Western Asset Municipal Defined Opportunity Trust Inc.
| Schedule of investments (unaudited) | February 29, 2020 |
| Security | Rate | Maturity Date | Face Amount | Value | ||||||||||
| Municipal Bonds - 99.9% | ||||||||||||||
| Alabama - 7.3% | ||||||||||||||
| Hoover, AL, IDA Revenue, United States Steel Corp. Project, Series 2019 | 5.750 | % | 10/1/49 | $ | 200,000 | $ | 242,516 | (a) | ||||||
| Jefferson County, AL, Sewer Revenue, Convertible CAB, Subordinated Lien, Warrants, Step bond, Series F (0.000% until 10/1/23; 7.900%) | 0.000 | % | 10/1/50 | 9,470,000 | 9,382,308 | |||||||||
| Lower Alabama Gas District, Natural Gas Revenue: | ||||||||||||||
| Gas District #2 | 4.000 | % | 12/1/24 | 1,000,000 | 1,124,200 | |||||||||
| Gas Project #2 | 4.000 | % | 12/1/25 | 1,000,000 | 1,148,370 | |||||||||
| Series A | 5.000 | % | 9/1/46 | 3,250,000 | 4,923,165 | |||||||||
| Southeast Alabama Gas Supply District, Gas Supply Revenue, Project #1, Series A | 4.000 | % | 4/1/24 | 1,500,000 | 1,664,025 | (b)(c) | ||||||||
| Tuscaloosa County, AL, IDA Revenue, Hunt Refining Project, Series A, Refunding | 4.500 | % | 5/1/32 | 700,000 | 812,728 | (d) | ||||||||
| Total Alabama | 19,297,312 | |||||||||||||
| Alaska - 0.1% | ||||||||||||||
| Alaska State Housing Finance Corp. Revenue, State Capital Project II, Series B | 5.000 | % | 12/1/37 | 250,000 | 320,740 | |||||||||
| Arizona - 5.0% | ||||||||||||||
| Chandler, AZ, IDA Revenue, Intel Corp. Project | 2.700 | % | 8/14/23 | 2,000,000 | 2,104,380 | (a)(b)(c) | ||||||||
| La Paz County, AZ, IDA Revenue, Charter School Solutions, Harmony Pub, Series A | 5.000 | % | 2/15/48 | 1,000,000 | 1,167,260 | |||||||||
| Navajo Nation, AZ, Series A, Refunding | 5.000 | % | 12/1/25 | 350,000 | 394,712 | (d) | ||||||||
| Salt Verde, AZ, Financial Corp., Natural Gas Revenue, Series 2007 | 5.000 | % | 12/1/32 | 7,110,000 | 9,636,894 | |||||||||
| Total Arizona | 13,303,246 | |||||||||||||
| California - 13.4% | ||||||||||||||
| California State MFA Revenue: | ||||||||||||||
| Senior Lien, LINXS Apartment Project, Series A | 5.000 | % | 12/31/43 | 500,000 | 613,595 | (a) | ||||||||
| Senior Lien, LINXS Apartment Project, Series A | 5.000 | % | 12/31/47 | 600,000 | 732,726 | (a) | ||||||||
| California State MFA, Lease Revenue, Orange County, CA, Civic Center Infrastructure Improvement Program | 5.000 | % | 6/1/43 | 1,000,000 | 1,258,640 | |||||||||
| California State PCFA Water Furnishing Revenue, Poseidon Resources Desalination Project | 5.000 | % | 11/21/45 | 3,500,000 | 3,805,550 | (a)(d) | ||||||||
See Notes to Schedule of Investments.
