Western Asset High Income Fund II Inc. (HIX)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Western Asset High Income Fund II Inc. (HIX) trades at $3.96 with AI Score 54/100 (Grade B). Western Asset High Income Fund II Inc. is a closed-end fund specializing in high-yield debt securities. Market cap: $356.23M, Sector: Financial services.
Price live · AI analysis from Mar 16, 2026Analyst Coverage for HIX: HIX does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates HIX against Financial Services peers across nine fundamental dimensions and assigns a mixed fundamental profile based on the underlying data.
HIX: 3/7 perspectives are bullish. Dominant signal: Ken Griffin bearish.
How is this calculated? →Western Asset High Income Fund II Inc. (HIX) Financial Services Profile
Western Asset High Income Fund II Inc. is a closed-end fund focused on global high-yield debt, managed by Legg Mason. It employs quantitative and fundamental analysis to invest in diversified sectors, benchmarking against indices like Barclays Capital U.S. Corporate High Yield and JPMorgan Emerging Markets Bond Index Global, seeking high current income for its investors.
What Is the Investment Thesis for HIX?
Western Asset High Income Fund II Inc. presents a compelling investment case for income-seeking investors. With a market capitalization of $356.23M and a high profit margin of 79.2%, the fund demonstrates strong profitability. The fund's strategy of investing in high-yield debt securities globally offers the potential for attractive returns in a low-interest-rate environment. The fund's robust gross margin of 100.0% and a return on equity (ROE) of 9.7% further underscore its financial health. Key catalysts include the ongoing demand for high-yield investments and the fund's experienced management team. Potential risks include interest rate fluctuations and credit risk associated with high-yield debt. The fund's beta of 0.99 indicates moderate volatility relative to the market.
Based on FMP financials and quantitative analysis
HIX Key Highlights
- Market capitalization of $356.23M indicates a moderate-sized fund within the asset management industry.
- Profit margin of 79.2% reflects efficient management and strong profitability from its investment strategies.
- Gross margin of 100.0% suggests minimal direct costs associated with generating revenue, typical for asset management firms.
- Return on Equity (ROE) of 9.7% demonstrates the fund's ability to generate profit from shareholders' investments.
- Debt-to-Equity ratio of 47.68 indicates a moderate level of financial leverage.
Who Are HIX's Competitors?
HIX is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| PGX Invesco Preferred ETF | $10.91 | +0.32% | $3.83B | 44 |
| HYG iShares iBoxx $ High Yield Corporate Bond ETF | $79.90 | +0.24% | $17.57B | 44 |
| JNK State Street SPDR Bloomberg High Yield Bond ETF | $96.19 | +0.21% | $7.73B | 44 |
| NXDT NexPoint Diversified Real Estate Trust | $5.53 | +3.08% | $285.77M | 73 |
| GENB Generate Biomedicines, Inc. | $17.03 | -2.18% | $2.18B | 72 |
| SII Sprott Inc. | $118.11 | +2.72% | $3.05B | 71 |
| TPZ Tortoise Electrification Infrastructure ETF | $21.82 | +0.74% | $128.52M | 70 |
| STEX Streamex Corp. (STEX) is focused on real-world asset tokenization, particularly integrating the gold and commodities market into blockchain technology. The company | $1.09 | +12.29% | $43.15M | 62 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are HIX's Key Strengths?
- High profit margin of 79.2%.
- Experienced management team.
- Global investment strategy.
- Established track record.
What Are HIX's Weaknesses?
- Exposure to credit risk associated with high-yield debt.
- Sensitivity to interest rate fluctuations.
- Reliance on management fees for revenue.
- Potential for underperformance relative to benchmarks.
What Could Drive HIX Stock Higher?
- Continued demand for high-yield investments in a low-interest-rate environment.
- Proactive management of credit risk within the portfolio.
- Potential for interest rate cuts by central banks, boosting bond values.
- Successful expansion into emerging markets, enhancing portfolio yield.
What Are the Key Risks for HIX?
- Financial-distress signal — its Altman Z-Score of 0.85 sits in the distress zone (elevated bankruptcy risk).
- Interest rate hikes reducing the value of fixed income securities.
- Economic recession leading to higher default rates on high-yield debt.
- Increased competition from other asset managers.
- Credit risk associated with high-yield debt investments.
- Market volatility impacting portfolio performance.
What Are the Growth Opportunities for HIX?
