Western Asset Funds NPORT-P Western Asset High Yield Fund (Aug 2020 report)

WESTERN ASSET HIGH YIELD FUND

Schedule of investments (unaudited) August 31, 2020

SECURITY	RATE				MATURITY DATE		FACE AMOUNT†		VALUE
CORPORATE BONDS & NOTES - 84.7%
COMMUNICATION SERVICES - 14.6%
Diversified Telecommunication Services - 2.6%
Altice France Holding SA, Senior Secured Notes		10.500	%			5/15/27		520,000	$	597,025	(a)
Altice France SA, Senior Secured Notes		7.375	%			5/1/26		2,310,000		2,454,837	(a)
CenturyLink Inc., Senior Secured Notes		4.000	%			2/15/27		380,000		386,407	(a)
Intelsat Jackson Holdings SA, Senior Secured Notes		8.000	%			2/15/24		850,000		868,411	(a)
Level 3 Financing Inc., Senior Notes		5.250	%			3/15/26		480,000		501,048
Telecom Italia SpA, Senior Notes		5.303	%			5/30/24		240,000		265,316	(a)
Total Diversified Telecommunication Services										5,073,044
Entertainment - 1.6%
Allen Media LLC/Allen Media
Co-Issuer Inc., Senior Notes		10.500	%			2/15/28		910,000		903,316	(a)
Netflix Inc., Senior Notes		6.375	%			5/15/29		680,000		859,350
Netflix Inc., Senior Notes		5.375	%			11/15/29		710,000		854,663	(a)
Netflix Inc., Senior Notes		4.875	%			6/15/30		350,000		404,950	(a)
Speedway Motorsports LLC/Speedway Funding II Inc., Senior Notes		4.875	%			11/1/27		250,000		238,125	(a)
Total Entertainment										3,260,404
Interactive Media & Services - 0.7%
Match Group Holdings II LLC, Senior Notes		5.000	%			12/15/27		190,000		203,264	(a)
Match Group Holdings II LLC, Senior Notes		4.625	%	��		6/1/28		700,000		738,783	(a)
Twitter Inc., Senior Notes		3.875	%			12/15/27		450,000		475,965	(a)
Total Interactive Media & Services										1,418,012
Media - 6.3%
CCO Holdings LLC/CCO Holdings Capital Corp., Senior Notes		5.750	%			2/15/26		190,000		199,369	(a)
CCO Holdings LLC/CCO Holdings Capital Corp., Senior Notes		5.125	%			5/1/27		1,320,000		1,407,589	(a)
CCO Holdings LLC/CCO Holdings Capital Corp., Senior Notes		4.500	%			8/15/30		1,070,000		1,136,880	(a)
CCO Holdings LLC/CCO Holdings Capital Corp., Senior Notes		4.500	%			5/1/32		350,000		371,399	(a)
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., Senior Secured Notes		6.484	%			10/23/45		230,000		314,896

See Notes to Schedule of Investments.

    Western Asset High Yield Fund 2020 Quarterly Report         1

WESTERN ASSET HIGH YIELD FUND

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

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
Media - (continued)
Clear Channel International BV, Senior Secured Notes		6.625	%		8/1/25		380,000	$	394,725	(a)
DISH DBS Corp., Senior Notes		5.875	%		11/15/24		1,110,000		1,174,866
DISH DBS Corp., Senior Notes		7.750	%		7/1/26		1,560,000		1,788,173
Dolya Holdco 18 DAC, Senior Notes		5.000	%		7/15/28		350,000		363,107	(a)
iHeartCommunications Inc., Senior Secured Notes		5.250	%		8/15/27		240,000		239,206	(a)
iHeartCommunications Inc., Senior Secured Notes		4.750	%		1/15/28		680,000		650,345	(a)
TEGNA Inc., Senior Notes		5.000	%		9/15/29		480,000		483,264	(a)
Time Warner Cable LLC, Senior Secured Notes		7.300	%		7/1/38		440,000		630,632
Univision Communications Inc., Senior Secured Notes		5.125	%		2/15/25		170,000		171,487	(a)
Univision Communications Inc., Senior Secured Notes		9.500	%		5/1/25		680,000		748,000	(a)
UPC Holding BV, Senior Secured Notes		5.500	%		1/15/28		410,000		428,924	(a)
Virgin Media Secured Finance PLC, Senior Secured Notes		5.500	%		8/15/26		130,000		137,313	(a)
Virgin Media Secured Finance PLC, Senior Secured Notes		5.500	%		5/15/29		1,640,000		1,775,858	(a)
Total Media									12,416,033
Wireless Telecommunication Services - 3.4%
CSC Holdings LLC, Senior Notes		6.500	%		2/1/29		920,000		1,036,725	(a)
CSC Holdings LLC, Senior Notes		4.125	%		12/1/30		220,000		228,580	(a)
Sprint Capital Corp., Senior Notes		8.750	%		3/15/32		1,725,000		2,607,230
Sprint Communications Inc., Senior Notes		11.500	%		11/15/21		715,000		796,331
Sprint Corp., Senior Notes		7.875	%		9/15/23		1,390,000		1,618,481
Sprint Corp., Senior Notes		7.625	%		2/15/25		420,000		503,738
Total Wireless Telecommunication Services									6,791,085
TOTAL COMMUNICATION SERVICES									28,958,578
CONSUMER DISCRETIONARY - 17.5%
Auto Components - 0.5%
American Axle & Manufacturing Inc., Senior Notes		6.250	%		3/15/26		149,000		152,396
American Axle & Manufacturing Inc., Senior Notes		6.500	%		4/1/27		771,000		793,648
Total Auto Components									946,044

See Notes to Schedule of Investments.

    2     Western Asset High Yield Fund 2020 Quarterly Report    

WESTERN ASSET HIGH YIELD FUND

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

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
Automobiles - 1.6%
Ford Motor Co., Senior Notes		8.500	%		4/21/23		20,000	$	22,140
Ford Motor Co., Senior Notes		9.000	%		4/22/25		850,000		995,817
Ford Motor Credit Co. LLC, Senior Notes		3.087	%		1/9/23		770,000		766,912
Ford Motor Credit Co. LLC, Senior Notes		3.096	%		5/4/23		820,000		817,130
Ford Motor Credit Co. LLC, Senior Notes		5.125	%		6/16/25		540,000		568,210
Total Automobiles									3,170,209
Distributors - 0.6%
American News Co. LLC, Secured Notes (8.500% Cash or 10.000% PIK)		8.500	%		9/1/26		1,079,144		1,184,862	(a)(b)
Diversified Consumer Services - 2.5%
Carriage Services Inc., Senior Notes		6.625	%		6/1/26		770,000		817,016	(a)
Prime Security Services Borrower LLC/ Prime Finance Inc., Secured Notes		6.250	%		1/15/28		1,210,000		1,272,206	(a)
Prime Security Services Borrower LLC/ Prime Finance Inc., Senior Secured Notes		5.750	%		4/15/26		630,000		697,408	(a)
Prime Security Services Borrower LLC/ Prime Finance Inc., Senior Secured Notes		3.375	%		8/31/27		390,000		389,575	(a)
Service Corp. International, Senior Notes		7.500	%		4/1/27		167,000		197,654
Service Corp. International, Senior Notes		3.375	%		8/15/30		630,000		643,139
Weight Watchers International Inc., Senior Notes		8.625	%		12/1/25		872,000		920,505	(a)
Total Diversified Consumer Services									4,937,503
Hotels, Restaurants & Leisure - 7.4%
Boyne USA Inc., Secured Notes		7.250	%		5/1/25		800,000		850,916	(a)
Brinker International Inc., Senior Notes		5.000	%		10/1/24		350,000		349,526	(a)
Colt Merger Sub Inc., Senior Secured Notes		6.250	%		7/1/25		370,000		392,661	(a)
Golden Nugget Inc., Senior Notes		8.750	%		10/1/25		600,000		446,940	(a)
Hilton Domestic Operating Co. Inc., Senior Notes		5.750	%		5/1/28		600,000		634,500	(a)
Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp., Senior Notes		4.875	%		4/1/27		260,000		267,102
International Game Technology PLC, Senior Secured Notes		5.250	%		1/15/29		770,000		790,486	(a)

See Notes to Schedule of Investments.

