In plain terms — Western Asset Mortgage Opportunity Fund
Shares currently cost about 10.6% less than the value of the assets behind them (a discount).
Over the past year it has averaged a 5.2% discount, so today's level is somewhat wide for this fund (Z-score -1.6). That describes the past; it does not predict where the discount goes next.
It pays regular distributions worth about 15.0% a year of the share price (13.4% of the assets). That is a payout rate, not a return: part of it may be capital being handed back.
Because the shares trade below the value of their assets, each dollar of reinvested distributions buys about $1.12 of assets — a ReinvestCapture™ rate of 16.8%, more than the payout rate itself. That is buying power, not a return.
The assets themselves grew 2.7% over the past year including distributions (NAV total return).
Guided view hides the statistical panels. Switch to Expert view in the grey bar to see them. Nothing here is advice.
Price and NAV, past year
Snapshot
Valuation vs. history
| Window | Average prem/disc | Std. dev. | Z-score | Observations |
|---|---|---|---|---|
| 3 months | -8.78% | 2.51% | -0.69 | 64 |
| 6 months | -6.73% | 2.90% | -1.30 | 126 |
| 1 year | -5.19% | 3.31% | -1.61 | 250 |
| 3 years | -3.89% | — | — | — |
| 5 years | -5.95% | — | — | — |
Current contemporaneous premium/discount -10.51% (close Oct 14, 2026 vs NAV Oct 13, 2026). 1-year range -13.36% to +1.78%. A negative Z-score means a wider discount than the window average — not that the fund is undervalued.
Performance
| Series | 1M | 3M | YTD | 1Y | 3Y (ann.) | 5Y (ann.) |
|---|---|---|---|---|---|---|
| Market price return | -2.55% | -10.74% | -13.56% | -20.40% | -3.38% | -9.77% |
| Market price total return | -1.32% | -7.50% | -4.36% | -9.00% | +10.18% | +1.81% |
| NAV return | -2.09% | -4.87% | -7.96% | -9.59% | -3.44% | -7.06% |
| NAV total return | -1.01% | -1.73% | +1.19% | +2.66% | +9.58% | +4.14% |
Through Oct 14, 2026. Total return reinvests distributions at the series value on the ex-date. Cumulative ≤ 1 year, annualised beyond.
About the fund
Western Asset Mortgage Opportunity Fund Inc. is a closed ended fixed income mutual fund launched and managed by Legg Mason Partners Fund Advisor, LLC. The fund is co-managed Western Asset Management Company and Western Asset Management Company Limited. It invests in the fixed income markets of the United States. The fund invests primarily in mortgage-backed securities. It employs intensive proprietary research to create its portfolio. The fund benchmarks the performance of its portfolio against the BofA Merrill Lynch U.S. Floating Rate Home Equity Loan Asset Backed Securities Index. Western Asset Mortgage Opportunity Fund Inc. was formed on December 11, 2009 and is domiciled in the United States.
CEF Explorer research page for Western Asset Mortgage Opportunity Fund Inc.. Figures carry their own dates and sources; a discount to NAV does not guarantee convergence or any return. This is not investment advice.