		5.125	%		5/9/29		7,300,000			6,282,088	(c)
Total Pharmaceuticals										22,984,901
Total Health Care										32,935,785
Industrials — 13.3%
Aerospace & Defense — 1.0%
TransDigm Inc., Senior Secured Notes		8.000	%		12/15/25		3,220,000			3,280,310	(a)(c)
Airlines — 9.2%
American Airlines Group Inc., Senior Notes		3.750	%		3/1/25		4,630,000			4,079,863	(a)(c)
American Airlines Inc./AAdvantage Loyalty IP Ltd., Senior Secured Notes		5.500	%		4/20/26		540,000			515,123	(a)
American Airlines Inc./AAdvantage Loyalty IP Ltd., Senior Secured Notes		5.750	%		4/20/29		1,300,000			1,185,321	(a)(c)
Delta Air Lines Inc., Senior Notes		3.800	%		4/19/23		5,160,000			5,109,462	(c)
Delta Air Lines Inc., Senior Notes		2.900	%		10/28/24		1,070,000			1,012,937	(c)
Delta Air Lines Inc., Senior Notes		7.375	%		1/15/26		880,000			899,796	(c)
Delta Air Lines Inc., Senior Secured Notes		7.000	%		5/1/25		7,670,000			7,778,792	(a)(c)
Hawaiian Brand Intellectual Property Ltd./ HawaiianMiles Loyalty Ltd., Senior Secured Notes		5.750	%		1/20/26		500,000			461,587	(a)
Mileage Plus Holdings LLC/Mileage Plus Intellectual Property Assets Ltd., Senior Secured Notes		6.500	%		6/20/27		3,030,500			2,999,922	(a)(c)

See Notes to Financial Statements.

Western Asset High Income Fund II Inc. 2022 Semi-Annual Report 9

Schedule of investments (unaudited) (cont’d)

October 31, 2022

Western Asset High Income Fund II Inc.

(Percentages shown based on Fund net assets)

Security	Rate			Maturity Date		Face Amount†			Value
Airlines — continued
Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd., Senior Secured Notes		8.000	%		9/20/25		4,037,998		$	4,106,240	(a)(c)
United Airlines Holdings Inc., Senior Notes		5.000	%		2/1/24		980,000			956,769	(c)
Total Airlines										29,105,812
Building Products — 0.2%
Standard Industries Inc., Senior Notes		5.000	%		2/15/27		540,000			489,459	(a)(c)
Commercial Services & Supplies — 1.9%
CoreCivic Inc., Senior Notes		8.250	%		4/15/26		2,890,000			2,935,808	(c)
CoreCivic Inc., Senior Notes		4.750	%		10/15/27		3,840,000			3,192,176	(c)
Total Commercial Services & Supplies										6,127,984
Machinery — 0.3%
Titan International Inc., Senior Secured Notes		7.000	%		4/30/28		1,190,000			1,114,036	(c)
Trading Companies & Distributors — 0.4%
H&E Equipment Services Inc., Senior Notes		3.875	%		12/15/28		1,020,000			863,160	(a)(c)
United Rentals North America Inc., Senior Notes		5.500	%		5/15/27		302,000			295,051
Total Trading Companies & Distributors										1,158,211
Transportation Infrastructure — 0.3%
Gatwick Airport Finance PLC, Senior Secured Notes		4.375	%		4/7/26		1,000,000	GBP		957,177	(b)
Total Industrials										42,232,989
Information Technology — 2.0%
Communications Equipment — 1.1%
CommScope Inc., Senior Notes		7.125	%		7/1/28		4,010,000			3,405,744	(a)(c)
CommScope Technologies LLC, Senior Notes		6.000	%		6/15/25		68,000			63,571	(a)(c)
Total Communications Equipment										3,469,315
Technology Hardware, Storage & Peripherals — 0.9%
Seagate HDD Cayman, Senior Notes		4.750	%		6/1/23		1,700,000			1,688,555	(c)
Seagate HDD Cayman, Senior Notes		4.750	%		1/1/25		850,000			821,568	(c)
Seagate HDD Cayman, Senior Notes		4.875	%		6/1/27		495,000			458,422
Total Technology Hardware, Storage & Peripherals										2,968,545
Total Information Technology										6,437,860
Materials — 7.0%
Chemicals — 1.2%
Braskem America Finance Co., Senior Notes		7.125	%		7/22/41		700,000			613,640	(b)(c)

See Notes to Financial Statements.

10 Western Asset High Income Fund II Inc. 2022 Semi-Annual Report

Western Asset High Income Fund II Inc.