1
Western Asset Municipal Defined Opportunity Trust Inc.
| Schedule of investments (unaudited) (cont’d) | February 29, 2020 |
| Security | Rate | Maturity Date | Face Amount | Value | ||||||||||
| California - continued | ||||||||||||||
| California State, GO: | ||||||||||||||
| Various Purpose, Refunding | 5.000 | % | 4/1/29 | $ | 2,250,000 | $ | 3,040,447 | |||||||
| Various Purpose, Refunding | 5.000 | % | 10/1/29 | 400,000 | 546,508 | |||||||||
| Various Purpose, Refunding | 4.000 | % | 11/1/36 | 250,000 | 300,373 | |||||||||
| California Statewide CDA Revenue, Provident Group-Pomona Properties LLC, Series A | 5.600 | % | 1/15/36 | 780,000 | 848,726 | (d) | ||||||||
| Golden State, CA, Tobacco Securitization Corp. Revenue: | ||||||||||||||
| Tobacco Settlement Funded, Series A-1, Refunding | 5.000 | % | 6/1/47 | 500,000 | 530,935 | |||||||||
| Tobacco Settlement Funded, Series A-2, Refunding | 5.000 | % | 6/1/47 | 600,000 | 637,122 | |||||||||
| Los Angeles, CA, Department of Airports Revenue: | ||||||||||||||
| Los Angeles International Airport, Subordinated, Series C | 5.000 | % | 5/15/44 | 500,000 | 620,215 | (a) | ||||||||
| Los Angeles International Airport, Subordinated, Series D | 5.000 | % | 5/15/49 | 1,100,000 | 1,383,855 | (a) | ||||||||
| Los Angeles, CA, Department of Water & Power Waterworks Revenue, Series A | 5.000 | % | 7/1/48 | 1,000,000 | 1,266,160 | |||||||||
| Lower Tule River, CA, Irrigation District Revenue, COP, Series A | 5.000 | % | 8/1/40 | 1,000,000 | 1,016,200 | |||||||||
| Metropolitan Water District of Southern California, Water Revenue, Refunding | 5.000 | % | 1/1/37 | 3,500,000 | 4,602,815 | |||||||||
| Morongo Band of Mission Indians, CA, Revenue, Tribal Economic Development, Series A | 5.000 | % | 10/1/42 | 125,000 | 149,950 | (d) | ||||||||
| M-S-R Energy Authority, CA, Natural Gas Revenue, Series C | 6.125 | % | 11/1/29 | 1,975,000 | 2,579,409 | |||||||||
| River Islands, CA, Public Financing Authority Special Tax, Community Facilities District No. 2003-1, Series A-1, Refunding | 5.000 | % | 9/1/27 | 670,000 | 730,957 | |||||||||
| Riverside, CA, Electric Revenue: | ||||||||||||||
| Series A, Refunding | 5.000 | % | 10/1/38 | 500,000 | 663,905 | |||||||||
| Series A, Refunding | 5.000 | % | 10/1/48 | 750,000 | 970,365 | |||||||||
| Riverside, CA, Sewer Revenue, Series A, Refunding | 5.000 | % | 8/1/36 | 1,000,000 | 1,317,380 | |||||||||
| San Bernardino, CA, USD Revenue, COP, 2019 School Financing Project, AGM | 5.000 | % | 10/1/36 | 300,000 | 384,969 | |||||||||
| San Diego County, CA, Regional Transportation Commission, Sales Tax Revenue, Series A | 5.000 | % | 4/1/48 | 1,000,000 | 1,223,120 | |||||||||
See Notes to Schedule of Investments.
2
Western Asset Municipal Defined Opportunity Trust Inc.
