# EDGAR Filing Document

**Accession Number:** 0000863520
**File Stem:** 0001193125-23-015789
**Filing Date:** 2023-1
**Character Count:** 288431
**Document Hash:** c282e98c0e5f26ba043ae7b2647de3a2
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-23-015789.hdr.sgml**: 20230126

**ACCESSION NUMBER**: 0001193125-23-015789

**CONFORMED SUBMISSION TYPE**: N-CSRS

**PUBLIC DOCUMENT COUNT**: 8

**CONFORMED PERIOD OF REPORT**: 20221130

**FILED AS OF DATE**: 20230126

**DATE AS OF CHANGE**: 20230126

**EFFECTIVENESS DATE**: 20230126

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** WESTERN ASSET FUNDS INC
- **CENTRAL INDEX KEY:** 0000863520
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** N-CSRS
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-06110
- **FILM NUMBER:** 23554968

**BUSINESS ADDRESS:**
- **STREET 1:** 100 INTERNATIONAL DRIVE
- **CITY:** BALTIMORE
- **STATE:** MD
- **ZIP:** 21202
- **BUSINESS PHONE:** 410-454-2760

**MAIL ADDRESS:**
- **STREET 1:** 100 INTERNATIONAL DRIVE
- **STREET 2:** 7TH FLOOR
- **CITY:** BALTIMORE
- **STATE:** MD
- **ZIP:** 21202

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** LM INSTITUTIONAL FUND ADVISORS I INC
- **DATE OF NAME CHANGE:** 19980818

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** WESTERN ASSET TRUST INC
- **DATE OF NAME CHANGE:** 19920703

## Series and Classes Contracts Data

### Western Asset Intermediate Bond Fund (Series ID: S000000711)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000002076 | Class I      | WATIX           |
| C000066986 | Class IS     | WABSX           |
| C000113698 | CLASS A      | WATAX           |
| C000113699 | CLASS C      | WATCX           |
| C000113700 | CLASS R      | WATRX           |

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**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

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**FORM N-CSR** 

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**CERTIFIED SHAREHOLDER REPORT OF REGISTERED** 

**MANAGEMENT INVESTMENT COMPANIES** 

**Investment Company Act file number 811-06110** 

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## Western Asset Funds, Inc.
**(Exact name of registrant as specified in charter)** 

------

**100 International Drive, Baltimore, MD, 21202** 

**(Address of principal executive offices) (Zip code)** 

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**Marc A. De Oliveira** 

**Franklin Templeton** 

**100 First Stamford Place** 

**Stamford, CT 06902** 

**(Name and address of agent for service)** 

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**Registrant's telephone number, including area code: 877-6LM-FUND/656-3863** 

**Date of fiscal year end: May 31** 

**Date of reporting period: November 30, 2022** 

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---

| | |
|:---|:---|
| ITEM 1. | REPORT TO STOCKHOLDERS**.**  |

---

The **Semi-Annual** Report to Stockholders is filed herewith.

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![LOGO](g379441westassetlogo.jpg)

<u>Semi-Annual Report</u>   <u>November 30, 2022</u>

## WESTERN ASSET

## INTERMEDIATE BOND

## FUND

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![LOGO](g379441g57q58.jpg)

INVESTMENT PRODUCTS: NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE

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---

| | |
|:---|:---|
| **What's inside** | |
| [Letter from the president](#ltr379441_1) | II |
| [Performance review](#ltr379441_2) | III |
| [Fund at a glance](#ltr379441_3) | 1 |
| [Fund expenses](#ltr379441_4) | 2 |
| [Schedule of investments](#ltr379441_5) | 4 |
| [Statement of assets and](#ltr379441_6) [liabilities](#ltr379441_6) | 43 |
| [Statement of operations](#ltr379441_7) | 45 |
| [Statements of changes in net](#ltr379441_8) [assets](#ltr379441_8) | 46 |
| [Financial highlights](#ltr379441_9) | 47 |
| [Notes to financial statements](#ltr379441_10) | 52 |

---

**Fund objective** 

The Fund seeks to maximize total return, consistent with prudent investment management and liquidity needs, by investing to obtain an average duration which is expected to range within 20% of the duration of its benchmark.

Letter from the president

![LOGO](g379441janetrust_photo.jpg)

**Dear Shareholder,** 

We are pleased to provide the semi-annual report of Western Asset Intermediate Bond Fund for the six-month reporting period ended November 30, 2022. Please read on for Fund performance information during the Fund's reporting period.

As always, we remain committed to providing you with excellent service and a full spectrum of investment choices. We also remain committed to supplementing the support you receive from your financial advisor. One way we accomplish this is through our website, www.franklintempleton.com. Here you can gain immediate access to market and investment information, including:

• Fund prices and performance,

• Market insights and commentaries from our portfolio managers, and

• A host of educational resources.

We look forward to helping you meet your financial goals.

Sincerely,

![LOGO](g379441g12u83.jpg)

Jane Trust, CFA

President and Chief Executive Officer

December 30, 2022

II Western Asset Intermediate Bond Fund

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Performance review

For the six months ended November 30, 2022, Class I shares of Western Asset Intermediate Bond Fund returned -3.50%. The Fund's unmanaged benchmark, the Bloomberg Intermediate U.S. Government/Credit Indexi, returned -2.49% for the same period. The Lipper Core Plus Bond Funds Category Averageii returned -4.48% over the same time frame.

---

| | |
|:---|:---|
| **Performance Snapshot** as of November 30, 2022<br>(unaudited) | **Performance Snapshot** as of November 30, 2022<br>(unaudited) |
| (excluding sales charges) | 6 months |
| Western Asset Intermediate Bond Fund: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | -3.52% |
| &nbsp;&nbsp;&nbsp;&nbsp; Class C | -3.97% |
| &nbsp;&nbsp;&nbsp;&nbsp; Class R | -3.78% |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I | -3.50% |
| &nbsp;&nbsp;&nbsp;&nbsp; Class IS | -3.43% |
| Bloomberg Intermediate U.S. Government/Credit Index | -2.49% |
| Lipper Core Plus Bond Funds Category Average | -4.48% |

---

**The performance shown represents past performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown above. Principal value, investment returns and yields will fluctuate and investors' shares, when redeemed, may be worth more or less than their original cost. To obtain performance data current to the most recent month-end, please visit our website at www.franklintempleton.com.** 

**All share class returns assume the reinvestment of all distributions, including returns of capital, if any, at net asset value and the deduction of all Fund expenses. Returns have not been adjusted to include sales charges that may apply or the deduction of taxes that a shareholder would pay on Fund distributions. If sales charges were reflected, the performance quoted would be lower. Performance figures for periods shorter than one year represent cumulative figures and are not annualized.** 

**Fund performance figures reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.** 

**The 30-Day SEC Yields for the period ended November 30, 2022 for Class A, Class C, Class R, Class I and Class IS shares were 3.78%, 3.14%, 3.54%, 4.13% and 4.24%, respectively. Absent fee waivers and/or expense reimbursements, the 30-Day SEC Yield for Class R shares would have been 3.46%. The 30-Day SEC Yield, calculated pursuant to the standard SEC formula, is based on the Fund's investments over an annualized trailing 30-day period, and not on the distributions paid by the Fund, which may differ.** 

**Total Annual Operating Expenses** (unaudited)

**As of the Fund's current prospectus dated September 30, 2022, the gross total annual fund operating expense ratios for Class A, Class C, Class R, Class I and Class IS shares were 0.81%, 1.54%, 1.25%, 0.56% and 0.44%, respectively.** 

**Actual expenses may be higher. For example, expenses may be higher than those shown if average net assets decrease. Net assets are more likely to decrease and Fund expense ratios are more likely to increase when markets are volatile.** 

Western Asset Intermediate Bond Fund III

------

Performance review (cont'd)

**As a result of expense limitation arrangements, the ratio of total annual fund operating expenses, other than interest, brokerage commissions, taxes, extraordinary expenses, deferred organizational expenses and acquired fund fees and expenses, to average net assets will not exceed 0.90% for Class A shares, 1.65% for Class C shares, 1.15% for Class R shares and 0.45% for Class IS shares. In addition, the ratio of total annual fund operating expenses for Class IS shares will not exceed the ratio of total annual fund operating expenses for Class I shares. These expense limitation arrangements cannot be terminated prior to December 31, 2024 without the Board of Directors' consent. In addition, the manager has agreed to waive the Fund's management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund. This management fee waiver is not subject to the recapture provision discussed below.** 

**The manager is permitted to recapture amounts waived and/or reimbursed to a class within two years after the fiscal year in which the manager earned the fee or incurred the expense if the class' total annual fund operating expenses have fallen to a level below the expense limitation ("expense cap") in effect at the time the fees were earned or the expenses incurred. In no case will the manager recapture any amount that would result, on any particular business day of the Fund, in the class' total annual fund operating expenses exceeding the expense cap or any other lower limit then in effect.** 

As always, thank you for your confidence in our stewardship of your assets.

Sincerely,

![LOGO](g379441g12u83.jpg)

Jane Trust, CFA

President and Chief Executive Officer

December 30, 2022

*RISKS: Fixed income securities involve interest rate, credit, inflation and reinvestment risks. As interest rates rise, the value of fixed income securities falls. Derivatives, such as options, futures and swaps, can be illiquid, may disproportionately increase losses, and have a potentially large impact on Fund performance. International investments are subject to special risks including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging market countries. Emerging market countries tend to have economic, political and legal systems that are less developed and are less stable than those of more developed countries. Asset-backed, mortgage-backed or mortgage-related securities are subject to prepayment and extension risks. Please see the Fund's prospectus for a more complete discussion of these and other risks and the Fund's investment strategies.* 

All investments are subject to risk including the possible loss of principal. Past performance is no guarantee of future results. All index performance reflects no deduction for fees, expenses or taxes. Please note that an investor cannot invest directly in an index.

IV Western Asset Intermediate Bond Fund

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i The Bloomberg Intermediate U.S. Government/Credit Index is a market value weighted performance benchmark for government and corporate fixed-rate debt issues (rated Baa/BBB or higher) with maturities between one and ten years.

ii Lipper, Inc., a wholly-owned subsidiary of Refinitiv, provides independent insight on global collective investments. Returns are based on the six-month period ended November 30, 2022, including the reinvestment of all distributions, including returns of capital, if any, calculated among the 328 funds in the Fund's Lipper category, and excluding sales charges, if any. 

Western Asset Intermediate Bond Fund V

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Fund at a glance<sup>†</sup> (unaudited)

**Investment breakdown** (%) as a percent of total investments

![LOGO](g379441sp88.jpg)

† The bar graph above represents the composition of the Fund's investments as of November 30, 2022 and
May 31, 2022 and does not include derivatives, such as written options, futures contracts and swap contracts. The Fund is actively managed. As a result, the composition of the Fund's investments is subject to change at any time.

‡ Represents less than 0.1%.

Western Asset Intermediate Bond Fund 2022 Semi-Annual Report 1

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Fund expenses (unaudited)

**Example** 

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs, including front-end and back-end sales charges (loads) on purchase payments; and (2) ongoing costs, including management fees; service and/or distribution (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

This example is based on an investment of $1,000 invested on June 1, 2022 and held for the six months ended November 30, 2022.

**Actual expenses** 

The table below titled "Based on actual total return" provides information about actual account values and actual expenses. You may use the information provided in this table, together with the amount you invested, to estimate the expenses that you paid over the period. To estimate the expenses you paid on your account, divide your ending account value by $1,000 (for example, an $8,600 ending account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled "Expenses Paid During the Period".

**Hypothetical example for comparison purposes** 

The table below titled "Based on hypothetical total return" provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5.00% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use the information provided in this table to compare the ongoing costs of investing in the Fund and other funds. To do so, compare the 5.00% hypothetical example relating to the Fund with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table below are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front-end or back-end sales charges (loads). Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Based on actual total return<sup>1</sup>** | **Based on actual total return<sup>1</sup>** | **Based on actual total return<sup>1</sup>** | **Based on actual total return<sup>1</sup>** | **Based on actual total return<sup>1</sup>** | **Based on actual total return<sup>1</sup>** | **Based on hypothetical total return<sup>1</sup>** | **Based on hypothetical total return<sup>1</sup>** | **Based on hypothetical total return<sup>1</sup>** | **Based on hypothetical total return<sup>1</sup>** | **Based on hypothetical total return<sup>1</sup>** | **Based on hypothetical total return<sup>1</sup>** |
|  | Actual<br> Total Return<br> Without<br> Sales<br> Charge<sup>2</sup> | Beginning<br> Account<br> Value | Ending<br> Account<br> Value | Annualized<br> Expense<br> Ratio | Expenses<br> Paid<br> During<br> the<br> Period<sup>3</sup> |  | Hypothetical<br> Annualized<br> Total Return | Beginning<br> Account<br> Value | Ending<br> Account<br> Value | Annualized<br> Expense<br> Ratio | Expenses<br> Paid<br> During<br> the<br> Period<sup>3</sup> |
| &nbsp;&nbsp;&nbsp;Class A | -3.52% | $1000.00 | $964.80 | 0.80% | $3.94 | Class A | 5.00% | $1000.00 | $1021.06 | 0.80% | $4.05 |
| &nbsp;&nbsp;&nbsp;Class C | -3.97 | 1000.00 | 960.30 | 1.56 | 7.67 | Class C | 5.00 | 1000.00 | 1017.25 | 1.56 | 7.89 |
| &nbsp;&nbsp;&nbsp;Class R | -3.78 | 1000.00 | 962.20 | 1.15 | 5.66 | Class R | 5.00 | 1000.00 | 1019.30 | 1.15 | 5.82 |
| &nbsp;&nbsp;&nbsp;Class I | -3.50 | 1000.00 | 965.00 | 0.57 | 2.81 | Class I | 5.00 | 1000.00 | 1022.21 | 0.57 | 2.89 |
| &nbsp;&nbsp;&nbsp;Class IS | -3.43 | 1000.00 | 965.70 | 0.44 | 2.17 | Class IS | 5.00 | 1000.00 | 1022.86 | 0.44 | 2.23 |

---

2 Western Asset Intermediate Bond Fund 2022 Semi-Annual Report

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<sup>1</sup> For the six months ended November 30, 2022.

<sup>2</sup> Assumes the reinvestment of all distributions, including returns of capital, if any, at net asset value and does not reflect the deduction of the applicable sales charge with respect to Class A shares or the applicable contingent deferred sales charge ("CDSC") with respect to Class C shares. Total return is not annualized, as it may not be representative of the total return for the year. Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results. 

<sup>3</sup> Expenses (net of compensating balance arrangements, fee waivers and/or expense reimbursements) are equal to each class' respective annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (183), then divided by 365. 

Western Asset Intermediate Bond Fund 2022 Semi-Annual Report 3

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Schedule of investments (unaudited)

November 30, 2022

**Western Asset Intermediate Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br>Amount | Value |  |
| **Corporate Bonds & Notes — 44.5%** |  |  |  |  |  |
| **Communication Services — 3.7%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Diversified Telecommunication Services — 1.3%* | &nbsp;&nbsp;&nbsp;&nbsp; *Diversified Telecommunication Services — 1.3%* | &nbsp;&nbsp;&nbsp;&nbsp; *Diversified Telecommunication Services — 1.3%* | &nbsp;&nbsp;&nbsp;&nbsp; *Diversified Telecommunication Services — 1.3%* | &nbsp;&nbsp;&nbsp;&nbsp; *Diversified Telecommunication Services — 1.3%* |  |
| &nbsp;&nbsp;&nbsp;&nbsp; AT&T Inc., Senior Notes | 4.250% | 3/1/27 | $580000 | $569863 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; AT&T Inc., Senior Notes | 2.300% | 6/1/27 | 790000 | 711624 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; AT&T Inc., Senior Notes | 1.650% | 2/1/28 | 40000 | 34369 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; AT&T Inc., Senior Notes | 2.250% | 2/1/32 | 560000 | 444261 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; AT&T Inc., Senior Notes | 2.550% | 12/1/33 | 380000 | 298886 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Telefonica Emisiones SA, Senior Notes | 4.895% | 3/6/48 | 870000 | 681486 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Verizon Communications Inc., Senior Notes | 2.625% | 8/15/26 | 300000 | 279333 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Verizon Communications Inc., Senior Notes | 4.125% | 3/16/27 | 930000 | 912850 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Verizon Communications Inc., Senior Notes | 3.000% | 3/22/27 | 140000 | 131385 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Verizon Communications Inc., Senior Notes | 2.100% | 3/22/28 | 530000 | 464155 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Verizon Communications Inc., Senior Notes | 4.329% | 9/21/28 | 484000 | 470963 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Verizon Communications Inc., Senior Notes | 3.875% | 2/8/29 | 360000 | 340768 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Verizon Communications Inc., Senior Notes | 1.680% | 10/30/30 | 954000 | 749789 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Verizon Communications Inc., Senior Notes | 2.550% | 3/21/31 | 840000 | 701231 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Verizon Communications Inc., Senior Notes | 2.355% | 3/15/32 | 2285000 | 1836131 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Verizon Communications Inc., Senior Notes | 4.500% | 8/10/33 | 120000 | 113810 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Verizon Communications Inc., Senior Notes | 2.650% | 11/20/40 | 1340000 | 929116 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Verizon Communications Inc., Senior Notes | 3.850% | 11/1/42 | 30000 | 24303 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Diversified Telecommunication Services* |  |  |  | *9694323* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Entertainment — 0.3%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Warnermedia Holdings Inc., Senior Notes | 3.755% | 3/15/27 | 860000 | 784164 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Warnermedia Holdings Inc., Senior Notes | 4.054% | 3/15/29 | 280000 | 245405 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Warnermedia Holdings Inc., Senior Notes | 4.279% | 3/15/32 | 1790000 | 1521573 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Entertainment* |  |  |  | *2551142* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Interactive Media & Services — 0.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Alphabet Inc., Senior Notes | 0.450% | 8/15/25 | 100000 | 90360 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Alphabet Inc., Senior Notes | 1.100% | 8/15/30 | 240000 | 191188 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Alphabet Inc., Senior Notes | 1.900% | 8/15/40 | 250000 | 172333 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Alphabet Inc., Senior Notes | 2.050% | 8/15/50 | 150000 | 94535 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Interactive Media & Services* |  |  |  | *548416* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Media — 1.5%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Charter Communications Operating LLC/Charter Communications Operating Capital Corp., Senior Secured Notes | 4.908% | 7/23/25 | 4930000 | 4855142 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Charter Communications Operating LLC/Charter Communications Operating Capital Corp., Senior Secured Notes | 4.400% | 4/1/33 | 500000 | 438760 |  |

---

See Notes to Financial Statements.

4 Western Asset Intermediate Bond Fund 2022 Semi-Annual Report

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**Western Asset Intermediate Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br>Amount | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Media — continued* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Charter Communications Operating LLC/Charter Communications Operating Capital Corp., Senior Secured Notes | 4.800% | 3/1/50 | $170000 | $127793 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Comcast Corp., Senior Notes | 3.375% | 2/15/25 | 280000 | 272669 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Comcast Corp., Senior Notes | 3.950% | 10/15/25 | 1910000 | 1878967 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Comcast Corp., Senior Notes | 3.150% | 3/1/26 | 330000 | 315919 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Comcast Corp., Senior Notes | 3.300% | 4/1/27 | 190000 | 180491 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Comcast Corp., Senior Notes | 4.150% | 10/15/28 | 2320000 | 2253086 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Comcast Corp., Senior Notes | 3.400% | 4/1/30 | 290000 | 265434 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Comcast Corp., Senior Notes | 4.250% | 10/15/30 | 200000 | 193021 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Comcast Corp., Senior Notes | 3.250% | 11/1/39 | 210000 | 166442 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Comcast Corp., Senior Notes | 3.750% | 4/1/40 | 50000 | 41907 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Fox Corp., Senior Notes | 4.030% | 1/25/24 | 170000 | 167782 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Fox Corp., Senior Notes | 4.709% | 1/25/29 | 210000 | 203138 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Media* |  |  |  | *11360551* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Wireless Telecommunication Services — 0.5%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; T-Mobile USA Inc., Senior Notes | 3.500% | 4/15/25 | 490000 | 474658 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; T-Mobile USA Inc., Senior Notes | 3.750% | 4/15/27 | 90000 | 85310 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; T-Mobile USA Inc., Senior Notes | 3.875% | 4/15/30 | 2990000 | 2749008 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; T-Mobile USA Inc., Senior Notes | 2.550% | 2/15/31 | 290000 | 240743 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; T-Mobile USA Inc., Senior Notes | 2.250% | 11/15/31 | 250000 | 199230 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Wireless Telecommunication Services* |  |  |  | *3748949* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Communication Services** |  |  |  | **27903381** |  |
| **Consumer Discretionary — 2.1%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Automobiles — 0.3%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Ford Motor Credit Co. LLC, Senior Notes | 3.664% | 9/8/24 | 200000 | 192257 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; General Motors Financial Co. Inc., Senior Notes | 3.700% | 5/9/23 | 1230000 | 1222320 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; General Motors Financial Co. Inc., Senior Notes | 3.100% | 1/12/32 | 130000 | 104406 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Toyota Motor Corp., Senior Notes | 1.339% | 3/25/26 | 1150000 | 1037076 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Automobiles* |  |  |  | *2556059* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Hotels, Restaurants & Leisure — 0.4%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Las Vegas Sands Corp., Senior Notes | 3.200% | 8/8/24 | 310000 | 296392 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Las Vegas Sands Corp., Senior Notes | 2.900% | 6/25/25 | 40000 | 36965 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; McDonald's Corp., Senior Notes | 3.350% | 4/1/23 | 800000 | 796285 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; McDonald's Corp., Senior Notes | 3.300% | 7/1/25 | 320000 | 311490 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; McDonald's Corp., Senior Notes | 1.450% | 9/1/25 | 80000 | 73956 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; McDonald's Corp., Senior Notes | 3.700% | 1/30/26 | 130000 | 127520 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; McDonald's Corp., Senior Notes | 3.500% | 3/1/27 | 560000 | 538976 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; McDonald's Corp., Senior Notes | 3.500% | 7/1/27 | 160000 | 153164 |  |

---

See Notes to Financial Statements.

Western Asset Intermediate Bond Fund 2022 Semi-Annual Report 5

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Schedule of investments (unaudited) (cont'd)

November 30, 2022

**Western Asset Intermediate Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br> Amount | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Hotels, Restaurants & Leisure — continued* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; McDonald's Corp., Senior Notes | 3.800% | 4/1/28 | $650000 | $627785 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; McDonald's Corp., Senior Notes | 3.600% | 7/1/30 | 240000 | 224625 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; McDonald's Corp., Senior Notes | 3.625% | 9/1/49 | 60000 | 46647 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Hotels, Restaurants & Leisure* |  |  |  | *3233805* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Household Durables — 0.0%††* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Newell Brands Inc., Senior Notes | 4.450% | 4/1/26 | 10000 | *9446* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Internet & Direct Marketing Retail — 0.7%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Amazon.com Inc., Senior Notes | 0.400% | 6/3/23 | 1040000 | 1017220 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Amazon.com Inc., Senior Notes | 0.800% | 6/3/25 | 240000 | 220487 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Amazon.com Inc., Senior Notes | 3.300% | 4/13/27 | 640000 | 614062 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Amazon.com Inc., Senior Notes | 1.200% | 6/3/27 | 350000 | 305844 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Amazon.com Inc., Senior Notes | 3.150% | 8/22/27 | 2080000 | 1978380 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Amazon.com Inc., Senior Notes | 3.450% | 4/13/29 | 740000 | 699136 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Amazon.com Inc., Senior Notes | 1.500% | 6/3/30 | 160000 | 130268 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Amazon.com Inc., Senior Notes | 2.100% | 5/12/31 | 190000 | 158791 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Amazon.com Inc., Senior Notes | 2.500% | 6/3/50 | 240000 | 157107 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Amazon.com Inc., Senior Notes | 4.250% | 8/22/57 | 60000 | 53558 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Internet & Direct Marketing Retail* |  |  |  | *5334853* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Multiline Retail — 0.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Target Corp., Senior Notes | 2.250% | 4/15/25 | 450000 | *428308* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Specialty Retail — 0.5%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Home Depot Inc., Senior Notes | 2.500% | 4/15/27 | 2160000 | 2005532 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Home Depot Inc., Senior Notes | 2.875% | 4/15/27 | 800000 | 751379 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Home Depot Inc., Senior Notes | 3.900% | 12/6/28 | 40000 | 38870 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Home Depot Inc., Senior Notes | 3.300% | 4/15/40 | 210000 | 170576 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Home Depot Inc., Senior Notes | 3.900% | 6/15/47 | 30000 | 25401 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Lowe's Cos. Inc., Senior Notes | 1.700% | 9/15/28 | 460000 | 391639 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Lowe's Cos. Inc., Senior Notes | 4.500% | 4/15/30 | 210000 | 204659 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Specialty Retail* |  |  |  | *3588056* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Textiles, Apparel & Luxury Goods — 0.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; NIKE Inc., Senior Notes | 2.400% | 3/27/25 | 260000 | 249170 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; NIKE Inc., Senior Notes | 2.750% | 3/27/27 | 420000 | 395158 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; NIKE Inc., Senior Notes | 2.850% | 3/27/30 | 410000 | 369009 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; NIKE Inc., Senior Notes | 3.250% | 3/27/40 | 100000 | 82316 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; NIKE Inc., Senior Notes | 3.375% | 3/27/50 | 20000 | 15958 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Textiles, Apparel & Luxury Goods* |  |  |  | *1111611* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Consumer Discretionary** |  |  |  | **16262138** |  |

---

See Notes to Financial Statements.

6 Western Asset Intermediate Bond Fund 2022 Semi-Annual Report

------

**Western Asset Intermediate Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br> Amount | Value |  |
| **Consumer Staples — 1.8%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Beverages — 0.6%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Anheuser-Busch InBev Worldwide Inc., Senior Notes | 4.750% | 1/23/29 | $220000 | $220086 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Anheuser-Busch InBev Worldwide Inc., Senior Notes | 3.500% | 6/1/30 | 1450000 | 1340746 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Coca-Cola Co., Senior Notes | 3.375% | 3/25/27 | 1090000 | 1056169 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Coca-Cola Co., Senior Notes | 1.450% | 6/1/27 | 520000 | 462768 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Constellation Brands Inc., Senior Notes | 3.600% | 5/9/24 | 420000 | 411916 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Constellation Brands Inc., Senior Notes | 4.350% | 5/9/27 | 50000 | 48908 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Constellation Brands Inc., Senior Notes | 2.250% | 8/1/31 | 90000 | 72093 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Diageo Capital PLC, Senior Notes | 3.500% | 9/18/23 | 220000 | 218133 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; PepsiCo Inc., Senior Notes | 0.750% | 5/1/23 | 560000 | 551196 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; PepsiCo Inc., Senior Notes | 2.250% | 3/19/25 | 50000 | 47730 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; PepsiCo Inc., Senior Notes | 2.625% | 3/19/27 | 60000 | 55966 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; PepsiCo Inc., Senior Notes | 1.625% | 5/1/30 | 300000 | 248216 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Beverages* |  |  |  | *4733927* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Food & Staples Retailing — 0.2%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Costco Wholesale Corp., Senior Notes | 1.375% | 6/20/27 | 830000 | 735884 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Costco Wholesale Corp., Senior Notes | 1.600% | 4/20/30 | 170000 | 140739 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Walmart Inc., Senior Notes | 1.500% | 9/22/28 | 140000 | 121135 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Walmart Inc., Senior Notes | 2.375% | 9/24/29 | 50000 | 44542 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Walmart Inc., Senior Notes | 1.800% | 9/22/31 | 110000 | 90929 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Food & Staples Retailing* |  |  |  | *1133229* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Food Products — 0.3%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Hershey Co., Senior Notes | 0.900% | 6/1/25 | 140000 | 128073 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Mars Inc., Senior Notes | 2.700% | 4/1/25 | 360000 | 344862 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Mars Inc., Senior Notes | 3.200% | 4/1/30 | 1160000 | 1048627 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Mondelez International Inc., Senior Notes | 1.500% | 5/4/25 | 900000 | 835887 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Food Products* |  |  |  | *2357449* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Household Products — 0.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Kimberly-Clark Corp., Senior Notes | 3.100% | 3/26/30 | 130000 | 117523 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Procter & Gamble Co., Senior Notes | 2.800% | 3/25/27 | 80000 | 75470 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Procter & Gamble Co., Senior Notes | 3.000% | 3/25/30 | 260000 | 239060 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Household Products* |  |  |  | *432053* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Tobacco — 0.6%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Altria Group Inc., Senior Notes | 2.350% | 5/6/25 | 130000 | 122052 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Altria Group Inc., Senior Notes | 4.800% | 2/14/29 | 59000 | 56709 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Altria Group Inc., Senior Notes | 2.450% | 2/4/32 | 2830000 | 2149369 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Altria Group Inc., Senior Notes | 6.200% | 2/14/59 | 115000 | 108293 |  |

---

See Notes to Financial Statements.