- Expansion into Emerging Markets: The fund can capitalize on the growing opportunities in emerging market debt. As emerging economies develop, their debt markets offer higher yields compared to developed markets. By increasing its exposure to emerging market bonds, Western Asset High Income Fund II Inc. can enhance its portfolio's yield and diversify its risk. The emerging market debt market is projected to grow to $15 trillion by 2030, presenting a significant growth opportunity for the fund. Timeline: Ongoing.
- Strategic Partnerships: Forming strategic alliances with other financial institutions can broaden the fund's distribution network and access new investor segments. Collaborating with wealth management firms, pension funds, and insurance companies can increase the fund's assets under management (AUM). These partnerships can also provide access to specialized investment expertise and resources, enhancing the fund's investment capabilities. The potential increase in AUM could be 10-15% within the next 3 years. Timeline: 2027-2029.
- Product Diversification: Introducing new investment products that cater to different risk profiles and investment objectives can attract a wider range of investors. Launching a low-volatility high-yield fund or a socially responsible high-yield fund can appeal to specific investor segments. Product diversification can also reduce the fund's reliance on a single investment strategy and enhance its overall resilience. The market for socially responsible investing is expected to reach $50 trillion by 2030. Timeline: 2028-2030.
- Technological Innovation: Leveraging technology to enhance investment decision-making and improve operational efficiency can provide a competitive edge. Implementing advanced data analytics and artificial intelligence (AI) tools can improve security selection and risk management. Automating back-office processes can reduce costs and improve efficiency. Investment in fintech solutions is projected to increase by 20% annually over the next five years. Timeline: Ongoing.
- Focus on Sustainable Investing: Integrating environmental, social, and governance (ESG) factors into the investment process can attract socially conscious investors and enhance the fund's long-term performance. By investing in companies with strong ESG practices, the fund can mitigate risks and capitalize on opportunities related to sustainability. The market for ESG investments is growing rapidly, with assets under management expected to reach $50 trillion by 2030. Timeline: Ongoing.
What Opportunities Does HIX Have?
- Expansion into emerging markets.
- Strategic partnerships with financial institutions.
- Product diversification to attract new investors.
- Leveraging technology to improve investment decision-making.
What Threats Does HIX Face?
- Economic downturn leading to increased defaults.
- Rising interest rates impacting bond values.
- Increased competition from other asset managers.
- Regulatory changes affecting high-yield investments.
What Are HIX's Competitive Advantages?
- Experienced management team with expertise in high-yield debt.
- Established track record of generating consistent income.
- Global investment strategy provides diversification benefits.
- Rigorous investment process combining quantitative and fundamental analysis.
What Does HIX Do?
Western Asset High Income Fund II Inc., established on May 28, 1998, is a closed-ended fixed income mutual fund managed by Legg Mason Partners Fund Advisor, LLC, with co-management from Western Asset Management Company, Western Asset Management Company Limited, and Western Asset Management Company Pte. Ltd. The fund's primary objective is to generate high current income by investing in fixed income markets worldwide. It focuses on high-yield debt securities issued by U.S. and foreign corporations, as well as foreign governments, across a wide array of sectors. The fund employs a rigorous investment strategy that combines both quantitative and fundamental analysis. This bottom-up security selection process allows the fund managers to identify and invest in securities that offer the most attractive risk-adjusted returns. The fund's performance is benchmarked against the Barclays Capital U.S. Corporate High Yield 2% Issuer Cap Index and the JPMorgan Emerging Markets Bond Index Global, providing investors with a clear understanding of its relative performance. With a focus on high-yield debt, Western Asset High Income Fund II Inc. aims to deliver consistent income to its shareholders while carefully managing risk within the portfolio.
What Products and Services Does HIX Offer?
- Invests in fixed income markets globally.
- Focuses on high yield debt securities.
- Targets U.S. and foreign corporations.
- Invests in foreign government debt.
- Employs quantitative and fundamental analysis.
- Benchmarks against Barclays and JPMorgan indices.
- Seeks to provide high current income to investors.
How Does HIX Make Money?
- Generates revenue through management fees charged on assets under management (AUM).
- Earns income from interest payments on its fixed income investments.
- Profits from trading securities within its portfolio.
- Co-managed by multiple Western Asset Management entities.
What Industry Does HIX Operate In?
Western Asset High Income Fund II Inc. operates within the asset management industry, which is characterized by intense competition and evolving market dynamics. The industry is influenced by macroeconomic trends, interest rate movements, and investor sentiment. Demand for high-yield debt remains robust, driven by investors seeking higher returns in a low-interest-rate environment. Key competitors include other closed-end funds and asset managers specializing in high-yield investments. The fund's global investment strategy and experienced management team differentiate it within the competitive landscape.