| Schedule of investments (unaudited) (cont’d) | February 29, 2020 |
| Security | Rate | Maturity Date | Face Amount | Value | ||||||||||
| California - continued | ||||||||||||||
| San Mateo County, CA, Joint Powers Financing Authority Lease Revenue, Capital Project, Series A | 5.000 | % | 7/15/43 | $ | 500,000 | $ | 633,185 | |||||||
| Southern California Water Replenishment District, Financing Authority, Replenishment Revenue, Series 2018 | 5.000 | % | 8/1/48 | 1,515,000 | 1,920,262 | |||||||||
| Stockton, CA, PFA Wastewater Revenue, Bond Anticipation Notes, Series 2019 | 1.400 | % | 6/1/22 | 250,000 | 250,835 | |||||||||
| Tobacco Securitization Authority of Southern California Revenue, Asset Backed Refunding, San Diego County Tobacco Asset Securitization Corporation, Class 1, Series A | 5.000 | % | 6/1/23 | 300,000 | 338,748 | |||||||||
| University of California, General Revenue, Refunding | 5.000 | % | 5/15/37 | 2,500,000 | 3,176,000 | |||||||||
| Total California | 35,542,952 | |||||||||||||
| Colorado - 2.6% | ||||||||||||||
| Base Village Metropolitan District #2, CO, GO, Series A, Refunding | 5.750 | % | 12/1/46 | 500,000 | 532,525 | |||||||||
| Colorado State Health Facilities Authority Revenue, Commonspirit Health Project, Series A-2 | 5.000 | % | 8/1/44 | 500,000 | 622,500 | |||||||||
| Colorado State High Performance Transportation Enterprise Revenue, C-470 Express Lanes | 5.000 | % | 12/31/51 | 200,000 | 223,156 | |||||||||
| Public Authority for Colorado Energy, Natural Gas Purchase Revenue, Series 2008 | 6.125 | % | 11/15/23 | 5,015,000 | 5,562,036 | |||||||||
| Total Colorado | 6,940,217 | |||||||||||||
| Connecticut - 1.1% | ||||||||||||||
| Connecticut State Special Tax Revenue, Transportation Infrastructure, Series A | 5.000 | % | 1/1/37 | 500,000 | 621,265 | |||||||||
| Connecticut State, GO: | ||||||||||||||
| Series A | 4.000 | % | 4/15/37 | 600,000 | 713,220 | |||||||||
| Series E | 5.000 | % | 10/15/34 | 280,000 | 342,770 | |||||||||
| University of Connecticut, Student Fee Revenue, Series A | 5.000 | % | 11/15/43 | 1,000,000 | 1,254,110 | |||||||||
| Total Connecticut | 2,931,365 | |||||||||||||
| Delaware - 0.2% | ||||||||||||||
| Delaware State Health Facilities Authority Revenue, Series 2018 | 5.000 | % | 6/1/43 | 500,000 | 611,080 | |||||||||
See Notes to Schedule of Investments.
3
Western Asset Municipal Defined Opportunity Trust Inc.
| Schedule of investments (unaudited) (cont’d) | February 29, 2020 |
| Security | Rate | Maturity Date | Face Amount | Value | ||||||||||
| District of Columbia - 0.8% | ||||||||||||||
| District of Columbia Revenue: | ||||||||||||||
| Ingleside Rock Creek Project, Series A | 4.125 | % | 7/1/27 | $ | 250,000 | $ | 266,273 | |||||||
| Series A, Refunding | 4.000 | % | 3/1/45 | 1,000,000 | 1,205,250 | (e) | ||||||||
| District of Columbia Water & Sewer Authority Revenue, Subordinated Lien, Series C | 1.750 | % | 10/1/24 | 500,000 | 515,575 | (b)(c) | ||||||||
| Total District of Columbia | 1,987,098 | |||||||||||||
| Florida - 0.9% | ||||||||||||||
| Broward County, FL, Airport System Revenue, Series A | 5.000 | % | 10/1/45 | 750,000 | 879,495 | (a) | ||||||||
| Greater Orlando, FL, Aviation Authority, Airport Facilities Revenue, Priority Subordinated, Series A | 5.000 | % | 10/1/42 | 500,000 | 611,860 | (a) | ||||||||