Western Asset Intermediate Bond Fund 2022 Semi-Annual Report 7

------

Schedule of investments (unaudited) (cont'd)

November 30, 2022

**Western Asset Intermediate Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br> Amount | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Tobacco — continued* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; BAT Capital Corp., Senior Notes | 3.557% | 8/15/27 | $1500000 | $1369323 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cargill Inc., Senior Notes | 1.375% | 7/23/23 | 470000 | 459103 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Philip Morris International Inc., Senior Notes | 1.125% | 5/1/23 | 280000 | 275697 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Philip Morris International Inc., Senior Notes | 2.100% | 5/1/30 | 310000 | 251190 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Tobacco* |  |  |  | *4791736* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Consumer Staples** |  |  |  | **13448394** |  |
| **Energy — 6.8%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Energy Equipment & Services — 0.0%††* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Halliburton Co., Senior Notes | 3.800% | 11/15/25 | 17000 | *16645* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Oil, Gas & Consumable Fuels — 6.8%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Apache Corp., Senior Notes | 4.250% | 1/15/30 | 180000 | 162000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; BP Capital Markets America Inc., Senior Notes | 3.410% | 2/11/26 | 420000 | 406365 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; BP Capital Markets America Inc., Senior Notes | 3.119% | 5/4/26 | 1570000 | 1498373 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; BP Capital Markets America Inc., Senior Notes | 3.588% | 4/14/27 | 970000 | 934653 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; BP Capital Markets America Inc., Senior Notes | 3.633% | 4/6/30 | 320000 | 297801 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cameron LNG LLC, Senior Secured Notes | 2.902% | 7/15/31 | 350000 | 299395 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Chevron Corp., Senior Notes | 1.554% | 5/11/25 | 470000 | 439711 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Chevron Corp., Senior Notes | 1.995% | 5/11/27 | 260000 | 235635 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Chevron Corp., Senior Notes | 3.078% | 5/11/50 | 60000 | 44872 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Chevron USA Inc., Senior Notes | 3.850% | 1/15/28 | 620000 | 603083 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Chevron USA Inc., Senior Notes | 3.250% | 10/15/29 | 490000 | 455599 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Continental Resources Inc., Senior Notes | 3.800% | 6/1/24 | 1020000 | 993678 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Continental Resources Inc., Senior Notes | 4.375% | 1/15/28 | 580000 | 534022 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Continental Resources Inc., Senior Notes | 5.750% | 1/15/31 | 50000 | 46915 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Coterra Energy Inc., Senior Notes | 3.900% | 5/15/27 | 1830000 | 1727871 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Coterra Energy Inc., Senior Notes | 4.375% | 3/15/29 | 570000 | 543390 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Devon Energy Corp., Senior Notes | 5.850% | 12/15/25 | 1360000 | 1392129 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Devon Energy Corp., Senior Notes | 5.250% | 10/15/27 | 356000 | 357423 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Devon Energy Corp., Senior Notes | 4.500% | 1/15/30 | 128000 | 120226 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Devon Energy Corp., Senior Notes | 5.600% | 7/15/41 | 90000 | 87179 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Devon Energy Corp., Senior Notes | 5.000% | 6/15/45 | 90000 | 80680 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Diamondback Energy Inc., Senior Notes | 3.250% | 12/1/26 | 360000 | 337648 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Diamondback Energy Inc., Senior Notes | 3.500% | 12/1/29 | 550000 | 490094 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Diamondback Energy Inc., Senior Notes | 3.125% | 3/24/31 | 160000 | 134794 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Ecopetrol SA, Senior Notes | 5.375% | 6/26/26 | 2440000 | 2281888 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Energy Transfer LP, Senior Notes | 4.500% | 4/15/24 | 20000 | 19758 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Energy Transfer LP, Senior Notes | 2.900% | 5/15/25 | 400000 | 377580 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Energy Transfer LP, Senior Notes | 5.500% | 6/1/27 | 320000 | 319728 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Energy Transfer LP, Senior Notes | 4.950% | 6/15/28 | 70000 | 67795 |  |

---

See Notes to Financial Statements.

8 Western Asset Intermediate Bond Fund 2022 Semi-Annual Report

------

**Western Asset Intermediate Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br> Amount | Value |
| &nbsp;&nbsp;&nbsp;&nbsp; *Oil, Gas & Consumable Fuels — continued* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Energy Transfer LP, Senior Notes | 3.750% | 5/15/30 | $1260000 | $1118163 |
| &nbsp;&nbsp;&nbsp;&nbsp; Energy Transfer LP, Senior Notes | 5.400% | 10/1/47 | 250000 | 216190 |
| &nbsp;&nbsp;&nbsp;&nbsp; Energy Transfer LP, Senior Notes | 6.250% | 4/15/49 | 90000 | 85388 |
| &nbsp;&nbsp;&nbsp;&nbsp; Energy Transfer LP/Regency Energy Finance Corp., Senior Notes | 4.500% | 11/1/23 | 500000 | 495059 |
| &nbsp;&nbsp;&nbsp;&nbsp; Enterprise Products Operating LLC, Senior Notes | 4.150% | 10/16/28 | 2130000 | 2032299 |
| &nbsp;&nbsp;&nbsp;&nbsp; Enterprise Products Operating LLC, Senior Notes | 3.125% | 7/31/29 | 720000 | 641161 |
| &nbsp;&nbsp;&nbsp;&nbsp; Enterprise Products Operating LLC, Senior Notes | 2.800% | 1/31/30 | 430000 | 372174 |
| &nbsp;&nbsp;&nbsp;&nbsp; Enterprise Products Operating LLC, Senior Notes | 4.800% | 2/1/49 | 70000 | 61803 |
| &nbsp;&nbsp;&nbsp;&nbsp; Enterprise Products Operating LLC, Senior Notes | 4.200% | 1/31/50 | 100000 | 79869 |
| &nbsp;&nbsp;&nbsp;&nbsp; Enterprise Products Operating LLC, Senior Notes | 3.700% | 1/31/51 | 50000 | 37134 |
| &nbsp;&nbsp;&nbsp;&nbsp; EOG Resources Inc., Senior Notes | 4.150% | 1/15/26 | 740000 | 730111 |
| &nbsp;&nbsp;&nbsp;&nbsp; EOG Resources Inc., Senior Notes | 4.375% | 4/15/30 | 210000 | 206547 |
| &nbsp;&nbsp;&nbsp;&nbsp; EQT Corp., Senior Notes | 3.900% | 10/1/27 | 660000 | 611755 |
| &nbsp;&nbsp;&nbsp;&nbsp; EQT Corp., Senior Notes | 7.000% | 2/1/30 | 500000 | 526714 |
| &nbsp;&nbsp;&nbsp;&nbsp; Exxon Mobil Corp., Senior Notes | 1.571% | 4/15/23 | 50000 | 49421 |
| &nbsp;&nbsp;&nbsp;&nbsp; Exxon Mobil Corp., Senior Notes | 2.992% | 3/19/25 | 1850000 | 1793110 |
| &nbsp;&nbsp;&nbsp;&nbsp; Exxon Mobil Corp., Senior Notes | 3.043% | 3/1/26 | 1670000 | 1600221 |
| &nbsp;&nbsp;&nbsp;&nbsp; Exxon Mobil Corp., Senior Notes | 4.327% | 3/19/50 | 30000 | 27090 |
| &nbsp;&nbsp;&nbsp;&nbsp; KazMunayGas National Co. JSC, Senior Notes | 5.375% | 4/24/30 | 1070000 | 962435 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; KazMunayGas National Co. JSC, Senior Notes | 5.750% | 4/19/47 | 660000 | 500251 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Kinder Morgan Inc., Senior Notes | 4.300% | 6/1/25 | 410000 | 404230 |
| &nbsp;&nbsp;&nbsp;&nbsp; Kinder Morgan Inc., Senior Notes | 4.300% | 3/1/28 | 220000 | 212849 |
| &nbsp;&nbsp;&nbsp;&nbsp; Kinder Morgan Inc., Senior Notes | 5.550% | 6/1/45 | 120000 | 112177 |
| &nbsp;&nbsp;&nbsp;&nbsp; Lukoil Capital DAC, Senior Notes | 3.600% | 10/26/31 | 1170000 | 899730 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; MPLX LP, Senior Notes | 4.125% | 3/1/27 | 780000 | 744852 |
| &nbsp;&nbsp;&nbsp;&nbsp; MPLX LP, Senior Notes | 4.800% | 2/15/29 | 1120000 | 1078832 |
| &nbsp;&nbsp;&nbsp;&nbsp; MPLX LP, Senior Notes | 5.200% | 3/1/47 | 160000 | 138715 |
| &nbsp;&nbsp;&nbsp;&nbsp; MPLX LP, Senior Notes | 5.200% | 12/1/47 | 250000 | 215810 |
| &nbsp;&nbsp;&nbsp;&nbsp; Occidental Petroleum Corp., Senior Notes | 6.950% | 7/1/24 | 56000 | 56841 |
| &nbsp;&nbsp;&nbsp;&nbsp; Occidental Petroleum Corp., Senior Notes | 5.550% | 3/15/26 | 1730000 | 1732301 |
| &nbsp;&nbsp;&nbsp;&nbsp; Occidental Petroleum Corp., Senior Notes | 3.400% | 4/15/26 | 910000 | 847774 |
| &nbsp;&nbsp;&nbsp;&nbsp; Occidental Petroleum Corp., Senior Notes | 3.000% | 2/15/27 | 500000 | 454788 |
| &nbsp;&nbsp;&nbsp;&nbsp; Pertamina Persero PT, Senior Notes | 6.000% | 5/3/42 | 580000 | 565703 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Petrobras Global Finance BV, Senior Notes | 6.250% | 3/17/24 | 470000 | 473673 |
| &nbsp;&nbsp;&nbsp;&nbsp; Petrobras Global Finance BV, Senior Notes | 6.850% | 6/5/2115 | 390000 | 323269 |
| &nbsp;&nbsp;&nbsp;&nbsp; Petroleos del Peru SA, Senior Notes | 4.750% | 6/19/32 | 2040000 | 1607285 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Petroleos Mexicanos, Senior Notes | 4.875% | 1/18/24 | 300000 | 293906 |
| &nbsp;&nbsp;&nbsp;&nbsp; Petroleos Mexicanos, Senior Notes | 4.250% | 1/15/25 | 760000 | 715380 |

---

See Notes to Financial Statements.

Western Asset Intermediate Bond Fund 2022 Semi-Annual Report 9

------

Schedule of investments (unaudited) (cont'd)

November 30, 2022

**Western Asset Intermediate Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br>Amount | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Oil, Gas & Consumable Fuels — continued* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Petroleos Mexicanos, Senior Notes | 5.625% | 1/23/46 | $1100000 | $642934 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pioneer Natural Resources Co., Senior Notes | 1.125% | 1/15/26 | 300000 | 267910 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pioneer Natural Resources Co., Senior Notes | 1.900% | 8/15/30 | 370000 | 295966 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pioneer Natural Resources Co., Senior Notes | 2.150% | 1/15/31 | 400000 | 323311 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Reliance Industries Ltd., Senior Notes | 2.875% | 1/12/32 | 640000 | 533684 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Reliance Industries Ltd., Senior Notes | 3.625% | 1/12/52 | 1120000 | 761936 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Shell International Finance BV, Senior Notes | 3.250% | 5/11/25 | 2550000 | 2479625 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Shell International Finance BV, Senior Notes | 2.875% | 5/10/26 | 400000 | 381159 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Shell International Finance BV, Senior Notes | 2.750% | 4/6/30 | 230000 | 204341 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Shell International Finance BV, Senior Notes | 3.250% | 4/6/50 | 490000 | 365149 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sinopec Group Overseas Development 2014 Ltd., Senior Notes | 4.375% | 4/10/24 | 1620000 | 1607334 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Targa Resources Corp., Senior Notes | 5.200% | 7/1/27 | 810000 | 799936 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Tennessee Gas Pipeline Co. LLC, Senior Notes | 2.900% | 3/1/30 | 740000 | 627409 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Transcontinental Gas Pipe Line Co. LLC, Senior Notes | 7.850% | 2/1/26 | 1490000 | 1602993 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Western Midstream Operating LP, Senior Notes | 3.350% | 2/1/25 | 230000 | 220754 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Western Midstream Operating LP, Senior Notes | 4.300% | 2/1/30 | 120000 | 107097 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Western Midstream Operating LP, Senior Notes (3 mo. USD LIBOR + 1.100%) | 5.041% | 1/13/23 | 130000 | 129742 | <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Williams Cos. Inc., Senior Notes | 3.750% | 6/15/27 | 920000 | 870735 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Williams Cos. Inc., Senior Notes | 4.900% | 1/15/45 | 230000 | 200934 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Williams Cos. Inc., Senior Notes | 5.100% | 9/15/45 | 350000 | 313595 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Oil, Gas & Consumable Fuels* |  |  |  | *51051839* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Energy** |  |  |  | **51068484** |  |
| **Financials — 18.6%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Banks — 14.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; ABN AMRO Bank NV, Subordinated Notes | 4.750% | 7/28/25 | 310000 | 297881 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Banco Santander SA, Senior Notes | 3.125% | 2/23/23 | 1000000 | 994583 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Banco Santander SA, Senior Notes | 2.746% | 5/28/25 | 1400000 | 1316691 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Banco Santander SA, Senior Notes (3 mo. USD LIBOR + 1.120%) | 5.039% | 4/12/23 | 800000 | 799580 | <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Banco Santander SA, Senior Notes (4.175% to 3/24/27 then 1 year Treasury Constant Maturity Rate + 2.000%) | 4.175% | 3/24/28 | 1600000 | 1484108 | <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of America Corp., Senior Notes | 3.300% | 1/11/23 | 600000 | 599021 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of America Corp., Senior Notes | 4.100% | 7/24/23 | 930000 | 926409 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of America Corp., Senior Notes | 4.000% | 4/1/24 | 1560000 | 1548600 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of America Corp., Senior Notes | 3.500% | 4/19/26 | 460000 | 441294 |  |

---

See Notes to Financial Statements.

10 Western Asset Intermediate Bond Fund 2022 Semi-Annual Report

------

**Western Asset Intermediate Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br>Amount | Value |
| &nbsp;&nbsp;&nbsp;&nbsp; *Banks — continued* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of America Corp., Senior Notes (1.319% to 6/19/25 then SOFR + 1.150%) | 1.319% | 6/19/26 | $110000 | $99293 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of America Corp., Senior Notes (2.572% to 10/20/31 then SOFR + 1.210%) | 2.572% | 10/20/32 | 690000 | 549956 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of America Corp., Senior Notes (2.592% to 4/29/30 then SOFR + 2.150%) | 2.592% | 4/29/31 | 550000 | 454544 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of America Corp., Senior Notes (2.972% to 2/4/32 then SOFR + 1.330%) | 2.972% | 2/4/33 | 610000 | 499127 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of America Corp., Senior Notes (3.004% to 12/20/22 then 3 mo. USD LIBOR + 0.790%) | 3.004% | 12/20/23 | 570000 | 569340 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of America Corp., Senior Notes (3.419% to 12/20/27 then 3 mo. USD LIBOR + 1.040%) | 3.419% | 12/20/28 | 1572000 | 1434500 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of America Corp., Senior Notes (3.458% to 3/15/24 then 3 mo. USD LIBOR + 0.970%) | 3.458% | 3/15/25 | 660000 | 642704 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of America Corp., Senior Notes (3.593% to 7/21/27 then 3 mo. USD LIBOR + 1.370%) | 3.593% | 7/21/28 | 1140000 | 1057673 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of America Corp., Senior Notes (3.970% to 3/5/28 then 3 mo. USD LIBOR + 1.070%) | 3.970% | 3/5/29 | 1500000 | 1394521 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of America Corp., Senior Notes (3.974% to 2/7/29 then 3 mo. USD LIBOR + 1.210%) | 3.974% | 2/7/30 | 3550000 | 3268411 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of America Corp., Senior Notes (4.083% to 3/20/50 then 3 mo. USD LIBOR + 3.150%) | 4.083% | 3/20/51 | 240000 | 197675 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of America Corp., Senior Notes (4.376% to 4/27/27 then SOFR + 1.580%) | 4.376% | 4/27/28 | 470000 | 451576 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of America Corp., Subordinated Notes | 4.200% | 8/26/24 | 710000 | 700320 |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of America Corp., Subordinated Notes | 4.000% | 1/22/25 | 320000 | 313880 |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of America Corp., Subordinated Notes | 4.250% | 10/22/26 | 1360000 | 1332365 |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of Montreal, Senior Notes | 1.850% | 5/1/25 | 920000 | 860456 |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of Nova Scotia, Senior Notes | 1.300% | 6/11/25 | 480000 | 439147 |
| &nbsp;&nbsp;&nbsp;&nbsp; Barclays PLC, Senior Notes (4.972% to 5/16/28 then 3 mo. USD LIBOR + 1.902%) | 4.972% | 5/16/29 | 1000000 | 939080 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BNP Paribas SA, Senior Notes | 3.375% | 1/9/25 | 260000 | 250037 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BNP Paribas SA, Senior Notes | 4.400% | 8/14/28 | 750000 | 705674 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BNP Paribas SA, Senior Notes (2.219% to 6/9/25 then SOFR + 2.074%) | 2.219% | 6/9/26 | 600000 | 551271 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BNP Paribas SA, Senior Notes (4.705% to 1/10/24 then 3 mo. USD LIBOR + 2.235%) | 4.705% | 1/10/25 | 2010000 | 1987182 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BNP Paribas SA, Senior Notes (5.198% to 1/10/29 then 3 mo. USD LIBOR + 2.567%) | 5.198% | 1/10/30 | 370000 | 354303 <sup>(a)(b)</sup> |

---

See Notes to Financial Statements.

Western Asset Intermediate Bond Fund 2022 Semi-Annual Report 11

------

Schedule of investments (unaudited) (cont'd)

November 30, 2022

**Western Asset Intermediate Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br>Amount | Value |
| &nbsp;&nbsp;&nbsp;&nbsp; *Banks — continued* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; BNP Paribas SA, Subordinated Notes (4.375%to 3/1/28 then USD 5 year ICE Swap Rate + 1.483%) | 4.375% | 3/1/33 | $360000 | $316625 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Canadian Imperial Bank of Commerce, Senior Notes | 0.950% | 6/23/23 | 480000 | 469520 |
| &nbsp;&nbsp;&nbsp;&nbsp; Citigroup Inc., Senior Notes | 3.300% | 4/27/25 | 1810000 | 1755507 |
| &nbsp;&nbsp;&nbsp;&nbsp; Citigroup Inc., Senior Notes | 8.125% | 7/15/39 | 34000 | 42790 |
| &nbsp;&nbsp;&nbsp;&nbsp; Citigroup Inc., Senior Notes | 4.650% | 7/30/45 | 84000 | 74701 |
| &nbsp;&nbsp;&nbsp;&nbsp; Citigroup Inc., Senior Notes (1.678% to 5/15/23 then SOFR + 1.667%) | 1.678% | 5/15/24 | 530000 | 521046 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Citigroup Inc., Senior Notes (2.572% to 6/3/30 then SOFR + 2.107%) | 2.572% | 6/3/31 | 780000 | 640124 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Citigroup Inc., Senior Notes (3.106% to 4/8/25 then SOFR + 2.842%) | 3.106% | 4/8/26 | 370000 | 351110 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Citigroup Inc., Senior Notes (3.785% to 3/17/32 then SOFR + 1.939%) | 3.785% | 3/17/33 | 870000 | 760294 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Citigroup Inc., Senior Notes (3.980% to 3/20/29 then 3 mo. USD LIBOR + 1.338%) | 3.980% | 3/20/30 | 1840000 | 1684345 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Citigroup Inc., Senior Notes (4.075% to 4/23/28 then 3 mo. USD LIBOR + 1.192%) | 4.075% | 4/23/29 | 1620000 | 1514944 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Citigroup Inc., Senior Notes (4.412% to 3/31/30 then SOFR + 3.914%) | 4.412% | 3/31/31 | 660000 | 614267 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Citigroup Inc., Senior Notes (4.658% to 5/24/27 then SOFR + 1.887%) | 4.658% | 5/24/28 | 630000 | 613688 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Citigroup Inc., Subordinated Notes | 4.400% | 6/10/25 | 670000 | 659285 |
| &nbsp;&nbsp;&nbsp;&nbsp; Citigroup Inc., Subordinated Notes | 5.500% | 9/13/25 | 870000 | 883667 |
| &nbsp;&nbsp;&nbsp;&nbsp; Citigroup Inc., Subordinated Notes | 4.300% | 11/20/26 | 180000 | 175719 |
| &nbsp;&nbsp;&nbsp;&nbsp; Citigroup Inc., Subordinated Notes | 4.450% | 9/29/27 | 3470000 | 3344298 |
| &nbsp;&nbsp;&nbsp;&nbsp; Citigroup Inc., Subordinated Notes | 4.125% | 7/25/28 | 280000 | 264647 |
| &nbsp;&nbsp;&nbsp;&nbsp; Citigroup Inc., Subordinated Notes | 5.300% | 5/6/44 | 116000 | 107945 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cooperatieve Rabobank UA, Senior Notes | 4.375% | 8/4/25 | 2980000 | 2898187 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cooperatieve Rabobank UA, Senior Notes (3.649% to 4/6/27 then 1 year Treasury Constant Maturity Rate + 1.220%) | 3.649% | 4/6/28 | 2210000 | 2039130 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Credit Agricole SA, Senior Notes (1.907% to 6/16/25 then SOFR + 1.676%) | 1.907% | 6/16/26 | 400000 | 362686 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Danske Bank A/S, Senior Notes | 3.875% | 9/12/23 | 200000 | 197116 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Danske Bank A/S, Senior Notes | 5.375% | 1/12/24 | 1400000 | 1392999 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Danske Bank A/S, Senior Notes | 1.226% | 6/22/24 | 200000 | 185626 <sup>(a)</sup> |

---

See Notes to Financial Statements.

12 Western Asset Intermediate Bond Fund 2022 Semi-Annual Report

------

**Western Asset Intermediate Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br> Date | Face<br> Amount | Value |
| &nbsp;&nbsp;&nbsp;&nbsp; *Banks — continued* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Danske Bank A/S, Senior Notes (3.244% to 12/20/24 then 3 mo. USD LIBOR + 1.591%) | 3.244% | 12/20/25 | $210000 | $195860 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Danske Bank A/S, Senior Notes (3.773% to 3/28/24 then 1 year Treasury Constant Maturity Rate + 1.450%) | 3.773% | 3/28/25 | 1430000 | 1377284 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Danske Bank A/S, Senior Notes (4.298% to 4/1/27 then 1 year Treasury Constant Maturity Rate + 1.750%) | 4.298% | 4/1/28 | 1160000 | 1062414 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; HSBC Holdings PLC, Senior Notes (2.099% to 6/4/25 then SOFR + 1.929%) | 2.099% | 6/4/26 | 1140000 | 1033941 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; HSBC Holdings PLC, Senior Notes (2.848% to 6/4/30 then SOFR + 2.387%) | 2.848% | 6/4/31 | 840000 | 670656 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; HSBC Holdings PLC, Senior Notes (4.041% to 3/13/27 then 3 mo. USD LIBOR + 1.546%) | 4.041% | 3/13/28 | 700000 | 641930 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; HSBC Holdings PLC, Subordinated Notes | 4.250% | 3/14/24 | 430000 | 423057 |
| &nbsp;&nbsp;&nbsp;&nbsp; ING Bank NV, Senior Secured Notes | 2.625% | 12/5/22 | 1000000 | 999844 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Intesa Sanpaolo SpA, Senior Notes | 3.375% | 1/12/23 | 390000 | 388872 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Intesa Sanpaolo SpA, Subordinated Notes | 5.017% | 6/26/24 | 1580000 | 1522801 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; JPMorgan Chase & Co., Senior Notes | 3.900% | 7/15/25 | 2200000 | 2172601 |
| &nbsp;&nbsp;&nbsp;&nbsp; JPMorgan Chase & Co., Senior Notes (1.514%to 6/1/23 then SOFR + 1.455%) | 1.514% | 6/1/24 | 1410000 | 1383657 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; JPMorgan Chase & Co., Senior Notes (2.083%to 4/22/25 then SOFR + 1.850%) | 2.083% | 4/22/26 | 860000 | 799350 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; JPMorgan Chase & Co., Senior Notes (2.522%to 4/22/30 then SOFR + 2.040%) | 2.522% | 4/22/31 | 700000 | 579757 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; JPMorgan Chase & Co., Senior Notes (3.845%to 6/14/24 then SOFR + 0.980%) | 3.845% | 6/14/25 | 4480000 | 4400690 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; JPMorgan Chase & Co., Senior Notes (4.005%to 4/23/28 then 3 mo. USD LIBOR + 1.120%) | 4.005% | 4/23/29 | 1180000 | 1101422 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; JPMorgan Chase & Co., Senior Notes (4.023%to 12/5/23 then 3 mo. USD LIBOR + 1.000%) | 4.023% | 12/5/24 | 1250000 | 1235292 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; JPMorgan Chase & Co., Senior Notes (4.452%to 12/5/28 then 3 mo. USD LIBOR + 1.330%) | 4.452% | 12/5/29 | 1770000 | 1684028 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; JPMorgan Chase & Co., Subordinated Notes | 3.875% | 9/10/24 | 1790000 | 1760014 |
| &nbsp;&nbsp;&nbsp;&nbsp; Lloyds Banking Group PLC, Senior Notes | 3.900% | 3/12/24 | 2040000 | 2002425 |
| &nbsp;&nbsp;&nbsp;&nbsp; Lloyds Banking Group PLC, Subordinated Notes | 4.650% | 3/24/26 | 680000 | 647041 |
| &nbsp;&nbsp;&nbsp;&nbsp; Mitsubishi UFJ Financial Group Inc., Senior Notes | 3.407% | 3/7/24 | 3470000 | 3399299 |
| &nbsp;&nbsp;&nbsp;&nbsp; Mitsubishi UFJ Financial Group Inc., Senior Notes (3.837% to 4/17/25 then 1 year Treasury Constant Maturity Rate + 1.125%) | 3.837% | 4/17/26 | 340000 | 327251 <sup>(b)</sup> |

---

See Notes to Financial Statements.

