Edgar Filing: Western Asset High Yield Defined Opportunity Fund Inc.

WA High Yield Defined Opportunity Fund Inc.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-22444

Western Asset High Yield Defined Opportunity Fund Inc.

(Exact name of registrant as specified in charter)

620 Eighth Avenue, 49^th Floor, New York, NY 10018

(Address of principal executive offices) (Zip code)

Robert I. Frenkel, Esq.

Legg Mason & Co., LLC

100 First Stamford Place

Stamford, CT 06902

(Name and address of agent for service)

Registrant’s telephone number, including area code: (888)777-0102

Date of fiscal year end: August 31

Date of reporting period: November 30, 2013

ITEM 1.

SCHEDULE OF INVESTMENTS.

WESTERN ASSET HIGH YIELD DEFINED OPPORTUNITY FUND INC.

FORM N-Q

NOVEMBER 30, 2013

WESTERN ASSET HIGH YIELD DEFINED OPPORTUNITY FUND INC.


Schedule of investments (unaudited)		November 30, 2013


SECURITY	RATE			MATURITY DATE		FACE AMOUNT†			VALUE
CORPORATE BONDS & NOTES - 89.9%
CONSUMER DISCRETIONARY - 19.1%
Auto Components - 0.6%
Europcar Groupe SA, Senior Notes		11.500	%		5/15/17		350,000	^EUR	$	557,280	^(a)
Europcar Groupe SA, Senior Notes		9.375	%		4/15/18		1,540,000	^EUR		2,239,032	^(a)

Total Auto Components										2,796,312

Automobiles - 0.4%
Chrysler Group LLC/CG Co.-Issuer Inc., Secured Notes		8.250	%		6/15/21		1,030,000			1,176,775
Jaguar Holding Co. II/Jaguar Merger Sub Inc., Senior Notes		9.500	%		12/1/19		430,000			484,825	^(a)

Total Automobiles										1,661,600

Diversified Consumer Services - 1.2%
Co-operative Group Holdings 2011 Ltd., Senior Notes		6.875	%		7/8/20		100,000	^GBP		167,515	^(a)
Co-operative Group Holdings 2011 Ltd., Senior Notes		7.500	%		7/8/26		280,000	^GBP		467,791
Laureate Education Inc., Senior Notes		9.250	%		9/1/19		800,000			880,000	^(a)
Odeon & UCI Finco PLC, Senior Secured Notes		9.000	%		8/1/18		1,079,000	^GBP		1,774,395	^(a)
Service Corp. International, Senior Notes		7.500	%		4/1/27		1,030,000			1,099,525
StoneMor Partners LP/Cornerstone Family Services of WV, Senior Notes		7.875	%		6/1/21		760,000			794,200	^(a)

Total Diversified Consumer Services										5,183,426

Hotels, Restaurants & Leisure - 5.8%
Bossier Casino Venture Holdco Inc., Senior Secured Bonds		14.000	%		2/9/18		1,130,355			1,086,607	^(a)(b)(c)(d)
Boyd Gaming Corp., Senior Notes		9.000	%		7/1/20		860,000			937,400
Burger King Capital Holdings LLC/Burger King Capital Finance Inc., Senior Notes, Step bond		0.000	%		4/15/19		360,000			324,000	^(a)
Caesars Entertainment Operating Co. Inc., Senior Secured Notes		11.250	%		6/1/17		3,000,000			3,060,000
Caesars Entertainment Operating Co. Inc., Senior Secured Notes		8.500	%		2/15/20		1,000,000			965,625
Carrols Restaurant Group Inc., Senior Secured Notes		11.250	%		5/15/18		1,130,000			1,293,850
CCM Merger Inc., Senior Notes		9.125	%		5/1/19		1,400,000			1,477,000	^(a)
Downstream Development Quapaw, Senior Secured Notes		10.500	%		7/1/19		1,090,000			1,099,538	^(a)
Gala Electric Casinos Ltd., Secured Notes		11.500	%		6/1/19		1,380,000	^GBP		2,472,612	^(a)
Hoa Restaurant Group LLC/Hoa Finance Corp., Senior Secured Notes		11.250	%		4/1/17		3,000,000			3,180,000	^(a)
Landry’s Holdings II Inc., Senior Notes		10.250	%		1/1/18		650,000			695,500	^(a)
Landry’s Inc., Senior Notes		9.375	%		5/1/20		2,890,000			3,164,550	^(a)
MGM Resorts International, Senior Notes		5.875	%		2/27/14		300,000			303,375
Mohegan Tribal Gaming Authority, Senior Notes		9.750	%		9/1/21		430,000			460,100	^(a)
Paris Las Vegas Holding LLC/Harrah’s Las Vegas LLC/Flamingo Las Vegas Holding LLC, Senior Secured Notes		8.000	%		10/1/20		1,410,000			1,448,775	^(a)
Rivers Pittsburgh Borrower LP/Rivers Pittsburgh Finance Corp., Senior Secured Notes		9.500	%		6/15/19		273,000			299,276	^(a)
Seneca Gaming Corp., Senior Notes		8.250	%		12/1/18		1,410,000			1,523,681	^(a)
Seven Seas Cruises S de RL LLC, Senior Secured Notes		9.125	%		5/15/19		1,570,000			1,740,738

Total Hotels, Restaurants & Leisure										25,532,627

Household Durables - 1.9%
APX Group Inc., Senior Secured Notes		6.375	%		12/1/19		750,000			761,250
Norcraft Cos. LP/Norcraft Finance Corp., Senior Secured Notes		10.500	%		12/15/15		4,500,000			4,634,073
Standard Pacific Corp., Senior Notes		6.250	%		12/15/21		1,080,000			1,108,350

See Notes to Schedule of Investments.

WESTERN ASSET HIGH YIELD DEFINED OPPORTUNITY FUND INC.


Schedule of investments (unaudited) (cont’d)		November 30, 2013


SECURITY	RATE			MATURITY DATE		FACE AMOUNT†			VALUE
Household Durables - continued
William Lyon Homes Inc., Senior Notes		8.500	%		11/15/20		950,000		$	1,026,000
Woodside Homes Co. LLC/Woodside Homes Finance Inc., Senior Notes		6.750	%		12/15/21		920,000			910,800	^(a)

Total Household Durables										8,440,473

Media - 5.3%
Carmike Cinemas Inc., Secured Notes		7.375	%		5/15/19		430,000			469,775
Cerved Group SpA, Senior Secured Notes		6.375	%		1/15/20		100,000	^EUR		144,669	^(a)
Cerved Group SpA, Senior Subordinated Notes		8.000	%		1/15/21		150,000	^EUR		217,374	^(a)
CSC Holdings LLC, Senior Notes		6.750	%		11/15/21		450,000			487,125
DISH DBS Corp., Senior Notes		6.750	%		6/1/21		2,670,000			2,890,275
Gibson Brands Inc., Senior Secured Notes		8.875	%		8/1/18		330,000			339,075	^(a)
Nara Cable Funding Ltd., Senior Secured Notes		8.875	%		12/1/18		1,000,000			1,077,500	^(a)
New Cotai LLC/New Cotai Capital Corp., Senior Secured Notes		10.625	%		5/1/19		813,633			829,906	^(a)(b)
Ono Finance II PLC, Senior Bonds		10.875	%		7/15/19		4,631,000			5,047,790	^(a)
Polish Television Holding BV, Senior Secured Bonds		11.000	%		1/15/21		220,000	^EUR		319,862	^(a)(b)
Time Warner Cable Inc., Senior Notes		8.750	%		2/14/19		1,454,000			1,732,621
Time Warner Cable Inc., Senior Notes		8.250	%		4/1/19		550,000			646,294
Univision Communications Inc., Senior Notes		8.500	%		5/15/21		680,000			756,500	^(a)
Univision Communications Inc., Senior Secured Notes		6.750	%		9/15/22		2,780,000			3,071,900	^(a)
UPC Holding BV, Junior Secured Subordinated Notes		6.375	%		9/15/22		140,000	^EUR		193,799	^(a)
UPCB Finance II Ltd., Senior Notes		6.375	%		7/1/20		2,000,000	^EUR		2,908,377	^(a)
Virgin Media Finance PLC, Senior Notes		6.375	%		4/15/23		2,260,000			2,344,750	^(a)

