WESTERN ASSET HIGH INCOME OPPORTUNITY FUND INC.

Schedule of investments (unaudited) June 30, 2023

(Percentages shown based on Fund net assets)

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†			VALUE
CORPORATE BONDS & NOTES - 90.6%
COMMUNICATION SERVICES - 13.5%
Diversified Telecommunication Services - 3.0%
Altice Financing SA, Senior Secured Notes		5.000	%		1/15/28		1,250,000		$	1,000,248	(a)
Altice Financing SA, Senior Secured Notes		5.750	%		8/15/29		4,240,000			3,288,971	(a)
Altice France Holding SA, Senior Notes		6.000	%		2/15/28		480,000			234,589	(a)
Altice France Holding SA, Senior Secured Notes		8.000	%		5/15/27		720,000	EUR		460,592	(b)
Altice France Holding SA, Senior Secured Notes		10.500	%		5/15/27		4,870,000			2,954,556	(a)
Altice France SA, Senior Secured Notes		5.500	%		10/15/29		1,400,000			1,002,599	(a)
Level 3 Financing Inc., Senior Secured Notes		3.875	%		11/15/29		1,490,000			1,187,294	(a)
Telecom Italia SpA, Senior Notes		5.303	%		5/30/24		2,020,000			1,965,475	(a)
Total Diversified Telecommunication Services										12,094,324
Interactive Media & Services - 0.1%
Match Group Holdings II LLC, Senior Notes		3.625	%		10/1/31		360,000			296,244	(a)
Media - 5.5%
CCO Holdings LLC/CCO Holdings Capital Corp., Senior Notes		4.750	%		3/1/30		1,000,000			855,984	(b)
CCO Holdings LLC/CCO Holdings Capital Corp., Senior Notes		4.250	%		1/15/34		12,570,000			9,512,948	(a)
Clear Channel Outdoor Holdings Inc., Senior Notes		7.750	%		4/15/28		570,000			448,151	(a)
Clear Channel Outdoor Holdings Inc., Senior Notes		7.500	%		6/1/29		1,140,000			844,890	(a)
DirecTV Financing LLC/DirecTV Financing Co-Obligor Inc., Senior Secured Notes		5.875	%		8/15/27		2,080,000			1,886,165	(a)
DISH DBS Corp., Senior Notes		5.875	%		11/15/24		333,000			291,669
DISH DBS Corp., Senior Notes		7.750	%		7/1/26		2,300,000			1,413,063
DISH DBS Corp., Senior Notes		7.375	%		7/1/28		1,780,000			954,863
DISH DBS Corp., Senior Notes		5.125	%		6/1/29		4,778,000			2,223,400
Sirius XM Radio Inc., Senior Notes		4.125	%		7/1/30		1,000,000			817,455	(a)
TalkTalk Telecom Group Ltd., Senior Notes		3.875	%		2/20/25		500,000	GBP		516,237	(b)
Virgin Media Vendor Financing Notes III DAC, Senior Secured Notes		4.875	%		7/15/28		2,000,000	GBP		2,021,512	(a)
VZ Secured Financing BV, Senior Secured Notes		5.000	%		1/15/32		680,000			548,390	(a)
Total Media										22,334,727
Wireless Telecommunication Services - 4.9%
CSC Holdings LLC, Senior Notes		11.250	%		5/15/28		1,850,000			1,796,193	(a)
CSC Holdings LLC, Senior Notes		5.750	%		1/15/30		5,740,000			2,718,378	(a)

See Notes to Schedule of Investments.

Western Asset High Income Opportunity Fund Inc. 2023 Quarterly Report         1

WESTERN ASSET HIGH INCOME OPPORTUNITY FUND INC.

Schedule of investments (unaudited) (cont’d) June 30, 2023

(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		6,570,000		$	2,930,070	(a)
CSC Holdings LLC, Senior Notes		4.500	%		11/15/31		1,000,000			698,281	(a)
Millicom International Cellular SA, Senior Notes		4.500	%		4/27/31		1,750,000			1,346,712	(a)
Sprint Capital Corp., Senior Notes		6.875	%		11/15/28		2,190,000			2,323,356
Sprint Capital Corp., Senior Notes		8.750	%		3/15/32		5,910,000			7,149,457
Sprint LLC, Senior Notes		7.875	%		9/15/23		360,000			361,193
Vmed O2 UK Financing I PLC, Senior Secured Notes		4.750	%		7/15/31		500,000			416,282	(a)
Total Wireless Telecommunication Services										19,739,922
TOTAL COMMUNICATION SERVICES										54,465,217
CONSUMER DISCRETIONARY - 21.4%
Automobile Components - 3.8%
Adient Global Holdings Ltd., Senior Notes		4.875	%		8/15/26		3,529,000			3,356,470	(a)
American Axle & Manufacturing Inc., Senior Notes		6.500	%		4/1/27		5,293,000			5,026,942
American Axle & Manufacturing Inc., Senior Notes		5.000	%		10/1/29		830,000			692,799
JB Poindexter & Co. Inc., Senior Notes		7.125	%		4/15/26		4,338,000			4,246,316	(a)
ZF North America Capital Inc., Senior Notes		6.875	%		4/14/28		880,000			892,042	(a)
ZF North America Capital Inc., Senior Notes		7.125	%		4/14/30		1,220,000			1,242,129	(a)
Total Automobile Components										15,456,698
Automobiles - 1.7%
Ford Motor Co., Senior Notes		3.250	%		2/12/32		1,000,000			787,604
Ford Motor Credit Co. LLC, Senior Notes		7.350	%		3/6/30		1,000,000			1,022,367
Ford Motor Credit Co. LLC, Senior Notes		3.625	%		6/17/31		6,020,000			4,940,583
Total Automobiles										6,750,554
Broadline Retail - 0.2%
Marks & Spencer PLC, Senior Notes		7.125	%		12/1/37		790,000			752,116	(a)
Distributors - 0.5%
Ritchie Bros Holdings Inc., Senior Notes		7.750	%		3/15/31		1,770,000			1,838,456	(a)
Diversified Consumer Services - 2.2%
APCOA Parking Holdings GmbH, Senior Secured Notes		4.625	%		1/15/27		430,000	EUR		410,752	(b)
APCOA Parking Holdings GmbH, Senior Secured Notes		4.625	%		1/15/27		4,050,000	EUR		3,868,708	(a)
Carriage Services Inc., Senior Notes		4.250	%		5/15/29		600,000			516,972	(a)