Western Asset Intermediate Bond Fund 2022 Semi-Annual Report 13

------

Schedule of investments (unaudited) (cont'd)

November 30, 2022

**Western Asset Intermediate Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br> Date | Face<br> Amount | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Banks — continued* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Mitsubishi UFJ Financial Group Inc., Senior Notes (4.080% to 4/19/27 then 1 year Treasury Constant Maturity Rate + 1.300%) | 4.080% | 4/19/28 | $340000 | $321638 | <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; NatWest Group PLC, Senior Notes (4.269% to 3/22/24 then 3 mo. USD LIBOR + 1.762%) | 4.269% | 3/22/25 | 590000 | 574334 | <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; NatWest Group PLC, Senior Notes (4.519% to 6/25/23 then 3 mo. USD LIBOR + 1.550%) | 4.519% | 6/25/24 | 200000 | 197938 | <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Nordea Bank Abp, Senior Notes | 1.000% | 6/9/23 | 860000 | 841984 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; PNC Financial Services Group Inc., Senior Notes | 3.500% | 1/23/24 | 2420000 | 2383517 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Royal Bank of Canada, Senior Notes | 1.600% | 4/17/23 | 790000 | 780683 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Royal Bank of Canada, Senior Notes | 1.150% | 6/10/25 | 460000 | 421692 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Royal Bank of Canada, Senior Notes | 3.875% | 5/4/32 | 230000 | 211339 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Swedbank AB, Senior Notes | 1.300% | 6/2/23 | 610000 | 597616 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Toronto-Dominion Bank, Senior Notes | 0.750% | 6/12/23 | 910000 | 890619 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Toronto-Dominion Bank, Senior Notes | 1.150% | 6/12/25 | 460000 | 419021 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Toronto-Dominion Bank, Senior Notes | 4.456% | 6/8/32 | 1460000 | 1397863 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; US Bancorp, Senior Notes | 3.375% | 2/5/24 | 5000000 | 4921775 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; US Bancorp, Senior Notes | 1.450% | 5/12/25 | 1060000 | 984818 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Wells Fargo & Co., Senior Notes | 3.750% | 1/24/24 | 6840000 | 6747392 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Wells Fargo & Co., Senior Notes | 3.000% | 10/23/26 | 720000 | 672812 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Wells Fargo & Co., Senior Notes | 4.150% | 1/24/29 | 500000 | 472061 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Wells Fargo & Co., Senior Notes (2.188% to 4/30/25 then SOFR + 2.000%) | 2.188% | 4/30/26 | 880000 | 820018 | <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Wells Fargo & Co., Senior Notes (3.350% to 3/2/32 then SOFR + 1.500%) | 3.350% | 3/2/33 | 190000 | 162674 | <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Wells Fargo & Co., Senior Notes (4.478% to 4/4/30 then SOFR + 4.032%) | 4.478% | 4/4/31 | 330000 | 312297 | <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Wells Fargo & Co., Senior Notes (5.013% to 4/4/50 then SOFR + 4.502%) | 5.013% | 4/4/51 | 1080000 | 1016283 | <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Wells Fargo & Co., Subordinated Notes | 4.100% | 6/3/26 | 400000 | 389192 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Wells Fargo & Co., Subordinated Notes | 4.300% | 7/22/27 | 1790000 | 1729894 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Wells Fargo & Co., Subordinated Notes | 4.900% | 11/17/45 | 90000 | 79659 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Banks* |  |  |  | *106488073* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Capital Markets — 3.0%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of New York Mellon Corp., Senior Notes | 1.600% | 4/24/25 | 270000 | 250908 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of New York Mellon Corp., Senior Notes (4.289% to 6/13/32 then SOFR + 1.418%) | 4.289% | 6/13/33 | 1490000 | 1399536 | <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Charles Schwab Corp., Senior Notes | 3.850% | 5/21/25 | 600000 | 590209 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Credit Suisse AG, Senior Notes | 1.000% | 5/5/23 | 2850000 | 2735723 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Credit Suisse AG, Senior Notes | 3.625% | 9/9/24 | 2550000 | 2347252 |  |

---

See Notes to Financial Statements.

14 Western Asset Intermediate Bond Fund 2022 Semi-Annual Report

------

**Western Asset Intermediate Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br> Date | Face<br> Amount | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Capital Markets — continued* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Credit Suisse AG, Senior Notes | 2.950% | 4/9/25 | $530000 | $471967 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Credit Suisse Group AG, Senior Notes (9.016%to 11/15/32 then SOFR + 5.020%) | 9.016% | 11/15/33 | 260000 | 264208 | <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Goldman Sachs Capital II, Junior Subordinated Notes (3 mo. USD LIBOR + 0.768%, 4.000% floor) | 5.528% | 1/3/23 | 71000 | 54137 | <sup>(b)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Goldman Sachs Group Inc., Senior Notes | 3.200% | 2/23/23 | 410000 | 408548 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Goldman Sachs Group Inc., Senior Notes | 3.625% | 2/20/24 | 1000000 | 983409 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Goldman Sachs Group Inc., Senior Notes | 4.000% | 3/3/24 | 1480000 | 1463409 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Goldman Sachs Group Inc., Senior Notes | 3.850% | 7/8/24 | 280000 | 275353 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Goldman Sachs Group Inc., Senior Notes | 3.500% | 4/1/25 | 570000 | 551879 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Goldman Sachs Group Inc., Senior Notes | 3.500% | 11/16/26 | 1350000 | 1284841 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Goldman Sachs Group Inc., Senior Notes | 3.850% | 1/26/27 | 160000 | 153836 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Goldman Sachs Group Inc., Senior Notes (3.615% to 3/15/27 then SOFR + 1.846%) | 3.615% | 3/15/28 | 150000 | 139598 | <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Goldman Sachs Group Inc., Senior Notes (3.814% to 4/23/28 then 3 mo. USD LIBOR + 1.158%) | 3.814% | 4/23/29 | 750000 | 690639 | <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Goldman Sachs Group Inc., Senior Notes (4.387% to 6/15/26 then SOFR + 1.510%) | 4.387% | 6/15/27 | 1260000 | 1216850 | <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Goldman Sachs Group Inc., Subordinated Notes | 4.250% | 10/21/25 | 1640000 | 1609250 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Intercontinental Exchange Inc., Senior Notes | 4.600% | 3/15/33 | 520000 | 500401 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Morgan Stanley, Senior Notes (2.188% to |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 4/28/25 then SOFR + 1.990%) | 2.188% | 4/28/26 | 1560000 | 1451747 | <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Morgan Stanley, Senior Notes (2.699% to 1/22/30 then SOFR + 1.143%) | 2.699% | 1/22/31 | 1000000 | 839132 | <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Morgan Stanley, Senior Notes (3.772% to 1/24/28 then 3 mo. USD LIBOR + 1.140%) | 3.772% | 1/24/29 | 1390000 | 1281002 | <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; UBS Group AG, Senior Notes | 4.125% | 9/24/25 | 290000 | 281563 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; UBS Group AG, Senior Notes | 4.253% | 3/23/28 | 690000 | 644259 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; UBS Group AG, Senior Notes (4.488% to 5/12/25 then 1 year Treasury Constant Maturity Rate + 1.550%) | 4.488% | 5/12/26 | 580000 | 565465 | <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Capital Markets* |  |  |  | *22455121* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Consumer Finance — 0.5%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; American Express Co., Senior Notes | 2.650% | 12/2/22 | 1500000 | 1500000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; American Express Co., Senior Notes | 3.375% | 5/3/24 | 790000 | 774692 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; American Express Co., Senior Notes | 2.500% | 7/30/24 | 420000 | 405211 |  |

---

See Notes to Financial Statements.

Western Asset Intermediate Bond Fund 2022 Semi-Annual Report 15

------

Schedule of investments (unaudited) (cont'd)

November 30, 2022

**Western Asset Intermediate Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br> Amount | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Consumer Finance — continued* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; American Express Co., Senior Notes | 4.050% | 5/3/29 | $150000 | $143303 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Nationwide Building Society, Senior Notes (4.363% to 8/1/23 then 3 mo. USD LIBOR + 1.392%) | 4.363% | 8/1/24 | 940000 | 926463 | <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Consumer Finance* |  |  |  | *3749669* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Diversified Financial Services — 0.4%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; AerCap Ireland Capital DAC/AerCap Global Aviation Trust, Senior Notes | 2.450% | 10/29/26 | 940000 | 826988 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; AerCap Ireland Capital DAC/AerCap Global Aviation Trust, Senior Notes | 3.000% | 10/29/28 | 910000 | 769507 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; National Securities Clearing Corp., Senior Notes | 1.200% | 4/23/23 | 420000 | 414102 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; National Securities Clearing Corp., Senior Notes | 1.500% | 4/23/25 | 600000 | 555893 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Vanguard Group Inc. | 3.050% | 8/22/50 | 660000 | 436228 | <sup>(d)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Diversified Financial Services* |  |  |  | *3002718* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Insurance — 0.6%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; American International Group Inc., Senior Notes | 2.500% | 6/30/25 | 186000 | 175767 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Chubb INA Holdings Inc., Senior Notes | 3.350% | 5/3/26 | 100000 | 96738 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Guardian Life Global Funding, Secured Notes | 1.100% | 6/23/25 | 180000 | 163338 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; MassMutual Global Funding II, Senior Secured Notes | 0.850% | 6/9/23 | 1400000 | 1370034 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; MetLife Capital Trust IV, Junior Subordinated Notes | 7.875% | 12/15/37 | 390000 | 420225 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Metropolitan Life Global Funding I, Secured Notes | 0.900% | 6/8/23 | 970000 | 949203 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; New York Life Global Funding, Senior Secured Notes | 0.950% | 6/24/25 | 340000 | 308034 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Nuveen LLC, Senior Notes | 4.000% | 11/1/28 | 1000000 | 941863 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Principal Life Global Funding II, Secured Notes | 1.250% | 6/23/25 | 160000 | 145549 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Teachers Insurance & Annuity Association of America, Subordinated Notes | 6.850% | 12/16/39 | 32000 | 35883 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Insurance* |  |  |  | *4606634* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Financials** |  |  |  | **140302215** |  |
| **Health Care — 3.9%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Biotechnology — 0.8%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; AbbVie Inc., Senior Notes | 3.750% | 11/14/23 | 110000 | 108607 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; AbbVie Inc., Senior Notes | 2.600% | 11/21/24 | 1050000 | 1006162 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; AbbVie Inc., Senior Notes | 3.800% | 3/15/25 | 570000 | 558037 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; AbbVie Inc., Senior Notes | 3.600% | 5/14/25 | 510000 | 496336 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; AbbVie Inc., Senior Notes | 2.950% | 11/21/26 | 180000 | 168633 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; AbbVie Inc., Senior Notes | 3.200% | 11/21/29 | 2320000 | 2120379 |  |

---

See Notes to Financial Statements.

16 Western Asset Intermediate Bond Fund 2022 Semi-Annual Report

------

**Western Asset Intermediate Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br> Amount | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Biotechnology — continued* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; AbbVie Inc., Senior Notes | 4.250% | 11/21/49 | $80000 | $68916 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Amgen Inc., Senior Notes | 3.625% | 5/22/24 | 120000 | 118138 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gilead Sciences Inc., Senior Notes | 2.500% | 9/1/23 | 700000 | 687291 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gilead Sciences Inc., Senior Notes | 3.700% | 4/1/24 | 90000 | 88580 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; GSK Consumer Healthcare Capital US LLC, Senior Notes | 3.375% | 3/24/27 | 750000 | 700543 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; GSK Consumer Healthcare Capital US LLC, Senior Notes | 3.375% | 3/24/29 | 390000 | 353562 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Biotechnology* |  |  |  | *6475184* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Health Care Equipment & Supplies — 0.3%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Abbott Laboratories, Senior Notes | 3.400% | 11/30/23 | 700000 | 689999 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Abbott Laboratories, Senior Notes | 3.750% | 11/30/26 | 430000 | 424229 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Becton Dickinson and Co., Senior Notes | 3.363% | 6/6/24 | 848000 | 828614 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Becton Dickinson and Co., Senior Notes | 3.734% | 12/15/24 | 23000 | 22454 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Becton Dickinson and Co., Senior Notes | 4.685% | 12/15/44 | 200000 | 183684 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Health Care Equipment & Supplies* |  |  |  | *2148980* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Health Care Providers & Services — 2.0%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Aetna Inc., Senior Notes | 2.800% | 6/15/23 | 1070000 | 1057177 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cigna Corp., Senior Notes | 3.750% | 7/15/23 | 114000 | 113226 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cigna Corp., Senior Notes | 3.500% | 6/15/24 | 820000 | 802720 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cigna Corp., Senior Notes | 4.125% | 11/15/25 | 740000 | 728232 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cigna Corp., Senior Notes | 4.375% | 10/15/28 | 2180000 | 2126819 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; CVS Health Corp., Senior Notes | 3.875% | 7/20/25 | 868000 | 853599 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; CVS Health Corp., Senior Notes | 3.625% | 4/1/27 | 800000 | 767777 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; CVS Health Corp., Senior Notes | 4.300% | 3/25/28 | 911000 | 886210 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; CVS Health Corp., Senior Notes | 3.750% | 4/1/30 | 210000 | 194263 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; CVS Health Corp., Senior Notes | 1.875% | 2/28/31 | 100000 | 79756 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; CVS Health Corp., Senior Notes | 2.125% | 9/15/31 | 330000 | 264050 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; CVS Health Corp., Senior Notes | 5.050% | 3/25/48 | 270000 | 251074 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Elevance Health Inc., Senior Notes | 3.650% | 12/1/27 | 240000 | 228468 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Elevance Health Inc., Senior Notes | 4.100% | 5/15/32 | 380000 | 358396 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Elevance Health Inc., Senior Notes | 4.550% | 5/15/52 | 40000 | 35666 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Humana Inc., Senior Notes | 3.150% | 12/1/22 | 110000 | 110000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Humana Inc., Senior Notes | 2.900% | 12/15/22 | 1800000 | 1798823 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Humana Inc., Senior Notes | 4.500% | 4/1/25 | 80000 | 79170 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Humana Inc., Senior Notes | 3.950% | 3/15/27 | 970000 | 935707 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Humana Inc., Senior Notes | 3.700% | 3/23/29 | 770000 | 709658 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Humana Inc., Senior Notes | 2.150% | 2/3/32 | 120000 | 94734 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; UnitedHealth Group Inc., Senior Notes | 3.500% | 6/15/23 | 150000 | 149152 |  |

---

See Notes to Financial Statements.

Western Asset Intermediate Bond Fund 2022 Semi-Annual Report 17

------

Schedule of investments (unaudited) (cont'd)

November 30, 2022

**Western Asset Intermediate Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br> Amount | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Health Care Providers & Services — continued* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; UnitedHealth Group Inc., Senior Notes | 3.750% | 7/15/25 | $400000 | $393050 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; UnitedHealth Group Inc., Senior Notes | 1.250% | 1/15/26 | 170000 | 154057 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; UnitedHealth Group Inc., Senior Notes | 3.875% | 12/15/28 | 1150000 | 1106473 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; UnitedHealth Group Inc., Senior Notes | 4.000% | 5/15/29 | 660000 | 634633 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; UnitedHealth Group Inc., Senior Notes | 2.300% | 5/15/31 | 70000 | 58587 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; UnitedHealth Group Inc., Senior Notes | 4.250% | 6/15/48 | 60000 | 52819 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; UnitedHealth Group Inc., Senior Notes | 4.450% | 12/15/48 | 20000 | 18000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Health Care Providers & Services* |  |  |  | *15042296* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Pharmaceuticals — 0.8%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Bristol-Myers Squibb Co., Senior Notes | 2.900% | 7/26/24 | 881000 | 857238 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Bristol-Myers Squibb Co., Senior Notes | 3.200% | 6/15/26 | 486000 | 467215 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Johnson & Johnson, Senior Notes | 0.550% | 9/1/25 | 290000 | 263807 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Johnson & Johnson, Senior Notes | 2.450% | 3/1/26 | 1390000 | 1319650 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Johnson & Johnson, Senior Notes | 0.950% | 9/1/27 | 600000 | 522362 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Merck & Co. Inc., Senior Notes | 0.750% | 2/24/26 | 530000 | 474775 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Merck & Co. Inc., Senior Notes | 1.450% | 6/24/30 | 290000 | 234258 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pfizer Inc., Senior Notes | 0.800% | 5/28/25 | 700000 | 646138 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pfizer Inc., Senior Notes | 2.625% | 4/1/30 | 450000 | 399889 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pfizer Inc., Senior Notes | 1.700% | 5/28/30 | 430000 | 356363 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Teva Pharmaceutical Finance Co. BV, Senior Notes | 2.950% | 12/18/22 | 230000 | 229686 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Pharmaceuticals* |  |  |  | *5771381* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Health Care** |  |  |  | **29437841** |  |
| **Industrials — 2.2%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Aerospace & Defense — 1.3%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Boeing Co., Senior Notes | 1.433% | 2/4/24 | 870000 | 830744 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Boeing Co., Senior Notes | 4.875% | 5/1/25 | 2120000 | 2101559 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Boeing Co., Senior Notes | 3.100% | 5/1/26 | 70000 | 65295 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Boeing Co., Senior Notes | 2.800% | 3/1/27 | 90000 | 81576 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Boeing Co., Senior Notes | 3.200% | 3/1/29 | 330000 | 290451 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Boeing Co., Senior Notes | 5.150% | 5/1/30 | 1500000 | 1465358 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Boeing Co., Senior Notes | 5.705% | 5/1/40 | 620000 | 591703 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Boeing Co., Senior Notes | 5.805% | 5/1/50 | 380000 | 359135 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Boeing Co., Senior Notes | 5.930% | 5/1/60 | 10000 | 9302 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; General Dynamics Corp., Senior Notes | 3.750% | 5/15/28 | 340000 | 326947 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; General Dynamics Corp., Senior Notes | 4.250% | 4/1/40 | 20000 | 18610 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Lockheed Martin Corp., Senior Notes | 3.550% | 1/15/26 | 226000 | 221009 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Lockheed Martin Corp., Senior Notes | 3.900% | 6/15/32 | 1220000 | 1160652 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Northrop Grumman Corp., Senior Notes | 2.930% | 1/15/25 | 1350000 | 1298938 |  |

---

See Notes to Financial Statements.

18 Western Asset Intermediate Bond Fund 2022 Semi-Annual Report

------

**Western Asset Intermediate Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br>Amount | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Aerospace & Defense — continued* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Northrop Grumman Corp., Senior Notes | 5.250% | 5/1/50 | $180000 | $182207 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Raytheon Technologies Corp., Senior Notes | 3.150% | 12/15/24 | 210000 | 203006 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Raytheon Technologies Corp., Senior Notes | 3.950% | 8/16/25 | 280000 | 275584 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Raytheon Technologies Corp., Senior Notes | 4.125% | 11/16/28 | 90000 | 87298 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Raytheon Technologies Corp., Senior Notes | 2.250% | 7/1/30 | 440000 | 369883 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Aerospace & Defense* |  |  |  | *9939257* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Building Products — 0.0%††* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Carrier Global Corp., Senior Notes | 2.722% | 2/15/30 | 240000 | 204979 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Carrier Global Corp., Senior Notes | 2.700% | 2/15/31 | 60000 | 50201 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Building Products* |  |  |  | *255180* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Commercial Services & Supplies — 0.2%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cintas Corp. No 2, Senior Notes | 3.700% | 4/1/27 | 1040000 | 1007986 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Republic Services Inc., Senior Notes | 3.200% | 3/15/25 | 750000 | 721071 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Commercial Services & Supplies* |  |  |  | *1729057* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Industrial Conglomerates — 0.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 3M Co., Senior Notes | 2.375% | 8/26/29 | 100000 | 86130 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 3M Co., Senior Notes | 3.050% | 4/15/30 | 90000 | 80447 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 3M Co., Senior Notes | 3.700% | 4/15/50 | 80000 | 63903 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Honeywell International Inc., Senior Notes | 1.350% | 6/1/25 | 330000 | 306173 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Industrial Conglomerates* |  |  |  | *536653* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Machinery — 0.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Deere & Co., Senior Notes | 3.100% | 4/15/30 | 20000 | 18119 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Deere & Co., Senior Notes | 3.750% | 4/15/50 | 240000 | 208079 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Otis Worldwide Corp., Senior Notes | 2.056% | 4/5/25 | 220000 | 206246 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Machinery* |  |  |  | *432444* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Road & Rail — 0.3%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Canadian Pacific Railway Co., Senior Notes | 2.450% | 12/2/31 | 1550000 | 1293203 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Union Pacific Corp., Senior Notes | 3.750% | 7/15/25 | 600000 | 590231 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Union Pacific Corp., Senior Notes | 2.891% | 4/6/36 | 340000 | 275043 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Road & Rail* |  |  |  | *2158477* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Trading Companies & Distributors — 0.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Air Lease Corp., Senior Notes | 3.375% | 7/1/25 | 310000 | 292770 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Aviation Capital Group LLC, Senior Notes | 4.125% | 8/1/25 | 790000 | 733919 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Trading Companies & Distributors* |  |  |  | *1026689* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Transportation Infrastructure — 0.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; SMBC Aviation Capital Finance DAC, Senior Notes | 4.125% | 7/15/23 | 710000 | *701767* | ** <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Industrials** |  |  |  | **16779524** |  |

---

See Notes to Financial Statements.

Western Asset Intermediate Bond Fund 2022 Semi-Annual Report 19

------

Schedule of investments (unaudited) (cont'd)

November 30, 2022

**Western Asset Intermediate Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date |  | Face<br> Amount | Value |  |
| **Information Technology — 2.8%** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *IT Services — 0.4%* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Mastercard Inc., Senior Notes | 3.375% | 4/1/24 |  | $230000 | $226463 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Mastercard Inc., Senior Notes | 3.850% | 3/26/50 |  | 40000 | 35030 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; PayPal Holdings Inc., Senior Notes | 1.650% | 6/1/25 |  | 420000 | 390915 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; PayPal Holdings Inc., Senior Notes | 4.400% | 6/1/32 |  | 220000 | 209712 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Visa Inc., Senior Notes | 3.150% | 12/14/25 |  | 1400000 | 1348891 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Visa Inc., Senior Notes | 1.900% | 4/15/27 |  | 400000 | 363923 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Visa Inc., Senior Notes | 4.300% | 12/14/45 |  | 320000 | 299983 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total IT Services* |  |  |  |  | *2874917* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Semiconductors & Semiconductor Equipment — 0.7%* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Broadcom Inc., Senior Notes | 3.137% | 11/15/35 |  | 2010000 | 1491365 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Intel Corp., Senior Notes | 3.700% | 7/29/25 |  | 140000 | 137405 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Intel Corp., Senior Notes | 3.750% | 3/25/27 |  | 170000 | 165534 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Intel Corp., Senior Notes | 1.600% | 8/12/28 |  | 240000 | 204731 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Intel Corp., Senior Notes | 4.750% | 3/25/50 |  | 100000 | 90128 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; NVIDIA Corp., Senior Notes | 3.500% | 4/1/40 |  | 650000 | 542931 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; NVIDIA Corp., Senior Notes | 3.500% | 4/1/50 |  | 60000 | 46614 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; NXP BV/NXP Funding LLC/NXP USA Inc., Senior Notes | 2.700% | 5/1/25 |  | 300000 | 281924 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Texas Instruments Inc., Senior Notes | 1.750% | 5/4/30 |  | 290000 | 240874 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; TSMC Arizona Corp., Senior Notes | 1.750% | 10/25/26 |  | 1160000 | 1031238 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; TSMC Arizona Corp., Senior Notes | 2.500% | 10/25/31 |  | 1250000 | 1037853 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Semiconductors & Semiconductor Equipment* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Semiconductors & Semiconductor Equipment* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Semiconductors & Semiconductor Equipment* |  |  | *5270597* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Software — 1.1%* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Adobe Inc., Senior Notes | 2.300% | 2/1/30 |  | 380000 | 327328 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Microsoft Corp., Senior Notes | 2.400% | 8/8/26 |  | 3060000 | 2879872 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Microsoft Corp., Senior Notes | 3.300% | 2/6/27 |  | 1220000 | 1180820 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Microsoft Corp., Senior Notes | 3.450% | 8/8/36 |  | 10000 | 9125 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Microsoft Corp., Senior Notes | 2.921% | 3/17/52 |  | 10000 | 7434 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Oracle Corp., Senior Notes | 1.650% | 3/25/26 |  | 420000 | 377199 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Oracle Corp., Senior Notes | 2.875% | 3/25/31 |  | 300000 | 251243 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Salesforce Inc., Senior Notes | 3.250% | 4/11/23 |  | 370000 | 368138 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Salesforce Inc., Senior Notes | 3.700% | 4/11/28 |  | 250000 | 241801 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Workday Inc., Senior Notes | 3.500% | 4/1/27 |  | 170000 | 160804 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Workday Inc., Senior Notes | 3.700% | 4/1/29 |  | 1330000 | 1225886 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Workday Inc., Senior Notes | 3.800% | 4/1/32 |  | 1200000 | 1073300 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Software* |  |  |  |  | *8102950* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Technology Hardware, Storage & Peripherals — 0.6%* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Apple Inc., Senior Notes | 2.400% | 5/3/23 |  | 1780000 | 1762474 |  |

---

See Notes to Financial Statements.