| Miami-Dade County, FL, Health Facilities Authority, Hospital Revenue, Nicklaus Children’s Hospital, Refunding | 5.000 | % | 8/1/42 | 350,000 | 425,999 | |||||||||
| Orange County, FL, Health Facilities Authority Revenue, Presbyterian Retirement Communities, Refunding | 5.000 | % | 8/1/47 | 250,000 | 281,838 | |||||||||
| Palm Beach County, FL, Health Facilities Authority Revenue, Acts Retirement-Life Communities | 5.000 | % | 11/15/45 | 250,000 | 294,967 | |||||||||
| Total Florida | 2,494,159 | |||||||||||||
| Georgia - 0.4% | ||||||||||||||
| Fulton County, GA, Development Authority Revenue, Georgia Institute of Technology | 5.000 | % | 6/15/44 | 250,000 | 320,263 | |||||||||
| Main Street Natural Gas Inc., GA, Gas Project Revenue, Series A | 5.000 | % | 5/15/43 | 650,000 | 809,243 | |||||||||
| Total Georgia | 1,129,506 | |||||||||||||
| Idaho - 0.1% | ||||||||||||||
| Idaho State Health Facilities Authority Revenue, Trinity Health Credit Group, Series A | 5.000 | % | 12/1/47 | 300,000 | 372,540 | |||||||||
| Illinois - 11.6% | ||||||||||||||
| Chicago, IL, Board of Education, Dedicated Capital Improvement, Special Tax Revenue | 5.000 | % | 4/1/42 | 500,000 | 592,485 | |||||||||
| Chicago, IL, Board of Education, GO: | ||||||||||||||
| Dedicated, Series G, Refunding | 5.000 | % | 12/1/34 | 360,000 | 440,219 | |||||||||
| Series C, Refunding | 5.000 | % | 12/1/24 | 250,000 | 290,215 | |||||||||
| Chicago, IL, GO: | ||||||||||||||
| Series A | 5.000 | % | 1/1/44 | 300,000 | 362,091 | |||||||||
| Series A, Refunding | 5.000 | % | 1/1/26 | 750,000 | 885,300 | |||||||||
See Notes to Schedule of Investments.
4
Western Asset Municipal Defined Opportunity Trust Inc.
| Schedule of investments (unaudited) (cont’d) | February 29, 2020 |
| Security | Rate | Maturity Date | Face Amount | Value | ||||||||||
| Illinois - continued | ||||||||||||||
| Series A, Refunding | 6.000 | % | 1/1/38 | $ | 500,000 | $ | 630,195 | |||||||
| Series B, Refunding | 5.500 | % | 1/1/30 | 1,685,000 | 1,983,649 | |||||||||
| Series C, Refunding | 5.000 | % | 1/1/25 | 250,000 | 288,113 | |||||||||
| Chicago, IL, Motor Fuel Tax Revenue, Refunding | 5.000 | % | 1/1/26 | 1,000,000 | 1,105,420 | |||||||||
| Chicago, IL, O’Hare International Airport Revenue: | ||||||||||||||
| General Senior Lien, Series B, Refunding | 5.000 | % | 1/1/35 | 250,000 | 301,890 | |||||||||
| Senior Lien, Series D | 5.000 | % | 1/1/47 | 500,000 | 604,965 | |||||||||
| Senior Lien, Series D | 5.000 | % | 1/1/52 | 500,000 | 604,040 | |||||||||
| Series D, Refunding | 5.000 | % | 1/1/46 | 2,000,000 | 2,324,540 | |||||||||
| Trips Obligated Group | 5.000 | % | 7/1/48 | 200,000 | 240,738 | (a) | ||||||||
| Chicago, IL, Transit Authority, Sales Tax Receipts Revenue, Second Lien | 5.000 | % | 12/1/51 | 250,000 | 296,192 | |||||||||
| Chicago, IL, Wastewater Transmission Revenue, Second Lien, Series B, Refunding | 5.000 | % | 1/1/36 | 750,000 | 901,897 | |||||||||
| Chicago, IL, Waterworks Revenue: | ||||||||||||||
| Second Lien, Series 2017, Refunding | 5.000 | % | 11/1/29 | 600,000 | 753,966 | |||||||||
| Second Lien, Series 2017-2, Refunding, AGM | 5.000 | % | 11/1/32 | 2,050,000 | 2,558,523 | |||||||||
| Illinois State Finance Authority Revenue: | ||||||||||||||
| Southern Illinois Healthcare Enterprises Inc., Refunding | 5.000 | % | 3/1/31 | 600,000 | 728,400 | |||||||||