See Notes to Schedule of Investments.

    2     Western Asset High Income Opportunity Fund Inc. 2023 Quarterly Report

WESTERN ASSET HIGH INCOME OPPORTUNITY FUND INC.

Schedule of investments (unaudited) (cont’d) June 30, 2023

(Percentages shown based on Fund net assets)

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†			VALUE
Diversified Consumer Services - (continued)
Service Corp. International, Senior Notes		7.500	%		4/1/27		1,975,000		$	2,029,404
StoneMor Inc., Senior Secured Notes		8.500	%		5/15/29		2,330,000			1,968,034	(a)
Total Diversified Consumer Services										8,793,870
Hotels, Restaurants & Leisure - 12.2%
888 Acquisitions Ltd., Senior Secured Notes		7.558	%		7/15/27		2,600,000	EUR		2,679,376	(a)
Caesars Entertainment Inc., Senior Secured Notes		7.000	%		2/15/30		1,000,000			1,005,140	(a)
Carnival Holdings Bermuda Ltd., Senior Notes		10.375	%		5/1/28		1,510,000			1,652,957	(a)
Carnival PLC, Senior Notes		1.000	%		10/28/29		5,780,000	EUR		3,967,012
Carrols Restaurant Group Inc., Senior Notes		5.875	%		7/1/29		1,880,000			1,549,308	(a)
Full House Resorts Inc., Senior Secured Notes		8.250	%		2/15/28		3,300,000			3,091,704	(a)
IRB Holding Corp., Senior Secured Notes		7.000	%		6/15/25		1,230,000			1,237,767	(a)
Las Vegas Sands Corp., Senior Notes		3.200	%		8/8/24		900,000			872,273
Las Vegas Sands Corp., Senior Notes		3.900	%		8/8/29		600,000			536,107
Melco Resorts Finance Ltd., Senior Notes		5.375	%		12/4/29		2,007,000			1,667,470	(a)
NCL Corp. Ltd., Senior Notes		3.625	%		12/15/24		1,610,000			1,550,866	(a)
NCL Corp. Ltd., Senior Notes		5.875	%		3/15/26		500,000			468,232	(a)
NCL Corp. Ltd., Senior Notes		7.750	%		2/15/29		5,051,000			4,802,036	(a)
NCL Finance Ltd., Senior Notes		6.125	%		3/15/28		4,540,000			4,090,173	(a)
Royal Caribbean Cruises Ltd., Senior Notes		5.375	%		7/15/27		2,980,000			2,789,574	(a)
Royal Caribbean Cruises Ltd., Senior Notes		5.500	%		4/1/28		1,840,000			1,717,704	(a)
Royal Caribbean Cruises Ltd., Senior Notes		7.250	%		1/15/30		1,660,000			1,682,815	(a)
Saga PLC, Senior Notes		3.375	%		5/12/24		2,310,000	GBP		2,716,020	(b)
Sands China Ltd., Senior Notes		3.350	%		3/8/29		1,820,000			1,518,410
Sands China Ltd., Senior Notes		4.875	%		6/18/30		1,470,000			1,309,993
Viking Cruises Ltd., Senior Secured Notes		13.000	%		5/15/25		1,200,000			1,260,830	(a)
Viking Ocean Cruises Ship VII Ltd., Senior Secured Notes		5.625	%		2/15/29		2,550,000			2,335,545	(a)
VOC Escrow Ltd., Senior Secured Notes		5.000	%		2/15/28		140,000			128,577	(a)
Wynn Macau Ltd., Senior Notes		5.500	%		1/15/26		240,000			223,188	(a)
Wynn Macau Ltd., Senior Notes		5.625	%		8/26/28		2,470,000			2,157,965	(a)
Wynn Macau Ltd., Senior Notes		5.125	%		12/15/29		1,674,000			1,408,303	(a)
Wynn Resorts Finance LLC/Wynn Resorts Capital Corp., Senior Notes		7.125	%		2/15/31		1,080,000			1,074,429	(a)
Total Hotels, Restaurants & Leisure										49,493,774
Specialty Retail - 0.8%
Michaels Cos. Inc., Senior Notes		7.875	%		5/1/29		1,800,000			1,215,000	(a)

See Notes to Schedule of Investments.

Western Asset High Income Opportunity Fund Inc. 2023 Quarterly Report         3

WESTERN ASSET HIGH INCOME OPPORTUNITY FUND INC.