20 Western Asset Intermediate Bond Fund 2022 Semi-Annual Report

------

**Western Asset Intermediate Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date |  | Face<br>Amount | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Technology Hardware, Storage & Peripherals — continued* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Apple Inc., Senior Notes | 1.125% | 5/11/25 |  | $1140000 | $1054163 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Apple Inc., Senior Notes | 2.450% | 8/4/26 |  | 1170000 | 1097198 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Apple Inc., Senior Notes | 3.350% | 2/9/27 |  | 80000 | 77462 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Apple Inc., Senior Notes | 2.900% | 9/12/27 |  | 850000 | 804165 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Technology Hardware, Storage & Peripherals* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Technology Hardware, Storage & Peripherals* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Technology Hardware, Storage & Peripherals* |  |  | *4795462* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Information Technology** |  |  |  |  | **21043926** |  |
| **Materials — 1.9%** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Chemicals — 0.5%* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Equate Petrochemical BV, Senior Notes | 4.250% | 11/3/26 |  | 880000 | 835305 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Equate Petrochemical BV, Senior Notes | 2.625% | 4/28/28 |  | 1200000 | 1030653 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; OCP SA, Senior Notes | 4.500% | 10/22/25 |  | 550000 | 538758 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Orbia Advance Corp. SAB de CV, Senior Notes | 1.875% | 5/11/26 |  | 740000 | 646138 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Orbia Advance Corp. SAB de CV, Senior Notes | 2.875% | 5/11/31 |  | 710000 | 560314 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Chemicals* |  |  |  |  | *3611168* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Metals & Mining — 1.2%* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Anglo American Capital PLC, Senior Notes | 3.625% | 9/11/24 |  | 990000 | 959424 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Anglo American Capital PLC, Senior Notes | 4.750% | 4/10/27 |  | 690000 | 663801 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Corp. Nacional del Cobre de Chile, Senior Notes | 3.625% | 8/1/27 |  | 1110000 | 1054422 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Freeport-McMoRan Inc., Senior Notes | 5.400% | 11/14/34 |  | 150000 | 140215 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Glencore Funding LLC, Senior Notes | 4.125% | 5/30/23 |  | 1790000 | 1777503 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Glencore Funding LLC, Senior Notes | 4.125% | 3/12/24 |  | 1230000 | 1210639 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Southern Copper Corp., Senior Notes | 5.250% | 11/8/42 |  | 1140000 | 1070050 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Vale Overseas Ltd., Senior Notes | 6.250% | 8/10/26 |  | 690000 | 713632 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Vale Overseas Ltd., Senior Notes | 6.875% | 11/21/36 |  | 1258000 | 1301642 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Metals & Mining* |  |  |  |  | *8891328* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Paper & Forest Products — 0.2%* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Suzano Austria GmbH, Senior Notes | 6.000% | 1/15/29 |  | 1690000 | *1679192* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Materials** |  |  |  |  | **14181688** |  |
| **Real Estate — 0.0%††** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Equity Real Estate Investment Trusts (REITs) — 0.0%††* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; WEA Finance LLC, Senior Notes | 4.125% | 9/20/28 |  | 500000 | **436491** | **** <sup>(a)</sup> |
| **Utilities — 0.7%** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Electric Utilities — 0.7%* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; American Transmission Systems Inc., Senior Notes | 2.650% | 1/15/32 |  | 140000 | 114538 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Comision Federal de Electricidad, Senior Notes | 4.750% | 2/23/27 |  | 690000 | 640693 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; FirstEnergy Corp., Senior Notes | 1.600% | 1/15/26 |  | 190000 | 168309 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; FirstEnergy Corp., Senior Notes | 4.400% | 7/15/27 |  | 2000000 | 1888480 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; MidAmerican Energy Co., First Mortgage Bonds | 3.650% | 4/15/29 |  | 810000 | 764673 |  |

---

See Notes to Financial Statements.

Western Asset Intermediate Bond Fund 2022 Semi-Annual Report 21

------

Schedule of investments (unaudited) (cont'd)

November 30, 2022

**Western Asset Intermediate Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br> Date | Face<br> Amount | Value |
| &nbsp;&nbsp;&nbsp;&nbsp; *Electric Utilities — continued* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pacific Gas and Electric Co., First Mortgage Bonds | 2.100% | 8/1/27 | $770000 | $655652 |
| &nbsp;&nbsp;&nbsp;&nbsp; Perusahaan Perseroan Persero PT Perusahaan Listrik Negara, Senior Notes | 4.125% | 5/15/27 | 730000 | 689945 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Perusahaan Perseroan Persero PT Perusahaan Listrik Negara, Senior Notes | 5.450% | 5/21/28 | 380000 | 375290 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Utilities** |  |  |  | **5297580** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Corporate Bonds & Notes (Cost — $361,508,399)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Corporate Bonds & Notes (Cost — $361,508,399)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Corporate Bonds & Notes (Cost — $361,508,399)** |  | **336161662** |
| **U.S. Government & Agency Obligations — 25.5%** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *U.S. Government Obligations — 25.5%* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Bonds | 3.250% | 5/15/42 | 150000 | 134801 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Bonds | 4.250% | 11/15/42 | 1340000 | 1346700 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Bonds | 3.625% | 8/15/43 | 550000 | 518783 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Bonds | 3.750% | 11/15/43 | 6450000 | 6193890 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Bonds | 2.500% | 2/15/45 | 1560000 | 1204125 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Bonds | 1.625% | 11/15/50 | 10020000 | 6193417 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Bonds | 1.875% | 2/15/51 | 38190000 | 25198687 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Bonds | 2.375% | 5/15/51 | 9370000 | 6972415 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Bonds | 2.000% | 8/15/51 | 3210000 | 2182800 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Bonds | 1.875% | 11/15/51 | 4260000 | 2802780 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Bonds | 2.250% | 2/15/52 | 16905000 | 12213202 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Bonds | 2.875% | 5/15/52 | 1540000 | 1280606 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Bonds | 3.000% | 8/15/52 | 7430000 | 6364259 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Notes | 2.250% | 11/15/25 | 460000 | 436712 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Notes | 2.125% | 5/31/26 | 1190000 | 1117159 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Notes | 1.875% | 7/31/26 | 2960000 | 2748984 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Notes | 1.625% | 9/30/26 | 220000 | 202026 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Notes | 1.625% | 10/31/26 | 570000 | 522218 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Notes | 2.750% | 4/30/27 | 7540000 | 7195104 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Notes | 3.125% | 8/31/27 | 1220000 | 1182876 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Notes | 4.125% | 10/31/27 | 190000 | 192442 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Notes | 0.750% | 1/31/28 | 250000 | 214170 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Notes | 1.250% | 3/31/28 | 7030000 | 6164294 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Notes | 2.625% | 7/31/29 | 96660000 | 90195862 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Notes | 3.125% | 8/31/29 | 520000 | 500277 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Notes | 4.000% | 10/31/29 | 6220000 | 6315244 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Notes | 2.750% | 8/15/32 | 1430000 | 1324761 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Strip Principal (STRIPS) | 0.000% | 5/15/49 | 5220000 | 1901260 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total U.S. Government & Agency Obligations (Cost — $227,227,822)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total U.S. Government & Agency Obligations (Cost — $227,227,822)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total U.S. Government & Agency Obligations (Cost — $227,227,822)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total U.S. Government & Agency Obligations (Cost — $227,227,822)** | **192819854** |

---

See Notes to Financial Statements.

22 Western Asset Intermediate Bond Fund 2022 Semi-Annual Report

------

**Western Asset Intermediate Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br> Date | Face<br> Amount | Value |
| **Collateralized Mortgage Obligations <sup>(f)</sup> — 11.1%** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 280 Park Avenue Mortgage Trust, 2017-280P A (1 mo. USD LIBOR + 0.880%) | 4.736% | 9/15/34 | $730000 | $710181 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Adjustable Rate Mortgage Trust, 2004-5 4A1 | 2.882% | 4/25/35 | 39079 | 38927 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; AREIT LLC, 2022-CRE7 A (1 mo. Term SOFR + 2.242%) | 6.116% | 6/17/39 | 1810000 | 1781648 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; AREIT Trust, 2022-CRE6 A (30 Day Average SOFR + 1.250%) | 4.642% | 1/16/37 | 979207 | 938329 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BCAP LLC Trust, 2015-RR6 1A2 | 3.500% | 5/26/37 | 1093675 | 1084133 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BENCHMARK Mortgage Trust, 2018-B7 A4 | 4.510% | 5/15/53 | 785000 | 759576 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BENCHMARK Mortgage Trust, 2019-B10 A4 | 3.717% | 3/15/62 | 2760000 | 2551806 |
| &nbsp;&nbsp;&nbsp;&nbsp; BPR Trust, 2021-TY B (1 mo. USD LIBOR + 1.150%) | 5.025% | 9/15/38 | 2140000 | 1998998 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BRAVO Residential Funding Trust, 2021-NQM2 A1 | 0.970% | 3/25/60 | 188893 | 177561 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BRAVO Residential Funding Trust, 2022-NQM3 A1 | 5.108% | 7/25/62 | 386073 | 377387 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BX Commercial Mortgage Trust, 2021-XL2 A (1 mo. USD LIBOR + 0.689%) | 4.564% | 10/15/38 | 954516 | 911919 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BX Commercial Mortgage Trust, 2022-LP2 A (1 mo. Term SOFR + 1.013%) | 4.807% | 2/15/39 | 877795 | 843715 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CIM Trust, 2021-R6 A1 | 1.425% | 7/25/61 | 364032 | 321415 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Citigroup Commercial Mortgage Trust, 2014-GC25 AS | 4.017% | 10/10/47 | 640000 | 606452 |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial Mortgage Trust, 2013-300P B | 4.540% | 8/10/30 | 560000 | 542504 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial Mortgage Trust, 2013-CR12 AM | 4.300% | 10/10/46 | 80000 | 77058 |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial Mortgage Trust, 2013-CR12 B | 4.762% | 10/10/46 | 70000 | 65618 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial Mortgage Trust, 2013-CR12 C | 5.216% | 10/10/46 | 40000 | 27600 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial Mortgage Trust, 2014-UBS2 XA, IO | 1.229% | 3/10/47 | 2424364 | 20562 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CSMC Trust, 2014-USA B | 4.185% | 9/15/37 | 2820000 | 2436237 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CSMC Trust, 2017-RPL3 A1 | 4.000% | 8/1/57 | 581208 | 525781 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CSMC Trust, 2018-J1 A2 | 3.500% | 2/25/48 | 1417017 | 1242945 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CSMC Trust, 2019-AFC1 A1, Step bond (2.573%to 8/25/23 then 3.573%) | 2.573% | 7/25/49 | 445085 | 410873 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CSMC Trust, 2019-AFC1 A3, Step bond (2.877%to 8/1/23 then 3.877%) | 2.877% | 7/25/49 | 978640 | 902214 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CSMC Trust, 2019-ICE4 A (1 mo. USD LIBOR + 0.980%) | 4.855% | 5/15/36 | 190000 | 187669 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CSMC Trust, 2020-AFC1 A1 | 2.240% | 2/25/50 | 701117 | 646488 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CSMC Trust, 2020-RPL4 A1 | 2.000% | 1/25/60 | 1447485 | 1286244 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CSMC Trust, 2021-AFC1 A3 | 1.169% | 3/25/56 | 336081 | 233484 <sup>(a)(b)</sup> |

---

See Notes to Financial Statements.

Western Asset Intermediate Bond Fund 2022 Semi-Annual Report 23

------

Schedule of investments (unaudited) (cont'd)

November 30, 2022

**Western Asset Intermediate Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br> Date | Face<br> Amount | Value |
| **Collateralized Mortgage Obligations** <sup>(f)</sup> **— continued** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; CSMC Trust, 2021-NQM2 A3 | 1.538% | 2/25/66 | $247616 | $197287 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CSMC Trust, 2021-NQM5 A1 | 0.938% | 5/25/66 | 571612 | 434997 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CSMC Trust, 2021-NQM7 A1 | 1.756% | 10/25/66 | 383187 | 314699 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CSMC Trust, 2021-RPL6 A1 | 2.000% | 10/25/60 | 603235 | 529676 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CSMC Trust, 2022-7R 1A1 | 5.038% | 10/25/66 | 1150828 | 1153645 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CSMC Trust, 2022-NQM1 A1 | 2.265% | 11/25/66 | 1515133 | 1233297 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; DBJPM Mortgage Trust, 2016-C1 B | 4.195% | 5/10/49 | 1060000 | 952616 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Deephaven Residential Mortgage Trust, 2022-1 A1 | 2.205% | 1/25/67 | 928996 | 811115 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Ellington Financial Mortgage Trust, 2021-2 A1 | 0.931% | 6/25/66 | 1065191 | 833500 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Ellington Financial Mortgage Trust, 2022-1 A1 | 2.206% | 1/25/67 | 461559 | 383649 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) Multifamily Structured Pass-Through Certificates, K091 X1, IO | 0.705% | 3/25/29 | 2455762 | 72644 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) Multifamily Structured Pass-Through Certificates, K093 X1, IO | 1.093% | 5/25/29 | 1984678 | 96372 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) Multifamily Structured Pass-Through Certificates, S8FX A2 | 3.291% | 3/25/27 | 590000 | 563728 |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) REMIC, 4066 PI, IO | 3.500% | 9/15/31 | 864529 | 41853 |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) REMIC, 4203 PS, IO, PAC (-1.000 x 1 mo. USD LIBOR + 6.250%) | 2.377% | 9/15/42 | 241321 | 18155 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) REMIC, 5010 IK, IO | 2.500% | 9/25/50 | 139485 | 20790 |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) REMIC, 5010 JI, IO | 2.500% | 9/25/50 | 330918 | 51502 |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) REMIC, 5013 IN, IO | 2.500% | 9/25/50 | 169722 | 26502 |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) REMIC, 5018 MI, IO | 2.000% | 10/25/50 | 87108 | 11907 |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) REMIC, 5224 HL | 4.000% | 4/25/52 | 100000 | 91879 |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) REMIC, Structured Agency Credit Risk Debt Notes, 2021-DNA6 M2 (30 Day Average SOFR + 1.500%) | 5.047% | 10/25/41 | 1230000 | 1152212 <sup>(a)(b)</sup> |

---

See Notes to Financial Statements.

24 Western Asset Intermediate Bond Fund 2022 Semi-Annual Report

------

**Western Asset Intermediate Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br> Date | Face<br> Amount | Value |
| **Collateralized Mortgage Obligations** <sup>(f)</sup> **— continued** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) REMIC, Structured Agency Credit Risk Debt Notes, 2022-DNA1 M1A (30 Day Average SOFR + 1.000%) | 4.521% | 1/25/42 | $1214765 | $1175136 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) REMIC, Structured Agency Credit Risk Debt Notes, 2022-DNA2 M1A (30 Day Average SOFR + 1.300%) | 4.821% | 2/25/42 | 1533846 | 1505844 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) REMIC, Structured Agency Credit Risk Debt Notes, 2022-DNA2 M1B (30 Day Average SOFR + 2.400%) | 5.921% | 2/25/42 | 2000000 | 1882956 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) REMIC, Structured Agency Credit Risk Debt Notes, 2022-DNA4 M1A (30 Day Average SOFR + 2.200%) | 5.747% | 5/25/42 | 1305647 | 1297340 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) STRIPS, 334 S7, IO (-1.000 x 1 mo. USD LIBOR + 6.100%) | 2.227% | 8/15/44 | 88546 | 9881 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) Structured Agency Credit Risk Debt Notes, 2021-DNA2 M2 (30 Day Average SOFR + 2.300%) | 5.821% | 8/25/33 | 1930000 | 1867334 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) — CAS, 2014-C04 2M2 (1 mo. USD LIBOR + 5.000%) | 9.016% | 11/25/24 | 58726 | 59313 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) — CAS, 2016-C02 1M2 (1 mo. USD LIBOR + 6.000%) | 10.016% | 9/25/28 | 494122 | 509805 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) — CAS, 2021-R03 1 M2 (30 Day Average SOFR + 1.650%) | 5.171% | 12/25/41 | 2140000 | 1979157 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) ACES, 2019-M4 A2 | 3.610% | 2/25/31 | 260000 | 244690 |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) ACES, 2019-M19 A2 | 2.560% | 9/25/29 | 414650 | 373316 |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) ACES, 2019-M28 AV | 2.232% | 2/25/27 | 173675 | 161267 |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) REMIC, 2013-026 HI, IO | 3.000% | 4/25/32 | 4173 | 116 |

---

See Notes to Financial Statements.

Western Asset Intermediate Bond Fund 2022 Semi-Annual Report 25

------

Schedule of investments (unaudited) (cont'd)

November 30, 2022

**Western Asset Intermediate Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br>Amount | Value |
| **Collateralized Mortgage Obligations** <sup>(f)</sup> **— continued** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) REMIC, 2013-54 BS, IO (-1.000 x 1 mo. USD LIBOR + 6.150%) | 2.134% | 6/25/43 | $19532 | $2242 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) REMIC, 2013-73 IA, IO | 3.000% | 9/25/32 | 510876 | 32606 |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) REMIC, 2013-124 SB, IO (-1.000 x 1 mo. USD LIBOR + 5.950%) | 1.934% | 12/25/43 | 23272 | 2265 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) REMIC, 2015-65 CZ | 3.500% | 9/25/45 | 257675 | 224349 |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) REMIC, 2017-85 SC, IO (-1.000 x 1 mo. USD LIBOR + 6.200%) | 2.184% | 11/25/47 | 31820 | 2902 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) REMIC, 2020-56 AQ | 2.000% | 8/25/50 | 700000 | 558241 |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) REMIC, 2020-56 DI, IO | 2.500% | 8/25/50 | 159960 | 25288 |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) REMIC, 2020-89 DI, IO | 2.500% | 12/25/50 | 78696 | 11661 |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) STRIPS, 409 C18, IO | 4.000% | 4/25/42 | 16885 | 2856 |
| &nbsp;&nbsp;&nbsp;&nbsp; Flagstar Mortgage Trust, 2018-2 A4 | 3.500% | 4/25/48 | 4309 | 4228 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA), 2010-H26 LF (1 mo. USD LIBOR + 0.350%) | 3.493% | 8/20/58 | 319318 | 316096 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA), 2011-H01 AF (1 mo. USD LIBOR + 0.450%) | 3.593% | 11/20/60 | 926738 | 918800 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA), 2011-H07 FA (1 mo. USD LIBOR + 0.500%) | 3.643% | 2/20/61 | 95549 | 94665 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA), 2011-H09 AF (1 mo. USD LIBOR + 0.500%) | 3.643% | 3/20/61 | 107404 | 106549 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA), 2012-027 IO, IO | 0.291% | 4/16/53 | 1167503 | 4143 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA), 2012-H30 GA (1 mo. USD LIBOR + 0.350%) | 3.493% | 12/20/62 | 342959 | 339376 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA), 2013-95 IO, IO | 0.431% | 4/16/47 | 4139613 | 44130 <sup>(b)</sup> |

---

See Notes to Financial Statements.

26 Western Asset Intermediate Bond Fund 2022 Semi-Annual Report

------

**Western Asset Intermediate Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br> Date | Face<br> Amount | Value |
| **Collateralized Mortgage Obligations** <sup>(f)</sup> **— continued** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA), 2014-105 IO, IO | 0.120% | 6/16/54 | $252825 | $3642 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA), 2014-130 IB, IO | 0.239% | 8/16/54 | 1099541 | 10949 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA), 2014-157 IO, IO | 0.192% | 5/16/55 | 875685 | 7466 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA), 2014-186 IO, IO | 0.375% | 8/16/54 | 859490 | 9471 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA), 2020-103 AD | 1.450% | 1/16/63 | 596596 | 483091 |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA), 2020-H09 NF (1 mo. USD LIBOR + 1.250%) | 4.393% | 4/20/70 | 123905 | 123931 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; GS Mortgage Securities Corp. II, 2018-SRP5 A (1 mo. USD LIBOR + 1.800%) | 5.675% | 9/15/31 | 2772602 | 2325192 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; GS Mortgage Securities Corp. II, 2018-SRP5 B (1 mo. USD LIBOR + 3.000%) | 6.875% | 9/15/31 | 2159518 | 1552461 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; GS Mortgage Securities Corp. Trust, 2016-GS3 C | 4.115% | 10/10/49 | 570000 | 497584 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; GS Mortgage Securities Trust, 2013-GC16 B | 5.161% | 11/10/46 | 240000 | 233576 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; GSMSC Resecuritization Trust, 2015-7R A (1 mo. USD LIBOR + 0.150%) | 3.918% | 9/26/37 | 91009 | 90258 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Impac CMB Trust, 2007-A A (1 mo. USD LIBOR + 0.500%) | 4.544% | 5/25/37 | 575878 | 534900 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; JPMorgan Mortgage Trust, 2019-LTV3 B2 | 4.384% | 3/25/50 | 493741 | 423953 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; JPMBB Commercial Mortgage Securities Trust, 2013-C17 B | 5.046% | 1/15/47 | 90000 | 87391 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; JPMBB Commercial Mortgage Securities Trust, 2014-C22 C | 4.699% | 9/15/47 | 300000 | 268968 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; JPMBB Commercial Mortgage Securities Trust, 2015-C30 B | 4.372% | 7/15/48 | 654000 | 601938 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; JPMDB Commercial Mortgage Securities Trust, 2017-C5 B | 4.009% | 3/15/50 | 1030000 | 881232 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; JPMorgan Chase Commercial Mortgage Securities Trust, 2015-FL7 D (1 mo. USD LIBOR + 3.750%) | 7.625% | 5/15/28 | 586094 | 541579 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; JPMorgan Chase Commercial Mortgage Securities Trust, 2022-ACB A (30 Day Average SOFR + 1.400%) | 4.618% | 3/15/39 | 620000 | 599570 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Legacy Mortgage Asset Trust, 2021-GS2 A1, Step bond (1.750% to 4/25/24, 4.750% to 4/25/25 then 5.750%) | 1.750% | 4/25/61 | 418381 | 377975 <sup>(a)</sup> |

---

See Notes to Financial Statements.

Western Asset Intermediate Bond Fund 2022 Semi-Annual Report 27

------

Schedule of investments (unaudited) (cont'd)

November 30, 2022

**Western Asset Intermediate Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br> Date | Face<br> Amount | Value |
| **Collateralized Mortgage Obligations** <sup>(f)</sup> **— continued** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Madison Avenue Mortgage Trust, 2017-330M A | 3.294% | 8/15/34 | $630000 | $587107 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Merrill Lynch Mortgage Investors Trust, 2004-A1 2A1 | 3.108% | 2/25/34 | 95677 | 87428 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Mill City Mortgage Loan Trust, 2019-1 A1 | 3.250% | 10/25/69 | 743509 | 700325 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Morgan Stanley Bank of America Merrill Lynch Trust, 2015-C25 A5 | 3.635% | 10/15/48 | 1245000 | 1178987 |
| &nbsp;&nbsp;&nbsp;&nbsp; Morgan Stanley Capital I Trust, 2019-BPR A (1 mo. USD LIBOR + 1.650%) | 5.523% | 5/15/36 | 1692198 | 1615496 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Mortgage Repurchase Agreement Financing Trust, 2022-S1 A1 (30 Day Average SOFR + 2.000%) | 5.193% | 3/30/25 | 1150000 | 1152592 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; MSCG Trust, 2015-ALDR A2 | 3.577% | 6/7/35 | 1440000 | 1309775 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Natixis Commercial Mortgage Securities Trust, 2019-FAME A | 3.047% | 8/15/36 | 1300000 | 1207993 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Natixis Commercial Mortgage Securities Trust, 2019-FAME B | 3.655% | 8/15/36 | 2550000 | 2330207 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; New Residential Mortgage Loan Trust, 2015-1A A2 | 3.750% | 5/28/52 | 337634 | 313336 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; New Residential Mortgage Loan Trust, 2017-1A A1 | 4.000% | 2/25/57 | 405895 | 383763 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; New Residential Mortgage Loan Trust, 2017-3A A1 | 4.000% | 4/25/57 | 618869 | 589374 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; New Residential Mortgage Loan Trust, 2017-4A A1 | 4.000% | 5/25/57 | 614583 | 574378 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; New Residential Mortgage Loan Trust, 2021- NQM3 A3 | 1.516% | 11/27/56 | 324432 | 263456 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; New Residential Mortgage Loan Trust, 2022- NQM2 A1 | 3.079% | 3/27/62 | 1842566 | 1626133 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; OBX Trust, 2021-NQM2 A1 | 1.101% | 5/25/61 | 337672 | 261777 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; OBX Trust, 2021-NQM3 A1 | 1.054% | 7/25/61 | 532286 | 402084 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; OBX Trust, 2022-NQM1 A1 | 2.305% | 11/25/61 | 1715914 | 1446152 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Onslow Bay Mortgage Loan Trust, 2021-NQM4 A1 | 1.957% | 10/25/61 | 436745 | 350391 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; OPG Trust, 2021-PORT A (1 mo. USD LIBOR + 0.484%) | 4.359% | 10/15/36 | 1459847 | 1387201 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; PRKCM Trust, 2021-AFC1 A1 | 1.510% | 8/25/56 | 1123937 | 900027 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; PRKCM Trust, 2021-AFC2 A1 | 2.071% | 11/25/56 | 464869 | 385765 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Residential Mortgage Loan Trust, 2020-2 A1 | 1.654% | 5/25/60 | 628543 | 616808 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; SACO I Trust, 2007-VA1 A | 3.423% | 6/25/21 | 8618 | 7059 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; SG Residential Mortgage Trust, 2022-1 A1 | 3.166% | 3/27/62 | 1879290 | 1681346 <sup>(a)(b)</sup> |

---

See Notes to Financial Statements.

28 Western Asset Intermediate Bond Fund 2022 Semi-Annual Report

------

**Western Asset Intermediate Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br> Date | Face<br> Amount | Value |
| **Collateralized Mortgage Obligations** **<sup>(f)</sup> — continued** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Towd Point Mortgage Trust, 2017-4 B2 | 3.441% | 6/25/57 | $1010000 | $796318 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Towd Point Mortgage Trust, 2022-4 A1 | 3.750% | 9/25/62 | 1609849 | 1511018 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; UBS Commercial Mortgage Trust, 2018-C11 B | 4.713% | 6/15/51 | 1040000 | 930387 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; UBS-Barclays Commercial Mortgage Trust, 2012-C4 D | 4.416% | 12/10/45 | 431426 | 421526 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; VASA Trust, 2021-VASA A (1 mo. USD LIBOR + 0.900%) | 4.775% | 7/15/39 | 880000 | 814358 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Virginia Housing Development Authority, 2006-C CTFS | 6.000% | 6/25/34 | 304135 | 304423 |
| &nbsp;&nbsp;&nbsp;&nbsp; WaMu Mortgage Pass-Through Certificates Trust, 2004-AR9 A7 | 3.908% | 8/25/34 | 802113 | 746452 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; WaMu Mortgage Pass-Through Certificates Trust, 2004-AR13 A2A (1 mo. USD LIBOR + 0.740%) | 4.756% | 11/25/34 | 266512 | 239159 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; WaMu Mortgage Pass-Through Certificates Trust, 2005-AR8 2AB3 (1 mo. USD LIBOR + 0.720%) | 4.764% | 7/25/45 | 1467679 | 1331335 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Waterfall Commercial Mortgage Trust, 2015- SBC5 A | 4.104% | 9/14/22 | 99657 | 97980 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; WF-RBS Commercial Mortgage Trust, 2013-C14 B | 3.841% | 6/15/46 | 1060000 | 1000167 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; WF-RBS Commercial Mortgage Trust, 2014-C23 XA, IO | 0.700% | 10/15/57 | 4578217 | 34892 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Collateralized Mortgage Obligations (Cost — $92,770,898)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Collateralized Mortgage Obligations (Cost — $92,770,898)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Collateralized Mortgage Obligations (Cost — $92,770,898)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Collateralized Mortgage Obligations (Cost — $92,770,898)** | **83698003** |
| **Asset-Backed Securities — 9.5%** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 522 Funding CLO Ltd., 2020-6A A1R (3 mo. USD LIBOR + 1.150%) | 5.475% | 10/23/34 | 770000 | 744956 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; ABPCI Direct Lending Fund CLO LP, 2020-10A A1A (3 mo. USD LIBOR + 1.950%) | 6.193% | 1/20/32 | 1320000 | 1300041 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; AccessLex Institute, 2005-A A3 (3 mo. USD LIBOR + 0.400%) | 4.758% | 7/25/34 | 356265 | 347260 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; AmeriCredit Automobile Receivables Trust, 2022-2 A3 | 4.380% | 4/18/28 | 420000 | 410990 |
| &nbsp;&nbsp;&nbsp;&nbsp; Apidos CLO, 2013-12A AR (3 mo. USD LIBOR + 1.080%) | 5.159% | 4/15/31 | 750000 | 739875 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Applebee's Funding LLC/IHOP Funding LLC, 2019-1A A2I | 4.194% | 6/5/49 | 990000 | 940337 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Aqua Finance Trust, 2021-A B | 2.400% | 7/17/46 | 1050000 | 884175 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Arbor Realty Commercial Real Estate Notes Ltd., 2022-FL1 A (30 Day Average SOFR + 1.450%) | 4.668% | 1/15/37 | 924000 | 898590 <sup>(a)(b)</sup> |

---

See Notes to Financial Statements.