| Southern Illinois Healthcare Enterprises Inc., Refunding | 5.000 | % | 3/1/32 | 300,000 | 363,453 | |||||||||
| Illinois State Sports Facilities Authority Revenue: | ||||||||||||||
| State Tax Supported, Series 2019, Refunding | 5.000 | % | 6/15/30 | 250,000 | 313,082 | |||||||||
| State Tax Supported, Series 2019, Refunding, BAM | 5.000 | % | 6/15/30 | 250,000 | 315,255 | |||||||||
| Illinois State Toll Highway Authority Revenue: | ||||||||||||||
| Series C, Refunding | 5.000 | % | 1/1/25 | 900,000 | 1,071,945 | |||||||||
| Series C, Refunding | 5.000 | % | 1/1/26 | 1,200,000 | 1,471,764 | |||||||||
| Illinois State University Revenue, Auxiliary Facilities System, Series A, Refunding, AGM | 5.000 | % | 4/1/37 | 100,000 | 121,530 | |||||||||
| Illinois State, GO: | ||||||||||||||
| Series 2016 | 5.000 | % | 1/1/35 | 250,000 | 294,053 | |||||||||
| Series 2016, Refunding | 5.000 | % | 2/1/26 | 1,000,000 | 1,201,550 | |||||||||
| Series 2016, Refunding | 5.000 | % | 2/1/29 | 600,000 | 733,296 | |||||||||
See Notes to Schedule of Investments.
5
Western Asset Municipal Defined Opportunity Trust Inc.
| Schedule of investments (unaudited) (cont’d) | February 29, 2020 |
| Security | Rate | Maturity Date | Face Amount | Value | ||||||||||
| Illinois - continued | ||||||||||||||
| Series A | 5.000 | % | 12/1/42 | $ | 500,000 | $ | 603,930 | |||||||
| Series A, Refunding | 5.000 | % | 10/1/29 | 1,600,000 | 2,026,560 | |||||||||
| Series C | 5.000 | % | 11/1/29 | 300,000 | 369,885 | |||||||||
| Series D | 5.000 | % | 11/1/26 | 300,000 | 366,672 | |||||||||
| Series D | 5.000 | % | 11/1/27 | 500,000 | 622,665 | |||||||||
| Metropolitan Pier & Exposition Authority, IL, Dedicated State Revenue: | ||||||||||||||
| McCormick Place Expansion Project, Series A, Refunding | 5.000 | % | 6/15/50 | 1,800,000 | 2,208,942 | (e) | ||||||||
| McCormick Place Expansion Project, Series B-2, Refunding, State Appropriations | 5.250 | % | 6/15/50 | 1,000,000 | 1,012,500 | |||||||||
| Regional Transportation Authority, IL, GO, Series A, Refunding, NATL | 6.000 | % | 7/1/29 | 1,340,000 | 1,783,969 | |||||||||
| Total Illinois | 30,773,889 | |||||||||||||
| Indiana - 4.7% | ||||||||||||||
| Indiana State Finance Authority Hospital Revenue, Indiana University Health Obligated Group, Series B, Refunding | 1.650 | % | 7/1/22 | 10,000,000 | 10,114,000 | (b)(c) | ||||||||
| Indiana State Finance Authority Wastewater Utility Revenue, Green Bonds, CWA Authority Project, Series A | 5.000 | % | 10/1/41 | 675,000 | 824,074 | |||||||||
| Indianapolis, IN, Local Public Improvement Bond Bank: | ||||||||||||||
| Courthouse and Jail Project, Series A | 4.000 | % | 2/1/44 | 500,000 | 582,425 | |||||||||
| Courthouse and Jail Project, Series A | 5.000 | % | 2/1/54 | 750,000 | 949,335 | |||||||||
| Total Indiana | 12,469,834 | |||||||||||||
| Iowa - 0.1% | ||||||||||||||
| Iowa State Finance Authority Midwestern Disaster Area Revenue, Iowa Fertilizer Company Project, Refunding | 3.125 | % | 12/1/22 | 200,000 | 208,154 | |||||||||
| Kentucky - 2.3% | ||||||||||||||
| Kentucky State PEA, Gas Supply Revenue: | ||||||||||||||
| Series A | 4.000 | % | 4/1/24 | 2,000,000 | 2,224,580 | (b)(c) | ||||||||
| Series B | 4.000 | % | 1/1/25 | 1,500,000 | 1,694,550 | (b)(c) | ||||||||
| Series C | 4.000 | % | 2/1/28 | 1,870,000 | 2,222,084 | (b)(c) | ||||||||
| Total Kentucky | 6,141,214 | |||||||||||||
See Notes to Schedule of Investments.