Schedule of investments (unaudited) (cont’d) June 30, 2023

(Percentages shown based on Fund net assets)

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†			VALUE
Specialty Retail - (continued)
PetSmart Inc./PetSmart Finance Corp., Senior Notes		7.750	%		2/15/29		500,000		$	497,369	(a)
Sally Holdings LLC/Sally Capital Inc., Senior Notes		5.625	%		12/1/25		1,590,000			1,569,568
Total Specialty Retail										3,281,937
TOTAL CONSUMER DISCRETIONARY										86,367,405
CONSUMER STAPLES - 2.9%
Consumer Staples Distribution & Retail - 1.3%
Bellis Acquisition Co. PLC, Senior Secured Notes		3.250	%		2/16/26		4,970,000	GBP		5,298,076	(b)
Food Products - 1.3%
FAGE International SA/FAGE USA Dairy Industry Inc., Senior Notes		5.625	%		8/15/26		1,550,000			1,467,650	(a)
Pilgrim’s Pride Corp., Senior Notes		5.875	%		9/30/27		3,620,000			3,580,623	(a)
Total Food Products										5,048,273
Household Products - 0.3%
Spectrum Brands Inc., Senior Notes		5.750	%		7/15/25		1,210,000			1,210,006
TOTAL CONSUMER STAPLES										11,556,355
ENERGY - 15.8%
Energy Equipment & Services - 0.7%
Noble Finance II LLC, Senior Notes		8.000	%		4/15/30		850,000			865,058	(a)
Sunnova Energy Corp., Senior Notes		5.875	%		9/1/26		2,000,000			1,829,796	(a)
Total Energy Equipment & Services										2,694,854
Oil, Gas & Consumable Fuels - 15.1%
Apache Corp., Senior Notes		5.100	%		9/1/40		1,480,000			1,204,565
Blue Racer Midstream LLC/Blue Racer Finance Corp., Senior Notes		7.625	%		12/15/25		730,000			738,623	(a)
Continental Resources Inc., Senior Notes		3.800	%		6/1/24		300,000			294,150
Continental Resources Inc., Senior Notes		4.375	%		1/15/28		220,000			206,744
Continental Resources Inc., Senior Notes		4.900	%		6/1/44		1,050,000			816,883
Ecopetrol SA, Senior Notes		8.875	%		1/13/33		880,000			872,163
Ecopetrol SA, Senior Notes		5.875	%		5/28/45		3,100,000			2,126,863
Energy Transfer LP, Junior Subordinated Notes (6.625% to 2/15/28 then 3 mo. USD LIBOR + 4.155%)		6.625	%		2/15/28		3,080,000			2,367,963	(c)(d)
EQM Midstream Partners LP, Senior Notes		4.500	%		1/15/29		1,020,000			910,822	(a)
EQM Midstream Partners LP, Senior Notes		7.500	%		6/1/30		780,000			790,043	(a)
EQM Midstream Partners LP, Senior Notes		4.750	%		1/15/31		230,000			201,743	(a)
EQT Corp., Senior Notes		3.900	%		10/1/27		1,440,000			1,332,604

See Notes to Schedule of Investments.

    4     Western Asset High Income Opportunity Fund Inc. 2023 Quarterly Report

WESTERN ASSET HIGH INCOME OPPORTUNITY FUND INC.

Schedule of investments (unaudited) (cont’d) June 30, 2023

(Percentages shown based on Fund net assets)

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
Oil, Gas & Consumable Fuels - (continued)
Kinder Morgan Inc., Senior Notes		7.750	%		1/15/32		6,920,000	$	7,816,770
NGPL PipeCo LLC, Senior Notes		7.768	%		12/15/37		1,520,000		1,625,146	(a)
Occidental Petroleum Corp., Senior Notes		2.900	%		8/15/24		1,330,000		1,281,553
Occidental Petroleum Corp., Senior Notes		5.875	%		9/1/25		4,970,000		4,940,472
Occidental Petroleum Corp., Senior Notes		5.550	%		3/15/26		750,000		741,112
Occidental Petroleum Corp., Senior Notes		6.200	%		3/15/40		1,070,000		1,055,956
Petrobras Global Finance BV, Senior Notes		5.750	%		2/1/29		660,000		649,440
Petrobras Global Finance BV, Senior Notes		6.750	%		1/27/41		5,120,000		4,887,921
Petroleos del Peru SA, Senior Notes		4.750	%		6/19/32		1,500,000		1,148,388	(a)
Petroleos Mexicanos, Senior Notes		6.500	%		6/2/41		1,000,000		635,920
Range Resources Corp., Senior Notes		4.875	%		5/15/25		790,000		774,956
Range Resources Corp., Senior Notes		8.250	%		1/15/29		620,000		646,102
Rockies Express Pipeline LLC, Senior Notes		6.875	%		4/15/40		1,140,000		1,030,645	(a)
Summit Midstream Holdings LLC/Summit Midstream Finance Corp., Secured Notes		9.000	%		10/15/26		1,430,000		1,390,425	(a)
Targa Resources Partners LP/Targa Resources Partners Finance Corp., Senior Notes		6.500	%		7/15/27		670,000		665,750
Transportadora de Gas del Sur SA, Senior Notes		6.750	%		5/2/25		450,000		427,106	(a)
Venture Global LNG Inc., Senior Secured Notes		8.375	%		6/1/31		750,000		757,131	(a)
Western Midstream Operating LP, Senior Notes		4.300	%		2/1/30		2,900,000		2,606,370
Western Midstream Operating LP, Senior Notes		5.300	%		3/1/48		1,070,000		894,836
Western Midstream Operating LP, Senior Notes		5.500	%		2/1/50		9,585,000		7,865,547
Williams Cos. Inc., Senior Notes		4.550	%		6/24/24		1,030,000		1,016,388
Williams Cos. Inc., Senior Notes		7.500	%		1/15/31		620,000		682,191
Williams Cos. Inc., Senior Notes		5.750	%		6/24/44		3,190,000		3,112,628
YPF SA, Senior Notes		8.500	%		7/28/25		1,600,000		1,473,186	(a)
YPF SA, Senior Notes		6.950	%		7/21/27		1,530,000		1,257,516	(a)
Total Oil, Gas & Consumable Fuels									61,246,621
TOTAL ENERGY									63,941,475

See Notes to Schedule of Investments.