Western Asset Intermediate Bond Fund 2022 Semi-Annual Report 29

------

Schedule of investments (unaudited) (cont'd)

November 30, 2022

**Western Asset Intermediate Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br> Date | Face<br> Amount | Value |
| **Asset-Backed Securities — continued** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Ares CLO Ltd., 2022-63A A1A (3 mo. Term SOFR + 1.380%) | 5.343% | 4/20/35 | $1340000 | $1300281 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Avis Budget Rental Car Funding AESOP LLC, 2020-2A A | 2.020% | 2/20/27 | 2770000 | 2489779 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Avis Budget Rental Car Funding AESOP LLC, 2021-1A A | 1.380% | 8/20/27 | 2650000 | 2287525 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Balboa Bay Loan Funding Ltd., 2021-2A A1 (3 mo. USD LIBOR + 1.170%) | 5.413% | 1/20/35 | 630000 | 610742 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BCRED MML CLO LLC, 2021-1A A (3 mo. USD LIBOR + 1.480%) | 5.559% | 1/15/35 | 740000 | 711510 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BDS Ltd., 2021-FL10 D (1 mo. USD LIBOR + 2.850%) | 6.789% | 12/16/36 | 2140000 | 1970935 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Bear Stearns Asset Backed Securities Trust, 2004-SD2 A3 (1 year Treasury Constant Maturity Rate + 2.320%) | 3.838% | 3/25/44 | 241536 | 233632 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Benefit Street Partners CLO Ltd., 2014-IVA ARRR (3 mo. USD LIBOR + 1.180%) | 5.423% | 1/20/32 | 750000 | 735814 <sup>(a)(b)(g)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Blackbird Capital Aircraft, 2021-1A A | 2.443% | 7/15/46 | 457594 | 376020 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Canyon CLO Ltd., 2020-1A AR (3 mo. USD LIBOR + 1.180%) | 5.259% | 7/15/34 | 1360000 | 1323238 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Carlyle Global Market Strategies CLO Ltd., 2014-3RA A1A (3 mo. USD LIBOR + 1.050%) | 5.408% | 7/27/31 | 545508 | 535278 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Catskill Park CLO Ltd., 2017-1A A2 (3 mo. USD LIBOR + 1.700%) | 5.943% | 4/20/29 | 1250000 | 1217246 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Cayuga Park CLO Ltd., 2020-1A AR (3 mo. USD LIBOR + 1.120%) | 5.199% | 7/17/34 | 1020000 | 987760 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Cerberus Loan Funding LP, 2020-1A A (3 mo. USD LIBOR + 1.850%) | 5.929% | 10/15/31 | 362099 | 360588 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CLI Funding LLC, 2022-1A A1 | 2.720% | 1/18/47 | 1331712 | 1122213 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; College Ave Student Loans LLC, 2021-C C | 3.060% | 7/26/55 | 1100000 | 877335 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Countrywide Home Equity Loan Trust, 2006-HW 2A1B (1 mo. USD LIBOR + 0.150%) | 4.023% | 11/15/36 | 371169 | 325574 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Countrywide Home Equity Loan Trust, 2006-I 2A (1 mo. USD LIBOR + 0.140%) | 4.015% | 1/15/37 | 377840 | 345975 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Dryden CLO Ltd., 2019-75A AR2 (3 mo. USD LIBOR + 1.040%) | 5.119% | 4/15/34 | 800000 | 771396 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Dryden CLO Ltd., 2021-87A A1 (3 mo. USD LIBOR + 1.100%) | 5.775% | 5/20/34 | 2020000 | 1955039 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Eaton Vance CLO Ltd., 2020-2A AR (3 mo. USD LIBOR + 1.150%) | 5.229% | 1/15/35 | 930000 | 903870 <sup>(a)(b)</sup> |

---

See Notes to Financial Statements.

30 Western Asset Intermediate Bond Fund 2022 Semi-Annual Report

------

**Western Asset Intermediate Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br>Amount | Value |
| **Asset-Backed Securities — continued** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; First Franklin Mortgage Loan Trust, 2003-FF1 A1 (1 mo. USD LIBOR + 1.125%) | 4.893% | 3/25/33 | $278542 | $270201 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Ford Credit Floorplan Master Owner Trust, 2018-4 A | 4.060% | 11/15/30 | 2220000 | 2091935 |
| &nbsp;&nbsp;&nbsp;&nbsp; Golub Capital Partners CLO Ltd., 2021-57A A1 (3 mo. USD LIBOR + 1.490%) | 5.848% | 10/25/34 | 1730000 | 1655816 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Golub Capital Partners CLO Ltd., 2015-25A AR (3 mo. USD LIBOR + 1.380%) | 5.912% | 5/5/30 | 899671 | 886724 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; GoodLeap Sustainable Home Solutions Trust, 2022-1GS B | 2.940% | 1/20/49 | 859868 | 635052 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Great Lakes Kcap F3c Senior LLC, 2017-1A A (3 mo. USD LIBOR + 1.900%) | 5.427% | 12/20/29 | 1469201 | 1466239 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Grippen Park CLO Ltd., 2017-1A A (3 mo. USD LIBOR + 1.260%) | 5.503% | 1/20/30 | 454336 | 448939 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; GRMT Mortgage Loan Trust, 2001-1A A5 | 6.650% | 7/20/31 | 14488 | 14366 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Halsey Point CLO Ltd., 2019-1A A1A1 (3 mo. USD LIBOR + 1.350%) | 5.593% | 1/20/33 | 250000 | 243743 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Halsey Point CLO Ltd., 2020-3A A1A (3 mo. USD LIBOR + 1.450%) | 5.865% | 11/30/32 | 560000 | 551309 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Hardee's Funding LLC, 2021-1A A2 | 2.865% | 6/20/51 | 523375 | 416323 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Hertz Vehicle Financing LP, 2021-2A C | 2.520% | 12/27/27 | 1090000 | 887949 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Hildene Community Funding CDO Ltd., 2015-1A ARR | 2.600% | 11/1/35 | 540000 | 474930 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; HPS Loan Management Ltd., 2021-16A A1 (3 mo. USD LIBOR + 1.140%) | 5.465% | 1/23/35 | 890000 | 862182 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; KeyCorp Student Loan Trust, 2006-A 2B (3 mo. USD LIBOR + 0.480%) | 4.108% | 12/27/41 | 322084 | 319487 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; KKR CLO Ltd., 32A A1 (3 mo. USD LIBOR + 1.320%) | 5.399% | 1/15/32 | 490000 | 483050 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; KREF Ltd., 2022-FL3 A (1 mo. Term SOFR + 1.450%) | 5.382% | 2/17/39 | 2020000 | 1954414 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; LCM LP, 19A AR (3 mo. USD LIBOR + 1.240%) | 5.319% | 7/15/27 | 58211 | 57971 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; MF1 Ltd., 2021-FL7 A (1 mo. USD LIBOR + 1.080%) | 5.019% | 10/16/36 | 2100000 | 2008931 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Midocean Credit CLO, 2017-7A BR (3 mo. USD LIBOR + 1.600%) | 5.679% | 7/15/29 | 750000 | 710680 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Mosaic Solar Loan Trust, 2018-2GS A | 4.200% | 2/22/44 | 1241688 | 1129423 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Myers Park CLO Ltd., 2018-1A B1 (3 mo. USD LIBOR + 1.600%) | 5.843% | 10/20/30 | 550000 | 528482 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Navient Student Loan Trust, 2016-3A A3 (1 mo. USD LIBOR + 1.350%) | 5.366% | 6/25/65 | 1481084 | 1460045 <sup>(a)(b)</sup> |

---

See Notes to Financial Statements.

Western Asset Intermediate Bond Fund 2022 Semi-Annual Report 31

------

Schedule of investments (unaudited) (cont'd)

November 30, 2022

**Western Asset Intermediate Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br> Amount | Value |
| **Asset-Backed Securities — continued** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Navient Student Loan Trust, 2020-1A A1B (1 mo. USD LIBOR + 1.050%) | 5.094% | 6/25/69 | $231884 | $227140 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Nelnet Student Loan Trust, 2012-2A A (1 mo. USD LIBOR + 0.800%) | 4.844% | 12/26/33 | 540780 | 531679 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Oasis Securitization Funding LLC, 2021-1A A | 2.579% | 2/15/33 | 178777 | 175826 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Octagon Investment Partners Ltd., 2014-1A AAR3 (3 mo. USD LIBOR + 1.000%) | 5.650% | 2/14/31 | 720000 | 706625 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; OHA Credit Funding Ltd., 2020-7A AR (3 mo. Term SOFR + 1.300%) | 5.255% | 2/24/37 | 870000 | 837607 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Owl Rock CLO Ltd., 2020-3A A1L (3 mo. USD LIBOR + 1.800%) | 6.043% | 4/20/32 | 1040000 | 1016988 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Palmer Square CLO Ltd., 2019-1A A1R (3 mo. USD LIBOR + 1.150%) | 5.800% | 11/14/34 | 750000 | 727544 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Point Au Roche Park CLO Ltd., 2021-1A A (3 mo. USD LIBOR + 1.080%) | 5.323% | 7/20/34 | 1650000 | 1593994 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Recette CLO Ltd., 2015-1A ARR (3 mo. USD LIBOR + 1.080%) | 5.323% | 4/20/34 | 510000 | 494382 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Reese Park CLO Ltd., 2020-1A AR (3 mo. USD LIBOR + 1.130%) | 5.209% | 10/15/34 | 1840000 | 1778902 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; SBA Small Business Investment Cos., 2021-10A 1 | 1.667% | 3/10/31 | 2966868 | 2541270 |
| &nbsp;&nbsp;&nbsp;&nbsp; Silver Rock CLO Ltd., 2020-1A A (3 mo. USD LIBOR + 1.650%) | 5.893% | 10/20/31 | 1410000 | 1389514 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; SLM Private Education Loan Trust, 2010-C A5 (1 mo. USD LIBOR + 4.750%) | 8.623% | 10/15/41 | 389197 | 416191 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; SLM Student Loan Trust, 2003-4 A5A (3 mo. USD LIBOR + 0.750%) | 4.043% | 3/15/33 | 359349 | 355529 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; SLM Student Loan Trust, 2003-4 A5E (3 mo. USD LIBOR + 0.750%) | 4.043% | 3/15/33 | 731234 | 723461 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; SMB Private Education Loan Trust, 2021-A A2B | 1.590% | 1/15/53 | 1893499 | 1621533 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; SoFi Professional Loan Program Trust, 2021-A AFX | 1.030% | 8/17/43 | 458196 | 364725 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Structured Asset Investment Loan Trust, 2004-7 A8 (1 mo. USD LIBOR + 1.200%) | 5.244% | 8/25/34 | 474780 | 457095 <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; STWD Ltd., 2022-FL3 A (30 Day Average SOFR + 1.350%) | 4.568% | 11/15/38 | 690000 | 666666 <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Toyota Auto Loan Extended Note Trust, 2021-1A A | 1.070% | 2/27/34 | 540000 | 473828 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; TRTX Issuer Ltd., 2022-FL5 A (30 Day Average SOFR + 1.650%) | 5.017% | 2/15/39 | 2000000 | 1975195 <sup>(a)(b)</sup> |

---

See Notes to Financial Statements.

32 Western Asset Intermediate Bond Fund 2022 Semi-Annual Report

------

**Western Asset Intermediate Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity Date | Face<br> Amount | Value |  |
| **Asset-Backed Securities — continued** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Voya CLO Ltd., 2018-3A A1A (3 mo. USD LIBOR + 1.150%) | 5.229% | 10/15/31 | $1090000 | $1075478 | <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Wendy's Funding LLC, 2021-1A A2I | 2.370% | 6/15/51 | 2093500 | 1689058 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Whitebox CLO Ltd., 2020-2A A1R (3 mo. USD LIBOR + 1.220%) | 5.545% | 10/24/34 | 1110000 | 1071550 | <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Whitebox CLO Ltd., 2021-3A A1 (3 mo. USD LIBOR + 1.220%) | 5.299% | 10/15/34 | 1050000 | 1013580 | <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; ZAIS CLO Ltd., 2019-13A A1A (3 mo. USD LIBOR + 1.490%) | 5.569% | 7/15/32 | 602500 | 579906 | <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Asset-Backed Securities (Cost — $76,633,216)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Asset-Backed Securities (Cost — $76,633,216)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Asset-Backed Securities (Cost — $76,633,216)** |  | **71771431** |  |
| **Mortgage-Backed Securities — 6.8%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *FHLMC — 1.2%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) | 3.000% | 11/1/49-4/1/52 | 292112 | 261378 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) | 4.500% | 9/1/50- 8/1/52 | 1478901 | 1461876 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) | 2.500% | 11/1/50-3/1/52 | 4925327 | 4267269 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) | 2.000% | 9/1/51-11/1/51 | 368532 | 306861 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) | 4.000% | 10/1/51-7/1/52 | 572894 | 543575 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) | 5.000% | 7/1/52 | 580322 | 579128 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) | 3.500% | 8/1/52 | 1351795 | 1253593 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total FHLMC* |  |  |  | *8673680* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *FNMA — 4.0%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) | 3.520% | 6/1/32 | 100000 | 93405 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) | 3.560% | 7/1/32 | 100000 | 93633 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) | 3.840% | 7/1/32- 8/1/32 | 200000 | 191485 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) | 3.880% | 7/1/32 | 99557 | 95757 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) | 4.060% | 7/1/32 | 99575 | 97076 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) | 3.740% | 9/1/32 | 200000 | 189882 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) | 6.000% | 7/1/41 | 128361 | 135195 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) | 3.000% | 6/1/43- 6/1/52 | 2259828 | 2031162 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) | 2.500% | 9/1/50- 9/1/61 | 4073942 | 3453943 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) | 1.500% | 1/1/51- 3/1/51 | 450960 | 353019 |  |

---

See Notes to Financial Statements.

Western Asset Intermediate Bond Fund 2022 Semi-Annual Report 33

------

Schedule of investments (unaudited) (cont'd)

November 30, 2022

**Western Asset Intermediate Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity Date | Face<br> Amount | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *FNMA — continued* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) | 2.500% | 5/1/51 | $680350 | $585724 | <sup>(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) | 2.000% | 8/1/51-3/1/52 | 1611206 | 1341054 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) | 3.500% | 9/1/51-3/1/57 | 2560755 | 2361537 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) | 2.000% | 1/1/52 | 6800000 | 5609469 | <sup>(i)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) | 2.500% | 1/1/52 | 4200000 | 3598383 | <sup>(i)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) | 3.000% | 1/1/52 | 3200000 | 2835715 | <sup>(i)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) | 3.500% | 1/1/52 | 1200000 | 1099406 | <sup>(i)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) | 4.000% | 2/1/52 | 1200000 | 1135828 | <sup>(i)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) | 4.500% | 2/1/52 | 700000 | 681625 | <sup>(i)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) | 5.000% | 2/1/52 | 1100000 | 1094629 | <sup>(i)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) | 5.500% | 2/1/52 | 500000 | 505344 | <sup>(i)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) | 6.000% | 2/1/52 | 200000 | 204179 | <sup>(i)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) | 4.000% | 5/1/52-6/1/57 | 1931665 | 1839777 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) | 4.500% | 6/1/52-8/1/58 | 59783 | 58663 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) (12 mo. USD LIBOR + 1.423%) | 2.195% | 5/1/43 | 377464 | 372821 | <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total FNMA* |  |  |  | *30058711* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *GNMA — 1.6%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA) | 3.000% | 9/15/42-11/15/42 | 248376 | 230791 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA) | 4.000% | 3/15/50 | 32428 | 31086 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA) | 3.500% | 5/15/50 | 173565 | 163807 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA) | 4.000% | 2/1/52 | 500000 | 477852 | <sup>(i)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA) II | 4.000% | 8/20/46- 4/20/50 | 900399 | 878810 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA) II | 3.500% | 4/20/47- 1/20/51 | 573147 | 535070 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA) II | 4.500% | 10/20/48-3/20/50 | 568675 | 563310 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA) II | 2.500% | 10/20/49-11/20/51 | 661957 | 581312 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA) II | 3.000% | 1/20/50- 4/20/52 | 1367713 | 1239274 |  |

---

See Notes to Financial Statements.

34 Western Asset Intermediate Bond Fund 2022 Semi-Annual Report

------

**Western Asset Intermediate Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity Date | Face<br> Amount | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *GNMA — continued* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA) II | 2.500% | 2/20/51-12/20/51 | $3269443 | $2891140 | <sup>(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA) II | 3.000% | 1/1/52 | 1500000 | 1356487 | <sup>(i)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA) II | 3.500% | 1/1/52 | 900000 | 836297 | <sup>(i)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA) II | 5.000% | 2/1/52 | 1300000 | 1298781 | <sup>(i)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA) II | 5.500% | 2/1/52 | 1200000 | 1213013 | <sup>(i)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total GNMA* |  |  |  | *12297030* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Mortgage-Backed Securities (Cost — $51,679,916)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Mortgage-Backed Securities (Cost — $51,679,916)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Mortgage-Backed Securities (Cost — $51,679,916)** |  | **51029421** |  |
| **Sovereign Bonds — 2.5%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Canada — 0.2%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Province of Quebec Canada, Senior Notes | 2.625% | 2/13/23 | 1400000 | *1394803* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Chile — 0.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Chile Government International Bond, Senior Notes | 3.100% | 5/7/41 | 630000 | *460904* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Colombia — 0.4%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Colombia Government International Bond, Senior Notes | 3.875% | 4/25/27 | 410000 | 358972 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Colombia Government International Bond, Senior Notes | 3.125% | 4/15/31 | 620000 | 453174 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Colombia Government International Bond, Senior Notes | 5.625% | 2/26/44 | 920000 | 659392 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Colombia Government International Bond, Senior Notes | 5.200% | 5/15/49 | 2200000 | 1463711 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Colombia* |  |  |  | *2935249* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *India — 0.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Export-Import Bank of India, Senior Notes | 3.375% | 8/5/26 | 660000 | *615303* | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Indonesia — 0.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Indonesia Government International Bond, Senior Notes | 5.125% | 1/15/45 | 540000 | *522296* | <sup>(j)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Kazakhstan — 0.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Kazakhstan Government International Bond, Senior Notes | 4.875% | 10/14/44 | 1270000 | *1136650* | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Mexico — 0.6%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Mexico Government International Bond, Senior Notes | 2.659% | 5/24/31 | 1325000 | 1098625 |  |

---

See Notes to Financial Statements.

Western Asset Intermediate Bond Fund 2022 Semi-Annual Report 35

------

Schedule of investments (unaudited) (cont'd)

November 30, 2022

**Western Asset Intermediate Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br>Amount | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Mexico — continued* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Mexico Government International Bond, Senior Notes | 4.750% | 3/8/44 | $2440000 | $2059277 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Mexico Government International Bond, Senior Notes | 4.400% | 2/12/52 | 1780000 | 1373586 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Mexico* |  |  |  | *4531488* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Panama — 0.2%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Panama Government International Bond, Senior Notes | 6.700% | 1/26/36 | 530000 | 562123 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Panama Government International Bond, Senior Notes | 4.300% | 4/29/53 | 1370000 | 1015093 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Panama* |  |  |  | *1577216* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Peru — 0.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Peruvian Government International Bond, Senior Notes | 5.625% | 11/18/50 | 440000 | 439657 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Peruvian Government International Bond, Senior Notes | 3.550% | 3/10/51 | 40000 | 29182 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Peru* |  |  |  | *468839* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Russia — 0.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Russian Foreign Bond — Eurobond, Senior Notes | 4.875% | 9/16/23 | 800000 | 587200 | \*<sup>(a)(k)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Russian Foreign Bond — Eurobond, Senior Notes | 5.625% | 4/4/42 | 200000 | 122500 | \*<sup>(j)(k)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Russia* |  |  |  | *709700* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Supranational — 0.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Asian Development Bank, Senior Notes | 1.500% | 1/20/27 | 1280000 | 1159435 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Uruguay — 0.4%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Uruguay Government International Bond, Senior Notes | 4.375% | 1/23/31 | 410000 | 410454 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Uruguay Government International Bond, Senior Notes | 5.750% | 10/28/34 | 1520000 | 1654636 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Uruguay Government International Bond, Senior Notes | 5.100% | 6/18/50 | 1240000 | 1225744 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Uruguay* |  |  |  | *3290834* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Sovereign Bonds (Cost — $22,493,822)** |  |  |  | **18802717** |  |
|  | Expiration<br>Date | Contracts | Notional<br>Amount |  |  |
| **Purchased Options — 0.1%** |  |  |  |  |  |
| **Exchange-Traded Purchased Options — 0.1%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; SOFR 1-Year Mid-Curve Futures, Call @ $95.88 | 12/16/22 | 71 | 177500 | 9319 |  |

---

See Notes to Financial Statements.

36 Western Asset Intermediate Bond Fund 2022 Semi-Annual Report

------

**Western Asset Intermediate Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Expiration<br>Date | Contracts | Notional<br>Amount | Value |
| **Exchange-Traded Purchased Options — continued** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; SOFR 1-Year Mid-Curve Futures, Put @ $95.63 | 1/13/23 | 298 | $745000 | $65188 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury 10-Year Notes Futures, Call @ $110.00 | 12/23/22 | 122 | 122000 | 436531 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury 10-Year Notes Futures, Call @ $110.50 | 12/23/22 | 44 | 44000 | 137500 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury 10-Year Notes Futures, Call @ $111.00 | 12/23/22 | 45 | 45000 | 120234 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury 10-Year Notes Futures, Call @ $112.50 | 12/23/22 | 33 | 33000 | 50016 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury 10-Year Notes Futures, Call @ $113.00 | 12/23/22 | 115 | 115000 | 138359 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury 10-Year Notes Futures, Call @ $113.50 | 12/23/22 | 65 | 65000 | 59922 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Purchased Options (Cost — $631,737)** |  |  |  | **1017069** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Investments before Short-Term Investments (Cost — $832,945,810)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Investments before Short-Term Investments (Cost — $832,945,810)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Investments before Short-Term Investments (Cost — $832,945,810)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Investments before Short-Term Investments (Cost — $832,945,810)** | **755300157** |
|  | Rate |  | Shares |  |
| **Short-Term Investments — 1.3%** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Western Asset Premier Institutional Government Reserves, Premium Shares (Cost — $9,915,235) | 3.749% |  | 9915235 | **9915235** <sup>(g)(l)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Investments — 101.3% (Cost — $842,861,045)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Investments — 101.3% (Cost — $842,861,045)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Investments — 101.3% (Cost — $842,861,045)** |  | **765215392** |
| &nbsp;&nbsp;&nbsp;&nbsp; Liabilities in Excess of Other Assets — (1.3)% |  |  |  | (10022798) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Net Assets — 100.0%** |  |  |  | $**755192594** |

---

See Notes to Financial Statements.

Western Asset Intermediate Bond Fund 2022 Semi-Annual Report 37

------

Schedule of investments (unaudited) (cont'd)

November 30, 2022

**Western Asset Intermediate Bond Fund** 

---

| | |
|:---|:---|
| †† | Represents less than 0.1%.  |

---

\* Non-income producing security.

<sup>(a)</sup> 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. 

<sup>(b)</sup> 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. 

<sup>(c)</sup> Security has no maturity date. The date shown represents the next call date.

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

<sup>(e)</sup> Security is valued using significant unobservable inputs (Note 1).

<sup>(f)</sup> 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. 

<sup>(g)</sup> In this instance, as defined in the Investment Company Act of 1940, an "Affiliated Company" represents Fund ownership of at least 5% of the outstanding voting securities of an issuer, or a company which is under common ownership or control with the Fund. At November 30, 2022, the total market value of investments in Affiliated Companies was $10,651,049 and the cost was $10,665,235 (Note 8). 

<sup>(h)</sup> Securities traded on a when-issued or delayed delivery basis.

<sup>(i)</sup> This security is traded on a to-be-announced ("TBA") basis. At November 30, 2022, the Fund held TBA securities with a total cost of $20,973,183. 

<sup>(j)</sup> 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. 

<sup>(k)</sup> The coupon payment on this security is currently in default as of November 30, 2022.

<sup>(l)</sup> Rate shown is one-day yield as of the end of the reporting period.

---

| | |
|:---|:---|
| **Abbreviation(s) used in this schedule:** | **Abbreviation(s) used in this schedule:** |
| ACES | Alternative Credit Enhancement Securities |
| CAS | Connecticut Avenue Securities |
| CDO | Collateralized Debt Obligation |
| CLO | Collateralized Loan Obligation |
| CTFS | Certificates |
| ICE | Intercontinental Exchange |
| IO | Interest Only |
| JSC | Joint Stock Company |
| LIBOR | London Interbank Offered Rate |
| PAC | Planned Amortization Class |
| REMIC | Real Estate Mortgage Investment Conduit |
| SOFR | Secured Overnight Financing Rate |
| STRIPS | Separate Trading of Registered Interest and Principal Securities |
| USD | United States Dollar |

---

See Notes to Financial Statements.

38 Western Asset Intermediate Bond Fund 2022 Semi-Annual Report

------

**Western Asset Intermediate Bond Fund** 

At November 30, 2022, the Fund had the following written options contracts:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| <br> **Exchange-Traded Written Options** | <br> **Exchange-Traded Written Options** | <br> **Exchange-Traded Written Options** | <br> **Exchange-Traded Written Options** | <br> **Exchange-Traded Written Options** | <br> **Exchange-Traded Written Options** |
| Security | Expiration<br>Date | Strike<br>Price | Contracts | Notional<br>Amount | Value |
| 90-Day Eurodollar Futures, Call | 12/19/22 | $96.50 | 169 | $422500 | $(1056) |
| 90-Day Eurodollar Futures, Call | 12/19/22 | 97.00 | 688 | 1720000 | (4300) |
| SOFR 1-Year Mid-Curve Futures, Call | 12/16/22 | 96.50 | 142 | 355000 | (1775) |
| U.S. Treasury 5-Year Notes Futures, Put | 12/23/22 | 106.75 | 158 | 158000 | (17281) |
| U.S. Treasury 10-Year Notes Futures, Call | 12/23/22 | 115.00 | 62 | 62000 | (22281) |
| U.S. Treasury 10-Year Notes Futures, Call | 1/27/23 | 116.00 | 88 | 88000 | (44000) |
| U.S. Treasury 10-Year Notes Futures, Call | 2/24/23 | 113.00 | 62 | 62000 | (122062) |
| U.S. Treasury 10-Year Notes Futures, Put | 12/23/22 | 111.00 | 44 | 44000 | (7563) |
| U.S. Treasury Long-Term Bonds Futures, Put | 12/23/22 | 120.00 | 22 | 22000 | (3438) |
| U.S. Treasury Long-Term Bonds Futures, Put | 12/23/22 | 121.00 | 21 | 21000 | (4594) |
| **Total Exchange-Traded Written Options (Premiums received — $907,544)** | **Total Exchange-Traded Written Options (Premiums received — $907,544)** | **Total Exchange-Traded Written Options (Premiums received — $907,544)** | **Total Exchange-Traded Written Options (Premiums received — $907,544)** | **Total Exchange-Traded Written Options (Premiums received — $907,544)** | $**(228350)** |

---

---

| |
|:---|
| **Abbreviation(s) used in this schedule:** |
| SOFR — Secured Overnight Financing Rate |

---

At November 30, 2022, the Fund had the following open futures contracts:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Number of<br>Contracts | Expiration<br>Date | Notional<br>Amount | Market<br>Value | Unrealized<br>Appreciation<br>(Depreciation) |
| **Contracts to Buy:** | **Contracts to Buy:** | **Contracts to Buy:** | **Contracts to Buy:** | **Contracts to Buy:** | **Contracts to Buy:** |
| 3-Month SOFR | 13 | 9/23 | $3137902 | $3090262 | $(47640) |
| 3-Month SOFR | 614 | 3/25 | 148373757 | 148634050 | 260293 |
| 3-Month SOFR | 79 | 3/26 | 19036146 | 19158488 | 122342 |
| 90-Day Eurodollar | 481 | 12/22 | 116935923 | 114360756 | (2575167) |
| 90-Day Eurodollar | 93 | 3/23 | 22103870 | 22050300 | (53570) |
| 90-Day Eurodollar | 49 | 9/23 | 12137715 | 11637500 | (500215) |
| 90-Day Eurodollar | 78 | 12/23 | 18948876 | 18587400 | (361476) |
| U.S. Treasury 2-Year Notes | 584 | 3/23 | 119789449 | 119929876 | 140427 |
| U.S. Treasury 10-Year Notes | 1113 | 3/23 | 125721652 | 126325500 | 603848 |
| U.S. Treasury Ultra 10-Year Notes | 134 | 3/23 | 15872952 | 16033938 | 160986 |
|  |  |  |  |  | (2250172) |
| **Contracts to Sell:** |  |  |  |  |  |
| 3-Month SOFR | 840 | 3/24 | 201781254 | 200718000 | 1063254 |
| U.S. Treasury 5-Year Notes | 10 | 3/23 | 1082294 | 1085703 | (3409) |

---

See Notes to Financial Statements.