6
Western Asset Municipal Defined Opportunity Trust Inc.
| Schedule of investments (unaudited) (cont’d) | February 29, 2020 |
| Security | Rate | Maturity Date | Face Amount | Value | ||||||||||
| Louisiana - 0.4% | ||||||||||||||
| Port New Orleans, LA, Board of Commissioners Revenue, Series B, Refunding, AGM | 5.000 | % | 4/1/43 | $ | 500,000 | $ | 607,255 | (a) | ||||||
| St. John the Baptist Parish, LA, State Revenue, Marathon Oil Corp. Project, Refunding | 2.200 | % | 7/1/26 | 400,000 | 420,864 | (b)(c) | ||||||||
| Total Louisiana | 1,028,119 | |||||||||||||
| Maryland - 0.6% | ||||||||||||||
| Howard County, MD, Housing Commission Revenue, Columbia Commons Apartments, Series A | 5.000 | % | 6/1/44 | 1,350,000 | 1,503,414 | |||||||||
| Massachusetts - 1.9% | ||||||||||||||
| Massachusetts State DFA Revenue: | ||||||||||||||
| UMass Boston Student Housing Project | 5.000 | % | 10/1/41 | 250,000 | 295,575 | |||||||||
| Wellforce Issue, Series A, Refunding | 5.000 | % | 7/1/44 | 250,000 | 306,255 | |||||||||
| Massachusetts State Port Authority Revenue, Series A, Refunding | 5.000 | % | 7/1/36 | 500,000 | 645,470 | (a) | ||||||||
| Massachusetts State, GO, Consolidated Loan, Series C | 5.000 | % | 5/1/49 | 3,000,000 | 3,853,200 | |||||||||
| Total Massachusetts | 5,100,500 | |||||||||||||
| Michigan - 2.2% | ||||||||||||||
| Detroit, MI, Downtown Development Authority, Tax Increment Revenue, Series A, Refunding, AGM | 5.000 | % | 7/1/38 | 400,000 | 452,808 | |||||||||
| Detroit, MI, Water Supply System Revenue, Second Lien, Series B, Unrefunded, AGM | 6.250 | % | 7/1/36 | 5,000 | 5,019 | |||||||||
| Michigan State Finance Authority Limited Obligation Revenue, Higher Education, Thomas M Cooley Law School Project, Refunding | 6.000 | % | 7/1/24 | 1,500,000 | 1,559,010 | (d) | ||||||||
| Michigan State Finance Authority Revenue: | ||||||||||||||
| Local Government Loan Program, Detroit, MI, Water & Sewer Department, Second Lien Local Project, Series C, Refunding | 5.000 | % | 7/1/33 | 350,000 | 414,015 | |||||||||
| Local Government Loan Program, Detroit, MI, Water & Sewer Department, Series C-6, Refunding | 5.000 | % | 7/1/33 | 410,000 | 474,706 | |||||||||
| Michigan State Strategic Fund Limited Obligation Revenue, I-75 Improvement Project | 5.000 | % | 12/31/43 | 400,000 | 494,072 | (a) | ||||||||
| Royal Oak, MI, Hospital Finance Authority Revenue, Beaumont Health Credit Group, Series D, Refunding | 5.000 | % | 9/1/39 | 2,000,000 | 2,275,540 | |||||||||
| Total Michigan | 5,675,170 | |||||||||||||
See Notes to Schedule of Investments.
