Western Asset High Yield Defined Opportunity Fund (HYI) NPORT-P Western Asset High Yield Defined Opportunity Fund Inc. (Aug 2020 report)

WESTERN ASSET HIGH YIELD DEFINED OPPORTUNITY FUND INC.

Schedule of investments (unaudited) August 31, 2020

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
CORPORATE BONDS & NOTES - 88.9%
COMMUNICATION SERVICES - 17.8%
Diversified Telecommunication Services - 4.4%
Altice France Holding SA, Senior Secured Notes		10.500	%		5/15/27		3,190,000	$	3,662,519	(a)
Altice France SA, Senior Secured Notes		7.375	%		5/1/26		7,820,000		8,310,314	(a)
Altice France SA, Senior Secured Notes		8.125	%		2/1/27		1,700,000		1,897,446	(a)
Intelsat Jackson Holdings SA, Senior Secured Notes		8.000	%		2/15/24		1,530,000		1,563,140	(a)
Windstream Services LLC/ Windstream Finance Corp., Secured Notes		10.500	%		6/30/24		3,025,000		60,500	*(a)(b)
Windstream Services LLC/ Windstream Finance Corp., Secured Notes		9.000	%		6/30/25		330,000		19,800	*(a)(b)
Total Diversified Telecommunication Services									15,513,719
Entertainment - 1.3%
Allen Media LLC/Allen Media Co-Issuer Inc., Senior Notes		10.500	%		2/15/28		1,490,000		1,479,056	(a)
Netflix Inc., Senior Notes		5.875	%		11/15/28		670,000		821,946
Netflix Inc., Senior Notes		6.375	%		5/15/29		1,750,000		2,211,562
Total Entertainment									4,512,564
Media - 6.7%
CCO Holdings LLC/CCO Holdings Capital Corp., Senior Notes		5.125	%		5/1/27		1,233,000		1,314,816	(a)
CCO Holdings LLC/CCO Holdings Capital Corp., Senior Notes		5.000	%		2/1/28		3,250,000		3,440,125	(a)
CCO Holdings LLC/CCO Holdings Capital Corp., Senior Notes		4.500	%		8/15/30		100,000		106,250	(a)
CCO Holdings LLC/CCO Holdings Capital Corp., Senior Notes		4.500	%		5/1/32		590,000		626,073	(a)
DISH DBS Corp., Senior Notes		5.875	%		11/15/24		5,737,000		6,072,256
DISH DBS Corp., Senior Notes		7.750	%		7/1/26		7,738,000		8,869,798
Entercom Media Corp., Secured Notes		6.500	%		5/1/27		550,000		470,833	(a)
Univision Communications Inc., Senior Secured Notes		9.500	%		5/1/25		1,060,000		1,166,000	(a)

See Notes to Schedule of Investments.

Western Asset High Yield Defined Opportunity Fund Inc. 2020 Quarterly Report         1

WESTERN ASSET HIGH YIELD DEFINED OPPORTUNITY FUND INC.

Schedule of investments (unaudited) (cont’d) August 31, 2020

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
Media - (continued)
UPC Holding BV, Senior Secured Notes		5.500	%		1/15/28		540,000	$	564,924	(a)
Virgin Media Secured Finance PLC, Senior Secured Notes		5.500	%		8/15/26		1,020,000		1,077,375	(a)
Total Media									23,708,450
Wireless Telecommunication Services - 5.4%
CSC Holdings LLC, Senior Notes		5.375	%		2/1/28		2,080,000		2,224,310	(a)
CSC Holdings LLC, Senior Notes		6.500	%		2/1/29		800,000		901,500	(a)
Sprint Capital Corp., Senior Notes		6.875	%		11/15/28		4,288,000		5,485,960
Sprint Capital Corp., Senior Notes		8.750	%		3/15/32		130,000		196,487
Sprint Communications Inc., Senior Notes		11.500	%		11/15/21		1,452,000		1,617,165
Sprint Corp., Senior Notes		7.875	%		9/15/23		3,160,000		3,679,425
Sprint Corp., Senior Notes		7.625	%		3/1/26		530,000		652,605
VEON Holdings BV, Senior Notes		7.504	%		3/1/22		800,000		865,868	(c)
VEON Holdings BV, Senior Notes		7.504	%		3/1/22		520,000		562,814	(a)
Vimpel Communications Via VIP Finance Ireland Ltd. OJSC, Senior Notes		7.748	%		2/2/21		2,730,000		2,809,913	(a)
Total Wireless Telecommunication Services									18,996,047
TOTAL COMMUNICATION SERVICES									62,730,780
CONSUMER DISCRETIONARY - 16.0%
Auto Components - 2.3%
Adient Global Holdings Ltd., Senior Notes		4.875	%		8/15/26		3,780,000		3,550,837	(a)
Adient US LLC, Senior Secured Notes		9.000	%		4/15/25		570,000		633,769	(a)
American Axle & Manufacturing Inc., Senior Notes		6.250	%		4/1/25		500,000		516,728
American Axle & Manufacturing Inc., Senior Notes		6.500	%		4/1/27		1,980,000		2,038,162
JB Poindexter & Co. Inc., Senior Notes		7.125	%		4/15/26		1,300,000		1,386,372	(a)
Total Auto Components									8,125,868
Automobiles - 1.2%
Ford Motor Co., Senior Notes		8.500	%		4/21/23		650,000		719,550
Ford Motor Co., Senior Notes		9.000	%		4/22/25		2,320,000		2,717,996

See Notes to Schedule of Investments.

    2     Western Asset High Yield Defined Opportunity Fund Inc. 2020 Quarterly Report

WESTERN ASSET HIGH YIELD DEFINED OPPORTUNITY FUND INC.