(Percentages shown based on Fund net assets)

Security	Rate			Maturity Date		Face Amount†			Value
Chemicals — continued
INEOS Quattro Finance 1 PLC, Senior Notes		3.750	%		7/15/26		3,000,000	EUR	$	2,342,194	(b)
Orbia Advance Corp. SAB de CV, Senior Notes		5.875	%		9/17/44		1,000,000			772,100	(a)(c)
Total Chemicals										3,727,934
Containers & Packaging — 2.7%
ARD Finance SA, Senior Secured Notes (6.500% Cash or 7.250% PIK)		6.500	%		6/30/27		1,000,000			719,940	(a)(h)
Ardagh Packaging Finance PLC/Ardagh Holdings USA Inc., Senior Notes		5.250	%		8/15/27		4,470,000			3,149,070	(a)
Ardagh Packaging Finance PLC/Ardagh Holdings USA Inc., Senior Notes		5.250	%		8/15/27		3,110,000			2,190,964	(a)
Pactiv LLC, Senior Notes		8.375	%		4/15/27		1,320,000			1,198,597
Trivium Packaging Finance BV, Senior Notes		8.500	%		8/15/27		1,230,000			1,159,553	(a)
Total Containers & Packaging										8,418,124
Metals & Mining — 3.1%
ArcelorMittal SA, Senior Notes		7.000	%		10/15/39		3,200,000			3,010,691	(c)
Freeport-McMoRan Inc., Senior Notes		3.875	%		3/15/23		910,000			904,649	(c)
Freeport-McMoRan Inc., Senior Notes		5.450	%		3/15/43		3,870,000			3,184,952	(c)
Vale Overseas Ltd., Senior Notes		6.875	%		11/21/36		2,960,000			2,881,563	(d)
Total Metals & Mining										9,981,855
Total Materials										22,127,913
Real Estate — 2.0%
Equity Real Estate Investment Trusts (REITs) — 1.8%
Diversified Healthcare Trust, Senior Notes		9.750	%		6/15/25		430,000			406,116	(c)
GEO Group Inc., Secured Notes		10.500	%		6/30/28		830,000			831,154
Service Properties Trust, Senior Notes		5.500	%		12/15/27		2,880,000			2,487,312	(c)
Service Properties Trust, Senior Notes		4.950	%		10/1/29		1,630,000			1,184,696	(c)
Service Properties Trust, Senior Notes		4.375	%		2/15/30		1,310,000			935,222
Total Equity Real Estate Investment Trusts (REITs)										5,844,500
Real Estate Management & Development — 0.2%
China Aoyuan Group Ltd., Senior Secured Notes		7.950	%		2/19/23		630,000			23,625	*(b)(i)
China Aoyuan Group Ltd., Senior Secured Notes		7.950	%		6/21/24		1,000,000			41,832	*(b)(i)
Country Garden Holdings Co. Ltd., Senior Secured Notes		8.000	%		1/27/24		1,450,000			246,670	(b)
Times China Holdings Ltd., Senior Secured Notes		6.750	%		7/8/25		870,000			66,979	(b)
Yuzhou Group Holdings Co. Ltd., Senior Secured Notes		6.000	%		10/25/23		500,000			17,464	*(b)(i)

See Notes to Financial Statements.

Western Asset High Income Fund II Inc. 2022 Semi-Annual Report 11

Schedule of investments (unaudited) (cont’d)

October 31, 2022

Western Asset High Income Fund II Inc.

(Percentages shown based on Fund net assets)

Security	Rate			Maturity Date		Face Amount†		Value
Real Estate Management & Development — continued
Yuzhou Group Holdings Co. Ltd., Senior Secured Notes		8.500	%		2/26/24		500,000	$	18,198	*(b)(i)
Yuzhou Group Holdings Co. Ltd., Senior Secured Notes		8.375	%		10/30/24		1,100,000		35,200	*(b)(i)
Total Real Estate Management & Development									449,968
Total Real Estate									6,294,468
Utilities — 1.3%
Electric Utilities — 0.3%
InterGen NV, Senior Secured Notes		7.000	%		6/30/23		520,000		509,621	(a)
Pampa Energia SA, Senior Notes		7.500	%		1/24/27		450,000		372,370	(a)
Total Electric Utilities									881,991
Gas Utilities — 1.0%
Suburban Propane Partners LP/Suburban Energy Finance Corp., Senior Notes		5.875	%		3/1/27		3,500,000		3,312,422	(c)
Total Utilities									4,194,413
Total Corporate Bonds & Notes (Cost — $419,296,636)									409,941,928
Sovereign Bonds — 9.8%
Angola — 0.6%
Angolan Government International Bond, Senior Notes		8.000	%		11/26/29		2,200,000		1,794,232	(a)
Argentina — 1.3%
Argentine Republic Government International Bond, Senior Notes		1.000	%		7/9/29		558,141		115,837
Provincia de Buenos Aires, Senior Notes, Step bond (5.250% to 9/1/23 then 6.375%)		5.250	%		9/1/37		3,601,974		1,098,229	(a)
Provincia de Cordoba, Senior Notes		6.875	%		12/10/25		790,000		604,350	(b)
Provincia de Cordoba, Senior Notes		6.875	%		12/10/25		300,000		229,500	(a)
Provincia de Cordoba, Senior Notes		6.990	%		6/1/27		3,070,000		1,904,014	(a)
Total Argentina									3,951,930
Bahamas — 0.7%
Bahamas Government International Bond, Senior Notes		9.000	%		6/16/29		1,390,000		1,008,163	(a)
Bahamas Government International Bond, Senior Notes		6.950	%		11/20/29		1,700,000		1,051,875	(a)
Total Bahamas									2,060,038
Costa Rica — 0.1%
Costa Rica Government International Bond, Senior Notes		7.158	%		3/12/45		460,000		398,826	(a)