Total Media										23,477,592

Multiline Retail - 0.8%
Bon-Ton Department Stores Inc., Secured Notes		8.000	%		6/15/21		1,210,000			1,219,075
Neiman Marcus Group LLC, Senior Secured Notes		7.125	%		6/1/28		270,000			267,975
Neiman Marcus Group Ltd. Inc., Senior Notes		8.000	%		10/15/21		110,000			113,575	^(a)
Neiman Marcus Group Ltd. Inc., Senior Notes		8.750	%		10/15/21		2,080,000			2,152,800	^(a)(b)

Total Multiline Retail										3,753,425

Specialty Retail - 2.4%
AA Bond Co., Ltd., Secured Notes		9.500	%		7/31/19		280,000	^GBP		502,835	^(a)
Edcon Holdings Pty Ltd., Senior Secured Subordinated Bonds		13.375	%		6/30/19		220,000	^EUR		317,993	^(a)
Edcon Pty Ltd., Senior Secured Notes		9.500	%		3/1/18		1,950,000	^EUR		2,773,931	^(a)
Edcon Pty Ltd., Senior Secured Notes		9.500	%		3/1/18		1,000,000	^EUR		1,422,529	^(a)
Gymboree Corp., Senior Notes		9.125	%		12/1/18		1,940,000			1,852,700
Hot Topic Inc., Senior Secured Notes		9.250	%		6/15/21		660,000			693,000	^(a)
New Academy Finance Co. LLC/New Academy Finance Corp., Senior Notes		8.000	%		6/15/18		220,000			226,327	^(a)(b)
Spencer Spirit Holdings Inc., Senior Notes		9.000	%		5/1/18		1,730,000			1,751,625	^(a)(b)
Spencer Spirit Holdings Inc./Spencer Gifts LLC/Spirit Halloween Superstores, Senior Notes		11.000	%		5/1/17		940,000			1,022,250	^(a)

Total Specialty Retail										10,563,190

Textiles, Apparel & Luxury Goods - 0.7%
Boardriders SA, Senior Notes		8.875	%		12/15/17		1,500,000	^EUR		2,160,493	^(a)
Chinos Intermediate Holdings A Inc., Senior Notes		7.750	%		5/1/19		510,000			515,100	^(a)(b)
Empire Today LLC/Empire Today Finance Corp., Senior Secured Notes		11.375	%		2/1/17		550,000			551,375	^(a)

Total Textiles, Apparel & Luxury Goods										3,226,968

TOTAL CONSUMER DISCRETIONARY										84,635,613

CONSUMER STAPLES - 4.0%
Beverages - 0.4%
Carolina Beverage Group LLC/Carolina Beverage Group Finance Inc., Secured Notes		10.625	%		8/1/18		670,000			708,525	^(a)
Crestview DS Merger Subordinated II Inc., Senior Secured Notes		10.000	%		9/1/21		1,000,000			1,065,000	^(a)

Total Beverages										1,773,525

See Notes to Schedule of Investments.

WESTERN ASSET HIGH YIELD DEFINED OPPORTUNITY FUND INC.


Schedule of investments (unaudited) (cont’d)		November 30, 2013


SECURITY	RATE			MATURITY DATE		FACE AMOUNT†			VALUE
Food & Staples Retailing - 0.3%
Beverages & More Inc., Senior Secured Notes		10.000	%		11/15/18		1,340,000		$	1,351,725	^(a)

Food Products - 3.0%
Boparan Holdings Ltd., Senior Notes		9.875	%		4/30/18		1,000,000	^GBP		1,804,020	^(a)
Chiquita Brands International Inc./Chiquita Brands LLC, Senior Secured Notes		7.875	%		2/1/21		1,580,000			1,696,525	^(a)
Dole Food Co. Inc., Senior Secured Notes		7.250	%		5/1/19		1,050,000			1,046,063	^(a)
Foodcorp Ltd., Senior Secured Notes		8.750	%		3/1/18		630,000	^EUR		940,579	^(a)
Foodcorp Ltd., Senior Secured Notes		8.750	%		3/1/18		474,714	^EUR		708,740	^(a)
Post Holdings Inc., Senior Notes		7.375	%		2/15/22		1,280,000			1,363,200	^(a)
Simmons Foods Inc., Senior Secured Notes		10.500	%		11/1/17		3,600,000			3,798,000	^(a)
Sun Merger Sub Inc., Senior Notes		5.875	%		8/1/21		1,140,000			1,182,750	^(a)
Wells Enterprises Inc., Senior Secured Notes		6.750	%		2/1/20		540,000			554,850	^(a)

Total Food Products										13,094,727

Household Products - 0.1%
Spectrum Brands Escrow Corp., Senior Notes		6.625	%		11/15/22		460,000			491,050	^(a)

Tobacco - 0.2%
Alliance One International Inc., Secured Notes		9.875	%		7/15/21		1,020,000			943,500	^(a)

TOTAL CONSUMER STAPLES										17,654,527

ENERGY - 8.3%
Energy Equipment & Services - 1.0%
Hercules Offshore Inc., Senior Notes		10.250	%		4/1/19		730,000			832,200	^(a)
Hercules Offshore Inc., Senior Notes		8.750	%		7/15/21		1,010,000			1,121,100	^(a)
Hercules Offshore Inc., Senior Notes		7.500	%		10/1/21		910,000			960,050	^(a)
Parker Drilling Co., Senior Notes		9.125	%		4/1/18		425,000			456,344
Petroleum Geo-Services ASA, Senior Notes		7.375	%		12/15/18		1,060,000			1,139,500	^(a)

Total Energy Equipment & Services										4,509,194

Oil, Gas & Consumable Fuels - 7.3%
Arch Coal Inc., Senior Notes		8.750	%		8/1/16		880,000			906,400
Arch Coal Inc., Senior Notes		7.000	%		6/15/19		960,000			744,000
Arch Coal Inc., Senior Notes		9.875	%		6/15/19		570,000			493,050
Calumet Specialty Products Partners LP/Calumet Finance Corp., Senior Notes		9.375	%		5/1/19		910,000			1,012,375
Calumet Specialty Products Partners LP/Calumet Finance Corp., Senior Notes		9.375	%		5/1/19		270,000			300,375
Calumet Specialty Products Partners LP/Calumet Finance Corp., Senior Notes		9.625	%		8/1/20		570,000			636,975
Calumet Specialty Products Partners LP/Calumet Finance Corp., Senior Notes		7.625	%		1/15/22		970,000			979,700	^(a)
Carrizo Oil & Gas Inc., Senior Notes		7.500	%		9/15/20		620,000			682,000
Chesapeake Energy Corp., Senior Notes		6.875	%		11/15/20		1,240,000			1,399,650
Comstock Resources Inc., Senior Notes		9.500	%		6/15/20		890,000			996,800
EP Energy LLC/EP Energy Finance Inc., Senior Notes		9.375	%		5/1/20		100,000			115,500
EPE Holdings LLC/EP Energy Bond Co. Inc., Senior Notes		8.875	%		12/15/17		959,464			1,007,437	^(a)(b)
Globe Luxembourg SCA, Senior Secured Notes		9.625	%		5/1/18		1,790,000			1,872,662	^(a)
Halcon Resources Corp., Senior Notes		9.750	%		7/15/20		1,290,000			1,373,850
Halcon Resources Corp., Senior Notes		8.875	%		5/15/21		1,110,000			1,132,200
Kodiak Oil & Gas Corp., Senior Notes		8.125	%		12/1/19		1,130,000			1,257,125
Magnum Hunter Resources Corp., Senior Notes		9.750	%		5/15/20		1,880,000			2,025,700
MEG Energy Corp., Senior Notes		7.000	%		3/31/24		2,110,000			2,157,475	^(a)
Milagro Oil & Gas Inc., Secured Notes		10.500	%		5/15/16		1,360,000			1,026,800
Murray Energy Corp., Senior Secured Notes		8.625	%		6/15/21		740,000			769,600	^(a)
Natural Resource Partners LP, Senior Notes		9.125	%		10/1/18		940,000			972,900	^(a)
Peabody Energy Corp., Senior Notes		7.875	%		11/1/26		740,000			758,500

See Notes to Schedule of Investments.

WESTERN ASSET HIGH YIELD DEFINED OPPORTUNITY FUND INC.