Schedule of investments (unaudited) (cont’d) August 31, 2020

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†			VALUE
Automobiles - (continued)
Ford Motor Credit Co. LLC, Senior Notes		4.250	%		9/20/22		200,000		$	203,478
Ford Motor Credit Co. LLC, Senior Notes		3.096	%		5/4/23		500,000			498,250
Total Automobiles										4,139,274
Diversified Consumer Services - 2.6%
Carriage Services Inc., Senior Notes		6.625	%		6/1/26		2,680,000			2,843,641	(a)
Frontdoor Inc., Senior Notes		6.750	%		8/15/26		710,000			765,778	(a)
Garda World Security Corp., Senior Notes		9.500	%		11/1/27		776,000			843,271	(a)
Prime Security Services Borrower LLC/Prime Finance Inc., Secured Notes		6.250	%		1/15/28		840,000			883,184	(a)
Service Corp. International, Senior Notes		7.500	%		4/1/27		1,030,000			1,219,067
Weight Watchers International Inc., Senior Notes		8.625	%		12/1/25		2,430,000			2,565,169	(a)
Total Diversified Consumer Services										9,120,110
Hotels, Restaurants & Leisure - 6.4%
1011778 BC ULC/New Red Finance Inc., Senior Secured Notes		5.750	%		4/15/25		370,000			395,556	(a)
Boyne USA Inc., Secured Notes		7.250	%		5/1/25		1,320,000			1,404,011	(a)
Colt Merger Sub Inc., Senior Notes		8.125	%		7/1/27		1,500,000			1,591,957	(a)
Golden Nugget Inc., Senior Notes		8.750	%		10/1/25		500,000			372,450	(a)
IRB Holding Corp., Senior Secured Notes		7.000	%		6/15/25		620,000			662,951	(a)
Mohegan Gaming & Entertainment, Senior Notes		7.875	%		10/15/24		1,500,000			1,424,063	(a)
NCL Corp. Ltd., Senior Secured Notes		12.250	%		5/15/24		2,480,000			2,766,750	(a)
NCL Corp. Ltd., Senior Secured Notes		10.250	%		2/1/26		1,240,000			1,250,850	(a)
Pinnacle Bidco PLC, Senior Secured Notes		6.375	%		2/15/25		320,000	GBP		394,410	(c)
Saga PLC, Senior Notes		3.375	%		5/12/24		1,130,000	GBP		1,230,110	(c)
Scientific Games International Inc., Senior Notes		7.000	%		5/15/28		1,300,000			1,276,483	(a)
Silversea Cruise Finance Ltd., Senior Secured Notes		7.250	%		2/1/25		762,000			767,334	(a)
Viking Cruises Ltd., Senior Notes		5.875	%		9/15/27		3,230,000			2,299,356	(a)

See Notes to Schedule of Investments.

Western Asset High Yield Defined Opportunity Fund Inc. 2020 Quarterly Report         3

WESTERN ASSET HIGH YIELD DEFINED OPPORTUNITY FUND INC.

Schedule of investments (unaudited) (cont’d) August 31, 2020

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†			VALUE
Hotels, Restaurants & Leisure - (continued)
Viking Cruises Ltd., Senior Secured Notes		13.000	%		5/15/25		1,550,000		$	1,724,375	(a)
Wyndham Hotels & Resorts Inc., Senior Notes		4.375	%		8/15/28		570,000			575,458	(a)
Wynn Macau Ltd., Senior Notes		5.625	%		8/26/28		2,360,000			2,377,818	(a)
Wynn Macau Ltd., Senior Notes		5.125	%		12/15/29		200,000			196,855	(a)
Wynn Resorts Finance LLC/Wynn Resorts Capital Corp., Senior Notes		7.750	%		4/15/25		1,460,000			1,534,774	(a)
Yum! Brands Inc., Senior Notes		7.750	%		4/1/25		330,000			368,775	(a)
Total Hotels, Restaurants & Leisure										22,614,336
Specialty Retail - 3.3%
L Brands Inc., Senior Secured Notes		6.875	%		7/1/25		1,980,000			2,145,310	(a)
Maxeda DIY Holding BV, Senior Secured Notes		6.125	%		7/15/22		1,190,000	EUR		1,371,363	(c)
Michaels Stores Inc., Senior Notes		8.000	%		7/15/27		690,000			698,066	(a)
Party City Holdings Inc., Senior Secured Notes (6 mo. USD LIBOR + 5.000%)		5.750	%		7/15/25		879,305			560,557	(a)(d)
PetSmart Inc., Senior Secured Notes		5.875	%		6/1/25		4,660,000			4,805,625	(a)
Sally Holdings LLC/Sally Capital Inc., Senior Notes		5.500	%		11/1/23		760,000			769,785
Sally Holdings LLC/Sally Capital Inc., Senior Notes		5.625	%		12/1/25		1,340,000			1,362,479
Total Specialty Retail										11,713,185
Textiles, Apparel & Luxury Goods - 0.2%
CBR Fashion Finance BV, Senior Secured Notes		5.125	%		10/1/22		600,000	EUR		674,573	(c)
TOTAL CONSUMER DISCRETIONARY										56,387,346
CONSUMER STAPLES - 1.9%
Food Products - 1.5%
Kraft Heinz Foods Co., Senior Notes		3.875	%		5/15/27		50,000			53,582	(a)
Kraft Heinz Foods Co., Senior Notes		4.250	%		3/1/31		170,000			188,404	(a)
Kraft Heinz Foods Co., Senior Notes		5.200	%		7/15/45		400,000			455,870
Pilgrim’s Pride Corp., Senior Notes		5.750	%		3/15/25		180,000			185,175	(a)
Pilgrim’s Pride Corp., Senior Notes		5.875	%		9/30/27		2,365,000			2,515,769	(a)
Simmons Foods Inc., Secured Notes		5.750	%		11/1/24		935,000			956,136	(a)
SunOpta Foods Inc., Secured Notes		9.500	%		10/9/22		1,000,000			1,026,250	(a)
Total Food Products										5,381,186

See Notes to Schedule of Investments.

    4     Western Asset High Yield Defined Opportunity Fund Inc. 2020 Quarterly Report

WESTERN ASSET HIGH YIELD DEFINED OPPORTUNITY FUND INC.

