Schedule of Investments (unaudited)
July 31, 2026
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 Western Asset High Income Fund II Inc.

(Percentages shown based on Fund net assets) 
Security
 
Rate
Maturity
Date
Face
Amount†
Value
Corporate Bonds & Notes — 108.9%
Communication Services — 18.1%
Diversified Telecommunication Services — 6.0%
Altice Financing SA, Senior Secured Notes
5.000%
1/15/28
2,240,000
 
 $1,420,148
 (a)
Altice Financing SA, Senior Secured Notes
5.750%
8/15/29
4,500,000
 
2,843,419
 (a)(b)
Altice France Lux 3/Altice Holdings 1, Senior Notes
10.000%
1/15/33
934,000
 
917,549
 (a)
Altice France SA, Senior Secured Notes
9.500%
11/1/29
920,455
 
933,919
 (a)
Altice France SA, Senior Secured Notes
6.500%
4/15/32
1,905,489
 
1,845,737
 (a)
Altice France SA, Senior Secured Notes
6.875%
7/15/32
396,342
 
385,042
 (a)
Galaxy Helios Data Centers II LLC, Senior Secured Notes
9.875%
8/1/31
3,510,000
 
3,523,251
 (a)(b)
Level 3 Financing Inc., Senior Notes
8.500%
1/15/36
2,480,000
 
2,582,156
 (a)(b)
Telecom Argentina SA, Senior Notes
9.500%
7/18/31
920,000
 
997,418
 (a)
Telecom Argentina SA, Senior Notes
9.250%
5/28/33
1,100,000
 
1,180,334
 (a)
Turk Telekomunikasyon AS, Senior Notes
7.375%
5/20/29
1,670,000
 
1,692,846
 (a)
WULF Compute LLC, Senior Secured Notes
7.750%
10/15/30
2,060,000
 
2,142,116
 (a)(b)
Yondr JK 1 LLC, Senior Secured Notes
6.875%
6/30/31
1,410,000
 
1,344,292
 (a)(b)
Total Diversified Telecommunication Services
21,808,227
 
Entertainment — 1.2%
Discovery Global Holdings Inc., Senior Notes
5.050%
3/15/42
3,700,000
 
2,580,750
 
Discovery Global Holdings Inc., Senior Notes
5.141%
3/15/52
610,000
 
389,223
 
OAK-Eagle Acquireco Inc., Senior Notes
8.750%
7/1/34
320,000
 
337,309
 (a)
OAK-Eagle Acquireco Inc., Senior Secured Notes
6.250%
7/1/33
620,000
 EUR
749,027
 (a)
Pioneer Opco LLC, Senior Secured Notes
7.000%
5/15/33
400,000
 
404,365
 (a)(b)
Total Entertainment
4,460,674
 
Media — 6.3%
CCO Holdings LLC/CCO Holdings Capital Corp., Senior
Notes
4.500%
6/1/33
1,500,000
 
1,277,383
 (a)(b)
CCO Holdings LLC/CCO Holdings Capital Corp., Senior
Notes
4.250%
1/15/34
900,000
 
735,762
 (a)(b)
CCO Holdings LLC/CCO Holdings Capital Corp., Senior
Notes
7.375%
2/1/36
4,940,000
 
4,703,002
 (a)(b)
Charter Communications Operating LLC/Charter
Communications Operating Capital Corp., Senior Secured
Notes
3.850%
4/1/61
1,080,000
 
590,277
 (b)
Clear Channel Outdoor Holdings Inc., Senior Secured
Notes
7.125%
2/15/31
1,260,000
 
1,300,427
 (a)
DirecTV Financing LLC/DirecTV Financing Co-Obligor Inc.,
Senior Secured Notes
10.000%
2/15/31
1,350,000
 
1,411,951
 (a)
DirecTV Financing LLC/DirecTV Financing Co-Obligor Inc.,
Senior Secured Notes
9.250%
6/1/32
2,560,000
 
2,622,106
 (a)
DISH DBS Corp., Senior Notes
5.125%
6/1/29
1,520,000
 
1,378,701
 *(c)
EchoStar Corp., Senior Secured Notes
10.750%
11/30/29
5,051,707
 
5,467,173
 (b)
Getty Images Inc., Senior Secured Notes
11.250%
2/21/30
160,000
 
125,631
 (a)
Nexstar Media Inc., Senior Secured Notes
6.500%
9/15/33
1,350,000
 
1,344,255
 (a)(b)
Versant Media Group Inc., Senior Secured Notes
7.250%
1/30/31
1,090,000
 
1,124,476
 (a)(b)
VZ Secured Financing BV, Senior Secured Notes
7.500%
1/15/33
800,000
 
719,109
 (a)(b)
Total Media
22,800,253
 
See Notes to Schedule of Investments.
1
Western Asset High Income Fund II Inc. 2026 Quarterly Report
Schedule of Investments (unaudited) (cont’d)
July 31, 2026
 Western Asset High Income Fund II Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
Wireless Telecommunication Services — 4.6%
CSC Holdings LLC, Senior Notes
11.250%
5/15/28
770,000
 
 $449,139
 (a)(b)
CSC Holdings LLC, Senior Notes
11.750%
1/31/29
740,000
 
424,043
 (a)(b)
CSC Holdings LLC, Senior Notes
6.500%
2/1/29
2,220,000
 
1,258,820
 (a)(b)
CSC Holdings LLC, Senior Notes
5.750%
1/15/30
2,330,000
 
503,862
 (a)
CSC Holdings LLC, Senior Notes
4.125%
12/1/30
5,430,000
 
3,041,649
 (a)
Sprint Capital Corp., Senior Notes
6.875%
11/15/28
2,200,000
 
2,296,685
 (b)
Sprint Capital Corp., Senior Notes
8.750%
3/15/32
5,170,000
 
6,017,278
 
Vmed O2 UK Financing I PLC, Senior Secured Notes
4.250%
1/31/31
350,000
 
278,911
 (a)
Vmed O2 UK Financing I PLC, Senior Secured Notes
4.750%
7/15/31
2,950,000
 
2,335,392
 (a)(b)
Total Wireless Telecommunication Services
16,605,779
 
 
Total Communication Services
65,674,933
Consumer Discretionary — 19.7%
Automobile Components — 3.1%
American Axle & Manufacturing Inc., Senior Notes
7.750%
10/15/33
2,410,000
 
2,374,927
 (a)
Clarios Global LP/Clarios US Finance Co., Senior Secured
Notes
6.750%
2/15/30
1,300,000
 
1,333,683
 (a)(b)
Garrett Motion Holdings Inc./Garrett LX I Sarl, Senior
Notes
7.750%
5/31/32
840,000
 
873,707
 (a)(b)
JB Poindexter & Co. Inc., Senior Notes
8.750%
12/15/31
2,210,000
 
2,279,856
 (a)
ZF North America Capital Inc., Senior Notes
6.750%
4/23/30
840,000
 
834,246
 (a)(b)
ZF North America Capital Inc., Senior Notes
7.500%
3/24/31
1,450,000
 
1,461,134
 (a)(b)
ZF North America Capital Inc., Senior Notes
6.875%
4/23/32
2,210,000
 
2,172,517
 (a)(b)
Total Automobile Components
11,330,070
 
Automobiles — 2.0%
Aston Martin Capital Holdings Ltd., Senior Secured Notes
10.375%
3/31/29
1,300,000
 GBP
964,184
 (a)
Ford Motor Credit Co. LLC, Senior Notes
7.350%
3/6/30
410,000
 
431,382
 (b)
Ford Motor Credit Co. LLC, Senior Notes
3.625%
6/17/31
1,110,000
 
1,007,699
 (b)
PM General Purchaser LLC, Senior Secured Notes
9.500%
10/1/28
5,750,000
 
4,841,270
 (a)(b)
Total Automobiles
7,244,535
 
Broadline Retail — 0.8%
Marks & Spencer PLC, Senior Notes
7.125%
12/1/37
2,240,000
 
2,393,080
 (a)(b)
Prosus NV, Senior Notes
4.193%
1/19/32
600,000
 
563,834
 (d)
Total Broadline Retail
2,956,914
 
Diversified Consumer Services — 0.2%
IPD 3 BV, Senior Secured Notes
5.500%
6/15/31
320,000
 EUR
355,961
 (a)
IPD 3 BV, Senior Secured Notes (3 mo. EURIBOR +
3.375%)
5.776%
6/15/31
230,000
 EUR
262,175
 (a)(e)
Total Diversified Consumer Services
618,136
 
Hotels, Restaurants & Leisure — 8.3%
Carnival Ltd., Senior Notes
1.000%
10/28/29
6,990,000
 EUR
7,418,369
 (b)
Full House Resorts Inc., Senior Secured Notes
8.250%
2/15/28
3,770,000
 
3,688,983
 (a)(b)
Gaia Purchaser Inc., Senior Secured Notes
7.625%
7/15/33
730,000
 
732,628
 (a)
Melco Resorts Finance Ltd., Senior Notes
5.375%
12/4/29
1,240,000
 
1,199,622
 (a)(b)
Melco Resorts Finance Ltd., Senior Notes
6.500%
9/24/33
1,210,000
 
1,168,670
 (a)(b)
NCL Finance Ltd., Senior Notes
6.125%
3/15/28
3,000,000
 
3,019,617
 (a)(b)
Pinnacle Bidco PLC, Senior Secured Notes
10.000%
10/11/28
1,900,000
 GBP
2,651,542
 (a)(b)
See Notes to Schedule of Investments.
2
Western Asset High Income Fund II Inc. 2026 Quarterly Report
 Western Asset High Income Fund II Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
 
Hotels, Restaurants & Leisure — continued
Rivers Enterprise Borrower LLC, Senior Secured Notes
6.250%
10/15/30
1,830,000
 