    Western Asset High Yield Fund 2020 Quarterly Report         3

WESTERN ASSET HIGH YIELD FUND

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

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
Hotels, Restaurants & Leisure - (continued)
IRB Holding Corp., Senior Secured Notes		7.000	%		6/15/25		390,000	$	417,017	(a)
Melco Resorts Finance Ltd., Senior Notes		5.375	%		12/4/29		440,000		453,200	(a)
Mohegan Gaming & Entertainment, Senior Notes		7.875	%		10/15/24		1,090,000		1,034,819	(a)
NCL Corp. Ltd., Senior Notes		3.625	%		12/15/24		450,000		309,094	(a)
NCL Corp. Ltd., Senior Secured Notes		12.250	%		5/15/24		840,000		937,125	(a)
NCL Corp. Ltd., Senior Secured Notes		10.250	%		2/1/26		740,000		746,475	(a)
Sands China Ltd., Senior Notes		3.800	%		1/8/26		320,000		339,565	(a)
Scientific Games International Inc., Senior Notes		7.000	%		5/15/28		410,000		402,583	(a)
Silversea Cruise Finance Ltd., Senior Secured Notes		7.250	%		2/1/25		542,000		545,794	(a)
Sugarhouse HSP Gaming Prop Mezz LP/ Sugarhouse HSP Gaming Finance Corp., Senior Secured Notes		5.875	%		5/15/25		280,000		272,620	(a)
Viking Cruises Ltd., Senior Notes		5.875	%		9/15/27		350,000		249,156	(a)
Viking Cruises Ltd., Senior Secured Notes		13.000	%		5/15/25		1,060,000		1,179,250	(a)
VOC Escrow Ltd., Senior Secured Notes		5.000	%		2/15/28		1,800,000		1,498,167	(a)
Wyndham Hotels & Resorts Inc., Senior Notes		4.375	%		8/15/28		320,000		323,064	(a)
Wynn Macau Ltd., Senior Notes		5.625	%		8/26/28		1,430,000		1,440,796	(a)
Wynn Macau Ltd., Senior Notes		5.125	%		12/15/29		320,000		314,968	(a)
Wynn Resorts Finance LLC/Wynn Resorts Capital Corp., Senior Notes		7.750	%		4/15/25		450,000		473,047	(a)
Total Hotels, Restaurants & Leisure									14,668,871
Household Durables - 1.6%
CD&R Smokey Buyer Inc., Senior Secured Notes		6.750	%		7/15/25		230,000		246,388	(a)
Century Communities Inc., Senior Notes		5.875	%		7/15/25		980,000		1,022,772
Installed Building Products Inc., Senior Notes		5.750	%		2/1/28		480,000		508,109	(a)
Lennar Corp., Senior Notes		5.875	%		11/15/24		310,000		347,555
Lennar Corp., Senior Notes		4.750	%		11/29/27		510,000		582,037
TopBuild Corp., Senior Notes		5.625	%		5/1/26		460,000		480,484	(a)
Total Household Durables									3,187,345

See Notes to Schedule of Investments.

    4     Western Asset High Yield Fund 2020 Quarterly Report    

WESTERN ASSET HIGH YIELD FUND

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

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
Specialty Retail - 1.9%
L Brands Inc., Senior Notes		9.375	%		7/1/25		400,000	$	466,420	(a)
L Brands Inc., Senior Notes		5.250	%		2/1/28		620,000		596,573
L Brands Inc., Senior Notes		7.500	%		6/15/29		140,000		149,337
L Brands Inc., Senior Secured Notes		6.875	%		7/1/25		310,000		335,882	(a)
Michaels Stores Inc., Senior Notes		8.000	%		7/15/27		520,000		526,079	(a)
Party City Holdings Inc., Senior Secured Notes (6 mo. USD LIBOR + 5.000%)		5.750	%		7/15/25		169,767		108,226	(a)(c)
PetSmart Inc., Senior Notes		8.875	%		6/1/25		210,000		218,243	(a)
Sally Holdings LLC/Sally Capital Inc., Senior Notes		5.625	%		12/1/25		510,000		518,555
ServiceMaster Co. LLC, Senior Notes		5.125	%		11/15/24		620,000		634,015	(a)
ServiceMaster Co. LLC, Senior Notes		7.450	%		8/15/27		165,000		179,819
Total Specialty Retail									3,733,149
Textiles, Apparel & Luxury Goods - 1.4%
Hanesbrands Inc., Senior Notes		5.375	%		5/15/25		200,000		213,550	(a)
Hanesbrands Inc., Senior Notes		4.875	%		5/15/26		1,140,000		1,243,290	(a)
Levi Strauss & Co., Senior Notes		5.000	%		5/1/25		780,000		800,393
William Carter Co., Senior Notes		5.500	%		5/15/25		210,000		225,462	(a)
William Carter Co., Senior Notes		5.625	%		3/15/27		400,000		421,162	(a)
Total Textiles, Apparel & Luxury Goods									2,903,857
TOTAL CONSUMER DISCRETIONARY									34,731,840
CONSUMER STAPLES - 3.0%
Beverages - 0.2%
Cott Holdings Inc., Senior Notes		5.500	%		4/1/25		460,000		476,100	(a)
Food Products - 2.8%
Kraft Heinz Foods Co., Senior Notes		3.875	%		5/15/27		40,000		42,866	(a)
Kraft Heinz Foods Co., Senior Notes		4.250	%		3/1/31		180,000		199,487	(a)
Kraft Heinz Foods Co., Senior Notes		5.200	%		7/15/45		520,000		592,631
Kraft Heinz Foods Co., Senior Notes		5.500	%		6/1/50		1,150,000		1,365,437	(a)
Lamb Weston Holdings Inc., Senior Notes		4.875	%		11/1/26		760,000		796,932	(a)
Lamb Weston Holdings Inc., Senior Notes		4.875	%		5/15/28		150,000		165,343	(a)
Simmons Foods Inc., Secured Notes		5.750	%		11/1/24		920,000		940,797	(a)
SunOpta Foods Inc., Secured Notes		9.500	%		10/9/22		900,000		923,625	(a)
TreeHouse Foods Inc., Senior Notes		4.000	%		9/1/28		460,000		469,287	(d)
Total Food Products									5,496,405
TOTAL CONSUMER STAPLES									5,972,505

See Notes to Schedule of Investments.