Schedule of investments (unaudited) (cont’d) August 31, 2020

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
Household Products - 0.4%
Energizer Holdings Inc., Senior Notes		6.375	%		7/15/26		290,000	$	308,128	(a)
Spectrum Brands Inc., Senior Notes		5.750	%		7/15/25		915,000		947,025
Total Household Products									1,255,153
TOTAL CONSUMER STAPLES									6,636,339
ENERGY - 14.9%
Oil, Gas & Consumable Fuels - 14.9%
Apache Corp., Senior Notes		5.100	%		9/1/40		760,000		738,648
Berry Petroleum Co. LLC, Senior Notes		7.000	%		2/15/26		900,000		741,204	(a)
Blue Racer Midstream LLC/Blue Racer Finance Corp., Senior Notes		6.125	%		11/15/22		1,450,000		1,445,976	(a)
Continental Resources Inc., Senior Notes		3.800	%		6/1/24		180,000		177,763
Continental Resources Inc., Senior Notes		4.375	%		1/15/28		130,000		124,058
Continental Resources Inc., Senior Notes		4.900	%		6/1/44		550,000		488,309
Ecopetrol SA, Senior Notes		6.875	%		4/29/30		350,000		422,692
Ecopetrol SA, Senior Notes		5.875	%		5/28/45		1,500,000		1,705,013
EQM Midstream Partners LP, Senior Notes		6.000	%		7/1/25		370,000		393,125	(a)
EQM Midstream Partners LP, Senior Notes		6.500	%		7/1/27		330,000		361,817	(a)
EQT Corp., Senior Notes		3.900	%		10/1/27		740,000		717,563
EQT Corp., Senior Notes		8.750	%		2/1/30		150,000		179,813
Kinder Morgan Inc., Senior Notes		7.750	%		1/15/32		810,000		1,164,124
MEG Energy Corp., Senior Notes		7.000	%		3/31/24		2,556,000		2,543,488	(a)
MEG Energy Corp., Senior Notes		7.125	%		2/1/27		770,000		738,638	(a)
Montage Resources Corp., Senior Notes		8.875	%		7/15/23		3,710,000		3,805,032
NGPL PipeCo LLC, Senior Notes		7.768	%		12/15/37		790,000		964,741	(a)
Oasis Petroleum Inc., Senior Notes		6.500	%		11/1/21		2,140,000		417,300
Oasis Petroleum Inc., Senior Notes		6.875	%		3/15/22		150,000		29,625
Oasis Petroleum Inc., Senior Notes		6.875	%		1/15/23		4,183,000		815,685
Occidental Petroleum Corp., Senior Notes		6.950	%		7/1/24		420,000		435,750
Occidental Petroleum Corp., Senior Notes		2.900	%		8/15/24		690,000		636,090

See Notes to Schedule of Investments.

Western Asset High Yield Defined Opportunity Fund Inc. 2020 Quarterly Report         5

WESTERN ASSET HIGH YIELD DEFINED OPPORTUNITY FUND INC.

Schedule of investments (unaudited) (cont’d) August 31, 2020

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†			VALUE
Oil, Gas & Consumable Fuels - (continued)
Occidental Petroleum Corp., Senior Notes		5.550	%		3/15/26		440,000		$	434,025
Occidental Petroleum Corp., Senior Notes		6.625	%		9/1/30		530,000			549,758
Occidental Petroleum Corp., Senior Notes		6.200	%		3/15/40		540,000			514,350
Petrobras Global Finance BV, Senior Notes		7.375	%		1/17/27		1,000,000			1,186,750
Petrobras Global Finance BV, Senior Notes		5.999	%		1/27/28		2,340,000			2,599,155
Petrobras Global Finance BV, Senior Notes		5.750	%		2/1/29		1,950,000			2,145,975
Petrobras Global Finance BV, Senior Notes		6.750	%		1/27/41		4,540,000			5,098,670
Range Resources Corp., Senior Notes		5.000	%		3/15/23		600,000			598,863
Range Resources Corp., Senior Notes		4.875	%		5/15/25		420,000			392,921
Range Resources Corp., Senior Notes		9.250	%		2/1/26		3,420,000			3,607,142	(a)(e)
Rockies Express Pipeline LLC, Senior Notes		7.500	%		7/15/38		570,000			607,050	(a)
Rockies Express Pipeline LLC, Senior Notes		6.875	%		4/15/40		590,000			610,650	(a)
Shelf Drilling Holdings Ltd., Senior Notes		8.250	%		2/15/25		960,000			345,600	(a)
Targa Resources Partners LP/Targa Resources Partners Finance Corp., Senior Notes		6.750	%		3/15/24		400,000			408,566
Targa Resources Partners LP/Targa Resources Partners Finance Corp., Senior Notes		6.500	%		7/15/27		560,000			606,200
Targa Resources Partners LP/Targa Resources Partners Finance Corp., Senior Notes		6.875	%		1/15/29		120,000			132,975
Transportadora de Gas del Sur SA, Senior Notes		6.750	%		5/2/25		1,970,000			1,702,208	(a)
Vesta Energy Corp., Senior Notes		8.125	%		7/24/23		820,000	CAD		317,476	(a)
Western Midstream Operating LP, Senior Notes		5.050	%		2/1/30		180,000			184,515

See Notes to Schedule of Investments.

    6     Western Asset High Yield Defined Opportunity Fund Inc. 2020 Quarterly Report

WESTERN ASSET HIGH YIELD DEFINED OPPORTUNITY FUND INC.