 $1,838,916
 (a)(b)
Sands China Ltd., Senior Notes
2.850%
3/8/29
2,620,000
 
2,477,292
 (b)
Wynn Macau Ltd., Senior Notes
5.625%
8/26/28
2,250,000
 
2,225,112
 (a)(b)
Wynn Macau Ltd., Senior Notes
5.125%
12/15/29
800,000
 
776,397
 (a)
Wynn Resorts Finance LLC/Wynn Resorts Capital Corp.,
Senior Notes
5.125%
10/1/29
2,170,000
 
2,154,075
 (a)(b)
Wynn Resorts Finance LLC/Wynn Resorts Capital Corp.,
Senior Notes
7.125%
2/15/31
510,000
 
534,726
 (a)
Total Hotels, Restaurants & Leisure
29,885,949
 
Household Durables — 0.6%
Dream Finders Homes Inc., Senior Notes
6.875%
9/15/30
1,360,000
 
1,328,569
 (a)(b)
Newell Brands Inc., Senior Notes
8.500%
6/1/28
820,000
 
856,342
 (a)
Total Household Durables
2,184,911
 
Specialty Retail — 4.7%
Gee Automotive Holdings LLC, Senior Notes
7.250%
3/1/31
1,340,000
 
1,351,095
 (a)
Global Auto Holdings Ltd./AAG FH UK Ltd., Senior Notes
11.500%
8/15/29
1,500,000
 
1,578,093
 (a)(b)
Global Auto Holdings Ltd./AAG FH UK Ltd., Senior Notes
8.750%
1/15/32
2,480,000
 
2,408,008
 (a)(b)
Michaels Cos. Inc., Secured Notes
11.000%
3/15/34
5,950,000
 
5,829,100
 (a)(b)
Petco Health & Wellness Co. Inc., Senior Secured Notes
8.250%
2/1/31
1,380,000
 
1,385,444
 (a)
PetSmart LLC/PetSmart Finance Corp., Senior Notes
10.000%
9/15/33
1,310,000
 
1,304,353
 (a)(b)
Sally Holdings LLC/Sally Capital Inc., Senior Notes
6.750%
4/1/32
1,840,000
 
1,876,065
 (b)
Upbound Group Inc., Senior Notes
6.375%
2/15/29
1,418,000
 
1,408,425
 (a)(b)
Total Specialty Retail
17,140,583
 
 
Total Consumer Discretionary
71,361,098
Consumer Staples — 1.4%
Beverages — 0.6%
Central American Bottling Corp./CBC Bottling Holdco
SL/Beliv Holdco SL, Senior Notes
5.250%
4/27/29
2,150,000
 
2,103,661
 (a)(b)
Food Products — 0.8%
Grupo Nutresa SA, Senior Notes
8.000%
5/12/30
1,410,000
 
1,488,960
 (a)(b)
TKC Holdings Inc., Senior Secured Notes
8.500%
8/15/30
1,460,000
 
1,493,360
 (a)(b)
Total Food Products
2,982,320
 
 
Total Consumer Staples
5,085,981
Energy — 20.2%
Energy Equipment & Services — 1.6%
Beusa Investments LLC, Senior Notes
7.000%
8/1/31
1,260,000
 
1,232,059
 (a)(b)
Nabors Industries Inc., Senior Notes
8.875%
8/15/31
1,920,000
 
1,976,984
 (a)(b)
Oceaneering International Inc., Senior Notes
6.875%
7/15/34
990,000
 
1,013,466
 (a)(b)
WBI Operating LLC, Senior Notes
6.500%
10/15/33
1,520,000
 
1,518,222
 (a)
Total Energy Equipment & Services
5,740,731
 
Oil, Gas & Consumable Fuels — 18.6%
Blue Racer Midstream LLC/Blue Racer Finance Corp.,
Senior Notes
7.250%
7/15/32
500,000
 
513,957
 (a)
Chord Energy Corp., Senior Notes
6.000%
10/1/30
260,000
 
260,972
 (a)(b)
Chord Energy Corp., Senior Notes
6.750%
3/15/33
2,350,000
 
2,394,892
 (a)(b)
Continental Resources Inc., Senior Notes
4.375%
1/15/28
240,000
 
238,237
 (b)
See Notes to Schedule of Investments.
3
Western Asset High Income Fund II Inc. 2026 Quarterly Report
Schedule of Investments (unaudited) (cont’d)
July 31, 2026
 Western Asset High Income Fund II Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
 
Oil, Gas & Consumable Fuels — continued
Crescent Energy Finance LLC, Senior Notes
7.375%
1/15/33
740,000
 
 $743,849
 (a)(b)
Crescent Energy Finance LLC, Senior Notes
8.375%
1/15/34
2,590,000
 
2,673,841
 (a)
Ecopetrol SA, Senior Notes
5.875%
5/28/45
2,350,000
 
1,868,067
 (b)
Ecopetrol SA, Senior Notes
5.875%
11/2/51
1,360,000
 
1,050,253
 (b)
Energy Transfer LP, Junior Subordinated Notes (6.500% to
11/15/26 then 5 year Treasury Constant Maturity Rate +
5.694%)
6.500%
8/17/26
950,000
 
950,266
 (e)(f)
Energy Transfer LP, Junior Subordinated Notes (6.625% to
2/15/28 then 3 mo. Term SOFR + 4.417%)
6.625%
2/15/28
751,000
 
754,040
 (e)(f)
Granite Ridge Resources Inc., Senior Notes
8.875%
11/5/29
3,440,000
 
3,370,211
 (a)(b)
Hilcorp Energy I LP/Hilcorp Finance Co., Senior Notes
8.375%
11/1/33
20,000
 
20,994
 (a)
Howard Midstream Energy Partners LLC, Senior Notes
7.375%
7/15/32
1,360,000
 
1,406,668
 (a)(b)
Kinder Morgan Inc., Senior Notes
7.750%
1/15/32
1,950,000
 
2,189,828
 (b)
New Generation Gas Gathering LLC, Senior Secured
Notes (3 mo. Term SOFR + 5.750%)
9.501%
9/30/29
927,027
 
933,451
 (a)(e)(g)(h)
NGPL PipeCo LLC, Senior Notes
7.768%
12/15/37
1,900,000
 
2,155,740
 (a)(b)
Northern Oil & Gas Inc., Senior Notes
7.875%
10/15/33
1,810,000
 
1,812,744
 (a)(b)
Occidental Petroleum Corp., Senior Notes
6.200%
3/15/40
1,330,000
 
1,342,001
 (b)
Petrobras Global Finance BV, Senior Notes
6.750%
1/27/41
5,620,000
 
5,517,013
 (b)
Petroleos del Peru SA, Senior Notes
4.750%
6/19/32
1,750,000
 
1,502,830
 (a)
Petroleos del Peru SA, Senior Notes
5.625%
6/19/47
1,000,000
 
716,695
 (a)
Petroleos Mexicanos, Senior Notes
6.500%
6/2/41
1,000,000
 
870,314
 
Petroleos Mexicanos, Senior Notes
6.375%
1/23/45
5,220,000
 
4,280,462
 (b)
Rockies Express Pipeline LLC, Senior Notes
6.750%
3/15/33
470,000
 
478,125
 (a)(b)
Saturn Oil & Gas Inc., Senior Notes
8.500%
7/30/31
2,160,000
 
2,167,327
 (a)
Summit Midstream Holdings LLC, Senior Secured Notes
8.625%
10/31/29
620,000
 
644,218
 (a)(b)
Sunoco LP, Junior Subordinated Notes (7.875% to
9/18/30 then 5 year Treasury Constant Maturity Rate +
4.230%)
7.875%
9/18/30
2,551,000
 
2,616,581
 (a)(b)(e)(f)
Venture Global LNG Inc., Junior Subordinated Notes
(9.000% to 9/30/29 then 5 year Treasury Constant
Maturity Rate + 5.440%)
9.000%
9/30/29
4,900,000
 
4,883,463
 (a)(b)(e)(f)
Venture Global LNG Inc., Senior Secured Notes
9.875%
2/1/32
2,290,000
 
2,439,177
 (a)(b)
Venture Global Plaquemines LNG LLC, Senior Secured
Notes
6.500%
6/15/34
1,040,000
 
1,073,156
 (a)(b)
Venture Global Plaquemines LNG LLC, Senior Secured
Notes
7.750%
5/1/35
960,000
 
1,064,517
 (a)(b)
Venture Global Plaquemines LNG LLC, Senior Secured
Notes
6.750%
1/15/36
740,000
 
774,944
 (a)(b)
Vermilion Energy Inc., Senior Notes
6.875%
5/1/30
1,110,000
 
1,105,789
 (a)(b)
Western Midstream Operating LP, Senior Notes
5.300%
3/1/48
1,540,000
 
1,290,074
 (b)
Western Midstream Operating LP, Senior Notes
5.250%
2/1/50
7,627,000
 
6,360,135
 (i)
Williams Cos. Inc., Senior Notes
7.500%
1/15/31
780,000
 
860,808
 (b)
Williams Cos. Inc., Senior Notes
5.750%
6/24/44
3,900,000
 
3,725,972
 (i)
YPF SA, Senior Notes
6.950%
7/21/27
670,000
 
673,902
 (a)
Total Oil, Gas & Consumable Fuels
67,725,513
 
 
Total Energy
73,466,244
See Notes to Schedule of Investments.
4
Western Asset High Income Fund II Inc. 2026 Quarterly Report
 Western Asset High Income Fund II Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
 
Financials — 12.1%
Banks — 4.9%
Banco Santander SA, Junior Subordinated Notes (7.250%
to 6/3/36 then 5 year Treasury Constant Maturity Rate +
2.837%)
7.250%
12/3/35
1,400,000
 
 $1,404,529
 (e)(f)
Banco Santander SA, Junior Subordinated Notes (9.625%
to 11/21/33 then 5 year Treasury Constant Maturity Rate
+ 5.298%)
9.625%
5/21/33
1,000,000
 
1,167,324
 (b)(e)(f)
BNP Paribas SA, Junior Subordinated Notes (7.200% to
4/17/36 then 5 year Treasury Constant Maturity Rate +
2.942%)
7.200%
4/17/36
700,000
 
