Does Western Asset High Yield Defined Opportunity Fund Inc. pass AAOIFI screening?

Western Asset High Yield Defined Opportunity Fund Inc. (HYI) does not pass AAOIFI Shariah screening. AAOIFI requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30% (HYI: 0.0%), (3) interest-bearing deposits below 30%, and (4) prohibited income below 5%. HalalScreener provides free AAOIFI screening for 6,200+ stocks at halalscreener.app.

How much purification is needed for Western Asset High Yield Defined Opportunity Fund Inc. stock?

Muslim investors purify the portion of dividends and realized gains that comes from non-permissible income by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification computes the exact percentage and amount for Western Asset High Yield Defined Opportunity Fund Inc. (HYI) using the latest financial data.

Where can I screen Western Asset High Yield Defined Opportunity Fund Inc. for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for Western Asset High Yield Defined Opportunity Fund Inc. (HYI) and 5,100+ other US-listed stocks, ETFs, and 100+ cryptocurrencies. The screening uses AAOIFI Standard No. 21 and shows the verdict, compliance grade, score, and debt ratio free. No credit card or signup required for basic screening; the full ratio breakdown is part of Pro. HalalScreener also includes an AI Islamic Scholar for follow-up questions about HYI's compliance across different madhabs (Hanafi, Shafi'i, Maliki, Hanbali, Ja'fari).

HYI: Is Western Asset High Yield Defined Opportunity Fund Inc. Halal?

Western Asset High Yield Defined Opportunity Fund Inc.

NYSEFinancial ServicesUS

$10.41

+0.48%

Market Cap: 236.0M

Compliance Status

Not Halal

Screened on Aug 26, 2026 · AAOIFI Standard 21

Non-Compliant

0Score

Is Western Asset High Yield Defined Opportunity Fund Inc. (HYI) halal? Not Halal. Based on AAOIFI screening, Western Asset High Yield Defined Opportunity Fund Inc. has involvement in prohibited business activities with a compliance score of 0/100 (Grade: F).

Basket rule

Over the limit

An ETF is halal when non-compliant holdings stay under 5% of the basket by weight.

99.1% of 5.0% limit

99% of the basket's holdings were screened individually.

About Western Asset High Yield Defined Opportunity Fund Inc.

The Western Asset High Yield Defined Opportunity Fund Inc. functions as a closed-end investment vehicle, concentrating its portfolio on fixed-income assets. Its inception and primary oversight are managed by Legg Mason Partners Fund Advisor, LLC. Additionally, a collective of entities including Western Asset Management Company, Western Asset Management Company Pte. Ltd., Western Asset Management Company Ltd, and Western Asset Management Company Limited contribute to its co-management. The fund strategically allocates capital across global fixed-income markets, with a particular focus on high-yielding corporate debt instruments. These securities often possess diverse maturity profiles and are typically categorized as below investment grade. Established on July 20, 2010, the fund is legally based in the United States.

Sector: Financial Services · Industry: Asset Management

Shariah Compliance Status

AAOIFI Standard 21Updated Aug 26, 2026

Business Activity Screen

Failed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Basket-weighted haram holdings exceed 5% (99.1%)

Basket Composition

99% of basket screened

ETFs are baskets of many stocks. AAOIFI-aligned rule: basket is halal when haram weight is under 5%. The purification share is the weighted prohibited-income contribution of the underlying holdings.

99%

Halal0%

Doubtful0%

Not Halal99%

Unknown1%

Top Holdings

SATSECHOSTAR CORPNot Halal3.22%LEGG MASON PARTNERS INSTITUTIONAL TRUSTNot Halal2.06%PM GENERAL PURCHASER LLCNot Halal1.75%CLOUD SOFTWARE GROUP INCNot Halal1.54%SPRINT CAPITAL CORPNot Halal1.52%LYGLLOYDS BANKING GROUP PLCNot Halal1.46%VIKING CRUISES LTDNot Halal1.22%CCO HOLDINGS LLC / CCO HOLDINGS CAPITAL CORPNot Halal1.09%BOMBARDIER INCNot Halal1.09%TEVA PHARMACEUTICAL FINANCE NETHERLANDS III BVNot Halal1.09%

Fiscal: N/AData source: FMP-LOOKTHROUGH

Halal Alternatives in Financial Services

This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

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Frequently Asked Questions

Is Western Asset High Yield Defined Opportunity Fund Inc. (HYI) halal to invest in?

Western Asset High Yield Defined Opportunity Fund Inc. (HYI) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.

Why did Western Asset High Yield Defined Opportunity Fund Inc. get a F compliance rating?

Western Asset High Yield Defined Opportunity Fund Inc.'s compliance grade is determined by AAOIFI Standard 21 screening, a two-step process: (1) qualitative screen for prohibited business activities and (2) quantitative check of debt, interest deposits, and prohibited income ratios. Scroll up to see the detailed ratio breakdown.

What could change Western Asset High Yield Defined Opportunity Fund Inc.'s Shariah verdict?

Western Asset High Yield Defined Opportunity Fund Inc.'s verdict is recalculated whenever the fund rebalances or holdings change materially. If the haram-weight of underlying holdings crosses 5% (the AAOIFI threshold for fund look-through), the verdict will flip to Not Halal. HalalScreener rescreens ETFs at each rebalance cycle.

How often is Western Asset High Yield Defined Opportunity Fund Inc. re-screened for Shariah compliance?

Western Asset High Yield Defined Opportunity Fund Inc. (HYI) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Aug 26, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.