Schedule of investments (unaudited) (cont’d) August 31, 2020

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
Oil, Gas & Consumable Fuels - (continued)
Western Midstream Operating LP, Senior Notes		5.300	%		3/1/48		540,000	$	484,828
Western Midstream Operating LP, Senior Notes		6.250	%		2/1/50		3,840,000		3,852,326
Williams Cos. Inc., Senior Notes		4.550	%		6/24/24		530,000		595,727
Williams Cos. Inc., Senior Notes		7.500	%		1/15/31		330,000		435,245
Williams Cos. Inc., Senior Notes		5.750	%		6/24/44		1,620,000		1,953,473
WPX Energy Inc., Senior Notes		8.250	%		8/1/23		430,000		484,844
YPF SA, Senior Notes		8.500	%		7/28/25		4,230,000		3,423,127	(a)
TOTAL ENERGY									52,318,873
FINANCIALS - 12.9%
Banks - 9.2%
Bank of America Corp., Junior Subordinated Notes (6.500% to 10/23/24 then 3 mo. USD LIBOR + 4.174%)		6.500	%		10/23/24		800,000		904,132	(d)(f)
Barclays Bank PLC, Subordinated Notes		10.179	%		6/12/21		740,000		790,542	(a)
Barclays Bank PLC, Subordinated Notes		7.625	%		11/21/22		1,950,000		2,168,984
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		900,000		985,014	(d)(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		2,760,000		2,661,675	(a)(d)
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		810,000		923,477	(a)(d)(f)
Citigroup Inc., Junior Subordinated Notes (5.950% to 5/15/25 then 3 mo. USD LIBOR + 3.905%)		5.950	%		5/15/25		740,000		799,381	(d)(f)
Citigroup Inc., Junior Subordinated Notes (6.300% to 5/15/24 then 3 mo. USD LIBOR + 3.423%)		6.300	%		5/15/24		3,950,000		4,233,807	(d)(f)

See Notes to Schedule of Investments.

Western Asset High Yield Defined Opportunity Fund Inc. 2020 Quarterly Report         7

WESTERN ASSET HIGH YIELD DEFINED OPPORTUNITY FUND INC.

Schedule of investments (unaudited) (cont’d) August 31, 2020

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
Banks - (continued)
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		1,330,000	$	1,581,869	(a)(d)(f)
HSBC Holdings PLC, Junior Subordinated Notes (6.000% to 5/22/27 then USD 5 year ICE Swap Rate + 3.746%)		6.000	%		5/22/27		300,000		310,375	(d)(f)
HSBC Holdings PLC, Junior Subordinated Notes (6.375% to 3/30/25 then USD 5 year ICE Swap Rate + 4.368%)		6.375	%		3/30/25		860,000		914,543	(d)(f)
HSBC Holdings PLC, Junior Subordinated Notes (6.375% to 9/17/24 then USD 5 year ICE Swap Rate + 3.705%)		6.375	%		9/17/24		290,000		303,251	(d)(f)
HSBC Holdings PLC, Junior Subordinated Notes (6.500% to 3/23/28 then USD 5 year ICE Swap Rate + 3.606%)		6.500	%		3/23/28		700,000		754,820	(d)(f)
Intesa Sanpaolo SpA, Subordinated Notes		5.017	%		6/26/24		2,590,000		2,794,607	(a)
Intesa Sanpaolo SpA, Subordinated Notes		5.710	%		1/15/26		2,410,000		2,681,068	(a)
Natwest Group PLC, Junior Subordinated Notes (3 mo. USD LIBOR + 2.320%)		2.628	%		9/30/27		7,000,000		6,651,750	(d)(f)
Natwest Group PLC, Junior Subordinated Notes (8.625% to 8/15/21 then USD 5 year ICE Swap Rate + 7.598%)		8.625	%		8/15/21		610,000		642,568	(d)(f)
TC Ziraat Bankasi AS, Senior Notes		5.125	%		9/29/23		1,080,000		1,016,969	(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		1,200,000		1,403,783	(a)(d)
Total Banks									32,522,615
Capital Markets - 1.4%
Credit Suisse Group AG, Junior Subordinated Notes (7.250% to 9/12/25 then 5 year Treasury Constant Maturity Rate + 4.332%)		7.250	%		9/12/25		700,000		771,327	(a)(d)(f)

See Notes to Schedule of Investments.

    8     Western Asset High Yield Defined Opportunity Fund Inc. 2020 Quarterly Report

WESTERN ASSET HIGH YIELD DEFINED OPPORTUNITY FUND INC.

Schedule of investments (unaudited) (cont’d) August 31, 2020

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
Capital Markets - (continued)
Donnelley Financial Solutions Inc., Senior Notes		8.250	%		10/15/24		890,000	$	928,844
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		2,840,000		3,079,824	(a)(d)(f)
Total Capital Markets									4,779,995
Consumer Finance - 0.4%
Navient Corp., Senior Notes		5.875	%		10/25/24		590,000		608,438
Navient Corp., Senior Notes		6.750	%		6/15/26		700,000		729,312
Total Consumer Finance									1,337,750
Diversified Financial Services - 1.8%
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, Senior Notes		4.500	%		5/15/21		500,000		508,572
ASP AMC Merger Sub Inc., Senior Notes		8.000	%		5/15/25		715,000		604,994	(a)
Global Aircraft Leasing Co. Ltd., Senior Notes (6.500% Cash or 7.250% PIK)		6.500	%		9/15/24		2,850,000		1,667,250	(a)(g)
International Lease Finance Corp., Senior Notes		8.250	%		12/15/20		3,140,000		3,201,197
International Lease Finance Corp., Senior Notes		5.875	%		8/15/22		310,000		335,690
Total Diversified Financial Services									6,317,703
Thrifts & Mortgage Finance - 0.1%
NMI Holdings Inc., Senior Secured Notes		7.375	%		6/1/25		400,000		432,422	(a)
TOTAL FINANCIALS									45,390,485
HEALTH CARE - 8.1%
Health Care Providers & Services - 2.9%
CHS/Community Health Systems Inc., Senior Secured Notes		8.000	%		3/15/26		1,920,000		1,993,920	(a)
HCA Inc., Senior Notes		7.500	%		11/15/95		1,000,000		1,289,295
LifePoint Health Inc., Senior Secured Notes		6.750	%		4/15/25		480,000		518,400	(a)
Magellan Health Inc., Senior Notes		4.900	%		9/22/24		1,350,000		1,408,921
Radiology Partners Inc., Senior Notes		9.250	%		2/1/28		540,000		576,450	(a)
Tenet Healthcare Corp., Secured Notes		6.250	%		2/1/27		1,000,000		1,051,395	(a)

See Notes to Schedule of Investments.

