PAI: Discount Widens To Make It Once Again An Attractive Choice (Upgrade)

Western Asset Income Fund offers primarily investment-grade corporate bond exposure and is also non-leveraged, positioning it as a conservative CEF option. PAI's share price has dropped rather sharply, widening its discount to 7.32%, making the current valuation more attractive for risk-averse investors who still want some yield. The fund maintains strong distribution coverage, with NII coverage at ~108% and a 5.19% yield, supported by rising net investment income and no leverage-related headwinds.