7
Western Asset Municipal Defined Opportunity Trust Inc.
| Schedule of investments (unaudited) (cont’d) | February 29, 2020 |
| Security | Rate | Maturity Date | Face Amount | Value | ||||||||||
| Missouri - 0.7% | ||||||||||||||
| Kansas City, MO, IDA, Airport System Revenue, Kansas City International Airport Terminal Modernization Project, Series B | 5.000 | % | 3/1/46 | $ | 1,000,000 | $ | 1,244,530 | (a) | ||||||
| Missouri State Health Senior Living Facilities Revenue, Lutheran Senior Services Projects, Series A | 5.000 | % | 2/1/34 | 150,000 | 172,838 | |||||||||
| St. Louis County, MO, IDA, Senior Living Facilities Revenue, Friendship Village, St. Louis Obligated Group, Series A | 5.000 | % | 9/1/38 | 350,000 | 401,859 | |||||||||
| Total Missouri | 1,819,227 | |||||||||||||
| New Jersey - 4.7% | ||||||||||||||
| Gloucester County, NJ, PCFA Revenue, Keystone Urban Renewal, Logan Generating, Series A, Refunding | 5.000 | % | 12/1/24 | 695,000 | 759,482 | (a) | ||||||||
| New Jersey State EDA Revenue: | ||||||||||||||
| School Facilities Construction, Series BBB, Refunding | 5.500 | % | 6/15/31 | 250,000 | 310,173 | |||||||||
| Series DDD | 5.000 | % | 6/15/34 | 1,500,000 | 1,818,480 | |||||||||
| Transit Transportation Project, Series A | 5.000 | % | 11/1/32 | 500,000 | 639,615 | |||||||||
| New Jersey State EDA, Lease Revenue, State House Project, Series B | 5.000 | % | 6/15/43 | 4,000,000 | 4,898,920 | |||||||||
| New Jersey State EDA, Special Facility Revenue, Port Newark Container Terminal LLC Project, Refunding | 5.000 | % | 10/1/37 | 200,000 | 239,600 | (a) | ||||||||
| New Jersey State Health Care Facilities Financing Authority Revenue, Hackensack Meridian Health, Series A, Refunding | 5.000 | % | 7/1/38 | 125,000 | 154,530 | |||||||||
| New Jersey State Transportation Trust Fund Authority Revenue: | ||||||||||||||
| Federal Highway Reimbursement, Series A, Refunding | 5.000 | % | 6/15/29 | 750,000 | 903,097 | |||||||||
| Transportation Program, Series AA | 5.250 | % | 6/15/43 | 500,000 | 625,485 | |||||||||
| Transportation Program, Series BB | 4.000 | % | 6/15/36 | 250,000 | 289,338 | |||||||||
| Transportation System, Series A, Refunding | 5.000 | % | 12/15/25 | 1,250,000 | 1,502,175 | |||||||||
| Tobacco Settlement Financing Corp., NJ, Revenue, Senior, Series A, Refunding | 5.000 | % | 6/1/46 | 200,000 | 243,690 | |||||||||
| Total New Jersey | 12,384,585 | |||||||||||||
| New York - 18.2% | ||||||||||||||
| Long Island, NY, Power Authority Electric System Revenue, Series B, Refunding | 1.650 | % | 9/1/24 | 1,500,000 | 1,532,010 | (b)(c) | ||||||||
See Notes to Schedule of Investments.
