WDI: Collect High-Yield Income From This Discounted, Diversified Fixed Income Fund

Damon JuddInvesting GroupFollow5ShareSavePlay(13min)CommentsSummaryWestern Asset Diversified Income Fund currently trades at a -5.5% discount to NAV, offering a compelling entry point for long-term income investors.WDI’s diversified portfolio—anchored in high-yield credit, CLOs, and bank loans—supports a robust 13% yield, with monthly and annual special distributions.The fund’s flexible, dynamic sector rotation and limited-term structure (liquidation by June 2033) may drive discount narrowing as maturity approaches.Risks include global recession and inflation shocks; however, WDI’s experienced management and peer fund recovery patterns bolster the buy thesis at current discounts.Looking for more investing ideas like this one? Get them exclusively at Inside the Income Factory. Learn More » PeopleImages/iStock via Getty Images In my recent article covering 7 high-yield fixed income CEFs that are trading at a wider than average discount, one of those that I mentioned is Western Asset Diversified Income Fund (WDI). One of theThis article was written byDamon Judd8.71K FollowersFollowNow retired, I am an income-oriented investor seeking high yield income to support my lifestyle in retirement.I became deeply interested in the stock market beginning in late 2007 (bad timing for me but worse for my uncle) when I received an unexpected inheritance. Since that time I have done considerable research and vowed to make smarter long-term investing decisions after suffering through the Great Recession with minimal losses to my inherited portfolio, after firing my financial advisor.I look for mostly dividend paying income stocks and funds (BDCs, REITs, CEFs, ETFs) that offer high yield income to increase my retirement income beyond my pension and Social Security. I also enjoy reading investment/financial and business information and following trends in technology and markets. The human psychology of markets is as fascinating and inscrutable to me as the financial side. I am not a financial advisor so please do your own due diligence before making any buy or sell decisions.“The race is not always to the swift, nor the battle to the strong, but that's the way to bet.” Damon RunyonAnalyst’s Disclosure: I/we have a beneficial long position in the shares of WDI, PDI, GOF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.