Western Asset Intermediate Bond Fund 2022 Semi-Annual Report 39

------

Schedule of investments (unaudited) (cont'd)

November 30, 2022

**Western Asset Intermediate Bond Fund** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Number of<br>Contracts | Expiration<br>Date | Notional<br>Amount | Market<br>Value | Unrealized<br>Appreciation<br>(Depreciation) |
| **Contracts to Sell *continued*** | **Contracts to Sell *continued*** | **Contracts to Sell *continued*** | **Contracts to Sell *continued*** | **Contracts to Sell *continued*** | **Contracts to Sell *continued*** |
| U.S. Treasury Long-Term Bonds | 530 | 3/23 | $67494596 | $67310000 | $184596 |
| U.S. Treasury Ultra Long- Term Bonds | 179 | 3/23 | 24768815 | 24394344 | 374471 |
|  |  |  |  |  | 1618912 |
| **Net unrealized depreciation on open futures contracts** | **Net unrealized depreciation on open futures contracts** | **Net unrealized depreciation on open futures contracts** | **Net unrealized depreciation on open futures contracts** |  | $**(631260)** |

---

---

| |
|:---|
| **Abbreviation(s) used in this table:** |
| SOFR — Secured Overnight Financing Rate |

---

At November 30, 2022, the Fund had the following open swap contracts:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **CENTRALLY CLEARED INTEREST RATE SWAPS** | **CENTRALLY CLEARED INTEREST RATE SWAPS** | **CENTRALLY CLEARED INTEREST RATE SWAPS** | **CENTRALLY CLEARED INTEREST RATE SWAPS** | **CENTRALLY CLEARED INTEREST RATE SWAPS** | **CENTRALLY CLEARED INTEREST RATE SWAPS** |
| Notional<br>Amount | Termination<br>Date | Payments<br> Made by<br> the Fund† | Payments<br> Received by<br> the Fund† | Upfront<br>Premiums<br> Paid<br>(Received) | Unrealized<br>Appreciation<br>(Depreciation) |
| $8839000 | 9/30/24 | Daily SOFR Compound annually | 3.500% annually | $(55896) | $(89028) |
| 2051000 | 3/4/27 | Daily SOFR Compound annually | 1.550% annually | (3875) | (166137) |
| 15928000 | 8/15/28 | 1.130% annually | Daily SOFR Compound annually | 114136 | 1829196 |
| 10908000 | 8/15/28 | 1.220% annually | Daily SOFR Compound annually | (4660) | 1285417 |
| 5694000 | 2/15/29 | 2.850% annually | Daily SOFR Compound annually | 22648 | 177334 |
| 27682000 | 4/30/29 | 3.270% annually | Daily SOFR Compound annually | (435628) | 751168 |
| 11900000 | 6/30/29 | 3.850% annually | Daily SOFR Compound annually | 14915 | (286479) |
| 5265000 | 3/18/32 | 2.000% annually | Daily SOFR Compound annually | 42677 | 534943 |

---

See Notes to Financial Statements.

40 Western Asset Intermediate Bond Fund 2022 Semi-Annual Report

------

**Western Asset Intermediate Bond Fund** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **CENTRALLY CLEARED INTEREST RATE SWAPS (cont'd)** | **CENTRALLY CLEARED INTEREST RATE SWAPS (cont'd)** | **CENTRALLY CLEARED INTEREST RATE SWAPS (cont'd)** | **CENTRALLY CLEARED INTEREST RATE SWAPS (cont'd)** | **CENTRALLY CLEARED INTEREST RATE SWAPS (cont'd)** | **CENTRALLY CLEARED INTEREST RATE SWAPS (cont'd)** | **CENTRALLY CLEARED INTEREST RATE SWAPS (cont'd)** |
|  | Notional<br> Amount | Termination<br> Date | Payments<br> Made by<br> the Fund† | Payments<br> Received by<br> the Fund† | Upfront<br> Premiums<br> Paid<br> (Received) | Unrealized<br> Appreciation<br> (Depreciation) |
|  | $12480000 | 7/20/45 | 0.560% annually | Daily SOFR Compound annually | $85368 | $5266334 |
|  | 2366000 | 2/15/47 | 1.520% annually | Daily SOFR Compound annually | (78823) | 750506 |
|  | 4875000 | 2/15/47 | 1.729% annually | Daily SOFR Compound annually | 69464 | 1146304 |
|  | 4800000 | 5/15/47 | 1.630% annually | Daily SOFR Compound annually | 203695 | 1075803 |
|  | 3315000 | 2/15/48 | 2.510% annually | Daily SOFR Compound annually | 21755 | 373621 |
|  | 2847000 | 2/15/48 | 2.600% annually | Daily SOFR Compound annually | 195697 | 96772 |
|  | 6372000 | 2/15/48 | 2.620% annually | Daily SOFR Compound annually | 7264 | 633578 |
|  | 4447000 | 2/15/48 | 3.050% annually | Daily SOFR Compound annually | 137085 | (26990) |
|  | 3520000 | 4/21/52 | 2.500% annually | Daily SOFR Compound annually | 3280 | 403598 |
| **Total** | $**133289000** |  |  |  | $**339102** | $**13755940** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CREDIT INDICES — SELL PROTECTION<sup>1</sup>** | **CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CREDIT INDICES — SELL PROTECTION<sup>1</sup>** | **CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CREDIT INDICES — SELL PROTECTION<sup>1</sup>** | **CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CREDIT INDICES — SELL PROTECTION<sup>1</sup>** | **CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CREDIT INDICES — SELL PROTECTION<sup>1</sup>** | **CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CREDIT INDICES — SELL PROTECTION<sup>1</sup>** | **CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CREDIT INDICES — SELL PROTECTION<sup>1</sup>** |
| Reference Entity | Notional<br> Amount<sup>2</sup> | Termination<br>Date | Periodic<br> Payments<br> Received by<br> the Fund† | Market<br>Value3 | Upfront<br> Premiums<br> Paid<br> (Received) | Unrealized<br> Appreciation |
| Markit CDX.NA.IG.39 Index | $151715000 | 12/20/27 | 1.000% quarterly | $1653725 | $(102579) | $1756304 |

---

See Notes to Financial Statements.

Western Asset Intermediate Bond Fund 2022 Semi-Annual Report 41

------

Schedule of investments (unaudited) (cont'd)

November 30, 2022

**Western Asset Intermediate Bond Fund** 

<sup>1</sup> If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay 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 underlying securities comprising the referenced index. 

<sup>2</sup> 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. 

<sup>3</sup> 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 loss (or profit) for the credit derivative had 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.

---

| | |
|:---|:---|
| **Abbreviation(s) used in this table:** | **Abbreviation(s) used in this table:** |
| SOFR | — Secured Overnight Financing Rate |

---

See Notes to Financial Statements.

42 Western Asset Intermediate Bond Fund 2022 Semi-Annual Report

------

Statement of assets and liabilities (unaudited)

November 30, 2022

---

| | | |
|:---|:---|:---|
| **Assets:** | | |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments in unaffiliated securities, at value (Cost — $832,195,810) | $754564343 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments in affiliated securities, at value (Cost — $10,665,235) | 10651049 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash | 1000018 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for securities sold | 16611763 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Deposits with brokers for centrally cleared swap contracts | 6672057 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest receivable from unaffiliated investments | 5364132 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Deposits with brokers for open futures contracts and exchange-traded options | 1668471 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable from brokers — net variation margin on open futures contracts | 735376 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable from brokers — net variation margin on centrally cleared swap contracts | 343562 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for Fund shares sold | 282494 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends receivable from affiliated investments | 26344 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest receivable from affiliated investments | 4745 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 40795 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total Assets*** | ***797965149*** | **** |
| **Liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Payable for securities purchased | 41054972 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Payable for Fund shares repurchased | 781369 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions payable | 261316 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment management fee payable | 244620 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Written options, at value (premiums received — $907,544) | 228350 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Directors' fees payable | 3386 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Service and/or distribution fees payable | 1984 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | 196558 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total Liabilities*** | ***42772555*** | **** |
| **Total Net Assets** | $**755192594** |  |
| **Net Assets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Par value (Note 7) | $79174 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Paid-in capital in excess of par value | 885594935 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributable earnings (loss) | (130481515) |  |
| **Total Net Assets** | $**755192594** |  |

---

See Notes to Financial Statements.

Western Asset Intermediate Bond Fund 2022 Semi-Annual Report 43

------

Statement of assets and liabilities (unaudited) (cont'd)

November 30, 2022

---

| | |
|:---|:---|
| **Net Assets:** | |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $3824120 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class C | $1452942 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class R | $459792 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I | $325527221 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class IS | $423928519 |
| **Shares Outstanding:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | 400957 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class C | 152150 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class R | 48199 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I | 34141434 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class IS | 44431478 |
| **Net Asset Value:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A (and redemption price) | $9.54 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class C\* | $9.55 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class R (and redemption price) | $9.54 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I (and redemption price) | $9.53 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class IS (and redemption price) | $9.54 |
| **Maximum Public Offering Price Per Share:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A (based on maximum initial sales charge of 3.75%; 4.25% prior to August 15, 2022) | $9.91 |

---

\* Redemption price per share is NAV of Class C shares reduced by a 1.00% CDSC if shares are redeemed within one year from purchase payment (Note 2). 

See Notes to Financial Statements.

44 Western Asset Intermediate Bond Fund 2022 Semi-Annual Report

------

Statement of operations (unaudited)

For the Six Months Ended November 30, 2022

---

| | | |
|:---|:---|:---|
| **Investment Income:** | | |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest from unaffiliated investments | $13123751 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest from affiliated investments | 14490 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends from affiliated investments | 73804 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Less: Foreign taxes withheld | (1259) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total Investment Income*** | ***13210786*** | **** |
| **Expenses:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment management fee (Note 2) | 1611988 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Transfer agent fees (Note 5) | 233572 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Registration fees | 41597 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Fund accounting fees | 39854 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Audit and tax fees | 27496 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal fees | 14990 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Service and/or distribution fees (Notes 2 and 5) | 11092 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Directors' fees | 10432 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Shareholder reports | 9002 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commitment fees (Note 9) | 3300 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Custody fees | 2344 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance | 2242 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous expenses | 6865 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total Expenses*** | ***2014774*** | **** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Fee waivers and/or expense reimbursements (Notes 2 and 5) | (2999) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Net Expenses*** | ***2011775*** | **** |
| **Net Investment Income** | **11199011** |  |
| **Realized and Unrealized Gain (Loss) on Investments, Futures Contracts,<br>Written Options and Swap Contracts (Notes 1, 3 and 4):** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Realized Gain (Loss) From: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment transactions in unaffiliated securities | (45606742) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures contracts | (10490386) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Written options | 2651952 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swap contracts | 4255991 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Net Realized Loss*** | ***(49189185)*** | **** |
| &nbsp;&nbsp;&nbsp;&nbsp; Change in Net Unrealized Appreciation (Depreciation) From: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in unaffiliated securities | 2117854 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in affiliated securities | (3311) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures contracts | 1764856 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Written options | 527866 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swap contracts | 2036058 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Change in Net Unrealized Appreciation (Depreciation)*** | ***6443323*** | **** |
| **Net Loss on Investments, Futures Contracts, Written Options and Swap Contracts** | **(42745862)** |  |
| **Decrease in Net Assets From Operations** | $**(31546851)** |  |

---

See Notes to Financial Statements.

Western Asset Intermediate Bond Fund 2022 Semi-Annual Report 45

------

Statements of changes in net assets

---

| | | | | |
|:---|:---|:---|:---|:---|
| For the Six Months Ended November 30, 2022 (unaudited)<br> and the Year Ended May 31, 2022 | November 30 |  | May 31 |  |
| **Operations:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | $11199011 |  | $18794101 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized loss | (49189185) |  | (13093536) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Change in net unrealized appreciation (depreciation) | 6443323 |  | (92094659) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Decrease in Net Assets From Operations*** | ***(31546851)*** | **** | ***(86394094)*** | **** |
| **Distributions to Shareholders From (Notes 1 and 6):** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributable earnings | (11066267) |  | (22845110) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Decrease in Net Assets From Distributions to Shareholders*** | ***(11066267)*** | **** | ***(22845110)*** | **** |
| **Fund Share Transactions (Note 7):** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net proceeds from sale of shares | 46951837 |  | 264010265 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestment of distributions | 9574990 |  | 19707670 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cost of shares repurchased | (165126717) |  | (329962520) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Decrease in Net Assets From Fund Share Transactions*** | ***(108599890)*** | **** | ***(46244585)*** | **** |
|  ***Decrease in Net Assets*** | ***(151213008)*** | **** | ***(155483789)*** | **** |
| **Net Assets:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | 906405602 |  | 1061889391 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **End of period** | $**755192594** |  | $**906405602** |  |

---

See Notes to Financial Statements.

46 Western Asset Intermediate Bond Fund 2022 Semi-Annual Report

------

Financial highlights

---

| | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** |  |
| Class A Shares<sup>1</sup> | 2022<sup>2</sup> | 2022<sup>2</sup> |  | 2022 | 2022 |  | 2021 | 2021 |  | 2020 | 2020 |  | 2019 | 2019 |  | 2018 | 2018 |  |
| **Net asset value, beginning of period** |  | $10.01 |  |  | $11.17 |  |  | $11.38 |  |  | $10.98 |  |  | $10.70 |  |  | $10.94 |  |
| **Income (loss) from operations:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income |  | 0.12 |  |  | 0.16 |  |  | 0.18 |  |  | 0.24 |  |  | 0.28 |  |  | 0.22 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) |  | (0.47) |  |  | (1.11) |  |  | 0.10 |  |  | 0.46 |  |  | 0.28 |  |  | (0.25) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total income (loss) from operations*** | **** | ***(0.35)*** | **** | **** | ***(0.95)*** | **** | **** | ***0.28*** | **** | **** | ***0.70*** | **** | **** | ***0.56*** | **** | **** | ***(0.03)*** | **** |
| **Less distributions from:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income |  | (0.12) |  |  | (0.17) |  |  | (0.18) |  |  | (0.24) |  |  | (0.28) |  |  | (0.21) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gains |  |  |  |  | (0.04) |  |  | (0.31) |  |  | (0.06) |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total distributions*** | **** | ***(0.12)*** | **** | **** | ***(0.21)*** | **** | **** | ***(0.49)*** | **** | **** | ***(0.30)*** | **** | **** | ***(0.28)*** | **** | **** | ***(0.21)*** | **** |
| **Net asset value, end of period** |  | $9.54 |  |  | $10.01 |  |  | $11.17 |  |  | $11.38 |  |  | $10.98 |  |  | $10.70 |  |
|  ***Total return<sup>3</sup>*** | **** | ***(3.52)*** | *%*** | **** | ***(8.64)*** | *%*** | **** | ***2.51*** | *%*** | **** | ***6.47*** | *%*** | **** | ***5.32*** | *%*** | **** | ***(0.28)*** | *%*** |
| **Net assets, end of period (000s)** |  | $3824 |  |  | $1813 |  |  | $2759 |  |  | $2717 |  |  | $4530 |  |  | $3506 |  |
| **Ratios to average net assets:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gross expenses |  | 0.80 | %<sup>4</sup> |  | 0.81 | % |  | 0.78 | % |  | 0.90 | % |  | 0.85 | % |  | 0.87 | % |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses<sup>5</sup> |  | 0.80 | <sup>4,6</sup> |  | 0.81 | <sup>6</sup> |  | 0.78 | <sup>6</sup> |  | 0.90 | <sup>6</sup> |  | 0.85 |  |  | 0.87 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income |  | 2.57 | <sup>4</sup> |  | 1.51 |  |  | 1.58 |  |  | 2.13 |  |  | 2.57 |  |  | 2.02 |  |
| **Portfolio turnover rate<sup>7</sup>** |  | **31** | **%** |  | **46** | **%** |  | **60** | **%** |  | **100** | **%** |  | **94** | **%** |  | **84** | **%** |

---

<sup>1</sup> Per share amounts have been calculated using the average shares method. 

<sup>2</sup> For the six months ended November 30, 2022 (unaudited).

<sup>3</sup> Performance figures, exclusive of sales charges, may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized. 

<sup>4</sup> Annualized.

<sup>5</sup> As a result of an expense limitation arrangement, the ratio of total annual fund operating expenses, other than interest, brokerage commissions, taxes, extraordinary expenses, deferred organizational expenses and acquired fund fees and expenses, to average net assets of Class A shares did not exceed 0.90%. This expense limitation arrangement cannot be terminated prior to December 31, 2024 without the Board of Directors' consent. In addition, the manager has agreed to waive the Fund's management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund. 

<sup>6</sup> Reflects fee waivers and/or expense reimbursements.

<sup>7</sup> Excluding mortgage dollar roll transactions. If mortgage dollar roll transactions had been included, the portfolio turnover rate would have been 33% for the six months ended November 30, 2022, 46%, 72%, 123%, 133% and 154% for the years ended May 31, 2022, 2021, 2020, 2019 and 2018, respectively. 

See Notes to Financial Statements.

Western Asset Intermediate Bond Fund 2022 Semi-Annual Report 47

------

Financial highlights (cont'd)

---

| | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** |  |
| Class C Shares<sup>1</sup> | 2022<sup>2</sup> | 2022<sup>2</sup> |  | 2022 | 2022 |  | 2021 | 2021 |  | 2020 | 2020 |  | 2019 | 2019 |  | 2018 | 2018 |  |
| **Net asset value, beginning of period** |  | $10.03 |  |  | $11.19 |  |  | $11.41 |  |  | $11.01 |  |  | $10.73 |  |  | $10.96 |  |
| **Income (loss) from operations:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income |  | 0.08 |  |  | 0.09 |  |  | 0.09 |  |  | 0.16 |  |  | 0.20 |  |  | 0.16 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) |  | (0.48) |  |  | (1.12) |  |  | 0.11 |  |  | 0.47 |  |  | 0.28 |  |  | (0.23) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total income (loss) from operations*** | **** | ***(0.40)*** | **** | **** | ***(1.03)*** | **** | **** | ***0.20*** | **** | **** | ***0.63*** | **** | **** | ***0.48*** | **** | **** | ***(0.07)*** | **** |
| **Less distributions from:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income |  | (0.08) |  |  | (0.09) |  |  | (0.11) |  |  | (0.17) |  |  | (0.20) |  |  | (0.16) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gains |  |  |  |  | (0.04) |  |  | (0.31) |  |  | (0.06) |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total distributions*** | **** | ***(0.08)*** | **** | **** | ***(0.13)*** | **** | **** | ***(0.42)*** | **** | **** | ***(0.23)*** | **** | **** | ***(0.20)*** | **** | **** | ***(0.16)*** | **** |
| **Net asset value, end of period** |  | $9.55 |  |  | $10.03 |  |  | $11.19 |  |  | $11.41 |  |  | $11.01 |  |  | $10.73 |  |
|  ***Total return<sup>3</sup>*** | **** | ***(3.97)*** | *%*** | **** | ***(9.28)*** | *%*** | **** | ***1.75*** | *%*** | **** | ***5.76*** | *%*** | **** | ***4.57*** | *%*** | **** | ***(0.69)*** | *%*** |
| **Net assets, end of period (000s)** |  | $1453 |  |  | $1257 |  |  | $1483 |  |  | $1318 |  |  | $645 |  |  | $497 |  |
| **Ratios to average net assets:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gross expenses |  | 1.56 | %<sup>4</sup> |  | 1.54 | % |  | 1.53 | % |  | 1.56 | % |  | 1.57 | % |  | 1.58 | % |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses<sup>5</sup> |  | 1.56 | <sup>4,6</sup> |  | 1.54 | <sup>6</sup> |  | 1.53 | <sup>6</sup> |  | 1.56 | <sup>6</sup> |  | 1.57 |  |  | 1.58 | <sup>6</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income |  | 1.74 | <sup>4</sup> |  | 0.79 |  |  | 0.83 |  |  | 1.42 |  |  | 1.86 |  |  | 1.42 |  |
| **Portfolio turnover rate<sup>7</sup>** |  | **31** | **%** |  | **46** | **%** |  | **60** | **%** |  | **100** | **%** |  | **94** | **%** |  | **84** | **%** |

---

<sup>1</sup> Per share amounts have been calculated using the average shares method. 

<sup>2</sup> For the six months ended November 30, 2022 (unaudited).

<sup>3</sup> Performance figures, exclusive of CDSC, may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized. 

<sup>4</sup> Annualized.

<sup>5</sup> As a result of an expense limitation arrangement, the ratio of total annual fund operating expenses, other than interest, brokerage commissions, taxes, extraordinary expenses, deferred organizational expenses and acquired fund fees and expenses, to average net assets of Class C shares did not exceed 1.65%. This expense limitation arrangement cannot be terminated prior to December 31, 2024 without the Board of Directors' consent. In addition, the manager has agreed to waive the Fund's management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund. 

<sup>6</sup> Reflects fee waivers and/or expense reimbursements.

<sup>7</sup> Excluding mortgage dollar roll transactions. If mortgage dollar roll transactions had been included, the portfolio turnover rate would have been 33% for the six months ended November 30, 2022, 46%, 72%, 123%, 133% and 154% for the years ended May 31, 2022, 2021, 2020, 2019 and 2018, respectively. 

See Notes to Financial Statements.

48 Western Asset Intermediate Bond Fund 2022 Semi-Annual Report

------

---

| | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** |  |
| Class R Shares<sup>1</sup> | 2022<sup>2</sup> | 2022<sup>2</sup> |  | 2022 | 2022 |  | 2021 | 2021 |  | 2020 | 2020 |  | 2019 | 2019 |  | 2018 | 2018 |  |
| **Net asset value, beginning of period** |  | $10.02 |  |  | $11.18 |  |  | $11.40 |  |  | $11.00 |  |  | $10.72 |  |  | $10.94 |  |
| **Income (loss) from operations:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income |  | 0.10 |  |  | 0.13 |  |  | 0.14 |  |  | 0.20 |  |  | 0.24 |  |  | 0.20 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) |  | (0.48) |  |  | (1.12) |  |  | 0.10 |  |  | 0.48 |  |  | 0.29 |  |  | (0.22) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total income (loss) from operations*** | **** | ***(0.38)*** | **** | **** | ***(0.99)*** | **** | **** | ***0.24*** | **** | **** | ***0.68*** | **** | **** | ***0.53*** | **** | **** | ***(0.02)*** | **** |
| **Less distributions from:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income |  | (0.10) |  |  | (0.13) |  |  | (0.15) |  |  | (0.22) |  |  | (0.25) |  |  | (0.20) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gains |  |  |  |  | (0.04) |  |  | (0.31) |  |  | (0.06) |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total distributions*** | **** | ***(0.10)*** | **** | **** | ***(0.17)*** | **** | **** | ***(0.46)*** | **** | **** | ***(0.28)*** | **** | **** | ***(0.25)*** | **** | **** | ***(0.20)*** | **** |
| **Net asset value, end of period** |  | $9.54 |  |  | $10.02 |  |  | $11.18 |  |  | $11.40 |  |  | $11.00 |  |  | $10.72 |  |
|  ***Total return<sup>3</sup>*** | **** | ***(3.78)*** | *%*** | **** | ***(8.94)*** | *%*** | **** | ***2.14*** | *%*** | **** | ***6.18*** | *%*** | **** | ***5.03*** | *%*** | **** | ***(0.18)*** | *%*** |
| **Net assets, end of period (000s)** |  | $460 |  |  | $708 |  |  | $805 |  |  | $525 |  |  | $276 |  |  | $147 |  |
| **Ratios to average net assets:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gross expenses |  | 1.31 | %<sup>4</sup> |  | 1.25 | % |  | 1.25 | % |  | 1.57 | %<sup>5</sup> |  | 1.34 | %<sup>5</sup> |  | 1.23 | %<sup>5</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses<sup>6,7</sup> |  | 1.15 | <sup>4</sup> |  | 1.15 |  |  | 1.15 |  |  | 1.15 | <sup>5</sup> |  | 1.15 | <sup>5</sup> |  | 1.15 | <sup>5</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income |  | 2.10 | <sup>4</sup> |  | 1.19 |  |  | 1.22 |  |  | 1.84 |  |  | 2.29 |  |  | 1.85 |  |
| **Portfolio turnover rate<sup>8</sup>** |  | **31** | **%** |  | **46** | **%** |  | **60** | **%** |  | **100** | **%** |  | **94** | **%** |  | **84** | **%** |

---

<sup>1</sup> Per share amounts have been calculated using the average shares method. 

<sup>2</sup> For the six months ended November 30, 2022 (unaudited).

<sup>3</sup> Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized. 

<sup>4</sup> Annualized.

<sup>5</sup> Reflects recapture of expenses waived/reimbursed from prior fiscal years.

<sup>6</sup> As a result of an expense limitation arrangement, the ratio of total annual fund operating expenses, other than interest, brokerage commissions, taxes, extraordinary expenses, deferred organizational expenses and acquired fund fees and expenses, to average net assets of Class R shares did not exceed 1.15%. This expense limitation arrangement cannot be terminated prior to December 31, 2024 without the Board of Directors' consent. In addition, the manager has agreed to waive the Fund's management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund. 

<sup>7</sup> Reflects fee waivers and/or expense reimbursements.

<sup>8</sup> Excluding mortgage dollar roll transactions. If mortgage dollar roll transactions had been included, the portfolio turnover rate would have been 33% for the six months ended November 30, 2022, 46%, 72%, 123%, 133% and 154% for the years ended May 31, 2022, 2021, 2020, 2019 and 2018, respectively. 

See Notes to Financial Statements.