Western Asset High Income Opportunity Fund Inc. 2023 Quarterly Report         5

WESTERN ASSET HIGH INCOME OPPORTUNITY FUND INC.

Schedule of investments (unaudited) (cont’d) June 30, 2023

(Percentages shown based on Fund net assets)

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
FINANCIALS - 11.4%
Banks - 6.5%
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		4,200,000	$	3,250,800	(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		2,670,000		2,529,558	(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		960,000		833,888	(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		1,470,000		1,426,488	(a)(c)(d)
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		2,290,000		2,302,881	(a)(c)(d)
HSBC Holdings PLC, Subordinated Notes (8.113% to 11/3/32 then SOFR + 4.250%)		8.113	%		11/3/33		1,440,000		1,599,486	(d)
Intesa Sanpaolo SpA, Subordinated Notes		5.017	%		6/26/24		3,120,000		3,023,255	(a)
Intesa Sanpaolo SpA, Subordinated Notes		5.710	%		1/15/26		2,800,000		2,667,433	(a)
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		560,000		417,765	(a)(d)
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		2,060,000		1,887,057	(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		1,840,000		1,685,716	(c)(d)
TC Ziraat Bankasi AS, Senior Notes		5.125	%		9/29/23		2,040,000		2,032,966	(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		2,710,000		2,555,265	(a)(d)
Total Banks									26,212,558

See Notes to Schedule of Investments.

    6     Western Asset High Income Opportunity Fund Inc. 2023 Quarterly Report

WESTERN ASSET HIGH INCOME OPPORTUNITY FUND INC.

Schedule of investments (unaudited) (cont’d) June 30, 2023

(Percentages shown based on Fund net assets)

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
Capital Markets - 1.5%
Credit Suisse Group AG, Junior Subordinated Notes (5.250% to 8/11/27 then 5 year Treasury Constant Maturity Rate + 4.889%)		5.250	%		2/11/27		7,450,000	$	315,357	*(a)(c)(e)
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		1,380,000		58,415	*(a)(c)(e)
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		1,730,000		73,231	*(a)(c)(e)
Goldman Sachs Group Inc., Subordinated Notes		6.750	%		10/1/37		1,880,000		2,023,637
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		1,220,000		1,119,998	(b)(c)(d)
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		1,470,000		1,423,178	(a)(c)(d)
UBS Group AG, Senior Notes (6.537% to 8/12/32 then SOFR + 3.920%)		6.537	%		8/12/33		1,150,000		1,178,766	(a)(d)
Total Capital Markets									6,192,582
Consumer Finance - 0.6%
Navient Corp., Senior Notes		5.875	%		10/25/24		1,080,000		1,062,357
Navient Corp., Senior Notes		6.750	%		6/15/26		1,400,000		1,351,146
Total Consumer Finance									2,413,503
Financial Services - 2.4%
GE Capital International Funding Co. Unlimited Co., Senior Notes		3.373	%		11/15/25		600,000		572,202
Global Aircraft Leasing Co. Ltd., Senior Notes (6.500% Cash or 7.250% PIK)		6.500	%		9/15/24		6,560,102		6,012,596	(a)(f)
Huarong Finance 2017 Co. Ltd., Senior Notes (3 mo. USD LIBOR + 1.325%)		6.502	%		7/3/23		880,000		880,000	(b)(d)
Huarong Finance 2019 Co. Ltd., Senior Notes		2.125	%		9/30/23		1,090,000		1,077,376	(b)
Huarong Finance II Co. Ltd., Senior Notes		4.625	%		6/3/26		700,000		623,904	(b)
Huarong Finance II Co. Ltd., Senior Notes		4.875	%		11/22/26		650,000		575,693	(b)
Total Financial Services									9,741,771
Insurance - 0.3%
MetLife Capital Trust IV, Junior Subordinated Notes		7.875	%		12/15/37		1,010,000		1,059,731	(a)

See Notes to Schedule of Investments.

Western Asset High Income Opportunity Fund Inc. 2023 Quarterly Report         7

WESTERN ASSET HIGH INCOME OPPORTUNITY FUND INC.