Western Asset High Yield Defined Opportunity Fund Inc. 2020 Quarterly Report         9

WESTERN ASSET HIGH YIELD DEFINED OPPORTUNITY FUND INC.

Schedule of investments (unaudited) (cont’d) August 31, 2020

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
Health Care Providers & Services - (continued)
Tenet Healthcare Corp., Senior Notes		8.125	%		4/1/22		1,540,000	$	1,664,355
Tenet Healthcare Corp., Senior Secured Notes		7.500	%		4/1/25		560,000		615,392	(a)
Tenet Healthcare Corp., Senior Secured Notes		4.625	%		6/15/28		700,000		727,874	(a)
US Renal Care Inc., Senior Notes		10.625	%		7/15/27		460,000		497,000	(a)
Total Health Care Providers & Services									10,343,002
Pharmaceuticals - 5.2%
Bausch Health Americas Inc., Senior Notes		8.500	%		1/31/27		210,000		231,297	(a)
Bausch Health Cos. Inc., Senior Notes		5.875	%		5/15/23		112,000		111,807	(a)
Bausch Health Cos. Inc., Senior Notes		6.125	%		4/15/25		3,290,000		3,387,878	(a)
Bausch Health Cos. Inc., Senior Notes		9.000	%		12/15/25		1,400,000		1,534,680	(a)
Bausch Health Cos. Inc., Senior Secured Notes		7.000	%		3/15/24		210,000		218,190	(a)
Endo Finance LLC/Endo Finco Inc., Senior Notes		7.250	%		1/15/22		1,615,000		1,501,950	(a)
Teva Pharmaceutical Finance Co. BV, Senior Notes		2.950	%		12/18/22		1,840,000		1,788,894
Teva Pharmaceutical Finance IV BV, Senior Notes		3.650	%		11/10/21		110,000		110,575
Teva Pharmaceutical Finance Netherlands III BV, Senior Notes		2.200	%		7/21/21		2,640,000		2,640,858
Teva Pharmaceutical Finance Netherlands III BV, Senior Notes		2.800	%		7/21/23		4,480,000		4,309,043
Teva Pharmaceutical Finance Netherlands III BV, Senior Notes		6.000	%		4/15/24		1,740,000		1,831,046
Teva Pharmaceutical Finance Netherlands III BV, Senior Notes		3.150	%		10/1/26		530,000		486,606
Total Pharmaceuticals									18,152,824
TOTAL HEALTH CARE									28,495,826
INDUSTRIALS - 5.2%
Aerospace & Defense - 0.4%
TransDigm Inc., Senior Secured Notes		8.000	%		12/15/25		1,340,000		1,458,590	(a)

See Notes to Schedule of Investments.

    10     Western Asset High Yield Defined Opportunity Fund Inc. 2020 Quarterly Report

WESTERN ASSET HIGH YIELD DEFINED OPPORTUNITY FUND INC.

Schedule of investments (unaudited) (cont’d) August 31, 2020

SECURITY		RATE			MATURITY DATE		FACE AMOUNT†		VALUE
Airlines - 3.6%
Delta Air Lines Inc., Senior Notes			3.400	%		4/19/21		190,000	$	190,472
Delta Air Lines Inc., Senior Notes			3.625	%		3/15/22		1,400,000		1,392,324
Delta Air Lines Inc., Senior Notes	��		3.800	%		4/19/23		3,230,000		3,105,211
Delta Air Lines Inc., Senior Notes			2.900	%		10/28/24		460,000		422,662
Delta Air Lines Inc., Senior Notes			7.375	%		1/15/26		370,000		385,544
Delta Air Lines Inc., Senior Secured Notes			7.000	%		5/1/25		3,220,000		3,529,649	(a)
Mileage Plus Holdings LLC/Mileage Plus Intellectual Property Assets Ltd., Senior Secured Notes			6.500	%		6/20/27		1,350,000		1,407,375	(a)
United Airlines Holdings Inc., Senior Notes			4.250	%		10/1/22		1,870,000		1,732,676
United Airlines Holdings Inc., Senior Notes			5.000	%		2/1/24		420,000		380,100
Total Airlines										12,546,013
Commercial Services & Supplies - 0.3%
GFL Environmental Inc., Senior Notes			8.500	%		5/1/27		768,000		837,262	(a)
Industrial Conglomerates - 0.3%
General Electric Co., Junior Subordinated Notes (5.000% to 1/21/21 then 3 mo. USD LIBOR + 3.330%)			5.000	%		1/21/21		1,400,000		1,100,553	(d)(f)
Machinery - 0.2%
Clark Equipment Co., Senior Secured Notes			5.875	%		6/1/25		480,000		506,700	(a)
Park-Ohio Industries Inc., Senior Notes			6.625	%		4/15/27		190,000		172,698
Total Machinery										679,398
Trading Companies & Distributors - 0.4%
Ahern Rentals Inc., Secured Notes			7.375	%		5/15/23		370,000		154,899	(a)
United Rentals North America Inc., Senior Notes			5.500	%		5/15/27		655,000		702,799
United Rentals North America Inc., Senior Notes			4.875	%		1/15/28		610,000		644,312
Total Trading Companies & Distributors										1,502,010
TOTAL INDUSTRIALS										18,123,826

See Notes to Schedule of Investments.

Western Asset High Yield Defined Opportunity Fund Inc. 2020 Quarterly Report         11

WESTERN ASSET HIGH YIELD DEFINED OPPORTUNITY FUND INC.