See Notes to Financial Statements.

12 Western Asset High Income Fund II Inc. 2022 Semi-Annual Report

Western Asset High Income Fund II Inc.

(Percentages shown based on Fund net assets)

Security	Rate			Maturity Date		Face Amount†			Value
Dominican Republic — 0.8%
Dominican Republic International Bond, Senior Notes		4.875	%		9/23/32		3,330,000		$	2,578,270	(a)
Ecuador — 0.5%
Ecuador Government International Bond, Senior Notes, Step bond (2.500% to 7/31/23 then 3.500%)		2.500	%		7/31/35		4,440,000			1,644,999	(a)
Egypt — 0.4%
Egypt Government International Bond, Senior Notes		7.300	%		9/30/33		2,230,000			1,399,836	(a)
Ghana — 0.1%
Ghana Government International Bond, Senior Notes		7.875	%		2/11/35		1,080,000			309,895	(a)
Ivory Coast — 0.3%
Ivory Coast Government International Bond, Senior Notes		6.125	%		6/15/33		1,000,000			784,946	(a)
Jordan — 0.7%
Jordan Government International Bond, Senior Notes		7.750	%		1/15/28		1,000,000			969,250	(a)
Jordan Government International Bond, Senior Notes		5.850	%		7/7/30		1,540,000			1,280,156	(a)
Total Jordan										2,249,406
Mexico — 2.2%
Mexican Bonos, Bonds		7.750	%		5/29/31		156,870,000	MXN		6,977,152
Nigeria — 0.2%
Nigeria Government International Bond, Senior Notes		7.875	%		2/16/32		1,130,000			731,562	(b)
Oman — 0.2%
Oman Government International Bond, Senior Notes		5.625	%		1/17/28		800,000			765,217	(a)
Russia — 1.1%
Russian Federal Bond — OFZ		7.050	%		1/19/28		239,980,000	RUB		1,933,763	*(i)
Russian Federal Bond — OFZ		6.900	%		5/23/29		176,840,000	RUB		1,424,980	*(i)
Total Russia										3,358,743
Turkey — 0.6%
Turkey Government International Bond, Senior Notes		5.125	%		2/17/28		2,400,000			1,947,398
Ukraine — 0.0%††
Ukraine Government International Bond, Senior Notes		7.375	%		9/25/34		800,000			129,000	(a)
Total Sovereign Bonds (Cost — $35,271,255)										31,081,450

See Notes to Financial Statements.

Western Asset High Income Fund II Inc. 2022 Semi-Annual Report 13

Schedule of investments (unaudited) (cont’d)

October 31, 2022

Western Asset High Income Fund II Inc.

(Percentages shown based on Fund net assets)

Security	Rate			Maturity Date		Face Amount†		Value
U.S. Government & Agency Obligations — 7.8%
U.S. Government Obligations — 7.8%
U.S. Treasury Notes		1.625	%		5/31/23		1,000,000	$	983,281	(d)
U.S. Treasury Notes		2.750	%		8/31/23		4,000,000		3,941,722	(d)
U.S. Treasury Notes		0.750	%		12/31/23		100,000		95,613
U.S. Treasury Notes		1.500	%		2/29/24		5,000,000		4,800,586	(d)
U.S. Treasury Notes		2.125	%		3/31/24		2,000,000		1,932,305	(d)
U.S. Treasury Notes		1.500	%		1/31/27		5,000,000		4,456,836	(d)
U.S. Treasury Notes		1.875	%		2/28/27		5,900,000		5,338,809	(d)
U.S. Treasury Notes		2.750	%		7/31/27		3,500,000		3,272,363
Total U.S. Government & Agency Obligations (Cost — $25,379,209)									24,821,515
Convertible Bonds & Notes — 2.7%
Communication Services — 2.1%
Media — 2.1%
DISH Network Corp., Senior Notes		2.375	%		3/15/24		747,000		680,330
DISH Network Corp., Senior Notes		3.375	%		8/15/26		8,793,000		6,102,342
Total Communication Services									6,782,672
Industrials — 0.6%
Airlines — 0.6%
Spirit Airlines Inc., Senior Notes		1.000	%		5/15/26		2,230,000		1,852,015	(c)
Total Convertible Bonds & Notes (Cost — $9,923,320)									8,634,687
Senior Loans — 0.4%
Consumer Discretionary — 0.4%
Diversified Consumer Services — 0.4%
WW International Inc., Initial Term Loan (1 mo. USD LIBOR + 3.500%) (Cost — $1,734,115)		7.260	%		4/13/28		2,250,000		1,465,312	(f)(j)(k)
				Expiration Date		Warrants
Warrants — 0.0%††
Financials — 0.0%††
Capital Markets — 0.0%††
EG Acquisition Corp., Class A Shares (Cost — $23,550)					5/28/28		24,596		5,411	*