695,343
 (a)(e)(f)
BNP Paribas SA, Junior Subordinated Notes (7.750% to
8/16/29 then 5 year Treasury Constant Maturity Rate +
4.899%)
7.750%
8/16/29
2,620,000
 
2,734,837
 (a)(b)(e)(f)
Citigroup Inc., Junior Subordinated Notes (6.625% to
2/15/31 then 5 year Treasury Constant Maturity Rate +
3.001%)
6.625%
2/15/31
680,000
 
683,539
 (e)(f)
Citigroup Inc., Junior Subordinated Notes (6.875% to
8/15/30 then 5 year Treasury Constant Maturity Rate +
2.890%)
6.875%
8/15/30
330,000
 
333,407
 (b)(e)(f)
HSBC Holdings PLC, Junior Subordinated Notes (6.750%
to 5/18/33 then 5 year Treasury Constant Maturity Rate +
2.513%)
6.750%
11/18/32
2,670,000
 
2,651,408
 (b)(e)(f)
HSBC Holdings PLC, Subordinated Notes (8.113% to
11/3/32 then SOFR + 4.250%)
8.113%
11/3/33
1,730,000
 
1,952,513
 (b)(e)
JPMorgan Chase & Co., Junior Subordinated Notes
(6.100% to 7/1/31 then 5 year Treasury Constant Maturity
Rate + 2.080%)
6.100%
7/1/31
880,000
 
876,859
 (b)(e)(f)
Lloyds Banking Group PLC, Junior Subordinated Notes
(8.000% to 3/27/30 then 5 year Treasury Constant
Maturity Rate + 3.913%)
8.000%
9/27/29
4,320,000
 
4,560,412
 (b)(e)(f)
Ueno Bank SA, Senior Notes
6.700%
3/6/31
920,000
 
845,728
 (a)
Total Banks
17,905,899
 
Capital Markets — 1.8%
B3 SA - Brasil Bolsa Balcao, Senior Notes
4.125%
9/20/31
1,500,000
 
1,390,162
 (a)(b)
Credit Suisse AG AT1 Claim
—
—
14,780,000
 
0
 *(g)(h)(j)
Goldman Sachs Group Inc., Junior Subordinated Notes
(6.500% to 8/10/31 then 5 year Treasury Constant
Maturity Rate + 2.175%)
6.500%
8/10/31
1,150,000
 
1,141,934
 (e)(f)
StoneX Escrow Issuer LLC, Secured Notes
6.875%
7/15/32
1,000,000
 
1,015,755
 (a)(b)
StoneX Group Inc., Secured Notes
7.875%
3/1/31
1,540,000
 
1,605,087
 (a)(b)
UBS Group AG, Junior Subordinated Notes (9.250% to
11/13/28 then 5 year Treasury Constant Maturity Rate +
4.745%)
9.250%
11/13/28
1,440,000
 
1,542,899
 (a)(b)(e)(f)
Total Capital Markets
6,695,837
 
Consumer Finance — 0.8%
FirstCash Inc., Senior Notes
6.875%
3/1/32
790,000
 
802,339
 (a)(b)
Midcap Financial Issuer Trust, Junior Subordinated Notes
(3 mo. Term SOFR + 3.750%)
7.503%
1/15/56
1,930,000
 
1,913,316
 (a)(e)
Total Consumer Finance
2,715,655
 
See Notes to Schedule of Investments.
5
Western Asset High Income Fund II Inc. 2026 Quarterly Report
Schedule of Investments (unaudited) (cont’d)
July 31, 2026
 Western Asset High Income Fund II Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
 
Financial Services — 2.1%
Capstone Borrower Inc., Senior Secured Notes
8.000%
6/15/30
610,000
 
 $593,968
 (a)
Jane Street Group/JSG Finance Inc., Senior Secured
Notes
7.125%
4/30/31
2,030,000
 
2,096,204
 (a)(b)
Rocket Cos. Inc., Senior Notes
6.125%
8/1/30
540,000
 
544,672
 (a)(b)
Rocket Cos. Inc., Senior Notes
6.500%
6/15/34
1,010,000
 
1,019,246
 (a)(b)
VFH Parent LLC/Valor Co-Issuer Inc., Senior Secured
Notes
7.500%
6/15/31
1,190,000
 
1,234,845
 (a)(b)
VistaJet Malta Finance PLC/Vista Management
Holding Inc., Senior Notes
6.375%
2/1/30
970,000
 
916,218
 (a)(b)
VistaJet Malta Finance PLC/Vista Management
Holding Inc., Senior Notes
8.750%
1/15/32
1,310,000
 
1,290,704
 (a)(b)
Total Financial Services
7,695,857
 
Insurance — 1.4%
Acrisure LLC/Acrisure Finance Inc., Senior Secured Notes
6.750%
7/1/32
540,000
 
496,617
 (a)(b)
APH Somerset Investor 2 LLC/APH2 Somerset Investor 2
LLC/APH3 Somerset Investor 2 LLC, Senior Notes
7.875%
11/1/29
1,300,000
 
1,317,635
 (a)
Asurion LLC/Asurion Co-Issuer Inc., Senior Secured Notes
8.000%
12/31/32
2,080,000
 
2,105,867
 (a)
MetLife Capital Trust IV, Junior Subordinated Notes
7.875%
12/15/37
1,100,000
 
1,198,970
 (a)(b)
Total Insurance
5,119,089
 
Mortgage Real Estate Investment Trusts (REITs) — 1.1%
Arbor Realty SR Inc., Senior Notes
8.500%
12/15/28
2,160,000
 
2,072,492
 (a)(b)
Starwood Property Trust Inc., Senior Notes
7.250%
4/1/29
1,820,000
 
1,877,607
 (a)(b)
Total Mortgage Real Estate Investment Trusts (REITs)
3,950,099
 
 
Total Financials
44,082,436
Health Care — 8.1%
Health Care Providers & Services — 4.2%
CHS/Community Health Systems Inc., Secured Notes
6.875%
4/15/29
2,570,000
 
2,480,681
 (a)(b)
CHS/Community Health Systems Inc., Secured Notes
6.125%
4/1/30
610,000
 
514,499
 (a)
CHS/Community Health Systems Inc., Senior Secured
Notes
10.875%
1/15/32
2,448,000
 
2,585,201
 (a)
CHS/Community Health Systems Inc., Senior Secured
Notes
9.750%
1/15/34
1,110,000
 
1,125,886
 (a)
HCA Inc., Senior Notes
7.500%
11/15/95
2,205,000
 
2,292,982
 (b)
LifePoint Health Inc., Senior Secured Notes
7.000%
5/1/34
1,690,000
 
1,579,779
 (a)
Sotera Health Holdings LLC, Senior Secured Notes
7.375%
6/1/31
1,290,000
 
1,337,611
 (a)(b)
TEAM Services Holding Inc., Senior Secured Notes
9.000%
2/15/33
1,260,000
 
1,276,899
 (a)
Tenet Healthcare Corp., Senior Notes
6.875%
11/15/31
1,810,000
 
1,921,974
 (b)
Total Health Care Providers & Services
15,115,512
 
Pharmaceuticals — 3.9%
1261229 BC Ltd., Senior Secured Notes
10.000%
4/15/32
5,232,000
 
5,352,666
 (a)
Bausch Health Americas Inc., Senior Notes
8.500%
1/31/27
650,000
 
646,750
 (a)
Bausch Health Cos. Inc., Senior Notes
6.250%
2/15/29
310,000
 
243,737
 (a)
Bausch Health Cos. Inc., Senior Secured Notes
4.875%
6/1/28
1,060,000
 
986,586
 (a)(b)
Teva Pharmaceutical Finance Netherlands III BV, Senior
Notes
3.150%
10/1/26
2,500,000
 
2,492,535
 (b)
Teva Pharmaceutical Finance Netherlands III BV, Senior
Notes
5.125%
5/9/29
2,700,000
 
2,693,505
 (b)
See Notes to Schedule of Investments.
6
Western Asset High Income Fund II Inc. 2026 Quarterly Report
 Western Asset High Income Fund II Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
 
Pharmaceuticals — continued
Teva Pharmaceutical Finance Netherlands III BV, Senior
Notes
6.000%
12/1/32
1,380,000
 
 $1,406,468
 (b)
Teva Pharmaceutical Finance Netherlands III BV, Senior
Notes
4.100%
10/1/46
480,000
 
354,073
 (b)
Total Pharmaceuticals
14,176,320
 
 
Total Health Care
29,291,832
Industrials — 11.5%
Aerospace & Defense — 0.4%
Bombardier Inc., Senior Notes
7.250%
7/1/31
500,000
 
521,410
 (a)(b)
TransDigm Inc., Senior Secured Notes
6.750%
8/15/28
1,000,000
 
1,007,511
 (a)(b)
Total Aerospace & Defense
1,528,921
 
Air Freight & Logistics — 0.5%
GB AIT Buyer Inc., Senior Notes
8.750%
4/30/34
1,640,000
 
1,629,727
 (a)
Building Products — 0.7%
Masterbrand Inc., Senior Notes
7.000%
7/15/32
520,000
 
520,687
 (a)(b)
Quikrete Holdings Inc., Senior Secured Notes
6.375%
3/1/32
1,960,000
 
1,985,478
 (a)
Total Building Products
2,506,165
 
Commercial Services & Supplies — 3.4%
CoreCivic Inc., Senior Notes
8.250%
4/15/29
3,310,000
 
3,438,521
 (b)
GEO Group Inc., Senior Notes
10.250%
4/15/31
2,080,000
 
2,244,382
 
GEO Group Inc., Senior Secured Notes
8.625%
4/15/29
990,000
 
1,032,716
 (b)
Neptune Bidco US Inc., Senior Secured Notes
10.375%
5/15/31
1,160,000
 
1,215,511
 (a)(b)
Neptune Bidco US Inc., Senior Secured Notes
9.500%
2/15/33
1,860,000
 
1,897,059
 (a)
RR Donnelley & Sons Co., Senior Secured Notes
9.500%
8/1/29
2,530,000
 