Schedule of investments (unaudited) (cont’d) August 31, 2020

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
INFORMATION TECHNOLOGY - 2.8%
Communications Equipment - 1.3%
CommScope Inc., Senior Notes		8.250	%		3/1/27		4,270,000	$	4,622,040	(a)
CommScope Technologies LLC, Senior Notes		6.000	%		6/15/25		64,000		65,700	(a)
Total Communications Equipment									4,687,740
Semiconductors & Semiconductor Equipment - 0.3%
Amkor Technology Inc., Senior Notes		6.625	%		9/15/27		1,000,000		1,097,315	(a)
Software - 0.0%††
Interface Special Holdings Inc., Senior Notes (19.000% PIK)		19.000	%		11/1/23		1,374,885		20,623	(a)(g)(h)(i)
Technology Hardware, Storage & Peripherals - 1.2%
Dell International LLC/EMC Corp., Senior Notes		7.125	%		6/15/24		500,000		519,250	(a)
Seagate HDD Cayman, Senior Notes		4.750	%		6/1/23		720,000		776,858
Seagate HDD Cayman, Senior Notes		4.750	%		1/1/25		2,350,000		2,566,462
Seagate HDD Cayman, Senior Notes		4.875	%		6/1/27		210,000		235,230
Total Technology Hardware, Storage & Peripherals									4,097,800
TOTAL INFORMATION TECHNOLOGY									9,903,478
MATERIALS - 6.6%
Chemicals - 0.1%
Anagram International Inc./Anagram Holdings LLC, Secured Notes (5.000% Cash and 5.000% PIK)		10.000	%		8/15/26		475,305		404,009	(a)(g)
Construction Materials - 0.3%
Summit Materials LLC/Summit Materials Finance Corp., Senior Notes		5.125	%		6/1/25		450,000		456,141	(a)
U.S. Concrete Inc., Senior Notes		6.375	%		6/1/24		510,000		527,799
Total Construction Materials									983,940
Containers & Packaging - 2.2%
ARD Finance SA, Senior Secured Notes (6.500% Cash or 7.250% PIK)		6.500	%		6/30/27		3,495,000		3,595,481	(a)(g)
Ardagh Packaging Finance PLC/ Ardagh Holdings USA Inc., Senior Notes		6.000	%		2/15/25		1,905,000		1,988,820	(a)
Greif Inc., Senior Notes		6.500	%		3/1/27		1,000,000		1,067,315	(a)
Pactiv LLC, Senior Notes		7.950	%		12/15/25		410,000		454,544
Trivium Packaging Finance BV, Senior Notes		8.500	%		8/15/27		780,000		859,385	(a)
Total Containers & Packaging									7,965,545

See Notes to Schedule of Investments.

    12     Western Asset High Yield Defined Opportunity Fund Inc. 2020 Quarterly Report

WESTERN ASSET HIGH YIELD DEFINED OPPORTUNITY FUND INC.

Schedule of investments (unaudited) (cont’d) August 31, 2020

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
Metals & Mining - 3.9%
ArcelorMittal SA, Senior Notes		7.250	%		10/15/39		2,020,000	$	2,598,654
First Quantum Minerals Ltd., Senior Notes		7.250	%		4/1/23		3,270,000		3,328,124	(a)
Freeport-McMoRan Inc., Senior Notes		3.550	%		3/1/22		310,000		318,347
Freeport-McMoRan Inc., Senior Notes		3.875	%		3/15/23		380,000		394,204
Freeport-McMoRan Inc., Senior Notes		4.550	%		11/14/24		410,000		443,163
Freeport-McMoRan Inc., Senior Notes		5.400	%		11/14/34		280,000		316,513
Freeport-McMoRan Inc., Senior Notes		5.450	%		3/15/43		1,750,000		1,968,208
Northwest Acquisitions ULC/ Dominion Finco Inc., Secured Notes		7.125	%		11/1/22		411,000		7,090	*(a)(b)
Teck Resources Ltd., Senior Notes		6.000	%		8/15/40		260,000		282,361
Vale Overseas Ltd., Senior Notes		6.875	%		11/21/36		2,220,000		2,955,897
Vale Overseas Ltd., Senior Notes		6.875	%		11/10/39		750,000		1,014,784
Total Metals & Mining									13,627,345
Paper & Forest Products - 0.1%
Mercer International Inc., Senior Notes		7.375	%		1/15/25		400,000		412,000
TOTAL MATERIALS									23,392,839
REAL ESTATE - 0.7%
Equity Real Estate Investment Trusts (REITs) - 0.7%
CoreCivic Inc., Senior Notes		4.750	%		10/15/27		610,000		520,425
Diversified Healthcare Trust, Senior Notes		9.750	%		6/15/25		690,000		770,288
GEO Group Inc., Senior Notes		5.875	%		10/15/24		750,000		591,484
XHR LP, Senior Secured Notes		6.375	%		8/15/25		650,000		667,875	(a)
TOTAL REAL ESTATE									2,550,072
UTILITIES - 2.0%
Electric Utilities - 1.4%
FirstEnergy Corp., Senior Notes		7.375	%		11/15/31		1,260,000		1,786,102
Pampa Energia SA, Senior Notes		7.375	%		7/21/23		1,200,000		1,101,012	(c)
Pampa Energia SA, Senior Notes		7.500	%		1/24/27		1,960,000		1,675,800	(a)
Talen Energy Supply LLC, Senior Notes		10.500	%		1/15/26		600,000		483,243	(a)
Total Electric Utilities									5,046,157

See Notes to Schedule of Investments.

Western Asset High Yield Defined Opportunity Fund Inc. 2020 Quarterly Report         13

WESTERN ASSET HIGH YIELD DEFINED OPPORTUNITY FUND INC.