Schedule of investments (unaudited) (cont’d) June 30, 2023

(Percentages shown based on Fund net assets)

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†			VALUE
Mortgage Real Estate Investment Trusts (REITs) - 0.1%
Apollo Commercial Real Estate Finance Inc., Senior Secured Notes		4.625	%		6/15/29		750,000		$	585,657	(a)
TOTAL FINANCIALS										46,205,802
HEALTH CARE - 6.6%
Health Care Providers & Services - 3.6%
CHS/Community Health Systems Inc., Senior Secured Notes		4.750	%		2/15/31		1,440,000			1,089,934	(a)
HCA Inc., Senior Notes		7.690	%		6/15/25		490,000			503,735
HCA Inc., Senior Notes		7.500	%		11/15/95		6,265,000			7,066,855
Tenet Healthcare Corp., Secured Notes		6.250	%		2/1/27		3,910,000			3,874,314
Tenet Healthcare Corp., Senior Notes		6.125	%		10/1/28		1,890,000			1,821,317
Tenet Healthcare Corp., Senior Notes		6.875	%		11/15/31		250,000			249,730
Total Health Care Providers & Services										14,605,885
Pharmaceuticals - 3.0%
Bausch Health Cos. Inc., Senior Notes		5.250	%		1/30/30		1,020,000			424,636	(a)
Bausch Health Cos. Inc., Senior Secured Notes		4.875	%		6/1/28		1,660,000			990,091	(a)
Cidron Aida Finco Sarl, Senior Secured Notes		5.000	%		4/1/28		637,000	EUR		630,827	(a)
Par Pharmaceutical Inc., Senior Secured Notes		7.500	%		4/1/27		70,000			51,829	*(a)(e)
Teva Pharmaceutical Finance Netherlands III BV, Senior Notes		6.000	%		4/15/24		3,510,000			3,490,301
Teva Pharmaceutical Finance Netherlands III BV, Senior Notes		3.150	%		10/1/26		1,150,000			1,031,902
Teva Pharmaceutical Finance Netherlands III BV, Senior Notes		5.125	%		5/9/29		6,200,000			5,630,597
Total Pharmaceuticals										12,250,183
TOTAL HEALTH CARE										26,856,068
INDUSTRIALS - 9.6%
Aerospace & Defense - 0.6%
Bombardier Inc., Senior Notes		7.500	%		2/1/29		2,410,000			2,384,876	(a)
Building Products - 0.3%
Standard Industries Inc., Senior Notes		5.000	%		2/15/27		860,000			820,448	(a)
Standard Industries Inc., Senior Notes		4.375	%		7/15/30		342,000			296,513	(a)
Total Building Products										1,116,961
Commercial Services & Supplies - 2.0%
CoreCivic Inc., Senior Notes		8.250	%		4/15/26		3,530,000			3,565,300

See Notes to Schedule of Investments.

    8     Western Asset High Income Opportunity Fund Inc. 2023 Quarterly Report

WESTERN ASSET HIGH INCOME OPPORTUNITY FUND INC.

Schedule of investments (unaudited) (cont’d) June 30, 2023

(Percentages shown based on Fund net assets)

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
Commercial Services & Supplies - (continued)
CoreCivic Inc., Senior Notes		4.750	%		10/15/27		3,160,000	$	2,709,282
GEO Group Inc., Secured Notes		10.500	%		6/30/28		1,810,000		1,816,149
Total Commercial Services & Supplies									8,090,731
Machinery - 0.2%
Titan International Inc., Senior Secured Notes		7.000	%		4/30/28		1,080,000		1,010,853
Passenger Airlines - 6.1%
American Airlines Group Inc., Senior Notes		3.750	%		3/1/25		5,470,000		5,195,864	(a)
American Airlines Inc., Senior Secured Notes		7.250	%		2/15/28		1,060,000		1,054,783	(a)
American Airlines Inc./AAdvantage Loyalty IP Ltd., Senior Secured Notes		5.500	%		4/20/26		430,000		426,384	(a)
American Airlines Inc./AAdvantage Loyalty IP Ltd., Senior Secured Notes		5.750	%		4/20/29		450,000		437,346	(a)
Delta Air Lines Inc., Senior Notes		2.900	%		10/28/24		2,580,000		2,479,047
Delta Air Lines Inc., Senior Notes		7.375	%		1/15/26		720,000		751,235
Delta Air Lines Inc., Senior Secured Notes		7.000	%		5/1/25		6,330,000		6,469,543	(a)
Hawaiian Brand Intellectual Property Ltd./ HawaiianMiles Loyalty Ltd., Senior Secured Notes		5.750	%		1/20/26		290,000		274,769	(a)
Mileage Plus Holdings LLC/Mileage Plus Intellectual Property Assets Ltd., Senior Secured Notes		6.500	%		6/20/27		2,096,000		2,103,120	(a)
Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd., Senior Secured Notes		8.000	%		9/20/25		3,965,999		3,999,551	(a)
Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd., Senior Secured Notes		8.000	%		9/20/25		620,000		625,186	(a)
United Airlines Holdings Inc., Senior Notes		5.000	%		2/1/24		800,000		794,843
Total Passenger Airlines									24,611,671
Trading Companies & Distributors - 0.4%
H&E Equipment Services Inc., Senior Notes		3.875	%		12/15/28		1,420,000		1,230,970	(a)
United Rentals North America Inc., Senior Notes		5.500	%		5/15/27		376,000		370,392
Total Trading Companies & Distributors									1,601,362
TOTAL INDUSTRIALS									38,816,454
INFORMATION TECHNOLOGY - 1.3%
Communications Equipment - 0.9%
CommScope Inc., Senior Notes		8.250	%		3/1/27		1,050,000		841,447	(a)
CommScope Inc., Senior Notes		7.125	%		7/1/28		440,000		312,976	(a)

See Notes to Schedule of Investments.

Western Asset High Income Opportunity Fund Inc. 2023 Quarterly Report         9

WESTERN ASSET HIGH INCOME OPPORTUNITY FUND INC.