See Notes to Financial Statements.

14 Western Asset High Income Fund II Inc. 2022 Semi-Annual Report

Western Asset High Income Fund II Inc.

(Percentages shown based on Fund net assets)

Security				Shares		Value
Common Stocks — 0.0%††
Energy — 0.0%††
Energy Equipment & Services — 0.0%††
KCAD Holdings I Ltd. (Cost — $4,365,221)					533,873,172	$	0	*(l)(m)(n)
Total Investments before Short-Term Investments (Cost — $495,993,306)							475,950,303
	Rate
Short-Term Investments — 2.3%
Western Asset Premier Institutional Government Reserves, Premium Shares (Cost — $7,270,168)		2.996	%		7,270,168		7,270,168	(o)(p)
Total Investments — 152.0% (Cost — $503,263,474)							483,220,471
Liabilities in Excess of Other Assets — (52.0)%							(165,362,620	)
Total Net Assets — 100.0%						$	317,857,851

See Notes to Financial Statements.

Western Asset High Income Fund II Inc. 2022 Semi-Annual Report 15

Schedule of investments (unaudited) (cont’d)

October 31, 2022

Western Asset High Income Fund II 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)  All or a portion of this security is pledged as collateral pursuant to the loan agreement (Note 5).

^(d)  All or a portion of this security is held by the counterparty as collateral for open reverse repurchase agreements.

^(e)  Security has no maturity date. The date shown represents the next call date.

^(f)  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.

^(g)  Securities traded on a when-issued or delayed delivery basis.

^(h)  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.

⁽ⁱ⁾  The coupon payment on this security is currently in default as of October 31, 2022.

^(j)  Interest rates disclosed represent the effective rates on senior loans. Ranges in interest rates are attributable to multiple contracts under the same loan.

^(k)  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.

^(l)  Security is valued in good faith in accordance with procedures approved by the Board of Directors (Note 1).

^(m)  Security is valued using significant unobservable inputs (Note 1).

⁽ⁿ⁾  Value is less than $1.

^(o)  Rate shown is one-day yield as of the end of the reporting period.

^(p)  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 October 31, 2022, the total market value of investments in Affiliated Companies was $7,270,168 and the cost was $7,270,168 (Note 10).

Abbreviation(s) used in this schedule:
EUR	—	Euro
GBP	—	British Pound
ICE	—	Intercontinental Exchange
LIBOR	—	London Interbank Offered Rate
MXN	—	Mexican Peso
OFZ	—	Obligatsyi Federal’novo Zaima (Russian Federal Loan Obligation)
PIK	—	Payment-In-Kind
RUB	—	Russian Ruble
SOFR	—	Secured Overnight Financing Rate
USD	—	United States Dollar

See Notes to Financial Statements.

16 Western Asset High Income Fund II Inc. 2022 Semi-Annual Report

Western Asset High Income Fund II Inc.

At October 31, 2022, the Fund had the following open reverse repurchase agreements:

Counterparty	Rate			Effective Date		Maturity Date			Face Amount of Reverse Repurchase Agreements		Asset Class of Collateral*		Collateral Value**
Deutsche Bank AG		2.910	%		8/24/2022		11/23/2022		$	17,550,750		U.S. Government & Agency Obligations	$	17,057,908
												Cash		431,267
Deutsche Bank AG		3.570	%		10/21/2022		11/23/2022			4,425,000		U.S. Government & Agency Obligations		4,475,790
												Cash		108,733
Goldman Sachs Group Inc.		3.750	%		9/23/2022		TBD	***		6,467,987		Corporate Bonds & Notes		6,550,533
												Cash		1,307,099
									$	28,443,737			$	29,931,330

* Refer to the Schedule of Investments for positions held at the counterparty as collateral for reverse repurchase agreements.

** Including accrued interest.

*** TBD — To Be Determined; These reverse repurchase agreements have no maturity dates because they are renewed daily and can be terminated by either the Fund or the counterparty in accordance with the terms of the agreements. The rates for these agreements are variable. The rate disclosed is the rate as of October 31, 2022.