Schedule of investments (unaudited) (cont’d)		November 30, 2013


SECURITY	RATE			MATURITY DATE		FACE AMOUNT†			VALUE
Oil, Gas & Consumable Fuels - continued
Plains Exploration & Production Co., Senior Notes		6.750	%		2/1/22		200,000		$	218,675
Quicksilver Resources Inc., Senior Notes		11.000	%		7/1/21		1,670,000			1,795,250	^(a)
Samson Investment Co., Senior Notes		10.500	%		2/15/20		2,760,000			2,998,050	^(a)
Sanchez Energy Corp., Senior Notes		7.750	%		6/15/21		1,610,000			1,654,275	^(a)
SandRidge Energy Inc., Senior Notes		7.500	%		2/15/23		380,000			389,500
Shelf Drilling Holdings Ltd., Senior Secured Notes		8.625	%		11/1/18		750,000			810,000	^(a)
Summit Midstream Holdings LLC/Summit Mindstream Finance Corp., Senior Notes		7.500	%		7/1/21		580,000			609,000	^(a)
Xinergy Ltd., Senior Secured Notes		9.250	%		5/15/19		1,980,000			1,366,200	^(a)

Total Oil, Gas & Consumable Fuels										32,462,024

TOTAL ENERGY										36,971,218

FINANCIALS - 7.6%
Commercial Banks - 3.7%
Barclays Bank PLC, Subordinated Notes		10.179	%		6/12/21		1,550,000			2,061,523	^(a)
Barclays Bank PLC, Subordinated Notes		7.625	%		11/21/22		1,750,000			1,844,062
Credit Agricole SA, Subordinated Notes		8.375	%		10/13/19		1,320,000			1,504,800	^(a)(e)(f)
Intesa Sanpaolo SpA, Senior Notes		3.625	%		8/12/15		1,490,000			1,534,286	^(a)
M&T Bank Corp., Junior Subordinated Notes		6.875	%		6/15/16		1,170,000			1,164,620	^(a)(f)
Royal Bank of Scotland Group PLC, Junior Subordinated Notes, Medium-Term Notes		7.640	%		9/30/17		7,000,000			6,737,500	^(e)(f)
Royal Bank of Scotland NV, Subordinated Notes		7.750	%		5/15/23		350,000			382,681
Santander Issuances SAU, Notes		5.911	%		6/20/16		900,000			953,212	^(a)

Total Commercial Banks										16,182,684

Consumer Finance - 0.5%
SLM Corp., Medium-Term Notes, Senior Notes		8.450	%		6/15/18		920,000			1,075,250
Stearns Holdings Inc., Senior Secured Notes		9.375	%		8/15/20		520,000			540,800	^(a)
TMX Finance LLC/TitleMax Finance Corp., Senior Secured Notes		8.500	%		9/15/18		460,000			491,050	^(a)

Total Consumer Finance										2,107,100

Diversified Financial Services - 2.7%
Bank of America Corp., Junior Subordinated Notes		5.200	%		6/1/23		1,000,000			905,000	^(e)(f)
ING US Inc., Junior Subordinated Notes		5.650	%		5/15/53		770,000			750,712	^(e)
International Lease Finance Corp., Senior Notes		5.750	%		5/15/16		1,000,000			1,079,115
International Lease Finance Corp., Senior Notes		8.750	%		3/15/17		1,900,000			2,244,375
International Lease Finance Corp., Senior Notes		8.250	%		12/15/20		3,140,000			3,736,600
JPMorgan Chase & Co., Junior Subordinated Bonds		6.000	%		8/1/23		530,000			512,775	^(e)(f)
Nationstar Mortgage LLC/Nationstar Capital Corp., Senior Notes		7.875	%		10/1/20		920,000			959,100
TransUnion Holding Co. Inc., Senior Notes		9.625	%		6/15/18		1,100,000			1,192,125
ZFS Finance USA Trust II, Bonds		6.450	%		12/15/65		500,000			541,250	^(a)(e)

Total Diversified Financial Services										11,921,052

Insurance - 0.3%
Fidelity & Guaranty Life Holdings Inc., Senior Notes		6.375	%		4/1/21		620,000			647,900	^(a)
Liberty Mutual Group Inc., Junior Subordinated Bonds		7.800	%		3/15/37		720,000			774,000	^(a)

Total Insurance										1,421,900

Real Estate Management & Development - 0.4%
Howard Hughes Corp., Senior Notes		6.875	%		10/1/21		1,750,000			1,824,375	^(a)

TOTAL FINANCIALS										33,457,111

HEALTH CARE - 5.9%
Health Care Equipment & Supplies - 1.3%
ConvaTec Finance International SA, Senior Notes		8.250	%		1/15/19		860,000			884,725	^(a)(b)
Lantheus Medical Imaging Inc., Senior Notes		9.750	%		5/15/17		1,790,000			1,646,800
Ontex IV SA, Senior Notes		9.000	%		4/15/19		1,400,000	^EUR		2,067,024	^(a)
Ontex IV SA, Senior Notes		9.000	%		4/15/19		680,000	^EUR		1,003,983	^(a)

Total Health Care Equipment & Supplies										5,602,532

See Notes to Schedule of Investments.

WESTERN ASSET HIGH YIELD DEFINED OPPORTUNITY FUND INC.


Schedule of investments (unaudited) (cont’d)		November 30, 2013


SECURITY	RATE			MATURITY DATE		FACE AMOUNT†			VALUE
Health Care Providers & Services - 4.1%
Acadia Healthcare Co. Inc., Senior Notes		12.875	%		11/1/18		474,000		$	578,280
CHS/Community Health Systems Inc., Senior Notes		8.000	%		11/15/19		1,890,000			2,064,825
Crown Newco 3 PLC, Senior Notes		8.875	%		2/15/19		225,000	^GBP		379,036	^(a)
Crown Newco 3 PLC, Senior Subordinated Notes		8.875	%		2/15/19		1,125,000	^GBP		1,895,179	^(a)
DJO Finance LLC/DJO Finance Corp., Senior Notes		9.875	%		4/15/18		1,090,000			1,181,287
ExamWorks Group Inc., Senior Notes		9.000	%		7/15/19		1,670,000			1,828,650
HCA Holdings Inc., Senior Notes		6.250	%		2/15/21		2,510,000			2,635,500
IASIS Healthcare LLC/IASIS Capital Corp., Senior Notes		8.375	%		5/15/19		2,120,000			2,252,500
Labco SAS, Senior Secured Notes		8.500	%		1/15/18		190,000	^EUR		275,335	^(a)
Physiotherapy Associates Holdings Inc., Senior Notes		11.875	%		5/1/19		1,330,000			498,750	^(a)(g)
Radnet Management Inc., Senior Notes		10.375	%		4/1/18		1,300,000			1,358,500
Tenet Healthcare Corp., Senior Notes		8.125	%		4/1/22		1,850,000			2,011,875
Tenet Healthcare Corp., Senior Secured Notes		6.000	%		10/1/20		1,080,000			1,130,625	^(a)

Total Health Care Providers & Services										18,090,342

Pharmaceuticals - 0.5%
ConvaTec Healthcare E SA, Senior Notes		10.875	%		12/15/18		1,530,000	^EUR		2,341,955	^(a)

TOTAL HEALTH CARE										26,034,829

INDUSTRIALS - 14.6%
Aerospace & Defense - 1.7%
CBC Ammo LLC/CBC FinCo Inc., Senior Notes		7.250	%		11/15/21		1,630,000			1,591,288	^(a)
Ducommun Inc., Senior Notes		9.750	%		7/15/18		800,000			896,000
Erickson Air-Crane Inc., Senior Secured Notes		8.250	%		5/1/20		2,035,000			2,083,331	^(a)
GenCorp Inc., Secured Notes		7.125	%		3/15/21		620,000			666,500
Kratos Defense & Security Solutions Inc., Senior Secured Notes		10.000	%		6/1/17		1,750,000			1,903,125
Wyle Services Corp., Senior Subordinated Notes		10.500	%		4/1/18		490,000			475,300	^(a)

Total Aerospace & Defense										7,615,544

Airlines - 1.5%
Air Canada, Pass-Through Trust, Secured Notes		6.625	%		5/15/18		460,000			460,000	^(a)
Air Canada, Senior Secured Notes		8.750	%		4/1/20		1,160,000			1,223,800	^(a)
DAE Aviation Holdings Inc., Senior Notes		11.250	%		8/1/15		2,887,000			2,908,653	^(a)
Delta Air Lines Inc., Pass-Through Certificates, Secured Notes		8.021	%		8/10/22		1,330,758			1,460,507
United Airlines Inc., Pass-Through Certificates, Senior Secured Notes		6.125	%		4/29/18		600,000			621,000

