DMO

Western Asset Mortgage Opportunity Fund

DMO

Market cap $136M

Overview Fund Activity

11.93 USD

+0.02

0.17%

At close Updated Sep 15, 4:00 PM EDT

1 day

0.17%

5 days

0.42%

1 month

0.59%

3 months

0.08%

6 months

0.42%

Year to date

1.45%

1 year

-1%

5 years

-12.47%

10 years

-51.86%

About: Western Asset Mortgage Defined Opportunity Fund Inc is a non-diversified, limited-term, closed-end management investment company. The fund's primary investment objective is to provide current income. As a secondary investment objective, the Fund will seek capital appreciation. The Fund seeks to achieve its investment objectives by investing in a diverse portfolio of mortgage-backed securities, consisting of non-agency residential mortgage-backed securities and commercial mortgage-backed securities.

Financials Asset Management

0

Funds holding %

of 7,463 funds

–

Analysts bullish %

Fund manager confidence

Based on 2025 Q2 regulatory disclosures by fund managers ($100M+ AUM)

45% more repeat investments, than reductions

Existing positions increased: 16 | Existing positions reduced: 11

0.82% less ownership

Funds ownership: 22.34% [Q1] → 21.52% (-0.82%) [Q2]

3% less capital invested

Capital invested by funds: $30.1M [Q1] → $29.2M (-$857K) [Q2]

12% less funds holding

Funds holding: 42 [Q1] → 37 (-5) [Q2]

67% less first-time investments, than exits

New positions opened: 2 | Existing positions closed: 6

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Financial journalist opinion

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.

DMO: Same Concerns Exist, But Now Unattractively Priced

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.

DMO: Don't Be Fooled By The High Yield

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

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

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

CEF Insights: Building Income With Mortgage Securities

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

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

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

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

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.

CEF Weekly Review: Saba/BlackRock Feud Escalates

CEF Weekly Review: Western Asset Is Doing A Nuveen

We review CEF market valuation and performance through the last week of June and highlight recent market action. CEFs were mostly up on the week with MLP and Hybrid sectors leading the way. Western Asset Global Corporate Defined Opportunity Fund holding a tender offer for all shares at NAV, following Nuveen's approach.

CEF Weekly Review: Western Asset Is Doing A Nuveen

DMO: Another Distribution Hike For This 13.2%-Yielding Mortgage CEF

Western Asset Mortgage Opportunity Fund has increased its distribution for the fourth consecutive time. DMO primarily allocates to non-agency residential mortgages, with a smaller holding in commercial mortgages. The fund's net income has been steadily rising, driven by floating-rate holdings and increased borrowings.

Western Asset Mortgage Opportunity Fund Inc. Announces Financial Position as of March 31, 2024

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

Western Asset Mortgage Opportunity Fund Inc. Announces Financial Position as of March 31, 2024

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