Schedule of investments (unaudited) (cont’d) June 30, 2023

(Percentages shown based on Fund net assets)

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
Communications Equipment - (continued)
CommScope Inc., Senior Secured Notes		4.750	%		9/1/29		670,000	$	528,872	(a)
CommScope Technologies LLC, Senior Notes		5.000	%		3/15/27		2,660,000		1,855,313	(a)
Total Communications Equipment									3,538,608
Technology Hardware, Storage & Peripherals - 0.4%
Seagate HDD Cayman, Senior Notes		4.750	%		1/1/25		670,000		660,960
Seagate HDD Cayman, Senior Notes		4.875	%		6/1/27		400,000		383,317
Vericast Corp., Senior Secured Notes		11.000	%		9/15/26		650,000		681,687	(a)
Total Technology Hardware, Storage & Peripherals									1,725,964
TOTAL INFORMATION TECHNOLOGY									5,264,572
MATERIALS - 5.2%
Chemicals - 0.4%
Sasol Financing USA LLC, Senior Notes		8.750	%		5/3/29		1,540,000		1,501,819	(a)
Containers & Packaging - 1.6%
ARD Finance SA, Senior Secured Notes (6.500% Cash or 7.250% PIK)		6.500	%		6/30/27		1,280,000		1,038,881	(a)(f)
Ardagh Packaging Finance PLC/Ardagh Holdings USA Inc., Senior Notes		5.250	%		8/15/27		3,028,000		2,568,914	(a)
Ardagh Packaging Finance PLC/Ardagh Holdings USA Inc., Senior Notes		5.250	%		8/15/27		1,510,000		1,281,064	(a)
Canpack SA/Canpack US LLC, Senior Notes		3.875	%		11/15/29		1,050,000		855,881	(a)
Pactiv LLC, Senior Notes		8.375	%		4/15/27		750,000		760,395
Total Containers & Packaging									6,505,135
Metals & Mining - 3.2%
ArcelorMittal SA, Senior Notes		7.000	%		10/15/39		2,960,000		3,093,937
First Quantum Minerals Ltd., Senior Notes		8.625	%		6/1/31		790,000		810,643	(a)
Freeport-McMoRan Inc., Senior Notes		5.450	%		3/15/43		4,280,000		3,996,637
Teck Resources Ltd., Senior Notes		6.000	%		8/15/40		1,050,000		1,027,083
Vale Overseas Ltd., Senior Notes		6.875	%		11/21/36		2,320,000		2,428,130
Vale Overseas Ltd., Senior Notes		6.875	%		11/10/39		1,500,000		1,571,443
Total Metals & Mining									12,927,873
TOTAL MATERIALS									20,934,827
REAL ESTATE - 2.0%
Health Care REITs - 0.0%††
Diversified Healthcare Trust, Senior Notes		4.375	%		3/1/31		240,000		175,106
Hotel & Resort REITs - 1.0%
Service Properties Trust, Senior Notes		5.500	%		12/15/27		1,660,000		1,461,097
Service Properties Trust, Senior Notes		3.950	%		1/15/28		526,000		412,637

See Notes to Schedule of Investments.

    10     Western Asset High Income Opportunity Fund Inc. 2023 Quarterly Report

WESTERN ASSET HIGH INCOME OPPORTUNITY FUND INC.

Schedule of investments (unaudited) (cont’d) June 30, 2023

(Percentages shown based on Fund net assets)

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†			VALUE
Hotel & Resort REITs - (continued)
Service Properties Trust, Senior Notes		4.950	%		10/1/29		600,000		$	466,424
Service Properties Trust, Senior Notes		4.375	%		2/15/30		2,120,000			1,588,801
Total Hotel & Resort REITs										3,928,959
Real Estate Management & Development - 1.0%
China Aoyuan Group Ltd., Senior Secured Notes		—			2/19/23		770,000			41,009	*(b)(g)
China Aoyuan Group Ltd., Senior Secured Notes		7.950	%		6/21/24		1,000,000			55,496	*(b)(e)
Country Garden Holdings Co. Ltd., Senior Secured Notes		8.000	%		1/27/24		2,016,000			1,324,748	(b)
Heimstaden AB, Senior Notes		4.250	%		3/9/26		900,000	EUR		537,504	(b)
Samhallsbyggnadsbolaget i Norden AB, Senior Notes		1.750	%		1/14/25		230,000	EUR		208,072	(b)
Samhallsbyggnadsbolaget i Norden AB, Senior Notes		1.125	%		9/4/26		2,280,000	EUR		1,750,263	(b)
Times China Holdings Ltd., Senior Secured Notes		6.750	%		7/8/25		1,230,000			93,471	*(b)(e)
Yuzhou Group Holdings Co. Ltd., Senior Secured Notes		6.000	%		10/25/23		650,000			30,344	*(b)(e)
Yuzhou Group Holdings Co. Ltd., Senior Secured Notes		8.500	%		2/26/24		750,000			36,888	*(b)(e)
Yuzhou Group Holdings Co. Ltd., Senior Secured Notes		8.375	%		10/30/24		1,250,000			58,354	*(b)(e)
Total Real Estate Management & Development										4,136,149
TOTAL REAL ESTATE										8,240,214
UTILITIES - 0.9%
Electric Utilities - 0.1%
Eskom Holdings SOC Ltd.		4.314	%		7/23/27		500,000			443,154	(b)
Gas Utilities - 0.8%
Suburban Propane Partners LP/Suburban Energy Finance Corp., Senior Notes		5.875	%		3/1/27		3,290,000			3,181,677
TOTAL UTILITIES										3,624,831
TOTAL CORPORATE BONDS & NOTES (Cost - $360,216,262)										366,273,220
SOVEREIGN BONDS - 4.4%
Angola - 0.3%
Angolan Government International Bond, Senior Notes		8.000	%		11/26/29		1,600,000			1,359,960	(a)

See Notes to Schedule of Investments.