Total Airlines										6,673,960

Building Products - 0.7%
Ashton Woods USA LLC/Ashton Woods Finance Co., Senior Notes		6.875	%		2/15/21		830,000			815,475	^(a)
Reliance Intermediate Holdings LP, Senior Secured Notes		9.500	%		12/15/19		1,190,000			1,309,000	^(a)
Spie BondCo 3 SCA, Secured Notes		11.000	%		8/15/19		617,000	^EUR		955,753	^(a)

Total Building Products										3,080,228

Commercial Services & Supplies - 2.8%
ARC Document Solutions Inc., Senior Notes		10.500	%		12/15/16		3,000,000			3,183,750
Garda World Security Corp., Senior Notes		7.250	%		11/15/21		320,000			326,400	^(a)
JM Huber Corp., Senior Notes		9.875	%		11/1/19		680,000			785,400	^(a)
Monitronics International Inc., Senior Notes		9.125	%		4/1/20		2,340,000			2,480,400
Monitronics International Inc., Senior Notes		9.125	%		4/1/20		350,000			371,000	^(a)
Taylor Morrison Communities Inc./Monarch Communities Inc., Senior Notes		7.750	%		4/15/20		1,402,000			1,542,200	^(a)

See Notes to Schedule of Investments.

WESTERN ASSET HIGH YIELD DEFINED OPPORTUNITY FUND INC.


Schedule of investments (unaudited) (cont’d)		November 30, 2013


SECURITY	RATE			MATURITY DATE		FACE AMOUNT†			VALUE
Commercial Services & Supplies - continued
Taylor Morrison Communities Inc./Monarch Communities Inc., Senior Notes		7.750	%		4/15/20		489,000		$	537,900	^(a)
TMS International Corp., Senior Notes		7.625	%		10/15/21		490,000			520,625	^(a)
United Rentals North America Inc., Senior Notes		7.625	%		4/15/22		2,096,000			2,358,000
United Rentals North America Inc., Senior Subordinated Notes		8.375	%		9/15/20		390,000			436,800

Total Commercial Services & Supplies										12,542,475

Construction & Engineering - 0.9%
Abengoa Finance SAU, Senior Notes		8.875	%		11/1/17		2,000,000			2,130,000	^(a)
Astaldi SpA, Senior Bonds		7.125	%		12/1/20		390,000	^EUR		529,932	^(a)
Ausdrill Finance Pty Ltd., Senior Notes		6.875	%		11/1/19		200,000			180,500	^(a)
Michael Baker International LLC/CDL Acquisition Co. Inc., Senior Secured Notes		8.250	%		10/15/18		1,170,000			1,205,100	^(a)

Total Construction & Engineering										4,045,532

Electrical Equipment - 0.5%
International Wire Group Holdings Inc., Senior Secured Notes		8.500	%		10/15/17		820,000			873,300	^(a)
NES Rentals Holdings Inc., Senior Secured Notes		7.875	%		5/1/18		760,000			803,700	^(a)
Trionista Holdco GmbH, Senior Secured Notes		5.000	%		4/30/20		100,000	^EUR		138,441	^(a)
Trionista TopCo GmbH, Senior Subordinated Notes		6.875	%		4/30/21		150,000	^EUR		213,981	^(a)

Total Electrical Equipment										2,029,422

Machinery - 1.4%
Dematic SA/DH Services Luxembourg Sarl, Senior Notes		7.750	%		12/15/20		2,310,000			2,477,475	^(a)
Gardner Denver Inc., Senior Notes		6.875	%		8/15/21		1,240,000			1,249,300	^(a)
Global Brass and Copper Inc., Senior Secured Notes		9.500	%		6/1/19		1,000,000			1,122,500
KraussMaffei Group GmbH, Senior Secured Notes		8.750	%		12/15/20		380,000	^EUR		574,433	^(a)
KraussMaffei Group GmbH, Senior Secured Notes		8.750	%		12/15/20		137,000	^EUR		207,098	^(a)
SPL Logistics Escrow LLC/SPL Logistics Finance Corp., Senior Secured Notes		8.875	%		8/1/20		720,000			768,600	^(a)

Total Machinery										6,399,406

Marine - 1.0%
Horizon Lines LLC, Secured Notes		13.000	%		10/15/16		1,434,489			1,305,385	^(b)
Horizon Lines LLC, Senior Secured Notes		11.000	%		10/15/16		794,000			796,977
Navios Maritime Acquisition Corp./Navios Acquisition Finance U.S. Inc., Senior Secured Notes		8.125	%		11/15/21		1,170,000			1,190,475	^(a)
Ultrapetrol Bahamas Ltd., Senior Secured Mortgage Notes		8.875	%		6/15/21		750,000			804,375	^(a)
Ultrapetrol Bahamas Ltd., Senior Secured Mortgage Notes		8.875	%		6/15/21		150,000			159,938	^(a)

Total Marine										4,257,150

Road & Rail - 1.8%
Flexi-Van Leasing Inc., Senior Notes		7.875	%		8/15/18		1,050,000			1,118,250	^(a)
Florida East Coast Holdings Corp., Senior Notes		10.500	%		8/1/17		2,490,342			2,589,956	^(b)
Jack Cooper Finance Co., Senior Secured Notes		9.250	%		6/1/20		580,000			625,675	^(a)
Jack Cooper Holdings Corp., Senior Secured Notes		9.250	%		6/1/20		1,250,000			1,348,438	^(a)
Quality Distribution LLC/QD Capital Corp., Secured Notes		9.875	%		11/1/18		1,917,000			2,132,662

Total Road & Rail										7,814,981

Trading Companies & Distributors - 0.3%
H&E Equipment Services Inc., Senior Notes		7.000	%		9/1/22		1,110,000			1,218,225

Transportation - 1.7%
CMA CGM, Senior Notes		8.500	%		4/15/17		1,750,000			1,701,875	^(a)
Hapag-Lloyd AG, Senior Notes		9.750	%		10/15/17		1,420,000			1,508,750	^(a)

See Notes to Schedule of Investments.

WESTERN ASSET HIGH YIELD DEFINED OPPORTUNITY FUND INC.


Schedule of investments (unaudited) (cont’d)		November 30, 2013


SECURITY	RATE			MATURITY DATE		FACE AMOUNT†			VALUE
Transportation - continued
Neovia Logistics Intermediate Holdings LLC/Logistics Intermediate Finance Corp., Senior Notes		10.000	%		2/15/18		1,640,000		$	1,631,800	^(a)(b)
Syncreon Group BV/Syncreon Global Finance US Inc., Senior Notes		8.625	%		11/1/21		1,430,000			1,490,775	^(a)
Watco Cos., LLC/Watco Finance Corp., Senior Notes		6.375	%		4/1/23		1,070,000			1,072,675	^(a)

Total Transportation										7,405,875

Transportation Infrastructure - 0.3%
Aguila 3 SA, Senior Secured Notes		7.875	%		1/31/18		650,000			693,062	^(a)
Aguila 3 SA, Senior Secured Notes		7.875	%		1/31/18		630,000			671,738	^(a)

Total Transportation Infrastructure										1,364,800

TOTAL INDUSTRIALS										64,447,598

INFORMATION TECHNOLOGY - 2.5%
Electronic Equipment, Instruments & Components - 0.1%
Techem GmbH, Senior Secured Notes		6.125	%		10/1/19		350,000	^EUR		518,383	^(a)

Internet Software & Services - 0.8%
Ancestry.com Inc., Senior Notes		11.000	%		12/15/20		2,380,000			2,778,650
Zayo Group LLC/Zayo Capital Inc., Senior Secured Notes		8.125	%		1/1/20		790,000			874,925

Total Internet Software & Services										3,653,575

IT Services - 0.6%
Compiler Finance Subordinated Inc., Senior Notes		7.000	%		5/1/21		250,000			247,500	^(a)
First Data Corp., Senior Notes		12.625	%		1/15/21		1,890,000			2,225,475