    Western Asset High Yield Fund 2020 Quarterly Report         5

WESTERN ASSET HIGH YIELD FUND

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

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
ENERGY - 10.7%
Energy Equipment & Services - 0.2%
Precision Drilling Corp., Senior Notes		7.125	%		1/15/26		700,000	$	478,492	(a)
Oil, Gas & Consumable Fuels - 10.5%
Antero Midstream Partners LP/Antero
Midstream Finance Corp., Senior Notes		5.375	%		9/15/24		180,000		166,500
Apache Corp., Senior Notes		4.875	%		11/15/27		290,000		297,215
Apache Corp., Senior Notes		5.100	%		9/1/40		600,000		583,143
Berry Petroleum Co. LLC, Senior Notes		7.000	%		2/15/26		390,000		321,188	(a)
Blue Racer Midstream LLC/Blue Racer Finance Corp., Senior Notes		6.625	%		7/15/26		1,150,000		1,016,094	(a)
Cenovus Energy Inc., Senior Notes		3.000	%		8/15/22		540,000		548,934
Cenovus Energy Inc., Senior Notes		5.375	%		7/15/25		260,000		264,914
Cenovus Energy Inc., Senior Notes		6.750	%		11/15/39		100,000		104,305
Cenovus Energy Inc., Senior Notes		5.400	%		6/15/47		60,000		53,890
CNX Midstream Partners LP/CNX Midstream Finance Corp., Senior Notes		6.500	%		3/15/26		300,000		301,512	(a)
Comstock Resources Inc., Senior Notes		7.500	%		5/15/25		440,000		441,100	(a)
Comstock Resources Inc., Senior Notes		9.750	%		8/15/26		490,000		525,329
Continental Resources Inc., Senior Notes		3.800	%		6/1/24		200,000		197,514
Continental Resources Inc., Senior Notes		4.375	%		1/15/28		290,000		276,744
DCP Midstream Operating LP, Senior Notes		6.450	%		11/3/36		210,000		210,902	(a)
DCP Midstream Operating LP, Senior Notes		6.750	%		9/15/37		840,000		843,608	(a)
Endeavor Energy Resources LP/EER Finance Inc., Senior Notes		6.625	%		7/15/25		370,000		385,936	(a)
Endeavor Energy Resources LP/EER Finance Inc., Senior Notes		5.500	%		1/30/26		220,000		220,461	(a)
EQM Midstream Partners LP, Senior Notes		4.000	%		8/1/24		140,000		140,919
EQM Midstream Partners LP, Senior Notes		6.000	%		7/1/25		280,000		297,500	(a)
EQM Midstream Partners LP, Senior Notes		6.500	%		7/1/27		260,000		285,068	(a)
EQM Midstream Partners LP, Senior Notes		5.500	%		7/15/28		560,000		581,207
EQM Midstream Partners LP, Senior Notes		6.500	%		7/15/48		260,000		263,007

See Notes to Schedule of Investments.

    6     Western Asset High Yield Fund 2020 Quarterly Report    

WESTERN ASSET HIGH YIELD FUND

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

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
Oil, Gas & Consumable Fuels - (continued)
EQT Corp., Senior Notes		7.875	%		2/1/25		530,000	$	608,914
MEG Energy Corp., Senior Notes		7.000	%		3/31/24		270,000		268,678	(a)
MEG Energy Corp., Senior Notes		7.125	%		2/1/27		1,260,000		1,208,680	(a)
Montage Resources Corp., Senior Notes		8.875	%		7/15/23		740,000		758,955
NGPL PipeCo LLC, Senior Notes		7.768	%		12/15/37		230,000		280,874	(a)
Oasis Petroleum Inc., Senior Notes		6.875	%		3/15/22		310,000		61,225
Oasis Petroleum Inc., Senior Notes		6.875	%		1/15/23		1,081,000		210,795
Occidental Petroleum Corp., Senior Notes		2.700	%		2/15/23		460,000		443,725
Occidental Petroleum Corp., Senior Notes		2.900	%		8/15/24		870,000		802,027
Occidental Petroleum Corp., Senior Notes		8.875	%		7/15/30		400,000		453,000
Occidental Petroleum Corp., Senior Notes (3 mo. USD LIBOR + 1.450%)		1.730	%		8/15/22		130,000		122,929	(c)
Petrobras Global Finance BV, Senior Notes		7.375	%		1/17/27		470,000		557,773
Petrobras Global Finance BV, Senior Notes		5.750	%		2/1/29		150,000		165,075
Range Resources Corp., Senior Notes		5.000	%		3/15/23		320,000		319,394
Range Resources Corp., Senior Notes		9.250	%		2/1/26		520,000		548,454	(a)(d)
Shelf Drilling Holdings Ltd., Senior Notes		8.250	%		2/15/25		940,000		338,400	(a)
Targa Resources Partners LP/Targa Resources Partners Finance Corp., Senior Notes		4.875	%		2/1/31		590,000		598,189	(a)
TransMontaigne Partners LP/TLP Finance Corp., Senior Notes		6.125	%		2/15/26		230,000		234,931
Viper Energy Partners LP, Senior Notes		5.375	%		11/1/27		250,000		257,848	(a)
Western Midstream Operating LP, Senior Notes		4.000	%		7/1/22		260,000		265,200
Western Midstream Operating LP, Senior Notes		4.100	%		2/1/25		1,000,000		998,710
Western Midstream Operating LP, Senior Notes		3.950	%		6/1/25		120,000		120,263
Western Midstream Operating LP, Senior Notes		5.500	%		8/15/48		710,000		639,000
Williams Cos. Inc., Senior Notes		7.500	%		1/15/31		330,000		435,245
WPX Energy Inc., Senior Notes		8.250	%		8/1/23		770,000		868,210

See Notes to Schedule of Investments.

    Western Asset High Yield Fund 2020 Quarterly Report         7

WESTERN ASSET HIGH YIELD FUND

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

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†			VALUE
Oil, Gas & Consumable Fuels - (continued)
WPX Energy Inc., Senior Notes		5.250	%		10/15/27		200,000		$	199,278
WPX Energy Inc., Senior Notes		5.875	%		6/15/28		660,000			670,738
Total Oil, Gas & Consumable Fuels										20,763,500
TOTAL ENERGY										21,241,992
FINANCIALS - 10.1%
Banks - 4.4%
Bank of America Corp., Junior Subordinated Notes (5.875% to 3/15/28 then 3 mo. USD LIBOR + 2.931%)		5.875	%		3/15/28		250,000			275,054	(c)(e)
Barclays PLC, Junior Subordinated Notes (8.000% to 12/15/20 then EUR 5 year Swap Rate + 6.750%)		8.000	%		12/15/20		520,000	EUR		633,834	(c)(e)
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		460,000			503,452	(c)(e)
Barclays PLC, Subordinated Notes (5.088% to 6/20/29 then 3 mo. USD LIBOR + 3.054%)		5.088	%		6/20/30		1,220,000			1,419,137	(c)
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		340,000			387,632	(a)(c)(e)
CIT Group Inc., Subordinated Notes		6.125	%		3/9/28		200,000			236,462
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		770,000			915,819	(a)(c)(e)
Intesa Sanpaolo SpA, Subordinated Notes		5.017	%		6/26/24		490,000			528,709	(a)
Lions Gate Capital Holdings LLC, Senior Notes		5.875	%		11/1/24		1,030,000			1,041,479	(a)
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		880,000			926,983	(c)(e)
NatWest Markets NV, Subordinated Notes		7.750	%		5/15/23		450,000			511,281

See Notes to Schedule of Investments.

    8     Western Asset High Yield Fund 2020 Quarterly Report    

WESTERN ASSET HIGH YIELD FUND

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

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
Banks - (continued)
UniCredit SpA, Subordinated Notes (5.459% to 6/30/30 then USD 5 year ICE Swap Rate + 4.750%)		5.459	%		6/30/35		840,000	$	871,497	(a)(c)
UniCredit SpA, Subordinated Notes (7.296% to 4/2/29 then USD 5 year ICE Swap Rate + 4.914%)		7.296	%		4/2/34		390,000		456,230	(a)(c)
Total Banks									8,707,569
Capital Markets - 1.3%
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		600,000		653,001	(a)(c)(e)
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		200,000		220,379	(a)(c)(e)
Credit Suisse Group AG, Junior Subordinated Notes (7.500% to 7/17/23 then USD 5 year ICE Swap Rate + 4.600%)		7.500	%		7/17/23		210,000		226,652	(a)(c)(e)
Donnelley Financial Solutions Inc., Senior Notes		8.250	%		10/15/24		500,000		521,822
StoneX Group Inc., Secured Secured Notes		8.625	%		6/15/25		310,000		336,156	(a)
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		570,000		618,134	(a)(c)(e)
Total Capital Markets									2,576,144
Consumer Finance - 0.7%
Ally Financial Inc., Senior Notes		8.000	%		11/1/31		340,000		463,411
FirstCash Inc., Senior Notes		4.625	%		9/1/28		500,000		514,783	(a)
Navient Corp., Senior Notes		5.875	%		10/25/24		420,000		433,125
Navient Corp., Senior Notes		5.000	%		3/15/27		50,000		48,194
Total Consumer Finance									1,459,513
Diversified Financial Services - 2.4%
Alliance Data Systems Corp., Senior Notes		4.750	%		12/15/24		620,000		594,037	(a)
Allied Universal Holdco LLC/Allied Universal Finance Corp., Senior Secured Notes		6.625	%		7/15/26		900,000		966,375	(a)

See Notes to Schedule of Investments.