Western Asset High Income Opportunity Fund Inc. 2023 Quarterly Report         11

WESTERN ASSET HIGH INCOME OPPORTUNITY FUND INC.

Schedule of investments (unaudited) (cont’d) June 30, 2023

(Percentages shown based on Fund net assets)

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†			VALUE
Argentina - 0.8%
Argentine Republic Government International Bond, Senior Notes, Step bond (1.500% to 7/9/23 then 3.625%)		1.500	%		7/9/35		160,362		$	48,238
Provincia de Buenos Aires, Senior Notes, Step bond (5.250% to 9/1/23, 6.375% to 9/1/24 then 6.625%)		5.250	%		9/1/37		376,221			144,375	(a)
Provincia de Cordoba, Senior Notes		6.875	%		12/10/25		758,340			572,546	(b)
Provincia de Cordoba, Senior Notes		6.875	%		12/10/25		416,670			314,586	(a)
Provincia de Cordoba, Senior Notes		6.990	%		6/1/27		2,660,000			1,835,400	(a)
Provincia de Cordoba, Senior Notes (6.875% PIK)		6.875	%		2/1/29		340,000			224,400	(a)(f)
Total Argentina										3,139,545
Bahamas - 0.3%
Bahamas Government International Bond, Senior Notes		6.950	%		11/20/29		1,630,000			1,300,110	(a)
Dominican Republic - 0.2%
Dominican Republic International Bond, Senior Notes		4.875	%		9/23/32		1,090,000			930,472	(a)
Mexico - 2.1%
Mexican Bonos, Bonds		7.750	%		5/29/31		149,470,000	MXN		8,264,118
Russia - 0.7%
Russian Federal Bond - OFZ		7.750	%		9/16/26		315,370,000	RUB		1,756,558	*(e)(h)
Russian Federal Bond - OFZ		7.050	%		1/19/28		198,450,000	RUB		1,105,334	*(e)(h)
Russian Federal Bond - OFZ		6.900	%		5/23/29		121,280,000	RUB		67,754	*(e)(h)
Total Russia										2,929,646
TOTAL SOVEREIGN BONDS (Cost - $21,871,103)										17,923,851
CONVERTIBLE BONDS & NOTES - 1.8%
COMMUNICATION SERVICES - 1.4%
Media - 1.4%
DISH Network Corp., Senior Notes		2.375	%		3/15/24		3,780,000			3,364,200
DISH Network Corp., Senior Notes		0.000	%		12/15/25		2,720,000			1,451,936
DISH Network Corp., Senior Notes		3.375	%		8/15/26		1,680,000			861,000
TOTAL COMMUNICATION SERVICES										5,677,136
INDUSTRIALS - 0.4%
Passenger Airlines - 0.4%
Spirit Airlines Inc., Senior Notes		1.000	%		5/15/26		1,940,000			1,577,220
TOTAL CONVERTIBLE BONDS & NOTES (Cost - $8,316,938)										7,254,356

See Notes to Schedule of Investments.

    12     Western Asset High Income Opportunity Fund Inc. 2023 Quarterly Report

WESTERN ASSET HIGH INCOME OPPORTUNITY FUND INC.

Schedule of investments (unaudited) (cont’d) June 30, 2023

(Percentages shown based on Fund net assets)

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
ASSET-BACKED SECURITIES - 0.8%
Magnetite Ltd., 2015-12A ER (3 mo. USD LIBOR + 5.680%) (Cost - $3,363,765)		10.940	%		10/15/31		3,400,000	$	2,992,407	(a)(d)
SENIOR LOANS - 0.7%
CONSUMER DISCRETIONARY - 0.7%
Diversified Consumer Services - 0.7%
WW International Inc., Initial Term Loan (1 mo. Term SOFR + 3.614%) (Cost - $3,107,371)		8.717	%		4/13/28		4,350,000		2,841,985	(d)(i)(j)(k)
U.S. GOVERNMENT & AGENCY OBLIGATIONS - 0.1%
U.S. Government Obligations - 0.1%
U.S. Treasury Notes (Cost - $441,055)		1.500	%		2/29/24		450,000		438,448
				EXPIRATION DATE		WARRANTS
WARRANTS - 0.0%††
FINANCIALS - 0.0%††
Capital Markets - 0.0%††
EG Acquisition Corp., Class A Shares (Cost - $20,515)					5/28/28		21,426		6,516	*
						SHARES
COMMON STOCKS - 0.0%††
ENERGY - 0.0%††
Energy Equipment & Services - 0.0%††
KCAD Holdings I Ltd. (Cost - $3,494,814)							427,421,041		0	*(h)(l)(m)
TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS (Cost - $400,831,823)									397,730,783
	RATE			MATURITY DATE		FACE AMOUNT†
SHORT-TERM INVESTMENTS - 1.0%
U.S. TREASURY BILLS - 0.4%
U.S. Treasury Bills (Cost - $1,740,103)		4.950	%		8/10/23		1,750,000		1,740,529	(n)

See Notes to Schedule of Investments.

Western Asset High Income Opportunity Fund Inc. 2023 Quarterly Report         13

WESTERN ASSET HIGH INCOME OPPORTUNITY FUND INC.