Total IT Services										2,472,975

Software - 1.0%
Audatex North America Inc., Senior Notes		6.000	%		6/15/21		590,000			619,500	^(a)
Healthcare Technology Intermediate Inc., Senior Notes		7.375	%		9/1/18		1,390,000			1,435,175	^(a)(b)
Interface Security Systems Holdings Inc./Interface Security Systems LLC, Senior Secured Notes		9.250	%		1/15/18		830,000			869,425	^(a)
Oberthur Technologies Holding SAS, Senior Secured Notes		9.250	%		4/30/20		950,000	^EUR		1,348,304	^(a)

Total Software										4,272,404

TOTAL INFORMATION TECHNOLOGY										10,917,337

MATERIALS - 12.9%
Chemicals - 2.0%
INEOS Group Holdings SA, Senior Notes		7.875	%		2/15/16		1,212,582	^EUR		1,668,254	^(a)
Kerling PLC, Senior Secured Notes		10.625	%		2/1/17		1,300,000	^EUR		1,896,716	^(a)
KP Germany Erste GmbH, Senior Secured Notes		11.625	%		7/15/17		370,000	^EUR		580,684	^(a)
KP Germany Erste GmbH, Senior Secured Notes		11.625	%		7/15/17		290,000	^EUR		455,130	^(a)
Orion Engineered Carbons Bondco GmbH, Senior Secured Bonds		10.000	%		6/15/18		1,305,000	^EUR		1,977,157	^(a)
Styrolution GmbH, Senior Secured Notes		7.625	%		5/15/16		1,600,000	^EUR		2,293,656	^(a)

Total Chemicals										8,871,597

Containers & Packaging - 4.0%
ARD Finance SA, Senior Secured Notes		11.125	%		6/1/18		211,125			226,959	^(a)(b)
Ardagh Packaging Finance PLC, Senior Notes		9.250	%		10/15/20		2,500,000	^EUR		3,702,732	^(a)
Ardagh Packaging Finance PLC/Ardagh MP Holdings USA Inc., Senior Notes		7.000	%		11/15/20		840,000			846,300	^(a)
Beverage Packaging Holdings Luxembourg II SA, Senior Notes		8.000	%		12/15/16		430,000	^EUR		587,206	^(a)
Beverage Packaging Holdings Luxembourg II SA, Senior Secured Notes		8.000	%		12/15/16		610,000	^EUR		833,013	^(a)
BOE Intermediate Holding Corp., Senior Notes		9.000	%		11/1/17		418,200			432,837	^(a)(b)
Exopack Holdings SA, Senior Notes		7.875	%		11/1/19		1,460,000			1,474,600	^(a)

See Notes to Schedule of Investments.

WESTERN ASSET HIGH YIELD DEFINED OPPORTUNITY FUND INC.


Schedule of investments (unaudited) (cont’d)		November 30, 2013


SECURITY	RATE			MATURITY DATE		FACE AMOUNT†			VALUE
Containers & Packaging - continued
Pactiv LLC, Senior Bonds		8.375	%		4/15/27		910,000		$	841,750
Pactiv LLC, Senior Notes		7.950	%		12/15/25		410,000			379,250
Pretium Packaging LLC/Pretium Finance Inc., Senior Secured Notes		11.500	%		4/1/16		4,500,000			4,826,250
Reynolds Group Issuer Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer (Luxembourg) SA, Senior Notes		8.500	%		5/15/18		1,290,000			1,370,625
Viskase Cos. Inc., Senior Secured Notes		9.875	%		1/15/18		2,000,000			2,117,500	^(a)

Total Containers & Packaging										17,639,022

Metals & Mining - 4.6%
ArcelorMittal, Senior Notes		6.000	%		3/1/21		1,610,000			1,696,537
ArcelorMittal, Senior Notes		6.750	%		2/25/22		960,000			1,045,200
Barminco Finance Pty Ltd., Senior Notes		9.000	%		6/1/18		960,000			907,200	^(a)
Coeur Mining Inc., Senior Notes		7.875	%		2/1/21		1,510,000			1,532,650
FMG Resources (August 2006) Pty Ltd., Senior Notes		7.000	%		11/1/15		479,000			497,262	^(a)
FMG Resources (August 2006) Pty Ltd., Senior Notes		8.250	%		11/1/19		1,340,000			1,504,150	^(a)
Midwest Vanadium Pty Ltd., Senior Secured Notes		11.500	%		2/15/18		1,450,000			1,218,000	^(a)(c)
Mirabela Nickel Ltd., Senior Notes		8.750	%		4/15/18		1,060,000			265,000	^(a)(g)
Molycorp Inc., Senior Secured Notes		10.000	%		6/1/20		1,170,000			1,155,375
New World Resources NV, Senior Notes		7.875	%		1/15/21		800,000	^EUR		459,281	^(a)
Noranda Aluminum Acquisition Corp., Senior Notes		11.000	%		6/1/19		530,000			454,475	^(a)
Optima Specialty Steel Inc., Senior Secured Notes		12.500	%		12/15/16		910,000			1,007,825	^(a)
Prince Mineral Holding Corp., Senior Secured Notes		11.500	%		12/15/19		670,000			747,050	^(a)
Rain CII Carbon LLC/CII Carbon Corp., Senior Secured Notes		8.250	%		1/15/21		1,880,000			1,936,400	^(a)
Schaeffler Holding Finance BV, Senior Secured Bonds		6.875	%		8/15/18		740,000			791,800	^(a)(b)
Schaeffler Holding Finance BV, Senior Secured Notes		6.875	%		8/15/18		850,000	^EUR		1,236,696	^(a)(b)
St. Barbara Ltd., Senior Secured Notes		8.875	%		4/15/18		1,620,000			1,368,900	^(a)
SunCoke Energy Partners LP/SunCoke Energy Partners Finance Corp., Senior Notes		7.375	%		2/1/20		500,000			525,000	^(a)
Thompson Creek Metals Co. Inc., Senior Notes		12.500	%		5/1/19		860,000			894,400
Thompson Creek Metals Co. Inc., Senior Secured Notes		9.750	%		12/1/17		890,000			996,800

Total Metals & Mining										20,240,001

Paper & Forest Products - 2.3%
Appvion Inc., Secured Notes		9.000	%		6/1/20		2,840,000			2,783,200	^(a)
Appvion Inc., Senior Secured Notes		11.250	%		12/15/15		3,100,000			3,751,853
Resolute Forest Products Inc., Senior Notes		5.875	%		5/15/23		1,450,000			1,323,125	^(a)
Verso Paper Holdings LLC/Verso Paper Inc., Senior Secured Notes		11.750	%		1/15/19		1,868,000			1,307,600
Verso Paper Holdings LLC/Verso Paper Inc., Senior Subordinated Notes		11.375	%		8/1/16		2,280,000			1,037,400

Total Paper & Forest Products										10,203,178

TOTAL MATERIALS										56,953,798

TELECOMMUNICATION SERVICES - 10.3%
Diversified Telecommunication Services - 6.7%
Cogent Communications Group Inc., Senior Secured Notes		8.375	%		2/15/18		5,000,000			5,475,000	^(a)
Intelsat Jackson Holdings SA, Senior Notes		5.500	%		8/1/23		2,860,000			2,749,175	^(a)
Intelsat Luxembourg SA, Senior Notes		8.125	%		6/1/23		2,930,000			3,102,137	^(a)
Level 3 Financing Inc., Senior Notes		7.000	%		6/1/20		100,000			106,500
Level 3 Financing Inc., Senior Notes		8.625	%		7/15/20		1,930,000			2,171,250
Level 3 Financing Inc., Senior Notes		6.125	%		1/15/21		520,000			529,100	^(a)
TW Telecom Holdings Inc., Senior Notes		5.375	%		10/1/22		1,630,000			1,627,962
TW Telecom Holdings Inc., Senior Notes		6.375	%		9/1/23		330,000			348,975	^(a)

See Notes to Schedule of Investments.

WESTERN ASSET HIGH YIELD DEFINED OPPORTUNITY FUND INC.