    Western Asset High Yield Fund 2020 Quarterly Report         9

WESTERN ASSET HIGH YIELD FUND

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

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
Diversified Financial Services - (continued)
ASP AMC Merger Sub Inc., Senior Notes		8.000	%		5/15/25		700,000	$	592,301	(a)
DAE Funding LLC, Senior Notes		5.750	%		11/15/23		1,040,000		1,038,591	(a)
Global Aircraft Leasing Co. Ltd., Senior Notes (6.500% Cash or 7.250% PIK)		6.500	%		9/15/24		2,310,000		1,351,350	(a)(b)
Park Aerospace Holdings Ltd., Senior Notes		4.500	%		3/15/23		260,000		248,288	(a)
Total Diversified Financial Services									4,790,942
Mortgage Real Estate Investment Trusts (REITs) - 0.3%
Ladder Capital Finance Holdings LLLP/ Ladder Capital Finance Corp., Senior Notes		4.250	%		2/1/27		550,000		506,000	(a)
Thrifts & Mortgage Finance - 1.0%
MGIC Investment Corp., Senior Notes		5.250	%		8/15/28		290,000		305,225
NMI Holdings Inc., Senior Secured Notes		7.375	%		6/1/25		760,000		821,602	(a)
Quicken Loans Inc., Senior Notes		5.250	%		1/15/28		870,000		930,169	(a)
Total Thrifts & Mortgage Finance									2,056,996
TOTAL FINANCIALS									20,097,164
HEALTH CARE - 7.7%
Health Care Providers & Services - 4.4%
Centene Corp., Senior Notes		5.375	%		6/1/26		450,000		475,313	(a)
Centene Corp., Senior Notes		5.375	%		8/15/26		450,000		478,267	(a)
Centene Corp., Senior Notes		3.375	%		2/15/30		160,000		166,850
CHS/Community Health Systems Inc., Senior Secured Notes		6.625	%		2/15/25		450,000		461,205	(a)
CHS/Community Health Systems Inc., Senior Secured Notes		8.000	%		3/15/26		920,000		955,420	(a)
HCA Inc., Senior Notes		7.690	%		6/15/25		700,000		842,551
HCA Inc., Senior Notes		5.625	%		9/1/28		400,000		476,436
HCA Inc., Senior Notes		7.500	%		11/15/95		100,000		128,930
LifePoint Health Inc., Senior Secured Notes		4.375	%		2/15/27		340,000		340,000	(a)
MPH Acquisition Holdings LLC, Senior Notes		7.125	%		6/1/24		550,000		559,102	(a)
Radiology Partners Inc., Senior Notes		9.250	%		2/1/28		500,000		533,750	(a)
RegionalCare Hospital Partners Holdings Inc./LifePoint Health Inc., Senior Notes		9.750	%		12/1/26		470,000		509,083	(a)

See Notes to Schedule of Investments.

    10     Western Asset High Yield Fund 2020 Quarterly Report    

WESTERN ASSET HIGH YIELD FUND

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

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
Health Care Providers & Services - (continued)
Surgery Center Holdings Inc., Senior Notes		10.000	%		4/15/27		110,000	$	119,383	(a)
Tenet Healthcare Corp., Senior Notes		8.125	%		4/1/22		10,000		10,808
Tenet Healthcare Corp., Senior Notes		6.750	%		6/15/23		900,000		961,650
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		400,000		415,928	(a)
US Renal Care Inc., Senior Notes		10.625	%		7/15/27		700,000		756,304	(a)
Total Health Care Providers & Services									8,806,372
Pharmaceuticals - 3.3%
AdaptHealth LLC, Senior Notes		6.125	%		8/1/28		510,000		535,500	(a)
Bausch Health Americas Inc., Senior Notes		9.250	%		4/1/26		493,000		546,638	(a)
Bausch Health Americas Inc., Senior Notes		8.500	%		1/31/27		480,000		528,679	(a)
Bausch Health Cos. Inc., Senior Notes		9.000	%		12/15/25		1,547,000		1,695,822	(a)
Bausch Health Cos. Inc., Senior Notes		6.250	%		2/15/29		1,200,000		1,255,728	(a)
HLF Financing Sarl LLC/Herbalife International Inc., Senior Notes		7.250	%		8/15/26		500,000		523,283	(a)
Par Pharmaceutical Inc., Senior Secured Notes		7.500	%		4/1/27		720,000		769,543	(a)
Teva Pharmaceutical Finance Netherlands III BV, Senior Notes		2.800	%		7/21/23		250,000		240,460
Teva Pharmaceutical Finance Netherlands III BV, Senior Notes		6.000	%		4/15/24		200,000		210,465
Teva Pharmaceutical Finance Netherlands III BV, Senior Notes		7.125	%		1/31/25		200,000		216,838	(a)
Total Pharmaceuticals									6,522,956
TOTAL HEALTH CARE									15,329,328
INDUSTRIALS - 5.2%
Aerospace & Defense - 1.0%
Boeing Co., Senior Notes		5.150	%		5/1/30		460,000		516,487
Signature Aviation US Holdings Inc., Senior Notes		5.375	%		5/1/26		500,000		516,453	(a)
TransDigm Inc., Senior Secured Notes		8.000	%		12/15/25		240,000		261,240	(a)
TransDigm Inc., Senior Secured Notes		6.250	%		3/15/26		630,000		665,882	(a)
Total Aerospace & Defense									1,960,062

See Notes to Schedule of Investments.

    Western Asset High Yield Fund 2020 Quarterly Report         11

WESTERN ASSET HIGH YIELD FUND

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

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
Air Freight & Logistics - 0.7%
XPO CNW Inc., Senior Notes		6.700	%		5/1/34		790,000	$	842,950
XPO Logistics Inc., Senior Notes		6.250	%		5/1/25		430,000		459,831	(a)
Total Air Freight & Logistics									1,302,781
Airlines - 0.9%
Continental Airlines Pass-Through Trust		8.388	%		11/1/20		133		138
Delta Air Lines Inc., Senior Notes		7.375	%		1/15/26		670,000		698,146
Mileage Plus Holdings LLC/Mileage Plus Intellectual Property Assets Ltd., Senior Secured Notes		6.500	%		6/20/27		560,000		583,800	(a)
United Airlines Pass-Through Trust		5.375	%		8/15/21		22,432		21,523
United Airlines Pass-Through Trust		4.750	%		4/11/22		517,772		456,145
Total Airlines									1,759,752
Building Products - 0.4%
Builders FirstSource Inc., Senior Notes		5.000	%		3/1/30		220,000		235,344	(a)
Standard Industries Inc., Senior Notes		4.750	%		1/15/28		460,000		485,300	(a)
Total Building Products									720,644
Commercial Services & Supplies - 0.7%
GFL Environmental Inc., Senior Notes		8.500	%		5/1/27		682,000		743,506	(a)
GFL Environmental Inc., Senior Secured Notes		3.750	%		8/1/25		450,000		453,940	(a)
GFL Environmental Inc., Senior Secured Notes		5.125	%		12/15/26		170,000		179,722	(a)
Total Commercial Services & Supplies									1,377,168
Machinery - 0.6%
Clark Equipment Co., Senior Secured Notes		5.875	%		6/1/25		300,000		316,687	(a)
Park-Ohio Industries Inc., Senior Notes		6.625	%		4/15/27		140,000		127,252
Vertical US Newco Inc., Senior Secured Notes		5.250	%		7/15/27		800,000		835,000	(a)
Total Machinery									1,278,939
Trading Companies & Distributors - 0.9%
Ahern Rentals Inc., Secured Notes		7.375	%		5/15/23		400,000		167,458	(a)
United Rentals North America Inc., Senior Notes		5.500	%		5/15/27		30,000		32,189
United Rentals North America Inc., Senior Notes		4.875	%		1/15/28		610,000		644,313
United Rentals North America Inc., Senior Notes		5.250	%		1/15/30		930,000		1,034,597
Total Trading Companies & Distributors									1,878,557
TOTAL INDUSTRIALS									10,277,903

See Notes to Schedule of Investments.