Western Asset Intermediate Bond Fund 2022 Semi-Annual Report 49

------

Financial highlights (cont'd)

---

| | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,**<br> **unless otherwise noted:** |  |
| Class I Shares<sup>1</sup> | 2022<sup>2</sup> | 2022<sup>2</sup> |  | 2022 | 2022 |  | 2021 | 2021 |  | 2020 | 2020 |  | 2019 | 2019 |  | 2018 | 2018 |  |
| **Net asset value, beginning of period** |  | $10.01 |  |  | $11.17 |  |  | $11.40 |  |  | $10.99 |  |  | $10.71 |  |  | $10.94 |  |
| **Income (loss) from operations:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income |  | 0.13 |  |  | 0.19 |  |  | 0.21 |  |  | 0.27 |  |  | 0.31 |  |  | 0.27 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) |  | (0.48) |  |  | (1.11) |  |  | 0.09 |  |  | 0.48 |  |  | 0.29 |  |  | (0.23) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total income (loss) from operations*** | **** | ***(0.35)*** | **** | **** | ***(0.92)*** | **** | **** | ***0.30*** | **** | **** | ***0.75*** | **** | **** | ***0.60*** | **** | **** | ***0.04*** | **** |
| **Less distributions from:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income |  | (0.13) |  |  | (0.20) |  |  | (0.22) |  |  | (0.28) |  |  | (0.32) |  |  | (0.27) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gains |  |  |  |  | (0.04) |  |  | (0.31) |  |  | (0.06) |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total distributions*** | **** | ***(0.13)*** | **** | **** | ***(0.24)*** | **** | **** | ***(0.53)*** | **** | **** | ***(0.34)*** | **** | **** | ***(0.32)*** | **** | **** | ***(0.27)*** | **** |
| **Net asset value, end of period** |  | $9.53 |  |  | $10.01 |  |  | $11.17 |  |  | $11.40 |  |  | $10.99 |  |  | $10.71 |  |
|  ***Total return<sup>3</sup>*** | **** | ***(3.50)*** | *%*** | **** | ***(8.40)*** | *%*** | **** | ***2.66*** | *%*** | **** | ***6.91*** | *%*** | **** | ***5.67*** | *%*** | **** | ***0.36*** | *%*** |
| **Net assets, end of period (millions)** |  | $326 |  |  | $384 |  |  | $594 |  |  | $620 |  |  | $614 |  |  | $432 |  |
| **Ratios to average net assets:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gross expenses |  | 0.57 | %<sup>4</sup> |  | 0.56 | % |  | 0.55 | % |  | 0.55 | % |  | 0.54 | % |  | 0.52 | % |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses<sup>5</sup> |  | 0.57 | <sup>4,6</sup> |  | 0.56 | <sup>6</sup> |  | 0.55 | <sup>6</sup> |  | 0.55 | <sup>6</sup> |  | 0.54 |  |  | 0.52 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income |  | 2.71 | <sup>4</sup> |  | 1.77 |  |  | 1.81 |  |  | 2.46 |  |  | 2.90 |  |  | 2.52 |  |
| **Portfolio turnover rate<sup>7</sup>** |  | **31** | **%** |  | **46** | **%** |  | **60** | **%** |  | **100** | **%** |  | **94** | **%** |  | **84** | **%** |

---

<sup>1</sup> Per share amounts have been calculated using the average shares method. 

<sup>2</sup> For the six months ended November 30, 2022 (unaudited).

<sup>3</sup> Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized. 

<sup>4</sup> Annualized.

<sup>5</sup> The manager has agreed to waive the Fund's management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund.

<sup>6</sup> Reflects fee waivers and/or expense reimbursements.

<sup>7</sup> Excluding mortgage dollar roll transactions. If mortgage dollar roll transactions had been included, the portfolio turnover rate would have been 33% for the six months ended November 30, 2022, 46%, 72%, 123%, 133% and 154% for the years ended May 31, 2022, 2021, 2020, 2019 and 2018, respectively. 

See Notes to Financial Statements.

50 Western Asset Intermediate Bond Fund 2022 Semi-Annual Report

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---

| | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **For a share of each class of capital stock outstanding throughout each year ended May 31,<br>unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,<br>unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,<br>unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,<br>unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,<br>unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,<br>unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,<br>unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,<br>unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,<br>unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,<br>unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,<br>unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,<br>unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,<br>unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,<br>unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,<br>unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,<br>unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,<br>unless otherwise noted:** | **For a share of each class of capital stock outstanding throughout each year ended May 31,<br>unless otherwise noted:** |  |
| Class IS Shares<sup>1</sup> | 2022<sup>2</sup> | 2022<sup>2</sup> |  | 2022 | 2022 |  | 2021 | 2021 |  | 2020 | 2020 |  | 2019 | 2019 |  | 2018 | 2018 |  |
| **Net asset value, beginning of period** |  | $10.02 |  |  | $11.18 |  |  | $11.40 |  |  | $11.00 |  |  | $10.72 |  |  | $10.95 |  |
| **Income (loss) from operations:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income |  | 0.14 |  |  | 0.21 |  |  | 0.22 |  |  | 0.29 |  |  | 0.32 |  |  | 0.28 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) |  | (0.48) |  |  | (1.12) |  |  | 0.10 |  |  | 0.46 |  |  | 0.28 |  |  | (0.23) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total income (loss) from operations*** | **** | ***(0.34)*** | **** | **** | ***(0.91)*** | **** | **** | ***0.32*** | **** | **** | ***0.75*** | **** | **** | ***0.60*** | **** | **** | ***0.05*** | **** |
| **Less distributions from:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income |  | (0.14) |  |  | (0.21) |  |  | (0.23) |  |  | (0.29) |  |  | (0.32) |  |  | (0.28) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gains |  |  |  |  | (0.04) |  |  | (0.31) |  |  | (0.06) |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total distributions*** | **** | ***(0.14)*** | **** | **** | ***(0.25)*** | **** | **** | ***(0.54)*** | **** | **** | ***(0.35)*** | **** | **** | ***(0.32)*** | **** | **** | ***(0.28)*** | **** |
| **Net asset value, end of period** |  | $9.54 |  |  | $10.02 |  |  | $11.18 |  |  | $11.40 |  |  | $11.00 |  |  | $10.72 |  |
|  ***Total return<sup>3</sup>*** | **** | ***(3.43)*** | *%*** | **** | ***(8.28)*** | *%*** | **** | ***2.86*** | *%*** | **** | ***6.93*** | *%*** | **** | ***5.76*** | *%*** | **** | ***0.43*** | *%*** |
| **Net assets, end of period (millions)** |  | $424 |  |  | $519 |  |  | $463 |  |  | $451 |  |  | $366 |  |  | $337 |  |
| **Ratios to average net assets:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gross expenses |  | 0.44 | %<sup>4</sup> |  | 0.44 | % |  | 0.44 | % |  | 0.44 | %<sup>5</sup> |  | 0.45 | %<sup>5</sup> |  | 0.45 | %<sup>5</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses<sup>6,7</sup> |  | 0.44 | <sup>4</sup> |  | 0.44 |  |  | 0.44 |  |  | 0.44 | <sup>5</sup> |  | 0.45 | <sup>5</sup> |  | 0.45 | <sup>5</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income |  | 2.83 | <sup>4</sup> |  | 1.91 |  |  | 1.92 |  |  | 2.56 |  |  | 2.98 |  |  | 2.58 |  |
| **Portfolio turnover rate<sup>8</sup>** |  | **31** | **%** |  | **46** | **%** |  | **60** | **%** |  | **100** | **%** |  | **94** | **%** |  | **84** | **%** |

---

<sup>1</sup> Per share amounts have been calculated using the average shares method. 

<sup>2</sup> For the six months ended November 30, 2022 (unaudited).

<sup>3</sup> Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized. 

<sup>4</sup> Annualized.

<sup>5</sup> Reflects recapture of expenses waived/reimbursed from prior fiscal years.

<sup>6</sup> Reflects fee waivers and/or expense reimbursements.

<sup>7</sup> As a result of an expense limitation arrangement, the ratio of total annual fund operating expenses, other than interest, brokerage commissions, taxes, extraordinary expenses, deferred organizational expenses and acquired fund fees and expenses, to average net assets of Class IS shares did not exceed 0.45%. In addition, the ratio of total annual fund operating expenses for Class IS shares did not exceed the ratio of total annual fund operating expenses for Class I shares. These expense limitation arrangements cannot be terminated prior to December 31, 2024 without the Board of Directors' consent. In addition, the manager has agreed to waive the Fund's management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund. 

<sup>8</sup> Excluding mortgage dollar roll transactions. If mortgage dollar roll transactions had been included, the portfolio turnover rate would have been 33% for the six months ended November 30, 2022, 46%, 72%, 123%, 133% and 154% for the years ended May 31, 2022, 2021, 2020, 2019 and 2018, respectively. 

See Notes to Financial Statements.

Western Asset Intermediate Bond Fund 2022 Semi-Annual Report 51

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Notes to financial statements (unaudited)

**1. Organization and significant accounting policies** 

Western Asset Intermediate Bond Fund (the "Fund") is a separate diversified investment series of Western Asset Funds, Inc. (the "Corporation"). The Corporation, a Maryland corporation, is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company.

The Fund follows the accounting and reporting guidance in Financial Accounting Standards Board ("FASB") Accounting Standard 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. Estimates and assumptions are required to be made regarding assets, liabilities and changes in net assets resulting from operations when financial statements are prepared. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ. Subsequent events have been evaluated through the date the financial statements were issued.

**(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. 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.

Pursuant to policies adopted by the Board of Directors, 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

52 Western Asset Intermediate Bond Fund 2022 Semi-Annual Report

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the Fund's manager and 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.

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 — 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.

Western Asset Intermediate Bond Fund 2022 Semi-Annual Report 53

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Notes to financial statements (unaudited) (cont'd)

The following is a summary of the inputs used in valuing the Fund's assets and liabilities carried at fair value:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **ASSETS** | **ASSETS** | **ASSETS** | **ASSETS** | **ASSETS** |
| Description | Quoted Prices<br> (Level 1) | Other Significant<br>Observable Inputs<br> (Level 2) | Significant<br>Unobservable<br> Inputs<br> (Level 3) | Total |
| Long-Term Investments†: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Corporate Bonds & Notes: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financials |  | $139865987 | $436228 | $140302215 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Corporate Bonds & Notes |  | 195859447 |  | 195859447 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Government & Agency Obligations |  | 192819854 |  | 192819854 |
| &nbsp;&nbsp;&nbsp;&nbsp; Collateralized Mortgage Obligations |  | 83698003 |  | 83698003 |
| &nbsp;&nbsp;&nbsp;&nbsp; Asset-Backed Securities |  | 71771431 |  | 71771431 |
| &nbsp;&nbsp;&nbsp;&nbsp; Mortgage-Backed Securities |  | 51029421 |  | 51029421 |
| &nbsp;&nbsp;&nbsp;&nbsp; Sovereign Bonds |  | 18802717 |  | 18802717 |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchased Options | $1017069 |  |  | 1017069 |
| Total Long-Term Investments | 1017069 | 753846860 | 436228 | 755300157 |
| Short-Term Investments† | 9915235 |  |  | 9915235 |
| **Total Investments** | $**10932304** | $**753846860** | $**436228** | $**765215392** |
| Other Financial Instruments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures Contracts†† | $2910217 |  |  | $2910217 |
| &nbsp;&nbsp;&nbsp;&nbsp; Centrally Cleared Interest Rate Swaps†† |  | $14324574 |  | 14324574 |
| &nbsp;&nbsp;&nbsp;&nbsp; Centrally Cleared Credit Default Swaps on Credit Indices — Sell Protection†† |  | 1756304 |  | 1756304 |
| **Total Other Financial** |  |  |  |  |
| **Instruments** | $**2910217** | $**16080878** | **—** | $**18991095** |
| **Total** | $**13842521** | $**769927738** | $**436228** | $**784206487** |
| **LIABILITIES** | **LIABILITIES** | **LIABILITIES** | **LIABILITIES** | **LIABILITIES** |
| Description | Quoted Prices<br> (Level 1) | Other Significant<br>Observable Inputs<br> (Level 2) | Significant<br>Unobservable<br>Inputs<br> (Level 3) | Total |
| Other Financial Instruments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Written Options | $228350 |  |  | $228350 |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures Contracts†† | 3541477 |  |  | 3541477 |
| &nbsp;&nbsp;&nbsp;&nbsp; Centrally Cleared Interest Rate Swaps†† |  | $568634 |  | 568634 |
| **Total** | $**3769827** | $**568634** | **—** | $**4338461** |

---

† See Schedule of Investments for additional detailed categorizations.

†† Reflects the unrealized appreciation (depreciation) of the instruments.

54 Western Asset Intermediate Bond Fund 2022 Semi-Annual Report

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**(b) Purchased options.** When the Fund purchases an option, an amount equal to the premium paid by the Fund is recorded as an investment on the Statement of Assets and Liabilities, the value of which is marked-to-market to reflect the current market value of the option purchased. If the purchased option expires, the Fund realizes a loss equal to the amount of premium paid. When an instrument is purchased or sold through the exercise of an option, the related premium paid is added to the basis of the instrument acquired or deducted from the proceeds of the instrument sold. The risk associated with purchasing put and call options is limited to the premium paid.

**(c) Written options.** When the Fund writes an option, an amount equal to the premium received by the Fund is recorded as a liability, the value of which is marked-to-market daily to reflect the current market value of the option written. If the option expires, the premium received is recorded as a realized gain. When a written call option is exercised, the difference between the premium received plus the option exercise price and the Fund's basis in the underlying security (in the case of a covered written call option), or the cost to purchase the underlying security (in the case of an uncovered written call option), including brokerage commission, is recognized as a realized gain or loss. When a written put option is exercised, the amount of the premium received is subtracted from the cost of the security purchased by the Fund from the exercise of the written put option to form the Fund's basis in the underlying security purchased. The writer or buyer of an option traded on an exchange can liquidate the position before the exercise of the option by entering into a closing transaction. The cost of a closing transaction is deducted from the original premium received resulting in a realized gain or loss to the Fund.

The risk in writing a covered call option is that the Fund may forego the opportunity of profit if the market price of the underlying security increases and the option is exercised. The risk in writing a put option is that the Fund may incur a loss if the market price of the underlying security decreases and the option is exercised. The risk in writing an uncovered call option is that the Fund is exposed to the risk of loss if the market price of the underlying security increases. 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) 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 securities 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. The daily changes in contract value are recorded as unrealized appreciation or depreciation in the Statement of Operations and the Fund recognizes a realized gain or loss when the contract is closed.

Western Asset Intermediate Bond Fund 2022 Semi-Annual Report 55

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Notes to financial statements (unaudited) (cont'd)

Futures contracts involve, to varying degrees, risk of loss in excess of the amounts reflected in the financial statements. 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.

**(e) 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. 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 and may be entered into as a bilateral contract ("OTC Swaps") or centrally cleared ("Centrally Cleared Swaps"). Unlike Centrally Cleared Swaps, the Fund has credit exposure to the counterparties of OTC Swaps.

In a Centrally Cleared Swap, immediately following execution of the swap, the swap agreement is submitted to a clearinghouse or central counterparty (the "CCP") and the CCP becomes the ultimate counterparty of the swap agreement. The Fund is required to interface with the CCP through a broker, acting in an agency capacity. All payments are settled with the CCP through the broker. Upon entering into a Centrally Cleared Swap, the Fund is required to deposit initial margin with the broker in the form of cash or securities.

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 net receivable or payable for variation margin on the Statement of Assets and Liabilities. 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 and restricted cash, if any, is identified on the Statement of Assets and Liabilities. Risks may exceed amounts recorded in the Statement of Assets and Liabilities. These risks include changes in the returns of the underlying instruments, failure of the counterparties to perform under the contracts' terms, and the possible lack of liquidity with respect to the swap agreements.

OTC Swap payments received or made at the beginning of the measurement period are reflected as a premium or deposit, respectively, on the Statement of Assets and Liabilities. These upfront payments are amortized over the life of the swap and are recognized as realized gain or loss in the Statement of Operations. Net periodic payments received or paid by the Fund are recognized as a realized gain or loss in the Statement of Operations.

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, 2022, the total notional value of all credit default swaps to sell protection was $151,715,000. This amount would be offset by the value of the swap's reference entity, upfront premiums received on the swap and any amounts received from the settlement of a credit default swap where the Fund bought protection for the same referenced security/entity.

For average notional amounts of swaps held during the six months ended November 30, 2022, see Note 4.

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***<u>Credit default swaps</u>***

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 CDS 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. Credit spreads utilized in determining the period end market value of CDS agreements on corporate or sovereign issues are disclosed in 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 CDS 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. CDS 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.

Western Asset Intermediate Bond Fund 2022 Semi-Annual Report 57

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Notes to financial statements (unaudited) (cont'd)

Entering into a CDS agreement involves, to varying degrees, elements of credit, market and documentation risk in excess of the related amounts recognized on the Statement of Assets and Liabilities. 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.

***<u>Interest rate swaps</u>***

The Fund enters into interest rate swap contracts to manage its exposure to interest rate risk. Interest rate swaps are agreements between two parties to exchange cash flows based on a notional principal amount. The Fund may elect to pay a fixed rate and receive a floating rate, receive a fixed rate and pay a floating rate, or pay and receive a floating rate, on a notional principal amount. Interest rate swaps are marked-to-market daily based upon quotations from market makers and the change, if any, is recorded as an unrealized appreciation or depreciation in the Statement of Operations. When a swap contract is terminated early, the Fund records a realized gain or loss equal to the difference between the original cost and the settlement amount of the closing transaction.

The risks of interest rate swaps include changes in market conditions that will affect the value of the contract or changes in the present value of the future cash flow streams and the possible inability of the counterparty to fulfill its obligations under the agreement. The Fund's maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract's remaining life, to the extent that amount is positive. This risk is mitigated by the posting of collateral by the counterparty to the Fund to cover the Fund's exposure to the counterparty.

**(f) Stripped securities.** The Fund may invest in ''Stripped Securities,'' a term used collectively for components, or strips, of fixed income securities. Stripped Securities can be principal only securities ("PO"), which are debt obligations that have been stripped of unmatured interest coupons, or interest only securities ("IO"), which are unmatured interest coupons that have been stripped from debt obligations. The market value of Stripped Securities will fluctuate in response to changes in economic conditions, rates of prepayment, interest rates and the market's perception of the securities. However, fluctuations in response to interest rates may be greater in Stripped Securities than for debt obligations of comparable maturities that pay interest currently. The amount of fluctuation may increase with a longer period of maturity.

The yield to maturity on IO's is sensitive to the rate of principal repayments (including prepayments) on the related underlying debt obligation and principal payments may have a material effect on yield to maturity. If the underlying debt obligation experiences greater than anticipated prepayments of principal, the Fund may not fully recoup its initial investment in IO's.

**(g) Securities traded on a when-issued and delayed delivery basis.** The Fund may trade securities on a when-issued or delayed delivery basis. In when-issued and delayed delivery transactions, the securities are purchased or sold by the Fund with payment and

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delivery taking place in the future in order to secure what is considered to be an advantageous price and yield to the Fund at the time of entering into the transaction.

Purchasing such securities involves risk of loss if the value of the securities declines prior to settlement. These securities are subject to market fluctuations and their current value is determined in the same manner as for other securities.

**(h) Securities traded on a to-be-announced basis.** The Fund may trade securities on a to-be-announced ("TBA") basis. In a TBA transaction, the Fund commits to purchasing or selling securities which have not yet been issued by the issuer and for which specific information, such as the face amount, maturity date and underlying pool of investments in U.S. government agency mortgage pass-through securities, is not announced. Securities purchased on a TBA basis are not settled until they are delivered to the Fund. Beginning on the date the Fund enters into a TBA transaction, cash, U.S. government securities or other liquid high-grade debt obligations are segregated in an amount equal in value to the purchase price of the TBA security. These securities are subject to market fluctuations and their current value is determined in the same manner as for other securities.

At November 30, 2022, the Fund held non-cash collateral for TBA securities from Goldman Sachs Group Inc. in the amount of $259,170.

**(i) Inflation-indexed bonds.** Inflation-indexed bonds are fixed income securities whose principal value or interest rate is periodically adjusted according to the rate of inflation. As the index measuring inflation changes, the principal value or interest rate of inflation-indexed bonds will be adjusted accordingly. Inflation adjustments to the principal amount of inflation-indexed bonds are reflected as an increase or decrease to investment income on the Statement of Operations. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury inflation-indexed bonds. For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal.

**(j) 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.

The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from sales of foreign currencies, including gains and losses on forward foreign currency contracts, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually

Western Asset Intermediate Bond Fund 2022 Semi-Annual Report 59

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Notes to financial statements (unaudited) (cont'd)

received or paid. Net unrealized foreign exchange gains and losses arise from changes in the values of assets and liabilities, other than investments in securities, on the date of valuation, resulting from changes in exchange rates.

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.

**(k) 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.

Investments in securities that are collateralized by real estate mortgages are subject to certain credit and liquidity risks. When market conditions result in an increase in default rates of the underlying mortgages and the foreclosure values of underlying real estate properties are materially below the outstanding amount of these underlying mortgages, collection of the full amount of accrued interest and principal on these investments may be doubtful. Such market conditions may significantly impair the value and liquidity of these investments and may result in a lack of correlation between their credit ratings and values.

**(l) 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 may 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.

**(m) 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 subadviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or

60 Western Asset Intermediate Bond Fund 2022 Semi-Annual Report

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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 subadviser. In addition, declines in the values of underlying collateral received may expose the Fund to increased risk of loss.

With exchange traded and centrally cleared derivatives, there is less counterparty risk to the Fund since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, the credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default of the clearing broker or clearinghouse.

The Fund has entered into master agreements, such as an International Swaps and Derivatives Association, Inc. Master Agreement ("ISDA Master Agreement") or similar agreement, with certain of its derivative counterparties that govern over-the-counter ("OTC") derivatives and provide for general obligations, representations, agreements, collateral posting terms, netting provisions in the event 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 net asset value per share 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.

Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments' payables and/or receivables with collateral held and/or posted and create one single net payment. However, absent an event of default by the counterparty or a termination of the agreement, the terms of the ISDA Master Agreements do not result in an offset of reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities across transactions between the Fund and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction.

Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearinghouse for exchange traded derivatives while collateral terms are contract specific for OTC traded derivatives. Cash collateral that has been pledged to cover obligations of the Fund under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Schedule of Investments.

As of November 30, 2022, the Fund did not have any open OTC derivative transactions with credit related contingent features in a net liability position.

**(n) Security transactions and investment income.** Security transactions are accounted for on a trade date basis. Interest income (including interest income from payment-in-kind securities), adjusted for amortization of premium and accretion of discount, is recorded on

Western Asset Intermediate Bond Fund 2022 Semi-Annual Report 61

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Notes to financial statements (unaudited) (cont'd)

the accrual basis. Paydown gains and losses on mortgage- and asset-backed securities are recorded as adjustments to interest income. Dividend income is recorded on the ex-dividend date for dividends received in cash and/or securities. Foreign dividend income is recorded on the ex-dividend date or as soon as practicable after the Fund determines the existence of a dividend declaration after exercising reasonable due diligence. The cost of investments sold is determined by use of the specific identification method. To the extent any issuer defaults or a credit event occurs that impacts the issuer, the Fund may halt any additional interest income accruals and consider the realizability of interest accrued up to the date of default or credit event.

**(o) Distributions to shareholders.** Distributions from net investment income of the Fund are declared each business day to shareholders of record and are paid monthly.

Distributions of net realized gains, if any, are declared at least annually. Distributions to shareholders of the Fund are recorded on the ex-dividend date and are determined in accordance with income tax regulations, which may differ from GAAP.

**(p) Share class accounting.** Investment income, common expenses and realized/ unrealized gains (losses) on investments are allocated to the various classes of the Fund on the basis of daily net assets of each class. Fees relating to a specific class are charged directly to that share class.

**(q) Compensating balance arrangements.** The Fund has an arrangement with its custodian bank whereby a portion of the custodian's fees is paid indirectly by credits earned on the Fund's cash on deposit with the bank.

**(r) Federal and other taxes.** It is the Fund's policy to comply with the federal income and excise tax requirements of the Internal Revenue Code of 1986 (the "Code"), as amended, applicable to regulated investment companies. Accordingly, the Fund intends to distribute its taxable income and net realized gains, if any, to shareholders in accordance with timing requirements imposed by the Code. Therefore, no federal or state income tax provision is required in the Fund's financial statements.

Management has analyzed the Fund's tax positions taken on income tax returns for all open tax years and has concluded that as of May 31, 2022, no provision for income tax is required in the Fund's financial statements. The Fund's federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.

Under the applicable foreign tax laws, a withholding tax may be imposed on interest, dividends and capital gains at various rates.

**(s) Reclassification.** GAAP requires that certain components of net assets be reclassified to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share.

62 Western Asset Intermediate Bond Fund 2022 Semi-Annual Report

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**2. Investment management agreement and other transactions with affiliates** 

Legg Mason Partners Fund Advisor, LLC ("LMPFA") is the Fund's investment manager. Western Asset Management Company, LLC ("Western Asset") and Western Asset Management Company Limited ("Western Asset London") are the Fund's subadvisers. LMPFA, Western Asset and Western Asset London are indirect, wholly-owned subsidiaries of Franklin Resources, Inc. ("Franklin Resources").

LMPFA provides the Fund with management and administrative services for which the Fund pays a fee calculated daily and paid monthly, at an annual rate of 0.40% of the Fund's average daily net assets. For their services, LMPFA pays Western Asset and Western Asset London monthly all of the management fee that it receives from the Fund.

As a result of expense limitation arrangements between the Fund and LMPFA, the ratio of total annual fund operating expenses, other than interest, brokerage commissions, taxes, extraordinary expenses, deferred organizational expenses and acquired fund fees and expenses, to average net assets of Class A, Class C, Class R and Class IS shares did not exceed 0.90%, 1.65%, 1.15% and 0.45%, respectively. In addition, the ratio of total annual fund operating expenses for Class IS shares did not exceed the ratio of total annual fund operating expenses for Class I shares. These expense limitation arrangements cannot be terminated prior to December 31, 2024 without the Board of Directors' consent. In addition, the manager has agreed to waive the Fund's management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund (the "affiliated money market fund waiver"). The affiliated money market fund waiver is not subject to the recapture provision discussed below.

During the six months ended November 30, 2022, fees waived and/or expenses reimbursed amounted to $2,999, which included an affiliated money market fund waiver of $2,560.

LMPFA is permitted to recapture amounts waived and/or reimbursed to a class within two years after the fiscal year in which LMPFA earned the fee or incurred the expense if the class' total annual fund operating expenses have fallen to a level below the expense limitation ("expense cap") in effect at the time the fees were earned or the expenses incurred. In no case will LMPFA recapture any amount that would result, on any particular business day of the Fund, in the class' total annual fund operating expenses exceeding the expense cap or any other lower limit then in effect.

Pursuant to these arrangements, at November 30, 2022, the Fund had remaining fee waivers and/or expense reimbursements subject to recapture by LMPFA and respective dates of expiration as follows:

---

| | |
|:---|:---|
| | Class R |
| Expires May 31, 2023 | $757 |
| Expires May 31, 2024 | 846 |
| Expires May 31, 2025 | 440 |
| **Total fee waivers/expense reimbursements subject to recapture** | $**2043** |

---

For the six months ended November 30, 2022, LMPFA did not recapture any fees.