Schedule of investments (unaudited) (cont’d)		November 30, 2013


SECURITY	RATE			MATURITY DATE		FACE AMOUNT†			VALUE
Diversified Telecommunication Services - continued
Unitymedia KabelBW GmbH, Senior Secured Notes		9.500	%		3/15/21		1,600,000	^EUR	$	2,529,892	^(a)
Unitymedia KabelBW GmbH, Senior Secured Notes		9.500	%		3/15/21		440,000	^EUR		695,720	^(a)
Verizon Communications Inc., Senior Notes		5.150	%		9/15/23		1,500,000			1,603,816
Wind Acquisition Finance SA, Senior Secured Notes		11.750	%		7/15/17		1,000,000	^EUR		1,447,232	^(a)
Wind Acquisition Holdings Finance SpA, Senior Notes		12.250	%		7/15/17		4,364,339			4,528,002	^(a)(b)
Windstream Corp., Senior Notes		7.750	%		10/1/21		720,000			772,200	^(a)
Windstream Corp., Senior Notes		6.375	%		8/1/23		2,000,000			1,920,000

Total Diversified Telecommunication Services										29,606,961

Wireless Telecommunication Services - 3.6%
Matterhorn Midco & Cy SCA, Senior Notes		7.750	%		2/15/20		760,000	^EUR		1,071,931	^(a)
Phones4u Finance PLC, Senior Secured Notes		9.500	%		4/1/18		730,000	^GBP		1,261,689	^(a)
Sprint Capital Corp., Senior Notes		6.875	%		11/15/28		5,210,000			4,975,550
Sprint Capital Corp., Senior Notes		8.750	%		3/15/32		2,120,000			2,289,600
Sprint Communications Inc., Senior Notes		9.000	%		11/15/18		2,220,000			2,691,750	^(a)
Sprint Corp., Senior Notes		7.875	%		9/15/23		2,310,000			2,535,225	^(a)
T-Mobile USA Inc., Senior Notes		6.542	%		4/28/20		450,000			478,687
T-Mobile USA Inc., Senior Notes		6.125	%		1/15/22		390,000			398,288
T-Mobile USA Inc., Senior Notes		6.731	%		4/28/22		330,000			345,263

Total Wireless Telecommunication Services										16,047,983

TOTAL TELECOMMUNICATION SERVICES										45,654,944

UTILITIES - 4.7%
Electric Utilities - 1.8%
FirstEnergy Corp., Notes		7.375	%		11/15/31		1,260,000			1,336,134
GenOn REMA LLC, Pass-Through Certificates		9.237	%		7/2/17		190,933			196,661
GenOn REMA LLC, Pass-Through Certificates		9.681	%		7/2/26		2,340,000			2,410,200
Midwest Generation LLC, Pass-Through Certificates		8.560	%		1/2/16		1,298,365			1,486,628	^(g)
Northeast Generation Co., Senior Secured Notes		8.812	%		10/15/26		2,542,969			2,690,749

Total Electric Utilities										8,120,372

Independent Power Producers & Energy Traders - 2.9%
Atlantic Power Corp., Senior Notes		9.000	%		11/15/18		960,000			988,800
Dynegy Roseton LLC/Dynegy Danskammer LLC Pass-Through Trust, Secured Bonds		7.670	%		8/11/16		1,180,000			0	^(d)(g)(h)
Energy Future Intermediate Holding Co. LLC/EFIH Finance Inc., Secured Notes		12.250	%		3/1/22		850,000			990,250	^(a)
Energy Future Intermediate Holding Co. LLC/EFIH Finance Inc., Senior Secured Notes		6.875	%		8/15/17		780,000			803,400	^(a)
Energy Future Intermediate Holding Co. LLC/EFIH Finance Inc., Senior Secured Notes		10.000	%		12/1/20		2,400,000			2,562,000
First Wind Holdings Inc., Senior Secured Notes		10.250	%		6/1/18		1,380,000			1,518,000	^(a)
Foresight Energy LLC/Foresight Energy Corp., Senior Notes		7.875	%		8/15/21		1,410,000			1,459,350	^(a)
Mirant Americas Generation LLC, Senior Notes		9.125	%		5/1/31		2,840,000			2,996,200
Mirant Mid Atlantic LLC, Pass-Through Certificates		10.060	%		12/30/28		1,461,442			1,632,247

Total Independent Power Producers & Energy Traders										12,950,247

TOTAL UTILITIES										21,070,619

TOTAL CORPORATE BONDS & NOTES (Cost - $379,396,951)										397,797,594

SENIOR LOANS - 1.5%
CONSUMER DISCRETIONARY - 0.8%
Hotels, Restaurants & Leisure - 0.7%
Equinox Holdings Inc., Second Lien Term Loan		9.750	%		7/31/20		1,050,000			1,068,375	⁽ⁱ⁾
Stockbridge SBE Holdings LLC, Term Loan B		13.000	%		5/2/17		1,791,667			1,979,792	⁽ⁱ⁾

Total Hotels, Restaurants & Leisure										3,048,167

See Notes to Schedule of Investments.

WESTERN ASSET HIGH YIELD DEFINED OPPORTUNITY FUND INC.


Schedule of investments (unaudited) (cont’d)		November 30, 2013

SECURITY

RATE

MATURITY
DATE

FACE
AMOUNT†

VALUE

Specialty Retail - 0.1%

Gymboree Corp., Initial Term Loan

5.000

2/23/18

510,000

495,922

⁽ⁱ⁾

TOTAL CONSUMER DISCRETIONARY

3,544,089

CONSUMER STAPLES - 0.1%

Food Products - 0.1%

AdvancePierre Foods Inc., Second Lien Term Loan

9.500

10/10/17

450,000

447,750

⁽ⁱ⁾

ENERGY - 0.0%

Energy Equipment & Services - 0.0%

Frac Tech International LLC, Term Loan B

8.500

5/6/16

100,000

99,687

⁽ⁱ⁾

INDUSTRIALS - 0.4%

Machinery - 0.4%

Intelligrated Inc., Second Lien Term Loan

10.500

1/30/20

1,740,000

1,792,200

⁽ⁱ⁾

MATERIALS - 0.2%

Chemicals - 0.2%

Kronos Inc., Second Lien Term Loan

9.750

4/30/20

800,000

828,000

⁽ⁱ⁾

TOTAL SENIOR LOANS
(Cost - $6,285,691)

6,711,726

SOVEREIGN BONDS - 2.1%

Venezuela - 2.1%

Bolivarian Republic of Venezuela, Senior Bonds

5.750

2/26/16

5,970,000

4,984,950

^(a)

Bolivarian Republic of Venezuela, Senior Bonds

9.250

9/15/27

5,820,000

4,350,450

TOTAL SOVEREIGN BONDS
(Cost - $9,501,130)

9,335,400

SHARES

COMMON STOCKS - 1.9%

CONSUMER DISCRETIONARY - 0.0%

Hotels, Restaurants & Leisure - 0.0%

Bossier Casino Venture Holdco Inc.

68,957

137,914

*^(c)(d)

Household Durables - 0.0%

William Lyon Homes, Class A Shares

2,734

59,465

TOTAL CONSUMER DISCRETIONARY

197,379

FINANCIALS - 1.7%

Diversified Financial Services - 1.4%

Citigroup Inc.

119,668

6,332,831

Real Estate Management & Development - 0.3%

Realogy Holdings Corp.

24,391

1,155,889

*^(c)

TOTAL FINANCIALS

7,488,720

INDUSTRIALS - 0.2%

Marine - 0.2%

Horizon Lines Inc., Class A Shares

633,775

652,788

TOTAL COMMON STOCKS
(Cost - $7,987,963)

8,338,887

CONVERTIBLE PREFERRED STOCKS - 0.1%

MATERIALS - 0.1%

Metals & Mining - 0.1%

ArcelorMittal
(Cost - $217,500)

6.000

8,700

219,675

PREFERRED STOCKS - 1.9%

FINANCIALS - 1.9%

Consumer Finance - 1.9%

GMAC Capital Trust I
(Cost - $7,815,124)

8.125

319,200

8,567,328

^(e)

See Notes to Schedule of Investments.

WESTERN ASSET HIGH YIELD DEFINED OPPORTUNITY FUND INC.


Schedule of investments (unaudited) (cont’d)		November 30, 2013


SECURITY	EXPIRATION DATE		WARRANTS		VALUE
WARRANTS - 0.1%
Jack Cooper Holdings Corp.		12/15/17		1,686	$	223,395	*
Jack Cooper Holdings Corp.		5/6/18		846		112,095	*

TOTAL WARRANTS (Cost - $46,253)						335,490

TOTAL INVESTMENTS - 97.5% (Cost - $411,250,612#)						431,306,100
Other Assets in Excess of Liabilities - 2.5%						11,039,128

TOTAL NET ASSETS - 100.0%					$	442,345,228

†	Face amount denominated in U.S. dollars, unless otherwise noted.