    12     Western Asset High Yield Fund 2020 Quarterly Report    

WESTERN ASSET HIGH YIELD FUND

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

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
INFORMATION TECHNOLOGY - 4.1%
Communications Equipment - 0.9%
CommScope Inc., Senior Notes		8.250	%		3/1/27		1,280,000	$	1,385,529	(a)
CommScope Technologies LLC, Senior Notes		6.000	%		6/15/25		364,000		373,668	(a)
CommScope Technologies LLC, Senior Notes		5.000	%		3/15/27		19,000		18,907	(a)
Total Communications Equipment									1,778,104
IT Services - 0.5%
CDW LLC/CDW Finance Corp., Senior Notes		4.250	%		4/1/28		500,000		523,343
CDW LLC/CDW Finance Corp., Senior Notes		3.250	%		2/15/29		490,000		501,701
Total IT Services									1,025,044
Semiconductors & Semiconductor Equipment - 1.1%
Amkor Technology Inc., Senior Notes		6.625	%		9/15/27		600,000		658,389	(a)
Entegris Inc., Senior Notes		4.375	%		4/15/28		600,000		628,500	(a)
Microchip Technology Inc., Senior Notes		4.250	%		9/1/25		470,000		489,741	(a)
ON Semiconductor Corp., Senior Notes		3.875	%		9/1/28		480,000		502,671	(a)
Total Semiconductors & Semiconductor Equipment									2,279,301
Software - 1.5%
ACI Worldwide Inc., Senior Notes		5.750	%		8/15/26		150,000		158,203	(a)
Black Knight InfoServ LLC, Senior Notes		3.625	%		9/1/28		530,000		538,120	(a)
BY Crown Parent LLC/BY Bond Finance Inc., Senior Secured Notes		4.250	%		1/31/26		220,000		225,066	(a)
CDK Global Inc., Senior Notes		5.875	%		6/15/26		410,000		431,601
Fair Isaac Corp., Senior Notes		4.000	%		6/15/28		430,000		447,221	(a)
j2 Cloud Services LLC/j2 Cloud Co-Obligor Inc., Senior Notes		6.000	%		7/15/25		500,000		521,275	(a)
Open Text Corp., Senior Notes		3.875	%		2/15/28		300,000		309,084	(a)
Open Text Holdings Inc., Senior Notes		4.125	%		2/15/30		240,000		249,266	(a)
Total Software									2,879,836
Technology Hardware, Storage & Peripherals - 0.1%
NCR Corp., Senior Notes		5.250	%		10/1/30		230,000		233,567	(a)
TOTAL INFORMATION TECHNOLOGY									8,195,852
MATERIALS - 6.3%
Chemicals - 0.6%
Anagram International Inc./Anagram Holdings LLC, Secured Notes (5.000% Cash and 5.000% PIK)		10.000	%		8/15/26		91,767		78,002	(a)(b)

See Notes to Schedule of Investments.

    Western Asset High Yield Fund 2020 Quarterly Report         13

WESTERN ASSET HIGH YIELD FUND

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

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
Chemicals - (continued)
FXI Holdings Inc., Senior Secured Notes		7.875	%		11/1/24		560,000	$	544,944	(a)
Olin Corp., Senior Notes		5.000	%		2/1/30		560,000		541,696
Total Chemicals									1,164,642
Construction Materials - 0.4%
Summit Materials LLC/Summit Materials Finance Corp., Senior Notes		5.250	%		1/15/29		860,000		904,144	(a)
Containers & Packaging - 2.9%
ARD Finance SA, Senior Secured Notes (6.500% Cash or 7.250% PIK)		6.500	%		6/30/27		650,000		668,688	(a)(b)
Ardagh Packaging Finance PLC/Ardagh Holdings USA Inc., Senior Notes		6.000	%		2/15/25		900,000		939,600	(a)
Ardagh Packaging Finance PLC/Ardagh Holdings USA Inc., Senior Notes		5.250	%		8/15/27		700,000		728,966	(a)
Ball Corp., Senior Notes		2.875	%		8/15/30		1,010,000		1,010,252
Cascades Inc./Cascades USA Inc., Senior Notes		5.125	%		1/15/26		10,000		10,552	(a)
Cascades Inc./Cascades USA Inc., Senior Notes		5.375	%		1/15/28		630,000		672,950	(a)
Flex Acquisition Co. Inc., Senior Notes		7.875	%		7/15/26		800,000		841,676	(a)
Greif Inc., Senior Notes		6.500	%		3/1/27		800,000		853,852	(a)
Total Containers & Packaging									5,726,536
Metals & Mining - 2.3%
First Quantum Minerals Ltd., Senior Notes		7.250	%		4/1/23		250,000		254,444	(a)
First Quantum Minerals Ltd., Senior Notes		6.500	%		3/1/24		400,000		399,042	(a)
First Quantum Minerals Ltd., Senior Notes		7.500	%		4/1/25		370,000		377,874	(a)
Freeport-McMoRan Inc., Senior Notes		4.625	%		8/1/30		280,000		299,744
Freeport-McMoRan Inc., Senior Notes		5.450	%		3/15/43		1,750,000		1,968,207
Hudbay Minerals Inc., Senior Notes		7.625	%		1/15/25		380,000		394,987	(a)
Northwest Acquisitions ULC/Dominion Finco Inc., Secured Notes		7.125	%		11/1/22		1,150,000		19,838	*(a)(f)
Teck Resources Ltd., Senior Notes		5.200	%		3/1/42		860,000		858,523
Total Metals & Mining									4,572,659
Paper & Forest Products - 0.1%
Mercer International Inc., Senior Notes		7.375	%		1/15/25		200,000		206,000
TOTAL MATERIALS									12,573,981

See Notes to Schedule of Investments.