At October 31, 2022, the Fund had the following open forward foreign currency contracts:

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
USD	1,500,990	EUR	1,500,000	Goldman Sachs Group Inc.		1/18/23	$	8,671
USD	931,828	GBP	810,000	Goldman Sachs Group Inc.		1/18/23		338
USD	1,474,645	GBP	1,300,000	Goldman Sachs Group Inc.		1/18/23		(20,339)
USD	1,587,905	GBP	1,400,000	Goldman Sachs Group Inc.		1/18/23		(22,078)
USD	4,402,641	GBP	3,825,639	Goldman Sachs Group Inc.		1/18/23		3,203
USD	60,591	EUR	60,000	JPMorgan Chase & Co.		1/18/23		898
USD	109,256	EUR	110,000	JPMorgan Chase & Co.		1/18/23		(181)
USD	316,264	EUR	320,000	JPMorgan Chase & Co.		1/18/23		(2,097)
CAD	12,453	USD	9,119	Morgan Stanley & Co. Inc.		1/18/23		32
USD	1,203,181	EUR	1,200,000	Morgan Stanley & Co. Inc.		1/18/23		9,326
USD	2,845,478	EUR	2,832,054	Morgan Stanley & Co. Inc.		1/18/23		27,926
USD	3,188,179	EUR	3,200,000	Morgan Stanley & Co. Inc.		1/18/23		4,566
Total							$	10,265

See Notes to Financial Statements.

Western Asset High Income Fund II Inc. 2022 Semi-Annual Report 17

Schedule of investments (unaudited) (cont’d)

October 31, 2022

Western Asset High Income Fund II Inc.

Abbreviation(s) used in this table:
CAD	—	Canadian Dollar
EUR	—	Euro
GBP	—	British Pound
USD	—	United States Dollar

See Notes to Financial Statements.

18 Western Asset High Income Fund II Inc. 2022 Semi-Annual Report

Statement of assets and liabilities (unaudited)

October 31, 2022

Assets:
Investments in unaffiliated securities, at value (Cost — $495,993,306)	$	475,950,303
Investments in affiliated securities, at value (Cost — $7,270,168)		7,270,168
Foreign currency, at value (Cost — $689,652)		724,760
Cash		2,484,856
Receivable for securities sold		10,000,163
Interest receivable		8,357,367
Deposits with brokers for open reverse repurchase agreements		1,847,099
Unrealized appreciation on forward foreign currency contracts		54,960
Dividends receivable from affiliated investments		7,559
Deposits with brokers for futures contracts		1,002
Prepaid expenses		379,337
Total Assets		507,077,574
Liabilities:
Loan payable (Note 5)		142,000,000
Payable for open reverse repurchase agreements (Note 3)		28,443,737
Payable for securities purchased		14,452,172
Distributions payable		3,184,562
Interest expense payable		604,908
Investment management fee payable		328,412
Unrealized depreciation on forward foreign currency contracts		44,695
Directors’ fees payable		3,170
Accrued expenses		158,067
Total Liabilities		189,219,723
Total Net Assets	$	317,857,851
Net Assets:
Par value ($0.001 par value; 64,991,059 shares issued and outstanding; 100,000,000 shares authorized)	$	64,991
Paid-in capital in excess of par value		583,761,009
Total distributable earnings (loss)		(265,968,149)
Total Net Assets	$	317,857,851
Shares Outstanding		64,991,059
Net Asset Value	$	4.89

See Notes to Financial Statements.

Western Asset High Income Fund II Inc. 2022 Semi-Annual Report 19

Statement of operations (unaudited)

For the Six Months Ended October 31, 2022

Investment Income:
Interest	$	21,354,863
Dividends from affiliated investments		19,380
Less: Foreign taxes withheld		(53,203)
Total Investment Income		21,321,040
Expenses:
Interest expense (Notes 3 and 5)		2,247,143
Investment management fee (Note 2)		2,084,662
Legal fees		110,878
Transfer agent fees (Note 9)		95,702
Directors’ fees		65,688
Audit and tax fees		39,150
Commitment fees (Note 5)		38,784
Shareholder reports		15,730
Stock exchange listing fees		14,710
Custody fees		5,745
Fund accounting fees		4,033
Insurance		955
Miscellaneous expenses		4,666
Total Expenses		4,727,846
Less: Fee waivers and/or expense reimbursements (Note 2)		(964)
Net Expenses		4,726,882
Net Investment Income		16,594,158
Realized and Unrealized Gain (Loss) on Investments, Futures Contracts, Forward Foreign Currency Contracts and Foreign Currency Transactions (Notes 1, 3 and 4):
Net Realized Gain (Loss) From:
Investment transactions in unaffiliated securities		(33,677,218)
Futures contracts		59,566
Forward foreign currency contracts		830,012
Foreign currency transactions		(119,332)
Net Realized Loss		(32,906,972)
Change in Net Unrealized Appreciation (Depreciation) From:
Investments in unaffiliated securities		(23,229,152)
Forward foreign currency contracts		(242,596)
Foreign currencies		47,474
Change in Net Unrealized Appreciation (Depreciation)		(23,424,274)
Net Loss on Investments, Futures Contracts, Forward Foreign Currency Contracts and Foreign Currency Transactions		(56,331,246)
Decrease in Net Assets From Operations	$	(39,737,088)

See Notes to Financial Statements.