*	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, unless otherwise noted.

(b)	Payment-in-kind security for which the issuer has the option at each interest payment date of making interest payments in cash or additional debt securities.

(c)	Illiquid security.

(d)	Security is valued in good faith in accordance with procedures approved by the Board of Directors (See Note 1).

(e)	Variable rate security. Interest rate disclosed is as of the most recent information available.

(f)	Security has no maturity date. The date shown represents the next call date.

(g)	The coupon payment on these securities is currently in default as of November 30, 2013.

(h)	Value is less than $1.

(i)	Interest rates disclosed represent the effective rates on senior loans. Ranges in interest rates are attributable to multiple contracts under the same loan.

#	Aggregate cost for federal income tax purposes is substantially the same.

Abbreviations used in this schedule:



EUR		— Euro
GBP		— British Pound

See Notes to Schedule of Investments.

Notes to Schedule of Investments (unaudited)

1. Organization and significant accounting policies

Western Asset High Yield Defined Opportunity Fund Inc. (the “Fund”) was incorporated in Maryland on July 20, 2010 and is registered as a non-diversified, limited-term, closed-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund’s primary investment objective is to provide high income. As a secondary investment objective, the Fund will seek capital appreciation. The Fund seeks to achieve its investment objectives by investing, under normal market conditions, at least 80% of its net assets in a portfolio of high-yield corporate fixed income securities with varying maturities. The Fund intends to liquidate on or about September 30, 2025 and distribute substantially all of its net assets to stockholders, after making appropriate provisions for any liabilities of the Fund.

The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”).

(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 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. Short-term fixed income securities that will mature in 60 days or less are valued at amortized cost, unless it is determined that using this method would not reflect an investment’s fair value. Futures contracts are valued daily at the settlement price established by the board of trade or exchange on which they are traded. 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 of Directors is responsible for the valuation process and has delegated the supervision of the daily valuation process to the Legg Mason North American Fund Valuation Committee (the “Valuation Committee”). The Valuation Committee, pursuant to the policies adopted by the Board of Directors, is responsible for making fair value determinations, evaluating the effectiveness of the Fund’s pricing policies, and reporting to the Board of Directors. 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 of Directors, 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 of Directors quarterly.

Notes to Schedule of Investments (unaudited) (continued)

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.

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 – 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		—	$	396,710,987	$	1,086,607	$	397,797,594
Senior loans		—		6,711,726		—		6,711,726
Sovereign bonds		—		9,335,400		—		9,335,400
Common stocks:
Consumer discretionary	$	59,465		—		137,914		197,379
Other common stocks		8,141,508		—		—		8,141,508
Convertible preferred stocks		219,675		—		—		219,675
Preferred stocks		8,567,328		—		—		8,567,328
Warrants		—		335,490		—		335,490

Total investments	$	16,987,976	$	413,093,603	$	1,224,521	$	431,306,100


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		—	$	661,228		—	$	661,228
Centrally cleared credit default swaps on credit indices - buy protection		—		120,034		—		120,034

Total		—	$	781,262		—	$	781,262

†	See Schedule of Investments for additional detailed categorizations.

(b) Repurchase agreements. The Fund may enter into repurchase agreements with institutions that its investment adviser has determined are creditworthy. Each repurchase agreement is recorded at cost. Under the terms of a typical repurchase agreement, the Fund acquires a debt security subject to an obligation of the seller to repurchase, and of the Fund to resell, the security at an agreed-upon price and time, thereby determining the yield during the Fund’s holding period. When entering into repurchase agreements, it is the Fund’s policy that its custodian or a third party custodian, acting on the Fund’s behalf, take possession of the underlying collateral securities, the market value of which, at all times, at least equals the principal amount of the repurchase transaction, including accrued interest. To the extent that any repurchase transaction maturity exceeds one business day, the value of the collateral is marked-to-market and measured against the value of the agreement in an effort to ensure the adequacy of the collateral. If the counterparty defaults, the Fund generally has the right to use the collateral to satisfy the terms of the repurchase transaction. However, if the market value of the collateral declines during the period in which the Fund seeks to assert its rights or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Fund may be delayed or limited.

Notes to Schedule of Investments (unaudited) (continued)

(c) Futures contracts. The Fund uses futures contracts generally to gain exposure to, or hedge against, changes in interest rates or gain exposure to, or hedge against, changes in certain asset classes. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date.

Upon entering into a futures contract, the Fund is required to deposit cash or cash equivalents with a broker in an amount equal to a certain percentage of the contract amount. This is known as the ‘‘initial margin’’ and subsequent payments (‘‘variation margin’’) are made or received by the Fund each day, depending on the daily fluctuation in the value of the contract. For certain futures, including foreign denominated futures, variation margin is not settled daily, but is recorded as a net variation margin payable or receivable. Futures contracts are valued daily at the settlement price established by the board of trade or exchange on which they are traded.

Futures contracts involve, to varying degrees, risk of loss. In addition, there is the risk that the Fund may not be able to enter into a closing transaction because of an illiquid secondary market.

(d) Swap agreements. The Fund invests in swaps for the purpose of managing its exposure to interest rate, credit or market risk, or for other purposes, including to increase the Fund’s return. The use of swaps involves risks that are different from those associated with other portfolio transactions. Swap agreements are privately negotiated in the over-the-counter market (“OTC Swaps”) or may be executed on a registered exchange (“Centrally Cleared Swaps”). Unlike Centrally Cleared Swaps, the Fund has credit exposure to the counterparties of OTC Swaps.

Swap contracts are marked-to-market daily and changes in value are recorded as unrealized appreciation (depreciation). The daily change in valuation of Centrally Cleared Swaps, if any, is recorded as a receivable or payable for variation margin. Gains or losses are realized upon termination of the swap agreement. Collateral, in the form of restricted cash or securities, may be required to be held in segregated accounts with the Fund’s custodian in compliance with the terms of the swap contracts. Securities posted as collateral for swap contracts are identified in the Schedule of Investments.

The Fund’s maximum exposure in the event of a defined credit event on a credit default swap to sell protection is the notional amount. As of November 30, 2013, the Fund did not hold any credit default swaps to sell protection.

For average notional amounts of swaps held during the period ended November 30, 2013, see Note 3.

Credit default swaps

The Fund enters into credit default swap (“CDS”) contracts for investment purposes, to manage its credit risk or to add leverage. CDS agreements involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a third party, typically corporate or sovereign issuers, on a specified obligation, or in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising a credit index. The Fund may use a CDS to provide protection against defaults of the issuers (i.e., to reduce risk where the Fund has exposure to an issuer) or to take an active long or short position with respect to the likelihood of a particular issuer’s default. As a seller of protection, the Fund generally receives an upfront payment or a stream of payments throughout the term of the swap provided that there is no credit event. If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the maximum potential amount of future payments (undiscounted) that the Fund could be required to make under a credit default swap agreement would be an amount equal to the notional amount of the agreement. These amounts of potential payments will be partially offset by any recovery of values from the respective referenced obligations. As a seller of protection, the Fund effectively adds leverage to its portfolio because, in addition to its total net assets, the Fund is subject to investment exposure on the notional amount of the swap. As a buyer of protection, the Fund generally receives an amount up to the notional value of the swap if a credit event occurs.

Implied spreads are the theoretical prices a lender receives for credit default protection. When spreads rise, market perceived credit risk rises and when spreads fall, market perceived credit risk falls. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to enter into the agreement. Wider credit spreads and decreasing market values, when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

Notes to Schedule of Investments (unaudited) (continued)

Credit spreads utilized in determining the period end market value of credit default swap agreements on corporate or sovereign issues are disclosed in the Notes to the Schedule of Investments and serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for credit derivatives. For credit default swap agreements on asset-backed securities and credit indices, the quoted market prices and resulting values, particularly in relation to the notional amount of the contract as well as the annual payment rate, serve as an indication of the current status of the payment/performance risk.

The Fund’s maximum risk of loss from counterparty risk, as the protection buyer, is the fair value of the contract (this risk is mitigated by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty). As the protection seller, the Fund’s maximum risk is the notional amount of the contract. Credit default swaps are considered to have credit risk-related contingent features since they require payment by the protection seller to the protection buyer upon the occurrence of a defined credit event.