2,624,308
 (a)
Total Commercial Services & Supplies
12,452,497
 
Construction & Engineering — 1.4%
Arcosa Inc., Senior Notes
6.875%
8/15/32
640,000
 
660,447
 (a)(b)
ATP Tower Holdings/Andean Telecom Partners Chile
SpA/Andean Tower Partners Colombia SAS, Senior
Secured Notes
7.875%
2/3/30
1,700,000
 
1,736,732
 (a)
Tutor Perini Corp., Senior Notes
6.625%
7/15/33
2,700,000
 
2,712,268
 (a)
Total Construction & Engineering
5,109,447
 
Ground Transportation — 0.5%
Carriage Purchaser Inc., Senior Notes
7.875%
10/15/29
1,950,000
 
1,929,442
 (a)(b)
Machinery — 0.5%
Columbus McKinnon Corp., Senior Secured Notes
7.125%
2/1/33
610,000
 
615,078
 (a)
Park-Ohio Industries Inc., Senior Secured Notes
8.500%
8/1/30
1,240,000
 
1,296,606
 (a)
Total Machinery
1,911,684
 
Passenger Airlines — 1.3%
American Airlines Inc., Senior Secured Notes
7.250%
2/15/28
3,380,000
 
3,410,440
 (a)(b)
JetBlue Airways Corp./JetBlue Loyalty LP, Senior Secured
Notes
9.875%
9/20/31
1,370,000
 
1,193,536
 (a)
Total Passenger Airlines
4,603,976
 
Trading Companies & Distributors — 2.7%
ADI Escrow Issuer LLC, Senior Notes
7.125%
7/15/34
620,000
 
633,605
 (a)
EquipmentShare.com Inc., Secured Notes
8.625%
5/15/32
650,000
 
665,586
 (a)(b)
See Notes to Schedule of Investments.
7
Western Asset High Income Fund II Inc. 2026 Quarterly Report
Schedule of Investments (unaudited) (cont’d)
July 31, 2026
 Western Asset High Income Fund II Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
 
Trading Companies & Distributors — continued
EquipmentShare.com Inc., Secured Notes
8.000%
3/15/33
1,910,000
 
 $1,926,143
 (a)(b)
EquipmentShare.com Inc., Secured Notes
7.125%
7/1/34
2,790,000
 
2,668,292
 (a)(b)
Herc Holdings Inc., Senior Notes
7.000%
6/15/30
790,000
 
815,382
 (a)(b)
Herc Holdings Inc., Senior Notes
7.250%
6/15/33
1,060,000
 
1,094,636
 (a)(b)
QXO Building Products Inc., Senior Notes
6.875%
7/15/34
1,060,000
 
1,062,389
 (a)(b)
United Rentals North America Inc., Senior Notes
6.125%
3/15/34
810,000
 
820,459
 (a)(b)
Total Trading Companies & Distributors
9,686,492
 
Transportation Infrastructure — 0.1%
Aeropuertos Dominicanos Siglo XXI SA, Senior Secured
Notes
7.000%
6/30/34
400,000
 
410,296
 (a)
 
Total Industrials
41,768,647
Information Technology — 7.1%
Communications Equipment — 1.5%
Connect Finco SARL/Connect US Finco LLC, Senior
Secured Notes
9.000%
9/15/29
5,010,000
 
5,261,650
 (a)(b)
IT Services — 2.8%
APLD ComputeCo 3 LLC, Senior Secured Notes
7.000%
6/15/31
1,920,000
 
1,874,928
 (a)(b)
APLD ComputeCo LLC, Senior Secured Notes
9.250%
12/15/30
2,530,000
 
2,690,772
 (a)
Core Scientific Finance I LLC, Senior Secured Notes
7.750%
5/15/31
2,670,000
 
2,617,762
 (a)(b)
CoreWeave Inc., Senior Notes
9.000%
2/1/31
2,870,000
 
2,594,319
 (a)
Shift4 Payments LLC/Shift4 Payments Finance Sub Inc.,
Senior Notes
5.500%
5/15/33
480,000
 EUR
543,907
 (a)
Total IT Services
10,321,688
 
Semiconductors & Semiconductor Equipment — 0.4%
Qnity Electronics Inc., Senior Notes
6.250%
8/15/33
1,350,000
 
1,357,976
 (a)(b)
Software — 2.3%
Cloud Software Group LLC, Secured Notes
9.000%
9/30/29
810,000
 
794,336
 (a)(b)
Cloud Software Group LLC, Senior Secured Notes
8.250%
6/30/32
3,530,000
 
3,342,143
 (a)(b)
Cloud Software Group LLC, Senior Secured Notes
6.625%
8/15/33
1,020,000
 
890,220
 (a)
Fair Isaac Corp., Senior Notes
6.250%
9/15/34
1,250,000
 
1,208,471
 (a)
Gen Digital Inc., Senior Notes
6.250%
4/1/33
850,000
 
837,352
 (a)(b)
Oracle Corp., Senior Notes
6.000%
8/3/55
1,550,000
 
1,244,123
 
Total Software
8,316,645
 
Technology Hardware, Storage & Peripherals — 0.1%
Black Pearl Compute LLC, Senior Secured Notes
6.125%
2/15/31
530,000
 
529,774
 (a)(b)
Diebold Nixdorf Inc., Senior Secured Notes
7.750%
3/31/30
10,000
 
10,406
 (a)
Total Technology Hardware, Storage & Peripherals
540,180
 
 
Total Information Technology
25,798,139
Materials — 6.5%
Chemicals — 1.4%
ARC Falcon I Inc./Arclin USA LLC/New Arclin US Holding
Corp., Senior Secured Notes
9.750%
3/1/33
2,820,000
 
2,657,170
 (a)
Celanese US Holdings LLC, Senior Notes
7.000%
2/15/31
660,000
 
677,189
 (b)
Cerdia Finanz GmbH, Senior Secured Notes
9.375%
10/3/31
490,000
 
435,737
 (a)
Orbia Advance Corp. SAB de CV, Senior Notes
2.875%
5/11/31
510,000
 
425,519
 (d)
See Notes to Schedule of Investments.
8
Western Asset High Income Fund II Inc. 2026 Quarterly Report
 Western Asset High Income Fund II Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
 
Chemicals — continued
Sasol Financing USA LLC, Senior Notes
8.750%
5/3/29
710,000
 
 $745,677
 (a)
Total Chemicals
4,941,292
 
Metals & Mining — 5.1%
ArcelorMittal SA, Senior Notes
7.000%
10/15/39
3,200,000
 
3,483,877
 (i)
Capstone Copper Corp., Senior Notes
6.750%
3/31/33
580,000
 
583,483
 (a)(b)
First Quantum Minerals Ltd., Senior Notes
8.625%
6/1/31
1,520,000
 
1,583,193
 (a)(b)
First Quantum Minerals Ltd., Senior Notes
8.000%
3/1/33
5,800,000
 
6,033,786
 (a)(b)
First Quantum Minerals Ltd., Senior Notes
7.250%
2/15/34
760,000
 
774,733
 (a)
First Quantum Minerals Ltd., Senior Notes
6.375%
2/15/36
2,130,000
 
2,062,469
 (a)
Vale Overseas Ltd., Senior Notes
6.875%
11/21/36
2,960,000
 
3,236,029
 (i)
WS Escrow LLC, Senior Secured Notes
7.750%
6/1/33
810,000
 
838,562
 (a)
Total Metals & Mining
18,596,132
 
 
Total Materials
23,537,424
Real Estate — 3.0%
Diversified REITs — 0.9%
MPT Operating Partnership LP/MPT Finance Corp., Senior
Notes
5.000%
10/15/27
690,000
 
669,868
 
MPT Operating Partnership LP/MPT Finance Corp., Senior
Notes
3.692%
6/5/28
220,000
 GBP
258,667
 
MPT Operating Partnership LP/MPT Finance Corp., Senior
Notes
4.625%
8/1/29
610,000
 
489,282
 
Uniti Group LP/Uniti Group Finance Inc./CSL Capital LLC,
Senior Notes
8.625%
6/15/32
1,870,000
 
1,911,621
 (a)
Total Diversified REITs
3,329,438
 
Health Care REITs — 0.4%
Diversified Healthcare Trust, Senior Notes
4.375%
3/1/31
260,000
 
237,970
 
Diversified Healthcare Trust, Senior Secured Notes
7.250%
10/15/30
1,190,000
 
1,221,095
 (a)(b)
Total Health Care REITs
1,459,065
 
Real Estate Management & Development — 0.6%
Add Hero Holdings Ltd., Senior Secured Notes
8.500%
9/30/29
294,005
 
1,617
 *(c)(d)
Add Hero Holdings Ltd., Senior Secured Notes
9.000%
9/30/30
239,445
 
1,317
 *(c)(d)
Add Hero Holdings Ltd., Senior Secured Notes
9.800%
9/30/31
316,072
 
1,738
 *(c)(d)
China Aoyuan Group Ltd., Senior Notes, Step bond
(0.000% to 9/30/31 then 1.000%)
0.000%
3/30/2173
414,893
 
3,112
 (d)(f)
China Aoyuan Group Ltd., Senior Secured Notes (5.500%
PIK)
5.500%
9/30/31
118,790
 
891
 (d)(k)
Country Garden Holdings Co. Ltd., Senior Secured Notes
(2.500% Cash or 5.000% PIK)
5.000%
12/31/32
536,130
 
60,178
 (d)(k)
Cushman & Wakefield US Borrower LLC, Senior Secured
Notes
8.875%
9/1/31
330,000
 
345,364
 (a)(b)
Five Point Operating Co. LP, Senior Notes
8.000%
10/1/30
1,580,000
 
1,620,303
 (a)(b)
Total Real Estate Management & Development
2,034,520
 
Specialized REITs — 1.1%
Iron Mountain Inc., Senior Notes
7.000%
2/15/29
540,000
 
548,954
 (a)(b)
Meridian Arc Holdco LLC, Senior Secured Notes
6.250%
4/30/31
670,000
 