Schedule of investments (unaudited) (cont’d) August 31, 2020

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†			VALUE
Gas Utilities - 0.6%
Suburban Propane Partners LP/ Suburban Energy Finance Corp., Senior Notes		5.875	%		3/1/27		1,930,000		$	2,007,200
TOTAL UTILITIES										7,053,357
TOTAL CORPORATE BONDS & NOTES (Cost - $284,895,810)										312,983,221
SOVEREIGN BONDS - 4.0%
Argentina - 0.6%
Argentine Republic Government International Bond, Senior Notes		6.875	%		4/22/21		900,000			437,850	*(b)
Argentine Republic Government International Bond, Senior Notes		5.625	%		1/26/22		1,250,000			600,000	*(b)
Argentine Republic Government International Bond, Senior Notes		4.625	%		1/11/23		2,340,000			1,108,353	*(b)
Total Argentina										2,146,203
Brazil - 0.2%
Brazil Notas do Tesouro Nacional Serie F, Notes		10.000	%		1/1/21		2,466,000	BRL		461,413
Brazil Notas do Tesouro Nacional Serie F, Notes		10.000	%		1/1/23		1,680,000	BRL		345,187
Total Brazil										806,600
Ghana - 0.3%
Ghana Government International Bond, Senior Notes		7.625	%		5/16/29		1,000,000			960,660	(a)
Indonesia - 0.8%
Indonesia Treasury Bond, Senior Notes		8.250	%		7/15/21		5,985,000,000	IDR		426,748
Indonesia Treasury Bond, Senior Notes		7.000	%		5/15/22		31,811,000,000	IDR		2,277,941
Total Indonesia										2,704,689
Mexico - 0.3%
Mexican Bonos, Bonds		6.500	%		6/9/22		18,070,000	MXN		853,486
Russia - 1.4%
Russian Federal Bond - OFZ		7.000	%		1/25/23		58,120,000	RUB		827,870
Russian Federal Bond - OFZ		7.750	%		9/16/26		183,580,000	RUB		2,779,110
Russian Federal Bond - OFZ		8.150	%		2/3/27		90,000,000	RUB		1,389,382
Total Russia										4,996,362
Ukraine - 0.4%
Ukraine Government International Bond, Senior Notes		7.750	%		9/1/20		1,500,000			1,500,000	(a)
TOTAL SOVEREIGN BONDS (Cost - $14,700,686)										13,968,000

See Notes to Schedule of Investments.

    14     Western Asset High Yield Defined Opportunity Fund Inc. 2020 Quarterly Report

WESTERN ASSET HIGH YIELD DEFINED OPPORTUNITY FUND INC.

Schedule of investments (unaudited) (cont’d) August 31, 2020

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		Value
SENIOR LOANS - 3.9%
CONSUMER DISCRETIONARY - 1.4%
Specialty Retail - 1.4%
Michaels Stores Inc., 2018 New Replacement Term Loan B		3.500-3.568	%		1/30/23		447,433	$	430,794	(d)(j)(k)
Party City Holdings Inc., 2018 Replacement Term Loan		3.250-4.100	%		8/19/22		1,421,779		1,005,909	(d)(j)(k)
PetSmart Inc., Term Loan B2 (3 mo. USD LIBOR + 4.000%)		5.000	%		3/11/22		3,645,684		3,646,125	(d)(j)(k)
TOTAL CONSUMER DISCRETIONARY									5,082,828
ENERGY - 0.4%
Oil, Gas & Consumable Fuels - 0.4%
Chesapeake Energy Corp., Term Loan A (3 mo. USD LIBOR + 8.000%)		9.000	%		6/24/24		1,960,000		1,300,338	*(b)(d)(j)(k)
HEALTH CARE - 0.4%
Health Care Providers & Services - 0.4%
Option Care Health Inc., First Lien Term Loan B (1 mo. USD LIBOR + 4.500%)		4.656	%		8/6/26		746,250		744,696	(d)(j)(k)
U.S. Renal Care Inc., First Lien Term Loan B (1 mo. USD LIBOR + 5.000%)		5.188	%		6/26/26		632,906		619,852	(d)(j)(k)
TOTAL HEALTH CARE									1,364,548
INDUSTRIALS - 1.7%
Airlines - 1.7%
Delta Air Lines Inc., Initial Term Loan (3 mo. USD LIBOR + 4.750%)		5.750	%		4/27/23		2,612,500		2,611,275	(d)(j)(k)(l)
JetBlue Airways Corp., Term Loan (3 mo. USD LIBOR + 5.250%)		6.250	%		6/17/24		1,040,000		1,040,000	(d)(j)(k)
Mileage Plus Holdings Inc., Initial Term Loan (3 mo. USD LIBOR + 5.250%)		6.250	%		6/20/27		1,140,000		1,150,504	(d)(j)(k)
United Airlines Inc., Refinanced Term Loan (1 mo. USD LIBOR + 1.750%)		1.906	%		4/1/24		1,500,000		1,399,062	(d)(j)(k)(l)
TOTAL INDUSTRIALS									6,200,841
TOTAL SENIOR LOANS (Cost - $14,208,113)									13,948,555
CONVERTIBLE BONDS & NOTES - 0.7%
COMMUNICATION SERVICES - 0.7%
Media - 0.7%
DISH Network Corp., Senior Notes (Cost - $2,114,018)		3.375	%		8/15/26		2,590,000		2,560,925

See Notes to Schedule of Investments.

Western Asset High Yield Defined Opportunity Fund Inc. 2020 Quarterly Report         15

WESTERN ASSET HIGH YIELD DEFINED OPPORTUNITY FUND INC.

Schedule of investments (unaudited) (cont’d) August 31, 2020

SECURITY	RATE					Shares			Value
PREFERRED STOCKS - 0.4%
FINANCIALS - 0.4%
Banks - 0.1%
GMAC Capital Trust I (3 mo. USD LIBOR + 5.785%)		6.065	%				17,000		$	417,010	(d)
Capital Markets - 0.3%
B Riley Financial Inc.		6.875	%				39,275			977,948
TOTAL PREFERRED STOCKS (Cost - $1,281,228)										1,394,958
				MATURITY DATE		FACE AMOUNT†
U.S. GOVERNMENT & AGENCY OBLIGATIONS - 0.3%
U.S. Government Obligations - 0.3%
U.S. Treasury Notes		1.750	%		11/30/21		500,000			509,883
U.S. Treasury Notes		0.625	%		5/15/30		500,000			497,305
TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS (Cost - $999,017)										1,007,188
						SHARES
COMMON STOCKS - 0.1%
CONSUMER DISCRETIONARY - 0.1%
Specialty Retail - 0.1%
Party City Holdings Inc.							89,478			245,170	*(h)
ENERGY - 0.0%††
Energy Equipment & Services - 0.0%††
Hercules Offshore Inc. (Escrow)							46,103			37,662	*(h)(i)
Oil, Gas & Consumable Fuels - 0.0%††
MWO Holdings LLC							442			33,897	*(h)(i)
TOTAL ENERGY										71,559
TOTAL COMMON STOCKS (Cost - $2,041,016)										316,729
						FACE AMOUNT†
NON-U.S. TREASURY INFLATION PROTECTED SECURITIES - 0.0%††
Argentina - 0.0%††
Argentina Treasury Bond (Cost - $49,555)		1.000	%		8/5/21		6,489,228	ARS		50,689	(h)
TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS (Cost - $320,289,443)										346,230,265

See Notes to Schedule of Investments.