Entering into a CDS agreement involves, to varying degrees, elements of credit, market and documentation risk. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreement may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreement, and that there will be unfavorable changes in net interest rates.

(e) Forward foreign currency contracts. The Fund enters into a forward foreign currency contract to hedge against foreign currency exchange rate risk on its non-U.S. dollar denominated securities or to facilitate settlement of a foreign currency denominated portfolio transaction. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price with delivery and settlement at a future date. The contract is marked-to-market daily and the change in value is recorded by the Fund as an unrealized gain or loss. When a forward foreign currency contract is closed, through either delivery or offset by entering into another forward foreign currency contract, the Fund recognizes a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value of the contract at the time it is closed.

When entering into a forward foreign currency contract, the Fund bears the risk of an unfavorable change in the foreign exchange rate underlying the forward foreign currency contract. Risks may also arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts.

(f) Foreign currency translation. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the respective dates of such transactions.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar denominated transactions as a result of, among other factors, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.

(g) Loan participations. The Fund may invest in loans arranged through private negotiation between one or more financial institutions. The Fund’s investment in any such loan may be in the form of a participation in or an assignment of the loan. In connection with purchasing participations, the Fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement related to the loan, or any rights of off-set against the borrower and the Fund may not benefit directly from any collateral supporting the loan in which it has purchased the participation.

The Fund assumes the credit risk of the borrower, the lender that is selling the participation and any other persons interpositioned between the Fund and the borrower. In the event of the insolvency of the lender selling the participation, the Fund may be treated as a general creditor of the lender and may not benefit from any off-set between the lender and the borrower.

(h) Credit and market risk. The Fund invests in high-yield and emerging market instruments that are subject to certain credit and market risks. The yields of high-yield and emerging market debt obligations reflect, among other things, perceived credit and market risks. The Fund’s investments in securities rated below investment grade typically involve risks not associated with higher rated securities including, among others, greater risk related to timely and ultimate payment of interest and principal, greater market price volatility and less liquid secondary market trading. The consequences of political, social, economic or diplomatic changes may have disruptive effects on the market prices of investments held by the Fund. The Fund’s investments in non-U.S. dollar denominated securities may also result in foreign currency losses caused by devaluations and exchange rate fluctuations.

Notes to Schedule of Investments (unaudited) (continued)

(i) Foreign investment risks. The Fund’s investments in foreign securities may involve risks not present in domestic investments. Since securities may be denominated in foreign currencies, may require settlement in foreign currencies or pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Fund. Foreign investments may also subject the Fund to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which affect the market and/or credit risk of the investments.

(j) Counterparty risk and credit-risk-related contingent features of derivative instruments. The Fund may invest in certain securities or engage in other transactions, where the Fund is exposed to counterparty credit risk in addition to broader market risks. The Fund may invest in securities of issuers, which may also be considered counterparties as trading partners in other transactions. This may increase the risk of loss in the event of default or bankruptcy by the counterparty or if the counterparty otherwise fails to meet its contractual obligations. The Fund’s investment manager attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. Market events and changes in overall economic conditions may impact the assessment of such counterparty risk by the investment manager. In addition, declines in the values of underlying collateral received may expose the Fund to increased risk of loss.

The Fund has entered into master agreements with certain of its derivative counterparties that provide for general obligations, representations, agreements, collateral, events of default or termination and credit related contingent features. The credit related contingent features include, but are not limited to, a percentage decrease in the Fund’s net assets or NAV over a specified period of time. If these credit related contingent features were triggered, the derivatives counterparty could terminate the positions and demand payment or require additional collateral.

Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives while collateral terms are contract specific for over-the-counter traded derivatives. Securities pledged as collateral, if any, to cover the obligations of the Fund under derivative contracts, are noted in the Schedule of Investments.

As of November 30, 2013, the Fund held forward foreign currency contracts with credit related contingent features which had a liability position of $661,228. If a contingent feature in the master agreements would have been triggered, the Fund would have been required to pay this amount to its derivatives counterparties.

(k) Security transactions. Security transactions are accounted for on a trade date basis.

2. Investments

At November 30, 2013, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:


Gross unrealized appreciation	$	30,167,383
Gross unrealized depreciation		(10,111,895	)

Net unrealized appreciation	$	20,055,488

At November 30, 2013, the Fund had the following open forward foreign currency contracts:


Foreign Currency	Counterparty	Local Currency		Market Value		Settlement Date		Unrealized Loss
Contracts to Sell:
British Pound	Citibank, N.A.		689,056	$	1,126,852		2/18/14	$	(22,600	)
British Pound	Credit Suisse		2,669,820		4,366,106		2/18/14		(87,319	)
British Pound	UBS AG		1,633,773		2,671,801		2/18/14		(52,209	)
Euro	Citibank, N.A.		3,310,959		4,499,257		2/18/14		(72,620	)
Euro	Credit Suisse		50,000		67,945		2/18/14		(957	)
Euro	Credit Suisse		10,023,025		13,620,272		2/18/14		(117,163	)
Euro	JPMorgan Chase & Co		8,074,709		10,972,709		2/18/14		(197,091	)
Euro	UBS AG		9,909,636		13,466,189		2/18/14		(111,269	)

Net unrealized loss on open forward foreign currency contracts								$	(661,228	)

Notes to Schedule of Investments (unaudited) (continued)

At November 30, 2013, the Fund had the following open swap contracts:


CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CREDIT INDICES - BUY PROTECTION¹
SWAP COUNTERPARTY (REFERENCE ENTITY)	NOTIONAL AMOUNT²		TERMINATION DATE		PERIODIC PAYMENTS MADE BY THE FUND^†	MARKET VALUE³			UPFRONT PREMIUMS PAID (RECEIVED)			UNREALIZED DEPRECIATION
Barclays Capital Inc. (Markit CDX.NA.HY.21 Index)	$	5,800,000		12/20/18	5.000% quarterly	$	(411,653	)	$	(367,761	)	$	(43,892	)
BNP Paribas (Markit CDX.NA.HY.21 Index)		10,380,000		12/20/18	5.000% quarterly		(736,718	)		(660,576	)		(76,142	)

Total	$	16,180,000				$	(1,148,371	)	$	(1,028,337	)	$	(120,034	)

(1)

If the Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or the underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or the underlying securities comprising the referenced index.

(2)	The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

(3)

The quoted market prices and resulting values for credit default swap agreements on asset-backed securities and credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement been closed/sold as of the period end. Decreasing market values (sell protection) or increasing market values (buy protection) when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

†	Percentage shown is an annual percentage rate.

3. Derivative instruments and hedging activities

GAAP requires enhanced disclosure about an entity’s derivative and hedging activities.

The following is a summary of the Fund’s derivative instruments categorized by risk exposure at November 30, 2013.


Primary Underlying Risk	Forward Foreign Currency Contracts			Centrally Cleared Swap Contracts			Total
Primary Underlying Risk	Unrealized Depreciation			Unrealized Depreciation			Total
Foreign Exchange Risk	$	(661,228	)		—		$	(661,228	)
Credit Risk		—		$	(120,034	)		(120,034	)

Total	$	(661,228	)	$	(120,034	)	$	(781,262	)

During the period ended November 30, 2013, the volume of derivative activity for the Fund was as follows:


	Average Market Value
Futures contracts (to buy) †	$	2,005,375
Forward foreign currency contracts (to buy) †		2,326,329
Forward foreign currency contracts (to sell)		54,773,715

	Average Notional Balance
Credit default swap contracts (to buy protection)	$	5,395,000

†	At November 30, 2013, there were no open positions held in this derivative.

ITEM 2.

CONTROLS AND PROCEDURES.

(a)

The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a- 3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934.

(b)

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are likely to materially affect the registrant’s internal control over financial reporting.

ITEM 3.

EXHIBITS.

Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Western Asset High Yield Defined Opportunity Fund Inc.


By		/s/ KENNETH D. FULLER
		Kenneth D. Fuller
		Chief Executive Officer

Date:		January 24, 2014

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.



By		/s/ KENNETH D. FULLER
		Kenneth D. Fuller
		Chief Executive Officer

Date:		January 24, 2014

By		/s/ RICHARD F. SENNETT
		Richard F. Sennett
		Principal Financial Officer

Date:		January 24, 2014