Schedule of investments (unaudited) (cont’d) June 30, 2023

(Percentages shown based on Fund net assets)

SECURITY	RATE			SHARES		VALUE
MONEY MARKET FUNDS - 0.6%
Western Asset Premier Institutional Government Reserves, Premium Shares (Cost - $2,416,876)		5.044	%		2,416,876	$	2,416,876	(o)(p)
TOTAL SHORT-TERM INVESTMENTS (Cost - $4,156,979)							4,157,405
TOTAL INVESTMENTS - 99.4% (Cost - $404,988,802)							401,888,188
Other Assets in Excess of Liabilities - 0.6%							2,486,161
TOTAL NET ASSETS - 100.0%						$	404,374,349

† 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) The coupon payment on this security is currently in default as of June 30, 2023.

(f) 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.

(g) The maturity principal is currently in default as of June 30, 2023.

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

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

(j) 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.

(k) All or a portion of this loan has not settled as of June 30, 2023. Interest rates are not effective until settlement date. Interest rates shown, if any, are for the settled portion of the loan.

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

(m) Value is less than $1.

(n) Rate shown represents yield-to-maturity.

(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 June 30, 2023, the total market value of investments in Affiliated Companies was $2,416,876 and the cost was $2,416,876 (Note 2).

See Notes to Schedule of Investments.

    14     Western Asset High Income Opportunity Fund Inc. 2023 Quarterly Report

WESTERN ASSET HIGH INCOME OPPORTUNITY FUND INC.

Schedule of investments (unaudited) (cont’d) June 30, 2023

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

At June 30, 2023, the Fund had the following open forward foreign currency contracts:

Currency Purchased		Currency Sold			Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
USD	13,279,617		EUR	12,106,354	Bank of America N.A.		7/18/23	$	57,008
CAD	470		USD	349	BNP Paribas SA		7/18/23		5
GBP	839,367		USD	1,065,139	Morgan Stanley & Co. Inc.		7/18/23		996
USD	1,250,292		EUR	1,139,951	Morgan Stanley & Co. Inc.		7/18/23		5,234
USD	1,457,206		GBP	1,147,000	Morgan Stanley & Co. Inc.		7/18/23		325
USD	8,865,381		GBP	7,109,082	Morgan Stanley & Co. Inc.		7/18/23		(164,337	)
EUR	566,343		USD	626,223	Citibank N.A.		7/19/23		(7,627	)
Net unrealized depreciation on open forward foreign currency contracts								$	(108,396	)

Abbreviation(s) used in this table:

CAD	— Canadian Dollar
EUR	— Euro
GBP	— British Pound
USD	— United States Dollar

This Schedule of Investments is unaudited and is intended to provide information about the Fund’s investments as of the date of the schedule. Other information regarding the Fund is available in the Fund’s most recent annual or semi-annual shareholder report.

See Notes to Schedule of Investments.

Western Asset High Income Opportunity Fund Inc. 2023 Quarterly Report         15

Notes to Schedule of Investments (unaudited)

1. Organization and significant accounting policies

Western Asset High Income Opportunity Fund 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 high current income. Capital appreciation is a secondary objective. In seeking to fulfill its investment objectives, the Fund invests, under normal market conditions, at least 80% of its net assets in high-yield securities and up to 20% in common stock equivalents, including options, warrants and rights.

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.

(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. 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 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

16

Notes to Schedule of Investments (unaudited) (continued)

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.

17

Notes to Schedule of Investments (unaudited) (continued)

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		—	$	366,273,220		—		$	366,273,220
Sovereign Bonds		—		14,994,205	$	2,929,646			17,923,851
Convertible Bonds & Notes		—		7,254,356		—			7,254,356
Asset-Backed Securities		—		2,992,407		—			2,992,407
Senior Loans		—		2,841,985		—			2,841,985
U.S. Government & Agency Obligations		—		438,448		—			438,448
Warrants	$	6,516		—		—			6,516
Common Stocks		—		—		0	*		0	*
Total Long-Term Investments		6,516		394,794,621		2,929,646			397,730,783
Short-Term Investments†:
U.S. Treasury Bills		—		1,740,529		—			1,740,529
Money Market Funds		2,416,876		—		—			2,416,876
Total Short-Term Investments		2,416,876		1,740,529		—			4,157,405
Total Investments	$	2,423,392	$	396,535,150	$	2,929,646		$	401,888,188
Other Financial Instruments:
Forward Foreign Currency Contracts††		—	$	63,568		—		$	63,568
Total	$	2,423,392	$	396,598,718	$	2,929,646		$	401,951,756

18

Notes to Schedule of Investments (unaudited) (continued)

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††		—	$	171,964		—	$	171,964

† See Schedule of Investments for additional detailed categorizations.

* Amount represents less than $1.

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

2. 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 period ended June 30, 2023. The following transactions were effected in such company for the period ended June 30, 2023.

	Affiliate Value at September 30,		Purchased				Sold
	2022		Cost		Shares		Proceeds		Shares
Western Asset Premier Institutional Government Reserves, Premium Shares	$	2,535,492	$	61,568,284		61,568,284	$	61,686,900		61,686,900

(cont’d)	Realized Gain (Loss)		Dividend Income		Net Increase (Decrease) in Unrealized Appreciation (Depreciation)		Affiliate Value at June 30, 2023
Western Asset Premier Institutional Government Reserves, Premium Shares		—	$	80,566		—	$	2,416,876

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