    16     Western Asset High Yield Defined Opportunity Fund Inc. 2020 Quarterly Report

WESTERN ASSET HIGH YIELD DEFINED OPPORTUNITY FUND INC.

Schedule of investments (unaudited) (cont’d) August 31, 2020

SECURITY	RATE			SHARES		VALUE
SHORT-TERM INVESTMENTS - 1.6%
Dreyfus Government Cash Management, Institutional Shares (Cost - $5,534,730)		0.038	%		5,534,730	$	5,534,730
TOTAL INVESTMENTS - 99.9% (Cost - $325,824,173)							351,764,995
Other Assets in Excess of Liabilities - 0.1%							291,858
TOTAL NET ASSETS - 100.0%						$	352,056,853

† 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) The coupon payment on these securities is currently in default as of August 31, 2020.

(c) 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.

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

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

(g) 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.

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

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

(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) All or a portion of this loan is unfunded as of August 31, 2020. The interest rate for fully unfunded term loans is to be determined.

See Notes to Schedule of Investments.

Western Asset High Yield Defined Opportunity Fund Inc. 2020 Quarterly Report         17

WESTERN ASSET HIGH YIELD DEFINED OPPORTUNITY FUND INC.

Schedule of investments (unaudited) (cont’d) August 31, 2020

Abbreviation(s) used in this schedule:

ARS	— Argentine Peso
BRL	— Brazilian Real
CAD	— Canadian Dollar
EUR	— Euro
GBP	— British Pound
ICE	— Intercontinental Exchange
IDR	— Indonesian Rupiah
LIBOR	— London Interbank Offered Rate
MXN	— Mexican Peso
OFZ	— Obligatsyi Federal’novo Zaima (Russian Federal Loan Obligation)
OJSC	— Open Joint Stock Company
PIK	— Payment-In-Kind
RUB	— Russian Ruble
USD	— United States Dollar

At August 31, 2020, the Fund had the following open forward foreign currency contracts:

Currency Purchased		Currency Sold			Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
CAD	242,608		USD	184,557	BNP Paribas SA		10/16/20	$	1,464
USD	606,410		CAD	830,000	BNP Paribas SA		10/16/20		(29,996	)
USD	460,888		EUR	410,000	BNP Paribas SA		10/16/20		(28,881	)
USD	461,543		EUR	410,000	BNP Paribas SA		10/16/20		(28,225	)
USD	462,746		EUR	410,000	BNP Paribas SA		10/16/20		(27,023	)
USD	703,535		EUR	623,007	BNP Paribas SA		10/16/20		(40,682	)
MXN	1,187,600		USD	51,885	Goldman Sachs Group Inc.		10/16/20		2,081
USD	1,196,525		GBP	958,362	Goldman Sachs Group Inc.		10/16/20		(84,932	)
Total								$	(236,194	)

Abbreviation(s) used in this table:

CAD	— Canadian Dollar
EUR	— Euro
GBP	— British Pound
MXN	— Mexican Peso
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.

    18     Western Asset High Yield Defined Opportunity Fund Inc. 2020 Quarterly Report

Notes to Schedule of Investments (unaudited)

1. Organization and significant accounting policies

Western Asset High Yield Defined Opportunity Fund Inc. (the “Fund”) was incorporated in Maryland on July 20, 2010 and is registered as a non-diversified, limited-term, closed-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund’s primary investment objective is to provide high income. As a secondary investment objective, the Fund will seek capital appreciation. The Fund seeks to achieve its investment objectives by investing, under normal market conditions, at least 80% of its net assets in a portfolio of high-yield corporate fixed income securities with varying maturities. Corporate securities include those securities that are issued or originated by U.S. or foreign public or private corporations and other business entities. The Fund intends to liquidate on or about September 30, 2025 and distribute substantially all of its net assets to stockholders, after making appropriate provisions for any liabilities of the Fund.

The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”).

(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 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.

The Board of Directors is responsible for the valuation process and has delegated the supervision of the daily valuation process to the Legg Mason North Atlantic Fund Valuation Committee (the “Valuation Committee”). The Valuation Committee, pursuant to the policies

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Notes to Schedule of Investments (unaudited) (continued)

adopted by the Board of Directors, is responsible for making fair value determinations, evaluating the effectiveness of the Fund’s pricing policies, and reporting to 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.

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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 – 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:
Information Technology		—	$	9,882,855	$	20,623	$	9,903,478
Other Corporate Bonds & Notes		—		303,079,743		—		303,079,743
Sovereign Bonds		—		13,968,000		—		13,968,000
Senior Loans		—		13,948,555		—		13,948,555
Convertible Bonds & Notes		—		2,560,925		—		2,560,925
Preferred Stocks	$	1,394,958		—		—		1,394,958
U.S. Government & Agency
Obligations		—		1,007,188		—		1,007,188
Common Stocks:
Consumer Discretionary		—		245,170		—		245,170
Energy		—		—		71,559		71,559
Non-U.S. Treasury Inflation Protected Securities		—		50,689		—		50,689
Total Long-Term Investments		1,394,958		344,743,125		92,182		346,230,265
Short-Term Investments†		5,534,730		—		—		5,534,730
Total Investments	$	6,929,688	$	344,743,125	$	92,182	$	351,764,995
Other Financial Instruments:
Forward Foreign Currency Contracts		—	$	3,545		—	$	3,545
Total	$	6,929,688	$	344,746,670	$	92,182	$	351,768,540

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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		—	$	239,739		—	$	239,739

† See Schedule of Investments for additional detailed categorizations.

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