    14     Western Asset High Yield Fund 2020 Quarterly Report    

WESTERN ASSET HIGH YIELD FUND

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

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
REAL ESTATE - 4.6%
Equity Real Estate Investment Trusts (REITs) - 3.2%
CoreCivic Inc., Senior Notes		5.000	%		10/15/22		280,000	$	276,784
CoreCivic Inc., Senior Notes		4.625	%		5/1/23		180,000		171,563
Diversified Healthcare Trust, Senior Notes		9.750	%		6/15/25		670,000		747,961
ESH Hospitality Inc., Senior Notes		4.625	%		10/1/27		530,000		530,652	(a)
GEO Group Inc., Senior Notes		6.000	%		4/15/26		1,830,000		1,409,100
Iron Mountain Inc., Senior Notes		5.000	%		7/15/28		470,000		488,217	(a)
MPT Operating Partnership LP/MPT Finance Corp., Senior Notes		4.625	%		8/1/29		600,000		641,508
Realogy Group LLC/Realogy Co-Issuer Corp., Secured Notes		7.625	%		6/15/25		720,000		758,437	(a)
VICI Properties LP/VICI Note Co. Inc., Senior Notes		4.125	%		8/15/30		950,000		951,188	(a)
XHR LP, Senior Secured Notes		6.375	%		8/15/25		360,000		369,900	(a)
Total Equity Real Estate Investment Trusts (REITs)									6,345,310
Real Estate Management & Development - 1.4%
Five Point Operating Co. LP/Five Point
Capital Corp., Senior Notes		7.875	%		11/15/25		980,000		987,953	(a)
Forestar Group Inc., Senior Notes		8.000	%		4/15/24		690,000		734,777	(a)
Forestar Group Inc., Senior Notes		5.000	%		3/1/28		690,000		698,780	(a)
Howard Hughes Corp., Senior Notes		5.375	%		8/1/28		390,000		397,069	(a)
Total Real Estate Management & Development									2,818,579
TOTAL REAL ESTATE									9,163,889
UTILITIES - 0.9%
Electric Utilities - 0.9%
Calpine Corp., Senior Notes		5.000	%		2/1/31		600,000		628,257	(a)
Sensata Technologies Inc., Senior Notes		4.375	%		2/15/30		380,000		401,861	(a)
Talen Energy Supply LLC, Senior Notes		10.500	%		1/15/26		400,000		322,162	(a)
Talen Energy Supply LLC, Senior Secured Notes		6.625	%		1/15/28		400,000		402,140	(a)
Total Electric Utilities									1,754,420
Independent Power and Renewable Electricity Producers - 0.0%††
Pattern Energy Operations LP/Pattern Energy Operations Inc., Senior Notes		4.500	%		8/15/28		80,000		84,392	(a)
TOTAL UTILITIES									1,838,812
TOTAL CORPORATE BONDS & NOTES (Cost - $161,502,773)									168,381,844

See Notes to Schedule of Investments.

    Western Asset High Yield Fund 2020 Quarterly Report         15

WESTERN ASSET HIGH YIELD FUND

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

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
SENIOR LOANS - 6.2%
COMMUNICATION SERVICES - 0.3%
Entertainment - 0.3%
Allen Media LLC, Initial Term Loan (3 mo. USD LIBOR + 5.500%)		5.808	%		2/10/27		619,176	$	598,279	(c)(g)(h)
CONSUMER DISCRETIONARY - 1.5%
Auto Components - 0.3%
Panther BF Aggregator 2 LP, First Lien Initial Dollar Term Loan (1 mo. USD LIBOR + 3.500%)		3.658	%		4/30/26		575,650		565,936	(c)(g)(h)
Hotels, Restaurants & Leisure - 0.6%
Equinox Holdings Inc., Term Loan B2 (3 mo. USD LIBOR + 9.000%)		10.000	%		3/8/24		450,000		447,750	(c)(g)(h)(i)
Mohegan Tribal Gaming Authority, Term Loan B		5.750-7.375	%		10/13/23		736,083		670,756	(c)(g)(h)
Total Hotels, Restaurants & Leisure									1,118,506
Specialty Retail - 0.6%
Michaels Stores Inc., 2018 New Replacement Term Loan B		3.500-3.568	%		1/30/23		248,574		239,330	(c)(g)(h)
PetSmart Inc., Term Loan B2 (3 mo. USD LIBOR + 4.000%)		5.000	%		3/11/22		393,919		393,967	(c)(g)(h)
Spencer Spirit IH LLC, Initial Term Loan (3 mo. USD LIBOR + 6.000%)		6.245	%		6/19/26		760,617		678,850	(c)(g)(h)
Total Specialty Retail									1,312,147
TOTAL CONSUMER DISCRETIONARY									2,996,589
ENERGY - 0.2%
Oil, Gas & Consumable Fuels - 0.2%
Chesapeake Energy Corp., Term Loan A (3 mo. USD LIBOR + 8.000%)		0.000	%		6/24/24		650,000		431,235	*(c)(f)(g)(h)
Permian Production Partners LLC, Initial Term Loan (3 mo. USD LIBOR + 6.000%)		6.250	%		5/20/24		494,000		37,050	(c)(g)(h)(i)
TOTAL ENERGY									468,285
FINANCIALS - 0.8%
Diversified Financial Services - 0.5%
Deerfield Dakota Holding LLC, Second Lien Initial Term Loan (1 mo. USD LIBOR + 8.000%)		9.000	%		4/7/28		600,000		598,500	(c)(g)(h)(i)
Jane Street Group LLC, Dollar Term Loan (1 mo. USD LIBOR + 3.000%)		3.156	%		1/31/25		395,995		391,664	(c)(g)(h)
Total Diversified Financial Services									990,164

See Notes to Schedule of Investments.

    16     Western Asset High Yield Fund 2020 Quarterly Report    

WESTERN ASSET HIGH YIELD FUND

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

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
Insurance - 0.3%
Acrisure LLC, 2020 Term Loan B (1 mo. USD LIBOR + 3.500%)		3.656	%		2/15/27		558,600	$	537,722	(c)(g)(h)
AmeriLife Holdings LLC, Delayed Draw Term A Loan		—			3/18/27		19,318		19,125	(i)
AmeriLife Holdings LLC, First Lien Term Loan (1 mo. USD LIBOR + 4.000%)		4.156	%		3/18/27		150,682		149,175	(c)(g)(h)(i)
Total Insurance									706,022
TOTAL FINANCIALS									1,696,186
HEALTH CARE - 1.4%
Health Care Providers & Services - 1.4%
EyeCare Partners LLC, First Lien Initial Delayed Draw Term Loan		—			2/18/27		107,838		100,990	(j)
EyeCare Partners LLC, First Lien Initial Term Loan (3 mo. USD LIBOR + 3.750%)		4.822	%		2/18/27		461,007		431,733	(c)(g)(h)
EyeCare Partners LLC, Second Lien Initial Term Loan (3 mo. USD LIBOR + 8.250%)		8.558	%		2/4/28		410,000		383,965	(c)(g)(h)
Option Care Health Inc., First Lien Term Loan B (1 mo. USD LIBOR + 4.500%)		4.656	%		8/6/26		746,250		744,696	(c)(g)(h)
Radnet Management Inc., First Lien Term Loan B1 (3mo. USDLIBOR + 3.750%)		4.750	%		6/30/23		580,452		578,275	(c)(g)(h)(i)
U.S. Renal Care Inc., First Lien Term Loan B (1 mo. USD LIBOR + 5.000%)		5.188	%		6/26/26		552,009		540,624	(c)(g)(h)
TOTAL HEALTH CARE									2,780,283
INDUSTRIALS - 1.2%
Airlines - 1.2%
Delta Air Lines Inc., Initial Term Loan (3 mo. USD LIBOR + 4.750%)		5.750	%		4/27/23		1,090,000		1,089,488	(c)(g)(h)(j)
JetBlue Airways Corp., Term Loan (3 mo. USD LIBOR + 5.250%)		6.250	%		6/17/24		710,000		710,000	(c)(g)(h)(j)
Mileage Plus Holdings Inc., Initial Term Loan (3 mo. USD LIBOR + 5.250%)		6.250	%		6/20/27		490,000		494,515	(c)(g)(h)
TOTAL INDUSTRIALS									2,294,003
INFORMATION TECHNOLOGY - 0.5%
Communications Equipment - 0.3%
Global Tel Link Corp., First Lien Term Loan (1 mo. USD LIBOR + 4.250%)		4.406	%		11/29/25		781,560		682,522	(c)(g)(h)

See Notes to Schedule of Investments.