644,408
 (a)
Millrose Properties Inc., Senior Notes
6.375%
8/1/30
2,280,000
 
2,298,931
 (a)(b)
See Notes to Schedule of Investments.
9
Western Asset High Income Fund II Inc. 2026 Quarterly Report
Schedule of Investments (unaudited) (cont’d)
July 31, 2026
 Western Asset High Income Fund II Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
 
Specialized REITs — continued
Millrose Properties Inc., Senior Notes
6.250%
9/15/32
450,000
 
 $450,078
 (a)(b)
Total Specialized REITs
3,942,371
 
 
Total Real Estate
10,765,394
Utilities — 1.2%
Electric Utilities — 1.2%
Alpha Generation LLC, Senior Notes
6.750%
10/15/32
510,000
 
514,757
 (a)
Eskom Holdings, Senior Notes
4.314%
7/23/27
1,210,000
 
1,199,349
 (d)
NRG Energy Inc., Senior Notes
6.000%
1/15/36
1,880,000
 
1,840,416
 (a)(b)
Talen Energy Supply LLC, Senior Notes
6.500%
2/1/36
930,000
 
918,873
 (a)(b)
 
Total Utilities
4,473,395
Total Corporate Bonds & Notes (Cost — $377,247,803)
395,305,523
Sovereign Bonds — 12.7%
Angola — 0.9%
Angolan Government International Bond, Senior Notes
8.000%
11/26/29
2,200,000
 
2,251,429
 (a)
Angolan Government International Bond, Senior Notes
9.875%
3/31/37
860,000
 
893,863
 (a)
Total Angola
3,145,292
Argentina — 0.9%
Provincia de Buenos Aires, Senior Notes
6.625%
9/1/37
1,905,072
 
1,585,115
 (a)
Provincia de Cordoba, Senior Notes
6.990%
6/1/27
175,000
 
176,321
 (a)
Provincia de Cordoba, Senior Notes
6.875%
2/1/29
1,640,000
 
1,612,612
 (a)
Total Argentina
3,374,048
Bahamas — 0.9%
Bahamas Government International Bond, Senior Notes
9.000%
6/16/29
2,060,000
 
2,209,350
 (a)
Bahamas Government International Bond, Senior Notes
6.950%
11/20/29
1,030,000
 
1,048,540
 (a)
Total Bahamas
3,257,890
Bahrain — 0.6%
 
Bahrain Government International Bond, Senior Notes
6.000%
9/19/44
2,750,000
 
2,207,281
 (a)
Brazil — 0.4%
 
Brazilian Government International Bond, Senior Notes
5.625%
1/7/41
1,500,000
 
1,354,500
 (b)
Chile — 0.2%
 
Chile Government International Bond, Senior Notes
3.100%
5/7/41
800,000
 
585,800
 
Colombia — 0.4%
 
Colombia Government International Bond, Senior Notes
4.125%
2/22/42
2,110,000
 
1,545,575
 
Costa Rica — 0.1%
 
Costa Rica Government International Bond, Senior Notes
7.158%
3/12/45
460,000
 
489,440
 (a)
Dominican Republic — 0.9%
 
Dominican Republic International Bond, Senior Notes
4.500%
1/30/30
3,330,000
 
3,189,307
 (a)
Ecuador — 0.5%
Ecuador Government International Bond, Senior Notes
8.750%
1/29/34
570,000
 
566,010
 (a)
Ecuador Government International Bond, Senior Notes
9.250%
1/29/39
710,000
 
708,225
 (a)
Ecuador Government International Bond, Senior Notes,
Step bond (5.500% to 7/31/27 then 6.000%)
5.500%
7/31/40
540,000
 
437,141
 (a)
Total Ecuador
1,711,376
Egypt — 0.6%
 
Egypt Government International Bond, Senior Notes
7.625%
5/29/32
2,038,000
 
2,049,646
 (d)
See Notes to Schedule of Investments.
10
Western Asset High Income Fund II Inc. 2026 Quarterly Report
 Western Asset High Income Fund II Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
 
Guatemala — 0.0%††
 
Guatemala Government Bond, Senior Notes
5.375%
4/24/32
200,000
 
 $198,000
 (a)
Ivory Coast — 1.1%
Ivory Coast Government International Bond, Senior Notes
6.125%
6/15/33
2,750,000
 
2,671,744
 (a)
Ivory Coast Government International Bond, Senior Notes
6.750%
2/25/41
1,370,000
 
1,286,254
 (a)
Total Ivory Coast
3,957,998
Jordan — 0.7%
 
Jordan Government International Bond, Senior Notes
5.850%
7/7/30
2,540,000
 
2,543,142
 (a)
Kenya — 0.4%
 
Republic of Kenya Government International Bond, Senior
Notes
9.500%
3/5/36
1,500,000
 
1,549,524
 (a)
Mexico — 0.4%
 
Mexico Government International Bond, Senior Notes
2.659%
5/24/31
1,500,000
 
1,322,250
 (b)
Nigeria — 0.3%
 
Nigeria Government International Bond, Senior Notes
7.696%
2/23/38
1,130,000
 
1,154,380
 (d)
Oman — 0.2%
 
Oman Government International Bond, Senior Notes
5.625%
1/17/28
800,000
 
805,747
 (a)
Panama — 0.5%
 
Panama Government International Bond, Senior Notes
2.252%
9/29/32
2,110,000
 
1,742,860
 
Philippines — 0.0%††
 
Philippine Government International Bond, Senior Notes
3.200%
7/6/46
200,000
 
131,389
 
Qatar — 0.0%††
 
Qatar Government International Bond, Senior Notes
3.750%
4/16/30
200,000
 
192,975
 (a)
Saudi Arabia — 0.2%
 
Saudi Government International Bond, Senior Notes
3.250%
10/26/26
700,000
 
698,696
 (a)
South Africa — 0.6%
Republic of South Africa Government International Bond,
Senior Notes
6.125%
12/11/37
800,000
 
766,502
 (a)
Republic of South Africa Government International Bond,
Senior Notes
6.250%
3/8/41
1,500,000
 
1,408,390
 (b)
Total South Africa
2,174,892
Turkey — 0.9%
Turkiye Government International Bond, Senior Notes
5.125%
2/17/28
1,400,000
 
1,383,996
 (b)
Turkiye Government International Bond, Senior Notes
4.875%
4/16/43
2,400,000
 
1,747,651
 (b)
Total Turkey
3,131,647
Ukraine — 0.1%
Ukraine Government International Bond, Senior Notes,
Step bond (0.000% to 2/1/27 then 3.000%)
0.000%
2/1/30
20,726
 
15,231
 (a)
Ukraine Government International Bond, Senior Notes,
Step bond (0.000% to 2/1/27 then 3.000%)
0.000%
2/1/34
77,450
 
44,165
 (a)
Ukraine Government International Bond, Senior Notes,
Step bond (4.500% to 2/1/27 then 6.000%)
4.500%
2/1/34
75,885
 
53,106
 (a)
Ukraine Government International Bond, Senior Notes,
Step bond (0.000% to 2/1/27 then 3.000%)
0.000%
2/1/35
65,450
 
39,266
 (a)
Ukraine Government International Bond, Senior Notes,
Step bond (4.500% to 2/1/27 then 6.000%)
4.500%
2/1/35
132,798
 
91,735
 (a)
Ukraine Government International Bond, Senior Notes,
Step bond (0.000% to 2/1/27 then 3.000%)
0.000%
2/1/36
54,542
 
32,823
 (a)
See Notes to Schedule of Investments.
11
Western Asset High Income Fund II Inc. 2026 Quarterly Report
Schedule of Investments (unaudited) (cont’d)
July 31, 2026
 Western Asset High Income Fund II Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
 
Ukraine — continued
Ukraine Government International Bond, Senior Notes,
Step bond (4.500% to 2/1/27 then 6.000%)
4.500%
2/1/36
170,740
 
 $116,633
 (a)
Total Ukraine
392,959
United Arab Emirates — 0.2%
 
Abu Dhabi Government International Bond, Senior Notes
3.125%
10/11/27
850,000
 
836,411
 (a)
Uruguay — 0.7%
Uruguay Government International Bond, Senior Notes
9.750%
7/20/33
89,000,000
 UYU
2,453,005
 
 
Total Sovereign Bonds (Cost — $41,551,258)
46,196,030
Senior Loans — 11.3%
Communication Services — 1.5%
Entertainment — 1.0%
Discovery Global Holdings Inc., Initial Dollar Term Loan (1
mo. Term SOFR + 2.500%)
6.231%
6/3/33
1,765,385
 
1,768,880
 (e)(l)(m)
OAK-Eagle Acquireco Inc., Term Loan B
—
3/24/33
1,750,000
 
1,762,801
 (n)
Total Entertainment
3,531,681
Media — 0.5%
Diamond Sports Net LLC, First Lien Exit Term Loan
12.000%
1/3/28
1,828,701
 
374,884
 (k)(l)(m)
Ziggo Financing Partnership, Advance Term Loan Facility
N (6 mo. Term SOFR + 3.220%)
6.912%
1/15/33
1,770,000
 
1,611,072
 (e)(l)(m)
Total Media
1,985,956
 
Total Communication Services
5,517,637
Consumer Discretionary — 2.2%
Automobile Components — 1.3%
ABC Technologies Inc., Term Loan B
11.981-11.982%
1/2/40
2,066,819
 
2,009,981
 (e)(h)(l)(m)
Autokiniton US Holdings Inc., 2024 Replacement Term
Loan B (1 mo. Term SOFR + 4.114%)
7.845%
4/6/28
1,415,878
 
1,417,159
 (e)(l)(m)
Clarios Global LP, 2024 Term Loan B (1 mo. Term SOFR +
2.500%)
6.231%
5/6/30
1,207,839
 
1,212,067
 (e)(l)(m)
Total Automobile Components
4,639,207
Diversified Consumer Services — 0.3%
WW International Inc., Take-Back Term Loan (3 mo. Term
SOFR + 6.800%)
10.528%
6/24/30
1,347,707
 
