HIO favors junk bonds over floaters for rate cuts

The Western Asset High Income Opportunity Fund (HIO) focuses on providing income for investors. The fund currently offers a yield of 10.52%. It is a closed-end fund that aims to help investors achieve their income goals through a variety of investments. Analysts suggest that junk bonds may be a better choice than floating rate bonds when interest rates fall. This is due to the potential for higher returns in a low-rate environment. Investors looking for higher yields might benefit from focusing on junk bonds. The fund targets mostly high-yield debt, which can carry more risk but also offers better income. Investors are encouraged to research and understand these investment options. They should also be aware that past performance does not guarantee future results. HIO is not the only option available. Investors have many choices in the market, but they should carefully consider their risk tolerance. Overall, HIO remains a popular choice for those seeking substantial income through investments.