    Western Asset High Yield Fund 2020 Quarterly Report         17

WESTERN ASSET HIGH YIELD FUND

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

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
IT Services - 0.2%
Science Applications International Corp., Term Loan B2 (1 mo. USD LIBOR + 2.250%)		2.406	%		3/13/27		311,250	$	309,823	(c)(g)(h)
TOTAL INFORMATION TECHNOLOGY									992,345
REAL ESTATE - 0.3%
Equity Real Estate Investment Trusts (REITs) - 0.3%
Corecivic Inc., Term Loan (1 mo. USD LIBOR + 4.500%)		5.500	%		12/12/24		526,500		520,577	(c)(g)(h)
TOTAL SENIOR LOANS (Cost - $13,206,386)									12,346,547
ASSET-BACKED SECURITIES - 4.8%
Ares XLII CLO Ltd., 2017-42A D (3 mo. USD LIBOR + 3.450%)		3.708	%		1/22/28		890,000		839,945	(a)(c)
Benefit Street Partners CLO XII Ltd., 2017-12A C (3 mo. USD LIBOR + 3.050%)		3.325	%		10/15/30		250,000		233,010	(a)(c)(k)
BlueMountain CLO Ltd., 2012-2A ER2 (3 mo. USD LIBOR + 5.750%)		6.003	%		11/20/28		350,000		284,836	(a)(c)
BlueMountain CLO Ltd., 2015-2A ER (3 mo. USD LIBOR + 5.200%)		5.472	%		7/18/27		250,000		189,847	(a)(c)
BlueMountain CLO Ltd., 2016-2A DR (3 mo. USD LIBOR + 7.790%)		8.043	%		8/20/32		350,000		314,827	(a)(c)
Carlyle US CLO Ltd., 2017-2A C (3 mo. USD LIBOR + 3.700%)		3.972	%		7/20/31		500,000		481,595	(a)(c)
Catskill Park CLO Ltd., 2017-1A D (3 mo. USD LIBOR + 6.000%)		6.272	%		4/20/29		600,000		534,477	(a)(c)
Cent CLO 24 Ltd., 2015-24A CR (3 mo. USD LIBOR + 3.150%)		3.425	%		10/15/26		360,000		332,947	(a)(c)
Cook Park CLO Ltd., 2018-1A E (3 mo. USD LIBOR + 5.400%)		5.673	%		4/17/30		250,000		213,262	(a)(c)
Cumberland Park CLO Ltd., 2015-2A ER (3 mo. USD LIBOR + 5.650%)		5.922	%		7/20/28		750,000		652,256	(a)(c)
CVP CLO Ltd., 2017-2A D (3 mo. USD LIBOR + 2.650%)		2.922	%		1/20/31		250,000		229,201	(a)(c)
Greenwood Park CLO Ltd., 2018-1A D (3 mo. USD LIBOR + 2.500%)		2.775	%		4/15/31		350,000		324,396	(a)(c)
Greenwood Park CLO Ltd., 2018-1A E (3 mo. USD LIBOR + 4.950%)		5.225	%		4/15/31		250,000		208,226	(a)(c)
Greywolf CLO IV Ltd., 2019-1A C (3 mo. USD LIBOR + 3.950%)		4.223	%		4/17/30		370,000		350,979	(a)(c)
Halsey Point CLO I Ltd., 2019-1A E (3 mo. USD LIBOR + 7.700%)		7.972	%		1/20/33		350,000		322,868	(a)(c)

See Notes to Schedule of Investments.

    18     Western Asset High Yield Fund 2020 Quarterly Report    

WESTERN ASSET HIGH YIELD FUND

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

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
ASSET-BACKED SECURITIES - (continued)
Jackson Mill CLO Ltd., 2015-1A DR (3 mo. USD LIBOR + 2.800%)		3.075	%		4/15/27		600,000	$	562,714	(a)(c)
LCM XXII Ltd., 22A DR (3 mo. USD LIBOR + 5.500%)		5.772	%		10/20/28		350,000		274,771	(a)(c)
Oaktree CLO Ltd., 2015-1A DR (3 mo. USD LIBOR + 5.200%)		5.472	%		10/20/27		250,000		185,922	(a)(c)
OZLM XIX Ltd., 2017-19A C (3 mo. USD LIBOR + 3.100%)		3.375	%		11/22/30		800,000		739,789	(a)(c)
Saranac CLO III Ltd., 2014-3A DR (3 mo. USD LIBOR + 3.250%)		3.556	%		6/22/30		596,630		528,068	(a)(c)
TICP CLO VI Ltd., 2016-6A DR (3 mo. USD LIBOR + 3.300%)		3.575	%		1/15/29		890,000		872,129	(a)(c)
Venture XVII CLO Ltd., 2014-17A DRR (3 mo. USD LIBOR + 2.820%)		3.095	%		4/15/27		350,000		301,447	(a)(c)
Venture XVII CLO Ltd., 2014-17A ERR (3 mo. USD LIBOR + 5.740%)		6.015	%		4/15/27		350,000		250,148	(a)(c)
Zais CLO 16 Ltd., 2020-16A D1 (3 mo. USD LIBOR + 5.480%)		5.721	%		10/20/31		250,000		235,000	(a)(c)(d)
TOTAL ASSET-BACKED SECURITIES (Cost - $10,354,581)									9,462,660
CONVERTIBLE BONDS & NOTES - 0.9%
COMMUNICATION SERVICES - 0.3%
Entertainment - 0.1%
Live Nation Entertainment Inc., Senior Notes		2.000	%		2/15/25		170,000		153,850	(a)
Media - 0.2%
DISH Network Corp., Senior Notes		2.375	%		3/15/24		410,000		387,169
DISH Network Corp., Senior Notes		3.375	%		8/15/26		110,000		108,765
Total Media									495,934
TOTAL COMMUNICATION SERVICES									649,784
ENERGY - 0.1%
Oil, Gas & Consumable Fuels - 0.1%
Cheniere Energy Inc., Senior Notes		4.250	%		3/15/45		240,000		162,744
FINANCIALS - 0.2%
Mortgage Real Estate Investment Trusts (REITs) - 0.2%
Apollo Commercial Real Estate Finance Inc., Senior Notes		4.750	%		8/23/22		470,000		435,599
INFORMATION TECHNOLOGY - 0.3%
Electronic Equipment, Instruments & Components - 0.2%
Vishay Intertechnology Inc., Senior Notes		2.250	%		6/15/25		450,000		439,953

See Notes to Schedule of Investments.

    Western Asset High Yield Fund 2020 Quarterly Report         19

WESTERN ASSET HIGH YIELD FUND

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

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
Software - 0.1%
Alteryx Inc., Senior Notes		1.000	%		8/1/26		100,000	$	101,843
TOTAL INFORMATION TECHNOLOGY									541,796
TOTAL CONVERTIBLE BONDS & NOTES (Cost - $1,820,669)									1,789,923
						SHARES
COMMON STOCKS - 0.6%
COMMUNICATION SERVICES - 0.0%††
Media - 0.0%††
New Cotai LLC/New Cotai Capital Corp., Class B Shares							6		0	*(i)(l)(m)
CONSUMER DISCRETIONARY - 0.0%††
Specialty Retail - 0.0%††
Party City Holdings Inc.							17,276		47,335	*(l)
ENERGY - 0.6%
Energy Equipment & Services - 0.0%††
Hercules Offshore Inc. (Escrow)							54,577		44,584	*(i)(l)
KCAD Holdings I Ltd.							424,046,710		0	*(i)(l)(m)
Total Energy Equipment & Services									44,584
Oil, Gas & Consumable Fuels - 0.6%
Berry Corp.							230,726		909,060
Montage Resources Corp.							38,435		198,325	*
MWO Holdings LLC							621		47,625	*(i)(l)
Total Oil, Gas & Consumable Fuels									1,155,010
TOTAL ENERGY									1,199,594
TOTAL COMMON STOCKS (Cost - $12,376,328)									1,246,929
						FACE AMOUNT†
SOVEREIGN BONDS - 0.5%
Argentina - 0.5%
Argentine Republic Government International Bond, Senior Notes		6.875	%		4/22/21		160,000		77,840	*(f)
Argentine Republic Government International Bond, Senior Notes		5.625	%		1/26/22		240,000		115,200	*(f)
Argentine Republic Government International Bond, Senior Notes		7.500	%		4/22/26		250,000		114,925	*(f)
Argentine Republic Government International Bond, Senior Notes		6.875	%		1/26/27		330,000		148,008	*(f)

See Notes to Schedule of Investments.