1,002,991
 (e)(l)(m)
Hotels, Restaurants & Leisure — 0.3%
Catawba Nation Gaming Authority, Initial Term Loan B
—
3/29/32
930,000
 
935,115
 (n)
Specialty Retail — 0.3%
Petco Health & Wellness Co. Inc., 2026 Term Loan (3 mo.
Term SOFR + 4.250%)
7.982%
2/3/31
1,296,750
 
1,295,505
 (e)(l)(m)
 
Total Consumer Discretionary
7,872,818
Financials — 1.8%
Banks — 0.4%
Ascensus Group Holdings Inc., 2024 Term Loan B (1 mo.
Term SOFR + 3.000%)
6.731%
11/24/32
1,466,269
 
1,438,322
 (e)(l)(m)
Capital Markets — 0.1%
Edelman Financial Engines Center LLC, Term Loan B (1
mo. Term SOFR + 4.000%)
7.731%
12/1/31
440,000
 
442,323
 (e)(l)(m)
See Notes to Schedule of Investments.
12
Western Asset High Income Fund II Inc. 2026 Quarterly Report
 Western Asset High Income Fund II Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
 
Consumer Finance — 0.5%
Blackhawk Network Holdings Inc., Term Loan B2 (3 mo.
Term SOFR + 3.500%)
7.232%
3/12/29
1,783,827
 
 $1,780,063
 (e)(l)(m)
Financial Services — 0.2%
Nexus Buyer LLC, Amendment No. 9 Refinancing Term
Loan (1 mo. Term SOFR + 3.500%)
7.231%
7/31/31
638,670
 
620,052
 (e)(l)(m)
Nexus Buyer LLC, Amendment No. 10 Term Loan (1 mo.
Term SOFR + 4.000%)
7.731%
7/31/31
387,075
 
379,738
 (e)(l)(m)
Total Financial Services
999,790
Insurance — 0.6%
Acrisure LLC, 2024 Repricing Term Loan B6
—
11/6/30
300,000
 
275,400
 (n)
Asurion LLC, New Term Loan B14 (3 mo. Term SOFR +
3.750%)
7.573%
2/23/33
1,047,375
 
983,878
 (e)(l)(m)
Broadstreet Partners Inc., 2024 Term Loan B (1 mo. Term
SOFR + 2.500%)
6.231%
6/13/31
866,092
 
853,032
 (e)(l)(m)
Total Insurance
2,112,310
 
Total Financials
6,772,808
Health Care — 1.0%
Health Care Providers & Services — 0.6%
LifePoint Health Inc., Term Loan B (3 mo. Term SOFR +
3.750%)
7.503%
5/16/31
982,538
 
939,551
 (e)(l)(m)
TEAM Services Holding Inc., Initial Term Loan (3 mo. Term
SOFR + 5.250%)
8.982%
3/31/33
1,360,000
 
1,353,690
 (e)(l)(m)
Total Health Care Providers & Services
2,293,241
Health Care Technology — 0.4%
AthenaHealth Group Inc., Fourth Amendment Term Loan
(1 mo. Term SOFR + 3.250%)
6.981%
2/17/32
867,808
 
863,019
 (e)(l)(m)
MPH Acquisition Holdings LLC, First Out Term Loan (3 mo.
Term SOFR + 3.750%)
7.573%
12/31/30
78,912
 
79,129
 (e)(l)(m)
MPH Acquisition Holdings LLC, Second Out Term Loan (3
mo. Term SOFR + 4.862%)
8.684%
12/31/30
654,135
 
566,291
 (e)(l)(m)
Total Health Care Technology
1,508,439
 
Total Health Care
3,801,680
Industrials — 1.7%
Aerospace & Defense — 0.7%
TransDigm Inc., Term Loan J (1 mo. Term SOFR + 2.500%)
6.231%
2/28/31
2,443,875
 
2,449,826
 (e)(l)(m)
Electrical Equipment — 0.1%
Osmose Utilities Services Inc., First Lien Initial Term Loan
(1 mo. Term SOFR + 3.364%)
7.095%
6/23/28
457,598
 
457,527
 (e)(l)(m)
Machinery — 0.7%
TK Elevator Midco GmbH, USD Term Loan B (6 mo. Term
SOFR + 2.750%)
6.704%
4/30/30
2,438,198
 
2,450,804
 (e)(l)(m)
Passenger Airlines — 0.2%
Spirit Airlines LLC, Contingent DIP Facility
—
11/17/26
1,378,565
 
385,998
 *(c)(h)
Spirit Airlines LLC, Contingent DIP Facility Initial Term
Loan
—
11/17/26
525,214
 
10,504
 *(c)(h)
Spirit Airlines LLC, New Money Term Loan (1 mo. Term
SOFR + 8.000%)
11.659%
9/14/26
217,416
 
206,545
 (e)(h)(k)(l)(m)
See Notes to Schedule of Investments.
13
Western Asset High Income Fund II Inc. 2026 Quarterly Report
Schedule of Investments (unaudited) (cont’d)
July 31, 2026
 Western Asset High Income Fund II Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
 
Passenger Airlines — continued
Spirit Airlines LLC, Second New Money Term Loan (1 mo.
Term SOFR + 8.000%)
11.659%
9/14/26
53,920
 
 $51,225
 (e)(h)(k)(l)(m)
Spirit Airlines LLC, Third DIP New Money Term Loan (1
mo. Term SOFR + 8.000%)
11.659%
9/14/26
106,495
 
101,170
 (e)(h)(k)(l)(m)
Total Passenger Airlines
755,442
 
Total Industrials
6,113,599
Information Technology — 2.7%
Semiconductors & Semiconductor Equipment — 2.0%
VCI Asset Holdings 1 LLC, Term Loan
10.000%
11/20/30
2,851,579
 
3,040,496
 (l)(m)
VCI Asset Holdings 2 LLC, Initial Term Loan
7.375%
2/6/31
3,048,825
 
3,155,534
 (l)(m)
VCI Asset Holdings 3 LLC, Term Loan
6.875%
4/24/30
1,187,500
 
1,214,219
 (h)(l)(m)
Total Semiconductors & Semiconductor Equipment
7,410,249
Software — 0.7%
Cloudera Inc., Term Loan (1 mo. Term SOFR + 3.850%)
7.581%
10/8/28
736,146
 
653,793
 (e)(l)(m)
CoreWeave Compute Acquisition Co. IV LLC, Additional
Delayed Draw Term Loan
8.140-8.143%
11/15/31
530,000
 
530,331
 (e)(l)(m)(o)
DCert Buyer Inc., Second Lien Initial Term Loan (1 mo.
Term SOFR + 7.000%)
10.731%
2/19/29
500,000
 
422,855
 (e)(l)(m)
Modena Buyer LLC, Initial Term Loan (3 mo. Term SOFR +
4.250%)
8.073%
7/1/31
815,475
 
757,886
 (e)(l)(m)
Total Software
2,364,865
 
Total Information Technology
9,775,114
Materials — 0.4%
Chemicals — 0.4%
Hexion Holdings Corp., 2024 Refinancing Term Loan (1
mo. Term SOFR + 4.000%)
7.724%
3/15/29
1,369,745
 
1,346,918
 (e)(l)(m)
 
Total Senior Loans (Cost — $44,120,121)
41,200,574
Asset-Backed Securities — 6.7%
720 East CLO Ltd., 2025-7A E (3 mo. Term SOFR + 4.750%)
8.479%
4/20/37
520,000
 
514,978
 (a)(e)
Apex Credit CLO LLC, 2021-2A CR (3 mo. Term SOFR +
3.750%)
7.479%
10/20/34
490,000
 
478,620
 (a)(e)
Apex Credit CLO Ltd., 2019-2A ERR (3 mo. Term SOFR +
7.670%)
11.337%
1/25/38
1,260,000
 
999,716
 (a)(e)
Apidos CLO Ltd., 2024-48AR D2R (3 mo. Term SOFR +
4.000%)
7.751%
7/25/39
1,520,000
 
1,521,626
 (a)(e)(g)(p)
Arini US CLO Ltd., 3A E (3 mo. Term SOFR + 5.250%)
9.003%
1/15/39
370,000
 
372,723
 (a)(e)
Balboa Bay Loan Funding Ltd., 2024-2A E (3 mo. Term
SOFR + 5.750%)
9.479%
1/20/38
850,000
 
858,234
 (a)(e)
Bear Mountain Park CLO Ltd., 2022-1A ER (3 mo. Term
SOFR + 5.950%)
9.703%
7/15/37
1,170,000
 
1,064,839
 (a)(e)
CIFC Funding Ltd., 2021-1A D1R (3 mo. Term SOFR +
3.150%)
6.960%
7/25/37
500,000
 
501,952
 (a)(e)
CIFC Funding Ltd., 2022-2A ER (3 mo. Term SOFR +
4.750%)
8.479%
4/19/35
470,000
 
453,796
 (a)(e)
Elevation CLO Ltd., 2016-5A ERR (3 mo. Term SOFR +
7.580%)
11.390%
1/25/38
1,200,000
 
1,122,178
 (a)(e)
Galaxy CLO Ltd., 2025-36A E (3 mo. Term SOFR + 4.900%)
8.653%
10/15/38
1,540,000
 
1,524,586
 (a)(e)
See Notes to Schedule of Investments.
14
Western Asset High Income Fund II Inc. 2026 Quarterly Report
 Western Asset High Income Fund II Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
Asset-Backed Securities — continued
HalseyPoint CLO Ltd., 2019-1A FR (3 mo. Term SOFR +
10.730%)
14.459%
10/20/37
1,520,000
 
 $1,326,593
 (a)(e)
Jamestown CLO Ltd., 2016-9A CR3 (3 mo. Term SOFR +
3.250%)
7.060%
7/25/34
580,000
 
576,495
 (a)(e)
Katayma CLO Ltd., 2024-2A D (3 mo. Term SOFR +
4.500%)
8.229%
4/20/37
1,100,000
 