20 Western Asset High Income Fund II Inc. 2022 Semi-Annual Report

Statements of changes in net assets

For the Six Months Ended October 31, 2022 (unaudited) and the Year Ended April 30, 2022	October 31			April 30
Operations:
Net investment income	$	16,594,158		$	31,812,263
Net realized loss		(32,906,972)			(1,164,451)
Change in net unrealized appreciation (depreciation)		(23,424,274)			(71,764,285)
Decrease in Net Assets From Operations		(39,737,088)			(41,116,473)
Distributions to Shareholders From (Note 1):
Total distributable earnings		(19,096,246)			(31,284,412)
Return of capital		—			(3,301,743)
Decrease in Net Assets From Distributions to Shareholders		(19,096,246)			(34,586,155)
Fund Share Transactions:
Net proceeds from sale of shares (6,001,836 and 0 shares issued, respectively)		30,943,027	‡		—
Reinvestment of distributions (64,637 and 262,774 shares issued, respectively)		342,659			1,834,300
Increase in Net Assets From Fund Share Transactions		31,285,686			1,834,300
Decrease in Net Assets		(27,547,648)			(73,868,328)
Net Assets:
Beginning of period		345,405,499			419,273,827
End of period	$	317,857,851		$	345,405,499

‡ Net of rights offering costs of $86,465 (Note 8).

See Notes to Financial Statements.

Western Asset High Income Fund II Inc. 2022 Semi-Annual Report 21

Statement of cash flows (unaudited)

For the Six Months Ended October 31, 2022

Increase (Decrease) in Cash:
Cash Flows from Operating Activities:
Net decrease in net assets resulting from operations	$	(39,737,088)
Adjustments to reconcile net decrease in net assets resulting from operations to net cash provided (used) by operating activities:
Purchases of portfolio securities		(373,586,459)
Sales of portfolio securities		354,425,015
Net purchases, sales and maturities of short-term investments		(768,511)
Net amortization of premium (accretion of discount)		(5,037,251)
Decrease in receivable for securities sold		3,889,940
Increase in interest receivable		(642,384)
Increase in prepaid expenses		(311,468)
Increase in dividends receivable from affiliated investments		(7,061)
Increase in payable for securities purchased		2,270,050
Decrease in investment management fee payable		(26,059)
Decrease in Directors’ fees payable		(1,558)
Increase in interest expense payable		422,055
Increase in accrued expenses		37,499
Net realized loss on investments		33,677,218
Change in net unrealized appreciation (depreciation) of investments and forward foreign currency contracts		23,471,748
Net Cash Used in Operating Activities*		(1,924,314)
Cash Flows from Financing Activities:
Distributions paid on common stock (net of distributions payable)		(18,456,330)
Proceeds from loan facility borrowings		142,000,000
Repayment of loan facility borrowings		(154,500,000)
Increase in payable for open reverse repurchase agreements		3,572,054
Proceeds from sale of shares		30,943,027
Net Cash Provided by Financing Activities		3,558,751
Net Increase in Cash and Restricted Cash		1,634,437
Cash and restricted cash at beginning of period		3,423,280
Cash and restricted cash at end of period	$	5,057,717

* Included in operating expenses is cash of $1,856,938 paid for interest and commitment fees on borrowings.

See Notes to Financial Statements.

22 Western Asset High Income Fund II Inc. 2022 Semi-Annual Report

The following table provides a reconciliation of cash (including foreign currency) and restricted cash reported within the Statement of Assets and Liabilities that sums to the total of such amounts shown on the Statement of Cash Flows.

		October 31, 2022
Cash	$	3,209,616
Restricted cash		1,848,101
Total cash and restricted cash shown in the Statement of Cash Flows	$	5,057,717

Restricted cash consists of cash that has been segregated to cover the Fund’s collateral or margin obligations under derivative contracts and for reverse repurchase agreements. It is separately reported on the Statement of Assets and Liabilities as Deposits with brokers.

Non-Cash Financing Activities:
Proceeds from reinvestment of distributions	$	342,659

See Notes to Financial Statements.