    20     Western Asset High Yield Fund 2020 Quarterly Report    

WESTERN ASSET HIGH YIELD FUND

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

SECURITY	RATE			MATURITY DATE		FACE AMOUNT†		VALUE
Argentina - (continued)
Provincia de Buenos Aires, Senior Notes		9.950	%		6/9/21		450,000	$	218,250	*(f)(n)
Provincia de Buenos Aires, Senior Notes		7.875	%		6/15/27		680,000		323,007	*(f)(n)
TOTAL SOVEREIGN BONDS (Cost - $2,001,052)									997,230
						SHARES
PREFERRED STOCKS - 0.1%
FINANCIALS - 0.1%
Capital Markets - 0.1%
B Riley Financial Inc. (Cost - $230,000)		6.875	%				9,200		229,080
TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS (Cost - $201,491,789)									194,454,213
SHORT-TERM INVESTMENTS - 0.7%
Western Asset Premier Institutional Government Reserves, Premium Shares (Cost - $1,451,102)		0.055	%				1,451,102		1,451,102	(k)
TOTAL INVESTMENTS - 98.5% (Cost - $202,942,891)									195,905,315
Other Assets in Excess of Liabilities - 1.5%									2,956,836
TOTAL NET ASSETS - 100.0%								$	198,862,151

See Notes to Schedule of Investments.

    Western Asset High Yield Fund 2020 Quarterly Report         21

WESTERN ASSET HIGH YIELD FUND

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

† 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) 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.

(c) 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.

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

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

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

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

(h) 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.

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

(j) 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.

(k) 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 August 31, 2020, the total market value of investments in Affiliated Companies was $1,684,112 and the cost was $1,649,735 (Note 2).

(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) 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.

Abbreviation(s) used in this schedule:

CLO	— Collateralized Loan Obligation
EUR	— Euro
ICE	— Intercontinental Exchange
LIBOR	— London Interbank Offered Rate
PIK	— Payment-In-Kind
USD	— United States Dollar

See Notes to Schedule of Investments.

    22     Western Asset High Yield Fund 2020 Quarterly Report    

WESTERN ASSET HIGH YIELD FUND

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

At August 31, 2020, the Fund had the following open futures contracts:

	Number of Contracts		Expiration Date		Notional Amount		Market Value		Unrealized Appreciation
Contracts to Buy:
U.S. Treasury 5-Year Notes		128		12/20	$	16,111,952	$	16,132,000	$	20,048
Contracts to Sell:
U.S. Treasury 10-Year Notes		39		12/20		5,435,880		5,430,750		5,130
Net unrealized appreciation on open futures contracts									$	25,178

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	2,970,847		USD	2,259,985	BNP Paribas SA		10/16/20	$	17,925
USD	2,177,231		CAD	2,980,000	BNP Paribas SA		10/16/20		(107,697	)
USD	146,135		EUR	130,000	BNP Paribas SA		10/16/20		(9,157	)
USD	146,343		EUR	130,000	BNP Paribas SA		10/16/20		(8,949	)
USD	146,725		EUR	130,000	BNP Paribas SA		10/16/20		(8,568	)
USD	214,559		EUR	190,000	BNP Paribas SA		10/16/20		(12,407	)
Total								$	(128,853	)

Abbreviation(s) used in this table:

CAD	— Canadian Dollar
EUR	— Euro
USD	— United States Dollar

At August 31, 2020, the Fund had the following open swap contract:

CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CORPORATE ISSUES - SELL PROTECTION1
REFERENCE ENTITY	NOTIONAL AMOUNT2		TERMINATION DATE		IMPLIED CREDIT SPREAD AT AUGUST 31, 20203			PERIODIC PAYMENTS RECEIVED BY THE FUND†	MARKET VALUE		UPFRONT PREMIUMS PAID (RECEIVED)			UNREALIZED APPRECIATION
Ford Motor Credit Co. LLC, 3.810%, due 1/9/24	$	647,000		6/20/23		5.000	%	5.000% quarterly	$	44,172	$	(38,348	)	$	82,520

See Notes to Schedule of Investments.

    Western Asset High Yield Fund 2020 Quarterly Report         23

WESTERN ASSET HIGH YIELD FUND

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

¹  If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

²  The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

³  Implied credit spreads, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues as of period end, serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced entity or obligation.

† Percentage shown is an annual percentage rate.

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.

    24     Western Asset High Yield Fund 2020 Quarterly Report    

Notes to Schedule of Investments (unaudited)

1. Organization and significant accounting policies

Western Asset High Yield Fund (the “Fund”) is a separate diversified investment series of Western Asset Funds, Inc. (the “Corporation”). The Corporation, a Maryland corporation, is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company.

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. Futures contracts are valued daily at the settlement price established by the board of trade or exchange on which they are traded. 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 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.

25

Notes to Schedule of Investments (unaudited) (continued)

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.

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.

26

Notes to Schedule of Investments (unaudited) (continued)

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		—	$	168,381,844		—		$	168,381,844
Senior Loans:
Consumer Discretionary		—		2,548,839	$	447,750			2,996,589
Energy		—		431,235		37,050			468,285
Financials		—		929,386		766,800			1,696,186
Health Care		—		2,202,008		578,275			2,780,283
Other Senior Loans		—		4,405,204		—			4,405,204
Asset-Backed Securities		—		9,462,660		—			9,462,660
Convertible Bonds & Notes		—		1,789,923		—			1,789,923
Common Stocks:
Communication Services		—		—		0	*		0	*
Consumer Discretionary		—		47,335		—			47,335
Energy	$	1,107,385		—		92,209			1,199,594
Sovereign Bonds		—		997,230		—			997,230
Preferred Stocks		229,080		—		—			229,080
Total Long-Term Investments	$	1,336,465	$	191,195,664	$	1,922,084		$	194,454,213
Short-Term Investments†		1,451,102		—		—			1,451,102
Total Investments	$	2,787,567	$	191,195,664	$	1,922,084		$	195,905,315
Other Financial Instruments:
Futures Contracts	$	25,178		—		—		$	25,178
Forward Foreign Currency Contracts		—	$	17,925		—			17,925
Centrally Cleared Credit Default Swaps on Corporate Issues - Sell Protection		—		82,520		—			82,520
Total Other Financial Instruments	$	25,178	$	100,445		—		$	125,623
Total	$	2,812,745	$	191,296,109	$	1,922,084		$	196,030,938
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		—	$	146,778		—		$	146,778

† See Schedule of Investments for additional detailed categorizations.

* Amount represents less than $1.

2. Transactions with affiliated companies

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

27

Notes to Schedule of Investments (unaudited) (continued)

or control with the Fund. The Fund invested in Western Asset Premier Institutional Government Reserves, Premium Shares, an affiliated registered money market fund managed by Western Asset Management Company, LLC, the Fund’s subadviser. Benefit Street Partners is a wholly-owned subsidiary of Franklin Resources. The following companies were considered affiliated companies for all or some portion of the period ended August 31, 2020. The following transactions were effected in such companies for the period ended August 31, 2020.

	Affiliate Value at May 31, 2020
			Purchased				Sold
			Cost		Shares/ Face amount		Cost		Shares/ Face amount
Benefit Street Partners CLO XII Ltd., 2017-12A C	$	220,567		—		—		—		—
Western Asset Premier Institutional Government Reserves, Premium Shares		745,581	$	22,143,361		22,143,361	$	21,437,840		21,437,840
	$	966,148	$	22,143,361			$	21,437,840

(cont’d)	Realized Gain (Loss)		Interest Income		Net Increase (Decrease) in Unrealized Appreciation (Depreciation)		Affiliate Value at August 31, 2020
Benefit Street Partners CLO XII Ltd., 2017-12A C		—	$	4,438	$	12,443	$	233,010
Western Asset Premier Institutional Government Reserves, Premium Shares		—		345		—		1,451,102
		—	$	4,783	$	12,443	$	1,684,112

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