WDI: Very High Yield, But Might Not Be A Good Long-Term Holding The Western Asset Diversified Incom...

WDI: Very High Yield, But Might Not Be A Good Long-Term Holding The Western Asset Diversified Income Fund offers a 15.10% yield but faces significant questions about distribution sustainability. WDI's net asset value has declined 9.42% YTD, indicating distributions exceed sustainable earnings and raising concerns about capital erosion. Although WDI covers distributions with net investment income, realized and unrealized losses undermine long-term sustainability, especially amid bond market headwinds.