1,107,653
 (a)(e)
Magnetite Ltd., 2019-24A ER (3 mo. Term SOFR + 6.400%)
10.153%
4/15/35
300,000
 
301,043
 (a)(e)
Magnetite Ltd., 2020-26A ER2 (3 mo. Term SOFR +
4.700%)
8.510%
1/25/38
1,610,000
 
1,593,809
 (a)(e)
Magnetite Ltd., 2025-50A E (3 mo. Term SOFR + 4.800%)
8.610%
7/25/38
1,030,000
 
1,027,428
 (a)(e)
Man US CLO Ltd., 2021-1A ER (3 mo. Term SOFR +
7.300%)
10.997%
10/15/38
920,000
 
922,300
 (a)(e)(p)
MidOcean Credit CLO LLC, 2025-18A E (3 mo. Term SOFR
+ 5.400%)
9.129%
10/18/35
760,000
 
762,326
 (a)(e)
Obra CLO Ltd., 2026-5A D1 (3 mo. Term SOFR + 2.850%)
6.601%
10/20/39
950,000
 
951,016
 (a)(e)(p)
Ocean Trails CLO Ltd., 2023-14A ER (3 mo. Term SOFR +
6.340%)
10.069%
1/20/38
1,420,000
 
1,323,446
 (a)(e)
OFSI BSL CLO Ltd., 2024-13A ER (3 mo. Term SOFR +
6.780%)
10.509%
7/20/39
520,000
 
495,250
 (a)(e)
Palmer Square CLO Ltd., 2022-3A D1R (3 mo. Term SOFR +
2.950%)
6.679%
7/20/37
310,000
 
308,063
 (a)(e)
Pixley Park CLO Ltd., 2024-1A E (3 mo. Term SOFR +
5.000%)
8.753%
1/15/37
670,000
 
643,316
 (a)(e)
Rockford Tower CLO Ltd., 2022-2A ER2 (3 mo. Term SOFR
+ 6.840%)
10.569%
3/20/38
250,000
 
232,349
 (a)(e)
Silver Point CLO Ltd., 2026-18A D1 (3 mo. Term SOFR +
3.000%)
6.751%
7/15/39
1,200,000
 
1,201,242
 (a)(e)(p)
Venture CLO Ltd., 2021-43A D (3 mo. Term SOFR +
3.732%)
7.485%
4/15/34
1,250,000
 
1,172,121
 (a)(e)
Whitebox CLO Ltd., 2023-4A ER2 (3 mo. Term SOFR +
5.150%)
8.906%
7/20/39
840,000
 
840,794
 (a)(e)
 
Total Asset-Backed Securities (Cost — $24,739,565)
24,198,492
Collateralized Mortgage Obligations(q) — 4.7%
280 Park Avenue Mortgage Trust, 2017-280P F (1 mo.
Term SOFR + 3.127%)
6.796%
9/15/34
1,000,000
 
987,037
 (a)(e)
BANK, 2021-BN35 H
1.664%
6/15/64
890,000
 
371,755
 (a)(e)
BANK, 2021-BN35 K
1.664%
6/15/64
1,846,154
 
708,100
 (a)(e)
BANK, 2022-BNK41 E
2.500%
4/15/65
2,100,000
 
1,361,195
 (a)
BX Commercial Mortgage Trust, 2025-SPOT E (1 mo. Term
SOFR + 3.690%)
7.367%
4/15/40
1,258,364
 
1,262,726
 (a)(e)
Citigroup Commercial Mortgage Trust, 2015-P1 D
3.225%
9/15/48
4,982
 
4,885
 (a)
Federal Home Loan Mortgage Corp. (FHLMC) REMIC,
Structured Agency Credit Risk Trust, 2021-DNA3 B2 (30
Day Average SOFR + 6.250%)
9.866%
10/25/33
1,430,000
 
1,822,319
 (a)(e)
Federal National Mortgage Association (FNMA) — CAS,
2024-R01 1B2 (30 Day Average SOFR + 4.000%)
7.616%
1/25/44
2,000,000
 
2,115,169
 (a)(e)
GS Mortgage Securities Corp. II, 2024-70P E
8.965%
3/10/41
1,500,000
 
1,533,090
 (a)(e)
KIND Trust, 2021-KIND C (1 mo. Term SOFR + 1.864%)
5.550%
8/15/38
1,487,782
 
1,487,837
 (a)(e)
See Notes to Schedule of Investments.
15
Western Asset High Income Fund II Inc. 2026 Quarterly Report
Schedule of Investments (unaudited) (cont’d)
July 31, 2026
 Western Asset High Income Fund II Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
Collateralized Mortgage Obligations(q) — continued
Morgan Stanley Capital I Trust, 2015-UBS8 C
4.376%
12/15/48
116,666
 
 $114,685
 (e)
Morgan Stanley Capital I Trust, 2016-BNK2 B
3.485%
11/15/49
1,020,000
 
955,761
 
SLG Office Trust, 2021-OVA F
2.851%
7/15/41
2,119,000
 
1,750,270
 (a)
SMRT, 2022-MINI D (1 mo. Term SOFR + 1.950%)
5.627%
1/15/39
1,500,000
 
1,499,412
 (a)(e)
WB Commercial Mortgage Trust, 2024-HQ D
8.011%
3/15/40
1,050,000
 
1,038,572
 (a)(e)
 
Total Collateralized Mortgage Obligations (Cost — $15,609,192)
17,012,813
 
 
 
 
Shares
 
Preferred Stocks — 0.6%
Financials — 0.6%
Mortgage Real Estate Investment Trusts (REITs) — 0.6%
AGNC Investment Corp., Non Voting Shares (3 mo. Term
SOFR + 4.959%)
8.712%
49,756
1,247,383
 (e)
Chimera Investment Corp., Non Voting Shares (3 mo. Term
SOFR + 5.005%)
8.737%
15,711
357,582
 (e)
MFA Financial Inc., Non Voting Shares (3 mo. Term SOFR
+ 5.607%)
9.358%
28,683
665,159
 (e)
 
Total Preferred Stocks (Cost — $2,317,413)
2,270,124
Common Stocks — 0.4%
Communication Services — 0.2%
Diversified Telecommunication Services — 0.2%
Altice France Luxco
41,756
813,389
 *
 
Industrials — 0.0%††
Passenger Airlines — 0.0%††
Spirit Airlines LLC
422
6
 *(r)
Spirit Aviation Holdings Inc.
72,692
1,091
 *
 
Total Industrials
1,097
Information Technology — 0.2%
Semiconductors & Semiconductor Equipment — 0.2%
VCI Asset Holdings 2 LLC
591,327
585,414
 *(g)(h)
 
Real Estate — 0.0%††
Real Estate Management & Development — 0.0%††
China Aoyuan Group Ltd.
103,724
516
 *(g)
Country Garden Holdings Co. Ltd.
4,350
94
 *(g)
 
Total Real Estate
610
Total Common Stocks (Cost — $1,614,626)
1,400,510
 
 
 
 
Maturity
Date
Face
Amount†
 
Convertible Bonds & Notes — 0.3%
Communication Services — 0.2%
Media — 0.2%
EchoStar Corp., Senior Secured Notes (3.875% Cash or
3.875% PIK)
3.875%
11/30/30
241,173
 
635,558
 (k)
 
Industrials — 0.1%
Aerospace & Defense — 0.1%
AeroVironment Inc., Senior Notes
0.000%
7/15/30
77,000
 
70,051
 
See Notes to Schedule of Investments.
16
Western Asset High Income Fund II Inc. 2026 Quarterly Report
 Western Asset High Income Fund II Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
 
Aerospace & Defense — continued
Voyager Technologies Inc., Senior Notes
0.750%
11/15/30
170,000
 
 $189,635
 (a)
 
Total Industrials
259,686
Real Estate — 0.0%††
Real Estate Management & Development — 0.0%††
China Aoyuan Group Ltd., Senior Notes
0.000%
9/30/28
37,080
 
278
 (d)
Country Garden Holdings Co. Ltd., Senior Notes
0.000%
12/31/31
1,088,944
 
72,687
 (d)
 
Total Real Estate
72,965
Total Convertible Bonds & Notes (Cost — $707,260)
968,209
 
 
 
Expiration
Date
Rights
 
Rights — 0.0%††
Communication Services — 0.0%††
Diversified Telecommunication Services — 0.0%††
Altice France Luxco (Cost — $0)
—
3,904
61,901
 *
 
 
 
 
Warrants
 
Warrants — 0.0%††
Industrials — 0.0%††
Passenger Airlines — 0.0%††
Spirit Airlines LLC (Cost — $628,730)
3/12/30
51,648
 
775
 *(a)(g)(r)
Total Investments — 145.6% (Cost — $508,535,968)
528,614,951
Liabilities in Excess of Other Assets — (45.6)%
(165,433,181
)
Total Net Assets — 100.0%
$363,181,770
 
See Notes to Schedule of Investments.
17
Western Asset High Income Fund II Inc. 2026 Quarterly Report
Schedule of Investments (unaudited) (cont’d)
July 31, 2026
 Western Asset High Income Fund II Inc.
†
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)
All or a portion of this security is pledged as collateral pursuant to the loan agreement.
(c)
The coupon payment on this security is currently in default as of July 31, 2026.
(d)
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.
(e)
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.
(f)
Security has no maturity date. The date shown represents the next call date.
(g)
Security is fair valued in accordance with procedures approved by the Board of Directors (Note 1).
(h)
Security is valued using significant unobservable inputs (Note 1).
(i)
All or a portion of this security is held by the counterparty as collateral for open reverse repurchase agreements.
(j)
Value is less than $1.
(k)
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.
(l)
Interest rates disclosed represent the effective rates on senior loans. Ranges in interest rates are attributable to multiple contracts under the same loan.
(m)
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.
(n)
All or a portion of this loan has not settled as of July 31, 2026. Interest rates are not effective until settlement date. Interest rates shown, if any, are for the
settled portion of the loan.
(o)
All or a portion of this loan is unfunded as of July 31, 2026. The interest rate for fully unfunded term loans is to be determined. At July 31, 2026, the total
principal amount and market value of unfunded commitments totaled $300,219 and $300,407, respectively.
(p)
Securities traded on a when-issued or delayed delivery basis.
(q)
Collateralized mortgage obligations are secured by an underlying pool of mortgages or mortgage pass-through certificates that are structured to direct
payments on underlying collateral to different series or classes of the obligations. The interest rate may change positively or inversely in relation to one or
more interest rates, financial indices or other financial indicators and may be subject to an upper and/or lower limit.
(r)
Restricted security (Note 3).
 