Who Are HIX's Key Customers?
- Individual investors seeking high current income.
- Institutional investors looking for fixed income exposure.
- Retirement funds and pension plans.
- Wealth management firms and advisors.
F-Score 5/9Financial Health
Western Asset High Income Fund II Inc.'s Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.85 places it in the distress zone, a signal of elevated financial risk.
ROE 12%Key Financial Metrics
Return on equity for Western Asset High Income Fund II Inc. stands at 11.9%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 8.1%, showing how much profit it generates from its asset base. HIX trades at a trailing price-to-earnings ratio of 7.77, below the Financial Services sector average of ~18x. Its free cash flow yield is 8.8%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.13 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 12.9%, the inverse of the P/E and a quick read on earnings relative to price.
HIX Valuation & Market Position
With a $356.23M market cap, Western Asset High Income Fund II Inc. sits in the small-cap segment of the market. Relative to its peer group, HIX's quantitative score of 54/100 is roughly in line with the peer average of 55/100.
HIX Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- High profit margin of 79.2%.
- Experienced management team.
- Global investment strategy.
- Established track record.
Bear Case
- Exposure to credit risk associated with high-yield debt.
- Sensitivity to interest rate fluctuations.
- Reliance on management fees for revenue.
- Potential for underperformance relative to benchmarks.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · July 2026
HIX Latest News
No recent news available for HIX.
HIX Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for HIX.
Price Targets
Wall Street price target analysis for HIX.
HIX MoonshotScore
What does this score mean?
The MoonshotScore rates HIX's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Western Asset High Income Fund II Inc. Financial Services Stock: Key Questions Answered
What does Western Asset High Income Fund II Inc. do?
Western Asset High Income Fund II Inc. is a closed-end investment fund that specializes in high-yield fixed income securities. The fund's primary objective is to provide investors with high current income by investing in a diversified portfolio of debt instruments issued by U.S. and foreign corporations, as well as foreign governments. The fund is managed by Legg Mason Partners Fund Advisor, LLC, with co-management from Western Asset Management Company and its affiliates. It employs a combination of quantitative and fundamental analysis to select securities and manage risk, benchmarking its performance against the Barclays Capital U.S. Corporate High Yield 2% Issuer Cap Index and the JPMorgan Emerging Markets Bond Index Global.
What are the main risks for HIX?
The primary risks for Western Asset High Income Fund II Inc. are related to credit risk and interest rate risk. Credit risk refers to the possibility that issuers of the high-yield debt securities held by the fund may default on their obligations. Interest rate risk stems from the potential for rising interest rates to decrease the value of the fund's fixed income investments. Additionally, the fund faces market risk, which is the risk that overall market conditions may negatively impact its performance. The fund's use of leverage can amplify these risks. Effective risk management strategies are crucial for mitigating these potential downsides.
How does Western Asset High Income Fund II Inc. make money in financial services?
Western Asset High Income Fund II Inc. generates revenue primarily through management fees charged on its assets under management (AUM). These fees are typically a percentage of the fund's total assets and are paid by the fund's investors. The fund also earns income from the interest payments it receives on its fixed income investments. Additionally, the fund may generate profits from trading securities within its portfolio. The fund's profitability is dependent on its ability to attract and retain assets under management, generate attractive returns on its investments, and manage its operating expenses effectively.
What regulatory challenges does Western Asset High Income Fund II Inc. face?
As a registered investment company, Western Asset High Income Fund II Inc. is subject to extensive regulation by the Securities and Exchange Commission (SEC) under the Investment Company Act of 1940. These regulations govern various aspects of the fund's operations, including its investment policies, valuation procedures, and disclosure requirements. The fund must also comply with regulations related to insider trading, conflicts of interest, and cybersecurity. Compliance with these regulations requires significant resources and expertise, and any failure to comply could result in fines, penalties, or other sanctions. Changes in regulations could also impact the fund's operations and profitability.
What are the key factors to evaluate for HIX?
Western Asset High Income Fund II Inc. (HIX) holds an AI score of 54/100 (moderate). Not financial advice.
How frequently does HIX data refresh on this page?
HIX prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven HIX's recent stock price performance?
Western Asset High Income Fund II Inc. (HIX) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: High profit margin of 79.2%. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider HIX overvalued or undervalued right now?
Valuing Western Asset High Income Fund II Inc. (HIX) requires multiple metrics. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Financial data and market information are based on available sources and may be subject to change.
- AI analysis is pending and will provide further insights upon completion.