DMO: Distribution Trim Doesn't Push The Discount Wide Enough

Western Asset Mortgage Opportunity Fund remains unappealing due to a shallow discount and persistent lack of distribution coverage, even after a recent distribution cut. DMO's high leverage amplifies returns but also increases volatility, raising risk for investors in lower credit quality investments. DMO could be appealing if the discount widened significantly, particularly with the distribution coverage gap growing; there should be a wider discount to compensate for that.

Seeking Alpha • Dec 8, 2025

Western Asset Mortgage Opportunity Fund Inc. Announces Financial Position as of September 30, 2025

NEW YORK--(BUSINESS WIRE)--Category: Financials.

Business Wire • Nov 24, 2025

Western Asset Mortgage Opportunity Fund Inc. Announces Results of Annual Meeting of Stockholders

NEW YORK--(BUSINESS WIRE)--Category: Fund Announcement.

Business Wire • Oct 21, 2025

DMO: Same Concerns Exist, But Now Unattractively Priced

DMO offers a high yield and a differentiated mortgage-focused portfolio, but distribution coverage has weakened. The fund's previous deep discount has disappeared, making it fairly valued and removing a reason why it could be considered appealing previously. On a brighter note, the fund is one of the best in terms of total returns over the long run in its peer group.

Seeking Alpha • Aug 26, 2025

DMO: Don't Be Fooled By The High Yield

DMO offers a compelling 13.45% yield, far outpacing major bond indices, and most peers, but primarily invests in lower-quality, below-investment-grade mortgages. The fund's high leverage amplifies both returns and volatility; while total returns outperformed indices, net asset value, and share price have declined over time. Commercial mortgages remain troubled, and this could weigh on the fund's net asset value for the next few years.

Seeking Alpha • May 30, 2025

Western Asset Mortgage Opportunity Fund Inc. Announces Financial Position as of March 31, 2025

NEW YORK--(BUSINESS WIRE)--Category: Financials.

Business Wire • May 19, 2025

CEF Insights: Building Income With Mortgage Securities

Mortgage securities' diversification benefits and potential for higher yields with reduced volatility make them an attractive option for income-oriented investors. Discover Western Asset Management's unique approach to the strategy with the Western Asset Mortgage Opportunities Fund (DMO). Greg Handler, Portfolio Manager and Head of Mortgage and Consumer Credit with Western Asset Management shares outlook for the 2025 fixed income sector and more.

Seeking Alpha • Jan 16, 2025

Western Asset Mortgage Opportunity Fund Inc. Announces Financial Position as of September 30, 2024

NEW YORK--(BUSINESS WIRE)--Category: Financials.

Business Wire • Nov 14, 2024

DMO: Back To Fair Value And A 12% Yield (Rating Downgrade)

Western Asset Mortgage Opportunity Fund has outperformed since its initial "Buy" rating. The fund has reached fair value, and future returns will primarily come from dividends. DMO remains focused on non-agency RMBS bonds and GSE risk transfer securities, which carry credit risk.

Seeking Alpha • Oct 11, 2024

CEF Weekly Review: Saba/BlackRock Feud Escalates

We review CEF market valuation and performance through the first week of July and highlight recent market action. All CEF sectors finished the week in the green, with fixed-income CEF sector discounts now expensive and equity CEF sector discounts somewhat cheap. Saba and BlackRock came out with differing press releases on the latest proxy votes over board membership and termination of CEFs.

Seeking Alpha • Jul 14, 2024