Abbreviation(s) used in this schedule:
CAS
—
Connecticut Avenue Securities
CLO
—
Collateralized Loan Obligation
DIP
—
Debtor-in-possession
EUR
—
Euro
EURIBOR
—
Euro Interbank Offered Rate
GBP
—
British Pound
PIK
—
Payment-In-Kind
REMIC
—
Real Estate Mortgage Investment Conduit
SOFR
—
Secured Overnight Financing Rate
USD
—
United States Dollar
UYU
—
Uruguayan Peso
At July 31, 2026, the Fund had the following open reverse repurchase agreements: 
Counterparty
Rate
Effective
Date
Maturity
Date
Face Amount
of Reverse
Repurchase
Agreements
Asset Class
of Collateral*
Collateral
Value**
Deutsche Bank AG
4.160%
6/10/2026
9/9/2026
 $6,668,561
Corporate Bonds & Notes
 $7,298,852
Goldman Sachs Group Inc.
4.250%
12/12/2025
TBD***
2,350,312
Corporate Bonds & Notes
Cash
3,275,598
110,000
See Notes to Schedule of Investments.
18
Western Asset High Income Fund II Inc. 2026 Quarterly Report
 Western Asset High Income Fund II Inc.
Counterparty
Rate
Effective
Date
Maturity
Date
Face Amount
of Reverse
Repurchase
Agreements
Asset Class
of Collateral*
Collateral
Value**
Royal Bank of Canada
4.240%
5/27/2026
8/26/2026
 $6,425,747
Corporate Bonds & Notes
 $6,560,344
 
$15,444,620
$17,244,794
 
*
Refer to the Schedule of Investments for positions held at the counterparty as collateral for reverse repurchase agreements.
**
Including accrued interest.
***
TBD — To Be Determined; These reverse repurchase agreements have no maturity dates because they are renewed daily and can be terminated by either
the Fund or the counterparty in accordance with the terms of the agreements. The rates for these agreements are variable. The rate disclosed is the rate as
of July 31, 2026.
At July 31, 2026, the Fund had the following open forward foreign currency contracts:  
Currency
Purchased
Currency
Sold
Counterparty
Settlement
Date
Unrealized
Appreciation
(Depreciation)
USD
1,092,617
EUR
953,029
BNP Paribas SA
10/16/26
 $(9,730)
GBP
2,741,042
USD
3,671,705
Citibank N.A.
10/16/26
22,543
USD
3,056,005
GBP
2,288,490
Citibank N.A.
10/16/26
(28,315)
EUR
25,344
USD
29,126
Goldman Sachs Group Inc.
10/16/26
189
Net unrealized depreciation on open forward foreign currency contracts
$(15,313)
 
Abbreviation(s) used in this table:
EUR
—
Euro
GBP
—
British Pound
USD
—
United States Dollar
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.
19
Western Asset High Income Fund II Inc. 2026 Quarterly Report
Notes to Schedule of Investments (unaudited)
1. Organization and significant accounting policies
Western Asset High Income Fund II Inc. (the “Fund”) was incorporated in Maryland and is registered as a diversified, closed-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund seeks to maximize current income by investing at least 80% of its net assets, plus any borrowings for investment purposes, in high-yield debt securities. As a secondary objective, the Fund seeks capital appreciation to the extent consistent with its objective of seeking to maximize current income.
The Fund follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies (“ASC 946”). The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”), including, but not limited to, ASC 946.
(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 typically 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. 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”).  
Pursuant to policies adopted by the Board, the Fund’s manager has been designated as the valuation designee and is responsible for the oversight of the daily valuation process. The Fund’s manager is assisted by the Global Fund Valuation Committee (the “Valuation Committee”). The Valuation Committee is responsible for making fair value determinations, evaluating the effectiveness of the Fund’s pricing policies, and reporting to the Fund’s manager and the Board. 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.
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, 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 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.
20
Western Asset High Income Fund II Inc. 2026 Quarterly Report
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 — unadjusted 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.
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:
Energy
—
 $72,532,793
 $933,451
 $73,466,244
Financials
—
44,082,436
0
*
44,082,436
Other Corporate Bonds & Notes
—
277,756,843
—
277,756,843
Sovereign Bonds
—
46,196,030
—
46,196,030
Senior Loans:
Consumer Discretionary
—
5,862,837
2,009,981
7,872,818
Industrials
—
5,358,157
755,442
6,113,599
Information Technology
—
8,560,895
1,214,219
9,775,114
Other Senior Loans
—
17,439,043
—
17,439,043
Asset-Backed Securities
—
24,198,492
—
24,198,492
Collateralized Mortgage Obligations
—
17,012,813
—
17,012,813
Preferred Stocks
 $2,270,124
—
—
2,270,124
Common Stocks:
Industrials
1,091
6
—
1,097
Information Technology
—
—
585,414
585,414
Other Common Stocks
—
813,999
—
813,999
Convertible Bonds & Notes
—
968,209
—
968,209
Rights
—
61,901
—
61,901
Warrants
—
775
—
775
Total Investments
$2,271,215
$520,845,229
$5,498,507
$528,614,951
Other Financial Instruments:
Forward Foreign Currency Contracts††
—
 $22,732
—
 $22,732
Total
$2,271,215
$520,867,961
$5,498,507
$528,637,683
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††
—
 $38,045
—
 $38,045
 
†
See Schedule of Investments for additional detailed categorizations.
*
Amount represents less than $1.
††
Reflects the unrealized appreciation (depreciation) of the instruments.
21
Western Asset High Income Fund II Inc. 2026 Quarterly Report
Notes to Schedule of Investments (unaudited) (cont’d)
The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value: 
 
Investments in
Securities
Balance
as of
April 30, 2026
Accrued
premiums/
discounts
Realized
gain
(loss)
Change in
unrealized
appreciation
(depreciation)1
Purchases
Corporate Bonds &
Notes:
Energy
 $964,157
 $681
—
 $(31,387
)
—
Financials
0
*
—
—
0
*
—
Senior Loans:
Consumer
Discretionary
1,989,499
2,798
—
17,684
—
Financials
441,100
103
—
1,120
—
Industrials
630,858
364,483
—
(607,991
)
 $11,194
Information
Technology
1,270,215
537
 $597
5,370
—
Common Stocks:
Information
Technology
623,850
—
—
(38,436
)
—
Total
$5,919,679
$368,602
$597
$(653,640
)
$11,194

 
Investments in
Securities (cont’d)
Sales
Transfers
into
Level 32
Transfers
out of
Level 33
Balance
as of
July 31, 2026
Net change
in unrealized
appreciation
(depreciation) for
investments
in securities
still held at
July 31, 20261
Corporate Bonds &
Notes:
Energy
—
—
—
 $933,451
 $(31,387
)
Financials
—
—
—
0
*
0
*
Senior Loans:
Consumer
Discretionary
—
—
—
2,009,981
17,684
Financials
—
—
 $(442,323
)
—
—
Industrials
 $(22,945
)
 $379,843
—
755,442
(607,991
)
Information
Technology
(62,500
)
—
—
1,214,219
5,370
Common Stocks:
Information
Technology
—
—
—
585,414
(38,436
)
Total
$(85,445
)
$379,843
$(442,323
)
$5,498,507
$(654,760
)
 
*
Amount represents less than $1.
1
Change in unrealized appreciation (depreciation) includes net unrealized appreciation (depreciation) resulting from changes in investment values during the
reporting period and the reversal of previously recorded unrealized appreciation (depreciation) when gains or losses are realized.
2
Transferred into Level 3 as a result of the unavailability of a quoted price in an active market for an identical investment or the unavailability of other
significant observable inputs in the valuation obtained from independent third party pricing services or broker/dealer quotations.
3
Transferred out of Level 3 as a result of the availability of a quoted price in an active market for an identical investment or the availability of other
significant observable inputs.
2. Transactions with affiliated company
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 or control with the Fund. The following company was considered an affiliated company for all or some portion of the period ended July 31, 2026. The following transactions were effected
22
Western Asset High Income Fund II Inc. 2026 Quarterly Report
in such company for the period ended July 31, 2026.
 
 
Affiliate
Value at

April 30,
2026
Purchased
Sold
Cost
Shares
Proceeds
Shares
Western Asset Premier
Institutional Government
Reserves, Premium
Shares
—
 $32,754,743
32,754,743
 $32,754,743
32,754,743

 
(cont’d)
Realized
Gain (Loss)
Dividend
Income
Net Increase
(Decrease) in
Unrealized
Appreciation
(Depreciation)
Affiliate
Value at
July 31,
2026
Western Asset Premier
Institutional Government
Reserves, Premium Shares
—
 $17,646
—
—
3. Restricted securities
The following Fund investments are restricted as to resale and, in the absence of readily ascertainable market values, are fair valued in accordance with procedures approved by the Board.
 
Security
Number of
Shares/
Warrants
Acquisition
Date
Cost
Fair Value
at 7/31/2026
Value Per
Share/Warrant
Percent of
Net Assets
Spirit Airlines LLC, Common Shares
422
3/25
 $5,137
 $6
$0.01
0.00
 %(a)
Spirit Airlines LLC, Warrants
51,648
3/25
628,730
775
(b)
0.02
0.00  
(a)
Total
$633,867
$781
0.00
%(a)
 
(a)
Amount represents less than 0.005%.
(b)
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.
23
Western Asset High Income Fund II Inc. 2026 Quarterly Report