Western Asset High Income Fund II Inc. 2022 Semi-Annual Report 23

Financial highlights

For a share of capital stock outstanding throughout each year ended April 30, unless otherwise noted:
	20221,2			20221			20211			20201			20191			20181
Net asset value, beginning of period	$	5.86		$	7.15		$	6.19		$	7.31		$	7.39		$	7.78
Income (loss) from operations:
Net investment income		0.26			0.54			0.51			0.55			0.52			0.56
Net realized and unrealized gain (loss)		(0.89)			(1.24)			1.03			(1.11)			(0.06)			(0.37)
Total income (loss) from operations		(0.63)			(0.70)			1.54			(0.56)			0.46			0.19
Less distributions from:
Net investment income		(0.29)	3		(0.53)			(0.46)			(0.48)			(0.50)			(0.57)
Return of capital		—			(0.06)			(0.13)			(0.09)			(0.05)			(0.01)
Total distributions		(0.29)			(0.59)			(0.59)			(0.57)			(0.55)			(0.58)
Anti-dilutive impact of repurchase plan		—			—			—			0.01	4		0.01	4		—
Dilutive impact of rights offering		(0.05)	5		—			—			—			—			—
Anti-dilutive impact of tender offer		—			—			0.01	6		—			—			—
Net asset value, end of period	$	4.89		$	5.86		$	7.15		$	6.19		$	7.31		$	7.39
Market price, end of period	$	4.56		$	5.38		$	7.09		$	5.51		$	6.69		$	6.55
Total return, based on NAV7,8		(11.68)	%		(10.66)	%		25.68	%		(8.11)	%		6.77	%		2.41	%
Total return, based on Market Price9		(10.18)	%		(17.20)	%		40.48	%		(10.02)	%		11.29	%		(4.15)	%
Net assets, end of period (millions)	$	318		$	345		$	419		$	521		$	622		$	637
Ratios to average net assets:
Gross expenses		2.75	%10		1.66	%		1.59	%		2.57	%11		2.47	%		1.97	%
Net expenses12		2.75	10,13		1.66	13		1.59	13		2.55	11,13		2.45	13		1.97
Net investment income		9.65	10		7.87			7.37			7.76			7.31			7.26
Portfolio turnover rate		71	%		55	%		50	%		66	%		105	%		91	%

See Notes to Financial Statements.

24 Western Asset High Income Fund II Inc. 2022 Semi-Annual Report

For a share of capital stock outstanding throughout each year ended April 30, unless otherwise noted:
	20221,2			20221			20211			20201			20191			20181
Supplemental data:
Loan Outstanding, End of Period (000s)	$	142,000		$	154,500		$	158,000		$	208,000		$	246,500		$	235,000
Asset Coverage Ratio for Loan Outstanding14		324	%		324	%		365	%		351	%		352	%		371	%
Asset Coverage, per $1,000 Principal Amount of Loan Outstanding14	$	3,238		$	3,236		$	3,654		$	3,506		$	3,524		$	3,710
Weighted Average Loan (000s)	$	142,128		$	155,075		$	178,800		$	241,971		$	242,889		$	239,548
Weighted Average Interest Rate on Loan		2.62	%		0.89	%		0.86	%		2.58	%		3.08	%		2.17	%

¹  Per share amounts have been calculated using the average shares method.

²  For the six months ended October 31, 2022 (unaudited).

³  The actual source of the Fund’s current fiscal year distributions may be from net investment income, return of capital or a combination of both. Shareholders will be informed of the tax characteristics of the distributions after the close of the fiscal year.

⁴  The repurchase plan was completed at an average repurchase price of $4.91 for 917,344 shares and $4,506,248 for the year ended April 30, 2020 and $5.98 for 1,047,640 shares and $6,268,230 for the year ended April 30, 2019.

⁵  The rights offering was completed at a price of $5.16 for 6,001,836 shares and $30,943,027 for the period ended October 31, 2022.

⁶  The tender offer was completed at a price of $7.01 for 25,577,060 shares and $179,295,192 for the year ended April 30, 2021.

⁷  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.

⁸  The total return calculation assumes that distributions are reinvested at NAV. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized.

⁹  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. Total returns for periods of less than one year are not annualized.

¹⁰  Annualized.

¹¹  Included in the expense ratios are certain non-recurring legal and transfer agent fees that were incurred by the Fund during the period. Without these fees, the gross and net expense ratios would have been 2.37% and 2.35%, respectively.

¹²  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.

¹³  Reflects fee waivers and/or expense reimbursements.

¹⁴  Represents value of net assets plus the loan outstanding at the end of the period divided by the loan outstanding at the end of the period.

See Notes to Financial Statements.

Western Asset High Income Fund II Inc. 2022 Semi-Annual Report 25

Notes to financial statements (unaudited)

1. Organization and significant accounting policies

Western Asset High Income Fund II Inc. (the “Fund”) was incorporated in Maryland and is registered as a diversified, closed-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund seeks to maximize current income by investing at least 80% of its net assets, plus any borrowings for investment purposes, in high-yield debt securities. As a secondary objective, the Fund seeks capital appreciation to the extent consistent with its objective of seeking to maximize current income.