Western Asset Intermediate Bond Fund 2022 Semi-Annual Report 63

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Notes to financial statements (unaudited) (cont'd)

Franklin Templeton Investor Services, LLC ("Investor Services") serves as the Fund's shareholder servicing agent and acts as the Fund's transfer agent and dividend-paying agent. Investor Services is an indirect, wholly-owned subsidiary of Franklin Resources. Franklin Distributors, LLC ("Franklin Distributors") serves as the Fund's sole and exclusive distributor. Franklin Distributors is an indirect, wholly-owned broker-dealer subsidiary of Franklin Resources.

There is a maximum initial sales charge of 3.75% (4.25% prior to August 15, 2022) for Class A shares. There is a contingent deferred sales charge ("CDSC") of 1.00% on Class C shares, which applies if redemption occurs within 12 months from purchase payment. In certain cases, Class A shares have a 1.00% CDSC, which applies if redemption occurs within 18 months from purchase payment. This CDSC only applies to those purchases of Class A shares, which, when combined with current holdings of other shares of funds sold by Franklin Distributors, equal or exceed $500,000 ($1,000,000 prior to August 15, 2022) in the aggregate. These purchases do not incur an initial sales charge.

For the six months ended November 30, 2022, sales charges retained by and CDSCs paid to Franklin Distributors and its affiliates, if any, were as follows:

---

| | |
|:---|:---|
| | Class A |
| Sales charges | $434 |
| CDSCs |  |

---

All officers and one Director of the Corporation are employees of Franklin Resources or its affiliates and do not receive compensation from the Corporation.

**3. Investments** 

During the six months ended November 30, 2022, the aggregate cost of purchases and proceeds from sales of investments (excluding short-term investments) and U.S. Government & Agency Obligations were as follows:

---

| | | |
|:---|:---|:---|
| | Investments | U.S. Government &<br>Agency Obligations |
| Purchases | $22010530 | $247172925 |
| Sales | 54803848 | 315873625 |

---

At November 30, 2022, the aggregate cost of investments and the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Cost/Premiums<br>Paid (Received) | Gross<br>Unrealized<br>Appreciation | Gross<br>Unrealized<br>Depreciation | Net<br>Unrealized<br>Appreciation<br>(Depreciation) |
| Securities | $842861045 | $2201262 | $(79846915) | $(77645653) |
| Written options | (907544) | 749159 | (69965) | 679194 |
| Futures contracts |  | 2910217 | (3541477) | (631260) |
| Swap contracts | 236523 | 16080878 | (568634) | 15512244 |

---

64 Western Asset Intermediate Bond Fund 2022 Semi-Annual Report

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**4. Derivative instruments and hedging activities** 

Below is a table, grouped by derivative type, that provides information about the fair value and the location of derivatives within the Statement of Assets and Liabilities at November 30, 2022.

---

| | | | |
|:---|:---|:---|:---|
| **ASSET DERIVATIVES<sup>1</sup>** | **ASSET DERIVATIVES<sup>1</sup>** | **ASSET DERIVATIVES<sup>1</sup>** | **ASSET DERIVATIVES<sup>1</sup>** |
|  | Interest<br> Rate Risk | Credit<br> Risk | Total |
| Purchased options<sup>2</sup> | $1017069 |  | $1017069 |
| Futures contracts<sup>3</sup> | 2910217 |  | 2910217 |
| Centrally cleared swap contracts<sup>4</sup> | 14324574 | $1756304 | 16080878 |
| **Total** | $**18251860** | $**1756304** | $**20008164** |
| **LIABILITY DERIVATIVES<sup>1</sup>** | **LIABILITY DERIVATIVES<sup>1</sup>** | **LIABILITY DERIVATIVES<sup>1</sup>** | **LIABILITY DERIVATIVES<sup>1</sup>** |
|  |  |  | Interest<br> Rate Risk |
| Written options |  |  | $228350 |
| Futures contracts<sup>3</sup> |  |  | 3541477 |
| Centrally cleared swap contracts<sup>4</sup> |  |  | 568634 |
| **Total** |  |  | $**4338461** |

---

<sup>1</sup> Generally, the balance sheet location for asset derivatives is receivables/net unrealized appreciation and for liability derivatives is payables/net unrealized depreciation.

<sup>2</sup> Market value of purchased options is reported in Investments in unaffiliated securities at value in the Statement of Assets and Liabilities.

<sup>3</sup> Includes cumulative unrealized appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only net variation margin is reported within the receivables and/or payables on the Statement of Assets and Liabilities.

<sup>4</sup> Includes cumulative unrealized appreciation (depreciation) of centrally cleared swap contracts as reported in the Schedule of Investments. Only net variation margin is reported within the receivables and/or payables on the Statement of Assets and Liabilities.

The following tables provide information about the effect of derivatives and hedging activities on the Fund's Statement of Operations for the six months ended November 30, 2022. The first table provides additional detail about the amounts and sources of gains (losses) realized on derivatives during the period. The second table provides additional information about the change in net unrealized appreciation (depreciation) resulting from the Fund's derivatives and hedging activities during the period.

---

| | | | |
|:---|:---|:---|:---|
| **AMOUNT OF NET REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED** | **AMOUNT OF NET REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED** | **AMOUNT OF NET REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED** | **AMOUNT OF NET REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED** |
|  | Interest<br> Rate Risk | Credit<br> Risk | Total |
| Purchased options<sup>1</sup> | $(2414958) | $(35610) | $(2450568) |
| Futures contracts | (10490386) |  | (10490386) |
| Written options | 2613671 | 38281 | 2651952 |
| Swap contracts | 5392589 | (1136598) | 4255991 |
| **Total** | $**(4899084)** | $**(1133927)** | $**(6033011)** |

---

Western Asset Intermediate Bond Fund 2022 Semi-Annual Report 65

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Notes to financial statements (unaudited) (cont'd)

<sup>1</sup> Net realized gain (loss) from purchased options is reported in Net Realized Gain (Loss) From Investment transactions in unaffiliated securities in the Statement of Operations.

---

| | | | |
|:---|:---|:---|:---|
| **CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED** | **CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED** | **CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED** | **CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED** |
|  | Interest<br> Rate Risk | Credit<br> Risk | Total |
| Purchased options<sup>1</sup> | $399816 | $7231 | $407047 |
| Futures contracts | 1764856 |  | 1764856 |
| Written options | 551469 | (23603) | 527866 |
| Swap contracts | (379546) | 2415604 | 2036058 |
| **Total** | $**2336595** | $**2399232** | $**4735827** |

---

<sup>1</sup> The change in net unrealized appreciation (depreciation) from purchased options is reported in the Change in Net Unrealized Appreciation (Depreciation) From Investments in unaffiliated securities in the Statement of Operations.

During the six months ended November 30, 2022, the volume of derivative activity for the Fund was as follows:

---

| | |
|:---|:---|
| | Average Market<br>Value |
| Purchased options | $337248 |
| Written options | 521192 |
| Futures contracts (to buy) | 705411996 |
| Futures contracts (to sell) | 259154660 |
|  | Average Notional<br>Balance |
| Interest rate swap contracts | $248214000 |
| Credit default swap contracts (sell protection) | 165868143 |

---

**5. Class specific expenses, waivers and/or expense reimbursements** 

The Fund has adopted a Rule 12b-1 shareholder services and distribution plan and under that plan the Fund pays service and/or distribution fees with respect to its Class A, Class C and Class R shares calculated at the annual rate of 0.25%, 1.00% and 0.50% of the average daily net assets of each class, respectively. Service and/or distribution fees are accrued daily and paid monthly.

For the six months ended November 30, 2022, class specific expenses were as follows:

---

| | | |
|:---|:---|:---|
| | Service and/or<br>Distribution Fees | Transfer Agent<br>Fees |
| Class A | $3088 | $1297 |
| Class C | 6671 | 808 |
| Class R | 1333 | 1007 |
| Class I |  | 223061 |
| Class IS |  | 7399 |
| **Total** | $**11092** | $**233572** |

---

66 Western Asset Intermediate Bond Fund 2022 Semi-Annual Report

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For the six months ended November 30, 2022, waivers and/or expense reimbursements by class were as follows:

---

| | |
|:---|:---|
| | Waivers/Expense<br>Reimbursements |
| Class A | $9 |
| Class C | 4 |
| Class R | 441 |
| Class I | 1078 |
| Class IS | 1467 |
| **Total** | $**2999** |

---

**6. Distributions to shareholders by class** 

---

| | | |
|:---|:---|:---|
| | Six Months Ended<br>November 30, 2022 | Year Ended<br>May 31, 2022 |
| **Net Investment Income:** |  |  |
| Class A | $30896 | $35226 |
| Class C | 11369 | 11973 |
| Class R | 5507 | 9861 |
| Class I | 4504213 | 8457269 |
| Class IS | 6514282 | 10570294 |
| **Total** | $**11066267** | $**19084623** |
| **Net Realized Gains:** |  |  |
| Class A |  | $9450 |
| Class C |  | 5426 |
| Class R |  | 2665 |
| Class I |  | 1631882 |
| Class IS |  | 2111064 |
| **Total** | **—** | $**3760487** |

---

**7. Capital shares** 

At November 30, 2022, the Corporation had 42.7 billion shares of capital stock authorized with a par value of $0.001 per share. Transactions in shares of each class were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Six Months Ended<br>November 30, 2022 | Six Months Ended<br>November 30, 2022 | Year Ended<br>May 31, 2022 | Year Ended<br>May 31, 2022 |
| | Shares | Amount | Shares | Amount |
| **Class A** |  |  |  |  |
| Shares sold | 257709 | $2484018 | 84656 | $895467 |
| Shares issued on reinvestment | 3235 | 30896 | 3952 | 42700 |
| Shares repurchased | (41035) | (392888) | (154548) | (1662810) |
| **Net increase (decrease)** | **219909** | $**2122026** | **(65940)** | $**(724643)** |

---

Western Asset Intermediate Bond Fund 2022 Semi-Annual Report 67

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Notes to financial statements (unaudited) (cont'd)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Six Months Ended<br>November 30, 2022 | Six Months Ended<br>November 30, 2022 | Year Ended<br>May 31, 2022 | Year Ended<br>May 31, 2022 |
| | Shares | Amount | Shares | Amount |
| **Class C** |  |  |  |  |
| Shares sold | 52232 | $499900 | 19027 | $209652 |
| Shares issued on reinvestment | 1183 | 11358 | 1604 | 17312 |
| Shares repurchased | (26620) | (256235) | (27778) | (299780) |
| **Net increase (decrease)** | **26795** | $**255023** | **(7147)** | $**(72816)** |
| **Class R** |  |  |  |  |
| Shares sold | 5007 | $48551 | 39833 | $432233 |
| Shares issued on reinvestment | 552 | 5301 | 1135 | 12219 |
| Shares repurchased | (27994) | (273286) | (42384) | (452905) |
| **Net decrease** | **(22435)** | $**(219434)** | **(1416)** | $**(8453)** |
| **Class I** |  |  |  |  |
| Shares sold | 2906959 | $28197299 | 9062832 | $94559241 |
| Shares issued on reinvestment | 448853 | 4307174 | 876666 | 9452463 |
| Shares repurchased | (7515219) | (72531156) | (24828590) | (267418001) |
| **Net decrease** | **(4159407)** | $**(40026683)** | **(14889092)** | $**(163406297)** |
| **Class IS** |  |  |  |  |
| Shares sold | 1615051 | $15722069 | 15169998 | $167913672 |
| Shares issued on reinvestment | 543111 | 5220261 | 945926 | 10182976 |
| Shares repurchased | (9519388) | (91673152) | (5696074) | (60129024) |
| **Net increase (decrease)** | **(7361226)** | $**(70730822)** | **10419850** | $**117967624** |

---

**8. Transactions with affiliated companies** 

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 Fund invested in Western Asset Premier Institutional Government Reserves, Premium Shares, an affiliated registered money market fund managed by Western Asset. Benefit Street Partners is a wholly-owned subsidiary of Franklin Resources. The following companies were considered affiliated companies for all

68 Western Asset Intermediate Bond Fund 2022 Semi-Annual Report

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or some portion of the six months ended November 30, 2022. The following transactions were effected in such companies for the six months ended November 30, 2022.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Affiliate<br>Value at<br>May 31,<br>2022 | Purchased | Purchased | Sold | Sold |
| | Affiliate<br>Value at<br>May 31,<br>2022 | Cost | Shares/<br>Face amount | Proceeds | Shares/<br>Face amount |
| Benefit Street Partners CLO Ltd., 2014-IVA ARRR | $739125 |  |  |  |  |
| Western Asset Premier Institutional Government Reserves, Premium Shares |  | $104598585 | 104598585 | $94683350 | 94683350 |
|  | $**739125** | $**104598585** |  | $**94683350** |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| (cont'd) | Realized<br> Gain (Loss) | Interest/<br>Dividend<br>Income | Net Increase<br>(Decrease) in<br>Unrealized<br>Appreciation<br>(Depreciation) | Affiliate<br>Value at<br>November 30,<br>2022 |
| Benefit Street Partners CLO Ltd., 2014-IVA ARRR |  | $14490 | $(3311) | $735814 |
| Western Asset Premier Institutional Government Reserves, Premium Shares |  | 73804 |  | 9915235 |
|  |  | $**88294** | $**(3311)** | $**10651049** |

---

**9. Redemption facility** 

The Fund and certain other participating funds within the Corporation, together with other U.S. registered and foreign investment funds (collectively, the "Borrowers") managed by LMPFA or Franklin Resources, are borrowers in a joint syndicated senior unsecured credit facility totaling $2.675 billion (the "Global Credit Facility"). The Global Credit Facility provides a source of funds to the Borrowers for temporary and emergency purposes, including the ability to meet future unanticipated or unusually large redemption requests. Unless renewed, the Global Credit Facility will terminate on February 3, 2023.

Under the terms of the Global Credit Facility, the Fund shall, in addition to interest charged on any borrowings made by the Fund and other costs incurred by the Fund, pay its share of fees and expenses incurred in connection with the implementation and maintenance of the Global Credit Facility, based upon its relative share of the aggregate net assets of all the Borrowers, including an annual commitment fee of 0.15% based upon the unused portion of the Global Credit Facility. These fees are reflected in the Statement of Operations. The Fund did not utilize the Global Credit Facility during the six months ended November 30, 2022.

Western Asset Intermediate Bond Fund 2022 Semi-Annual Report 69

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Notes to financial statements (unaudited) (cont'd)

**10. Deferred capital losses** 

As of May 31, 2022, the Fund had deferred capital losses of $23,140,469, which have no expiration date, that will be available to offset future taxable capital gains.

**11. Recent accounting pronouncement** 

In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04, *Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting*. In January 2021, the FASB issued ASU No. 2021-01, with further amendments to Topic 848. The amendments in the ASUs provide optional temporary accounting recognition and financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of the LIBOR and other interbank-offered based reference rates as of the end of 2021 and 2023. The ASUs are effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management has reviewed the requirements and believes the adoption of these ASUs will not have a material impact on the financial statements.

**12. Other matters** 

The outbreak of the respiratory illness COVID-19 (commonly referred to as "coronavirus") has continued to rapidly spread around the world, causing considerable uncertainty for the global economy and financial markets. The ultimate economic fallout from the pandemic, and the long-term impact on economies, markets, industries and individual issuers, are not known. The COVID-19 pandemic could adversely affect the value and liquidity of the Fund's investments, impair the Fund's ability to satisfy redemption requests, and negatively impact the Fund's performance. In addition, the outbreak of COVID-19, and measures taken to mitigate its effects, could result in disruptions to the services provided to the Fund by its service providers.

\* \* \*

The Fund's investments, payment obligations, and financing terms may be based on floating rates, such as the London Interbank Offered Rate, or "LIBOR," which is the offered rate for short-term Eurodollar deposits between major international banks. On March 5, 2021, the ICE Benchmark Administration, the administrator of LIBOR, stated that it will cease the publication of the overnight and one-, three-, six- and twelve-month USD LIBOR settings immediately following the LIBOR publication on Friday, June 30, 2023. All other LIBOR settings, including the one-week and two-month USD LIBOR settings, have ceased publication as of January 1, 2022. There remains uncertainty regarding the nature of any replacement rate and the impact of the transition from LIBOR on the Fund's transactions and the financial markets generally. As such, the potential effect of a transition away from LIBOR on the Fund or the Fund's investments cannot yet be determined.

\* \* \*

Russia's military invasion of Ukraine in February 2022, the resulting responses by the United States and other countries, and the potential for wider conflict could increase volatility and uncertainty in the financial markets and adversely affect regional and global

70 Western Asset Intermediate Bond Fund 2022 Semi-Annual Report

------

economies. The United States and other countries have imposed broad-ranging economic sanctions on Russia and certain Russian individuals, banking entities and corporations as a response to its invasion of Ukraine. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia's military invasion. These sanctions, as well as any other economic consequences related to the invasion, such as additional sanctions, boycotts or changes in consumer or purchaser preferences or cyberattacks on governments, companies or individuals, may further decrease the value and liquidity of certain Russian securities and securities of issuers in other countries that are subject to economic sanctions related to the invasion. To the extent that the Fund has exposure to Russian investments or investments in countries affected by the invasion, the Fund's ability to price, buy, sell, receive or deliver such investments was impaired. The Fund could determine at any time that certain of the most affected securities have little or no value. In addition, any exposure that the Fund may have to counterparties in Russia or in countries affected by the invasion could negatively impact the Fund's portfolio. The extent and duration of Russia's military actions and the repercussions of such actions (including any retaliatory actions or countermeasures that may be taken by those subject to sanctions) are impossible to predict, but could result in significant market disruptions, including in the oil and natural gas markets, and may negatively affect global supply chains, inflation and global growth. These and any related events could significantly impact the Fund's performance and the value of an investment in the Fund, even beyond any direct exposure the Fund may have to Russian issuers or issuers in other countries affected by the invasion. At November 30, 2022, the Fund had 0.21% of its net assets invested in securities with significant economic risk or exposure to Russia.

Western Asset Intermediate Bond Fund 2022 Semi-Annual Report 71

------

Western Asset

Intermediate Bond Fund

**Directors** 

Robert Abeles, Jr.

Jane F. Dasher

Anita L. DeFrantz

Susan B. Kerley

Michael Larson

Ronald L. Olson

Avedick B. Poladian

William E.B. Siart

*Chairman*

Jaynie M. Studenmund

Peter J. Taylor

Jane Trust

**Investment manager** 

Legg Mason Partners Fund Advisor, LLC

**Subadvisers** 

Western Asset Management Company, LLC

Western Asset Management Company Limited

**Distributor** 

Franklin Distributors, LLC

**Custodian** 

The Bank of New York Mellon

**Transfer agent** 

Franklin Templeton Investor Services, LLC

3344 Quality Drive

Rancho Cordova, CA 95670-7313

**Independent registered public accounting firm** 

PricewaterhouseCoopers LLP

Baltimore, MD

**Western Asset Intermediate Bond Fund** 

The Fund is a separate investment series of Western Asset Funds, Inc.

Western Asset Intermediate Bond Fund

Legg Mason Funds

100 International Drive

Baltimore, MD 21202

The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission ("SEC") for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund's Forms N-PORT are available on the SEC's website at www.sec.gov. To obtain information on Form N-PORT, shareholders can call the Fund at 877-6LM-FUND/656-3863.

Information on how the Fund voted proxies relating to portfolio securities during the prior 12-month period ended June 30th of each year and a description of the policies and procedures that the Fund uses to determine how to vote proxies related to portfolio transactions are available (1) without charge, upon request, by calling the Fund at 877-6LM-FUND/656-3863, (2) at www.franklintempleton.com and (3) on the SEC's website at www.sec.gov.

This report is submitted for the general information of the shareholders of Western Asset Intermediate Bond Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by a current prospectus.

**Investors should consider the Fund's investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other important information about the Fund. Please read the prospectus carefully before investing.** 

www.franklintempleton.com© 2023 Franklin Distributors, LLC, Member FINRA/SIPC. All rights reserved.

------

Legg Mason Funds Privacy and Security Notice

**Your Privacy Is Our Priority** 

Franklin Templeton\* is committed to safeguarding your personal information. This notice is designed to provide you with a summary of the non-public personal information Franklin Templeton may collect and maintain about current or former individual investors; our policy regarding the use of that information; and the measures we take to safeguard the information. We do not sell individual investors' non-public personal information to anyone and only share it as described in this notice.

**Information We Collect** 

When you invest with us, you provide us with your non-public personal information. We collect and use this information to service your accounts and respond to your requests. The non-public personal information we may collect falls into the following categories:

• Information we receive from you or your financial intermediary on applications or other forms, whether we receive the form
in writing or electronically. For example, this information may include your name, address, tax identification number, birth date, investment selection, beneficiary information, and your personal bank account information and/or email address if you
have provided that information.

• Information about your transactions and account history with us, or with other companies that are part of Franklin
Templeton, including transactions you request on our website or in our app. This category also includes your communications to us concerning your investments.

• Information we receive from third parties (for example, to update your address if you move, obtain or verify your email
address or obtain additional information to verify your identity).

• Information collected from you online, such as your IP address or device ID and data gathered from your browsing activity
and location. (For example, we may use cookies to collect device and browser information so our website recognizes your online preferences and device information.) Our website contains more information about cookies and similar technologies and ways
you may limit them.

• Other general information that we may obtain about you such as demographic information.

**Disclosure Policy** 

To better service your accounts and process transactions or services you requested, we may share non-public personal information with other Franklin Templeton companies. From time to time we may also send you information about products/services offered by other Franklin Templeton companies although we will not share your non-public personal information with these companies without first offering you the opportunity to prevent that sharing.

We will only share non-public personal information with outside parties in the limited circumstances permitted by law. For example, this includes situations where we need to share information with companies who work on our behalf to service or maintain your account or process transactions you requested, when the disclosure is to companies assisting us with our own marketing efforts, when the disclosure is to a party representing you, or when required by law (for example, in response to legal process). Additionally, we will ensure that any outside

&nbsp;&nbsp;&nbsp;**NOT PART OF THE SEMI-ANNUAL REPORT**

------

Legg Mason Funds Privacy and Security Notice (cont'd)

companies working on our behalf, or with whom we have joint marketing agreements, are under contractual obligations to protect the confidentiality of your information, and to use it only to provide the services we asked them to perform.

**Confidentiality and Security** 

Our employees are required to follow procedures with respect to maintaining the confidentiality of our investors' non-public personal information. Additionally, we maintain physical, electronic and procedural safeguards to protect the information. This includes performing ongoing evaluations of our systems containing investor information and making changes when appropriate.

At all times, you may view our current privacy notice on our website at franklintempleton.com or contact us for a copy at (800) 632-2301.

\* For purposes of this privacy notice Franklin Templeton shall refer to the following entities:

Fiduciary Trust International of the South (FTIOS), as custodian for individual retirement plans Franklin Advisers, Inc.

Franklin Distributors, LLC, including as program manager of the Franklin Templeton 529 College Savings Plan and the NJBEST 529 College Savings Plan

Franklin Mutual Advisers, LLC

Franklin, Templeton and Mutual Series Funds

Franklin Templeton Institutional, LLC

Franklin Templeton Investments Corp., Canada

Franklin Templeton Investments Management, Limited UK

Franklin Templeton Portfolio Advisors, Inc.

Legg Mason Funds serviced by Franklin Templeton Investor Services, LLC

Templeton Asset Management, Limited

Templeton Global Advisors, Limited

Templeton Investment Counsel, LLC

If you are a customer of other Franklin Templeton affiliates and you receive notices from them, you will need to read those notices separately.

&nbsp;&nbsp;&nbsp;**NOT PART OF THE SEMI-ANNUAL REPORT**

------

Western Asset Management Company, LLC

Legg Mason, Inc. Subsidiaries

www.franklintempleton.com© 2023 Franklin Distributors, LLC, Member FINRA/SIPC. All rights reserved.

**WASX012830 1/23 SR22-4564** 

------

ITEM 2. CODE OF ETHICS.

Not applicable.

---

| | |
|:---|:---|
| ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT**.**  |

---

Not applicable.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable.

---

| | |
|:---|:---|
| ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS**.**  |

---

Not applicable.

ITEM 6. SCHEDULE OF INVESTMENTS.

Included herein under Item 1.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 9. PURCHASES OF SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

---

| | |
|:---|:---|
| ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.  |

---

Not applicable.

ITEM 11. CONTROLS AND PROCEDURES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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 period covered by this report that have materially affected, or are likely to materially affect the registrant's internal control over financial reporting.

------

ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 13. EXHIBITS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) (1) Not applicable.

Exhibit 99.CODE ETH

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[(a) (2) Certifications pursuant to section 302 of the Sarbanes-Oxley Act of 2002 attached hereto.](d379441dex99cert.htm)

Exhibit 99.CERT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto.](d379441dex99906ct.htm)

Exhibit 99.906CERT

------

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, there unto duly authorized.

---

| | |
|:---|:---|
| **Western Asset Funds, Inc.** | **Western Asset Funds, Inc.** |
| By: | /s/ Jane Trust |
|  | Jane Trust |
|  | Chief Executive Officer |
| Date: | January 25, 2023 |

---

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/ Jane Trust |
|  | Jane Trust |
|  | Chief Executive Officer |
| Date: | January 25, 2023 |
| By: | /s/ Christopher Berarducci |
|  | Christopher Berarducci |
|  | Principal Financial Officer |
| Date: | January 25, 2023 |

---

## Ex-99.Cert

CERTIFICATIONS PURSUANT TO SECTION 302

EX-99.CERT

**<u>CERTIFICATIONS</u>**

I, Jane Trust, certify that:

1. I have reviewed this report on Form N-CSR of **Western Asset Funds, Inc.**;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the
periods presented in this report;

4. The registrant's other certifying officers and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be
designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is
being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this
report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's internal control over financial reporting that
occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officers and I have disclosed to the registrant's auditors and the
audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves management or other employees who have a significant role in
the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: January 25, 2023 | /s/ Jane Trust |
|  | Jane Trust |
|  | Chief Executive Officer |

---

------

**<u>CERTIFICATIONS</u>**

I, Christopher Berarducci, certify that:

1. I have reviewed this report on Form N-CSR of **Western Asset Funds, Inc.**;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial information included in this report, and the financial statements on which
the financial information is based, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the
registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officers and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be
designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is
being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this
report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's internal control over financial reporting that
occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officers and I have disclosed to the registrant's auditors and the
audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves management or other employees who have a significant role in
the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: January 25, 2023 | /s/ Christopher Berarducci |
|  | Christopher Berarducci |
|  | Principal Financial Officer |

---

## Exhibit 99.906

CERTIFICATIONS PURSUANT TO SECTION 906

EX-99.906CERT

**CERTIFICATION** 

**Jane Trust**, Chief Executive Officer, and **Christopher Berarducci**, Principal Financial Officer of **Western Asset Funds, Inc.** (the "Registrant"), each certify to the best of their knowledge that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Registrant's periodic report on Form N-CSR for the period ended November 30, 2022 (the "Form N-CSR") fully complies with the requirements of section 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

---

| | |
|:---|:---|
| **Chief Executive Officer** | **Principal Financial Officer** |
| Western Asset Funds, Inc. | Western Asset Funds, Inc. |
| /s/ Jane Trust | /s/ Christopher Berarducci |
| Jane Trust | Christopher Berarducci |
| Date: January 25, 2023 | Date: January 25, 2023 |

---

This certification is being furnished to the Securities and Exchange Commission solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Form N-CSR with the Commission.