The Fund follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standard 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 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

26 Western Asset High Income Fund II Inc. 2022 Semi-Annual Report

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.

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)

Western Asset High Income Fund II Inc. 2022 Semi-Annual Report 27

Notes to financial statements (unaudited) (cont’d)

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		—	$	409,941,928		—		$	409,941,928
Sovereign Bonds		—		31,081,450		—			31,081,450
U.S. Government & Agency Obligations		—		24,821,515		—			24,821,515
Convertible Bonds & Notes		—		8,634,687		—			8,634,687
Senior Loans		—		1,465,312		—			1,465,312
Warrants	$	5,411		—		—			5,411
Common Stocks		—		—	$	0	*		0	*
Total Long-Term Investments		5,411		475,944,892		0	*		475,950,303
Short-Term Investments†		7,270,168		—		—			7,270,168
Total Investments	$	7,275,579	$	475,944,892	$	0	*	$	483,220,471
Other Financial Instruments:
Forward Foreign Currency Contracts††		—	$	54,960		—		$	54,960
Total	$	7,275,579	$	475,999,852	$	0	*	$	483,275,431
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††		—	$	44,695		—		$	44,695

† See Schedule of Investments for additional detailed categorizations.

* Amount represents less than $1.

†† Reflects the unrealized appreciation (depreciation) of the instruments.

(b) Futures contracts. The Fund uses futures contracts generally to gain exposure to, or hedge against, changes in interest rates or gain exposure to, or hedge against, changes in certain asset classes. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date.

Upon entering into a futures contract, the Fund is required to deposit cash or securities with a broker in an amount equal to a certain percentage of the contract amount. This is known as the ‘‘initial margin’’ and subsequent payments (‘‘variation margin’’) are made or received by the Fund each day, depending on the daily fluctuation in the value of the contract. For certain futures, including foreign denominated futures, variation margin is not settled daily,

28 Western Asset High Income Fund II Inc. 2022 Semi-Annual Report

but is recorded as a net variation margin payable or receivable. The daily changes in contract value are recorded as unrealized appreciation or depreciation in the Statement of Operations and the Fund recognizes a realized gain or loss when the contract is closed.

Futures contracts involve, to varying degrees, risk of loss in excess of the amounts reflected in the financial statements. In addition, there is the risk that the Fund may not be able to enter into a closing transaction because of an illiquid secondary market.

(c) 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.

Non-deliverable forward foreign currency exchange contracts are settled with the counterparty in cash without the delivery of foreign currency.

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.

(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 off-set 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 off-set between the lender and the borrower.

(e) Reverse repurchase agreements. The Fund may enter into reverse repurchase agreements. Under the terms of a typical reverse repurchase agreement, a fund sells a security subject to an obligation to repurchase the security from the buyer at an agreed upon time and price. In the event the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes insolvent, the Fund’s use of the proceeds of the agreement may be restricted pending a determination by the counterparty, or its trustee or

Western Asset High Income Fund II Inc. 2022 Semi-Annual Report 29

Notes to financial statements (unaudited) (cont’d)

receiver, whether to enforce the Fund’s obligation to repurchase the securities. In entering into reverse repurchase agreements, the Fund will pledge cash, U.S. government securities or other liquid debt obligations at least equal in value to its obligations with respect to reverse repurchase agreements or will take other actions permitted by law to cover its obligations. If the market value of the collateral declines during the period, the Fund may be required to post additional collateral to cover its obligation. Cash collateral that has been pledged to cover obligations of the Fund under reverse repurchase agreements, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral are noted in the Schedule of Investments. Interest payments made on reverse repurchase agreements are recognized as a component of “Interest expense” on the Statement of Operations. In periods of increased demand for the security, the Fund may receive a fee for use of the security by the counterparty, which may result in interest income to the Fund.

(f) Securities traded on a when-issued and delayed delivery basis. The Fund may trade securities on a when-issued or delayed delivery basis. In when-issued and delayed delivery transactions, the securities are purchased or sold by the Fund with payment and delivery taking place in the future in order to secure what is considered to be an advantageous price and yield to the Fund at the time of entering into the transaction.

Purchasing such securities involves risk of loss if the value of the securities declines prior to settlement. These securities are subject to market fluctuations and their current value is determined in the same manner as for other securities.

(g) Cash flow information. The Fund invests in securities and distributes dividends from net investment income and net realized gains, which are paid in cash and may be reinvested at the discretion of shareholders. These activities are reported in the Statements of Changes in Net Assets and additional information on cash receipts and cash payments is presented in the Statement of Cash Flows.

(h) 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

30 Western Asset High Income Fund II Inc. 2022 Semi-Annual Report

received or paid. Net unrealized foreign exchange gains and losses arise from changes in 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.

(i) 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.

(j) 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