8
Western Asset Municipal Defined Opportunity Trust Inc.
| Schedule of investments (unaudited) (cont’d) | February 29, 2020 |
| Security | Rate | Maturity | Face | Value | ||||||||||
| New York - continued | ||||||||||||||
| MTA, NY, Dedicated Tax Fund Revenue, Green Bonds, Series A | 5.000 | % | 11/15/47 | $ | 500,000 | $ | 616,355 | |||||||
| New York Convention Center Development Corp. Revenue, CAB, Subordinated Lien, Hotel Unit Fee Secured, Series B | 0.000 | % | 11/15/32 | 2,000,000 | 1,576,140 | |||||||||
| New York State Dormitory Authority, Sales Tax Revenue: | ||||||||||||||
| Group 2, Series E, Refunding | 5.000 | % | 3/15/36 | 1,500,000 | 1,957,200 | |||||||||
| Group 3, Series E, Refunding | 5.000 | % | 3/15/38 | 3,000,000 | 3,886,740 | |||||||||
| Group 4, Series E, Refunding | 5.000 | % | 3/15/44 | 10,000,000 | 12,778,200 | |||||||||
| New York State Dormitory Authority, State Personal Income Tax Revenue, Bidding Group 4, Series A, Refunding | 5.000 | % | 3/15/44 | 1,000,000 | 1,284,260 | |||||||||
| New York State Liberty Development Corp. Revenue, Goldman Sachs Headquarters, Refunding | 5.250 | % | 10/1/35 | 2,500,000 | 3,615,025 | |||||||||
| New York State Liberty Development Corp., Liberty Revenue, 3 World Trade Center Project, Class 1, Refunding | 5.000 | % | 11/15/44 | 575,000 | 647,870 | (d) | ||||||||
| New York State Thruway Authority General Revenue, Junior Indebtedness Obligations, Junior Lien, Series A | 5.000 | % | 1/1/46 | 1,000,000 | 1,196,360 | |||||||||
| New York State Transportation Development Corp., Special Facilities Revenue: | ||||||||||||||
| Delta Air Lines Inc., LaGuardia Airport Terminals C and D Redevelopment Project | 5.000 | % | 1/1/31 | 1,500,000 | 1,867,770 | (a) | ||||||||
| Delta Air Lines Inc., LaGuardia Airport Terminals C and D Redevelopment Project | 5.000 | % | 1/1/32 | 1,100,000 | 1,367,036 | (a) | ||||||||
| Delta Air Lines Inc., LaGuardia Airport Terminals C and D Redevelopment Project | 5.000 | % | 1/1/36 | 3,380,000 | 4,168,926 | (a) | ||||||||
| LaGuardia Airport Terminal B Redevelopment Project, Series A | 5.000 | % | 7/1/46 | 3,000,000 | 3,453,420 | (a) | ||||||||
| Port Authority of New York & New Jersey, Special Obligation Revenue, JFK International Air Terminal LLC | 5.500 | % | 12/1/31 | 7,925,000 | 8,225,991 | |||||||||
| Total New York | 48,173,303 | |||||||||||||
| North Carolina - 1.2% | ||||||||||||||
| Charlotte, NC, Airport Revenue, Charlotte Douglas International Airport, Series A, Refunding | 5.000 | % | 7/1/49 | 500,000 | 641,390 | |||||||||
See Notes to Schedule of Investments.
9
Western Asset Municipal Defined Opportunity Trust Inc.
| Schedule of investments (unaudited) (cont’d) | February 29, 2020 |
| Security | Rate | Maturity Date | Face Amount | Value | ||||||||||
| North Carolina - continued | ||||||||||||||
| Charlotte, NC, Lease Revenue, COP, Convention Facility Project, Series A, Refunding | 4.000 | % | 6/1/49 | $ | 250,000 | $ | 294,423 | |||||||
| North Carolina State Limited Obligation Revenue, Series A | 4.000 | % | 5/1/33 | 1,000,000 | 1,223,940 | |||||||||
| North Carolina State Turnpike Authority, Triangle Expressway System Revenue, Senior Lien, Refunding | 5.000 | % | 1/1/30 | 100,000 | 123,366 | |||||||||
| North Carolina State Turnpike Authority Revenue, Series A, Refunding, State Appropriations | 5.000 | % | 7/1/54 | 750,000 | 873,502 | |||||||||
| Total North Carolina | 3,156,621 | |||||||||||||
| Ohio - 0.7% | ||||||||||||||
| Buckeye, OH, Tobacco Settlement Financing Authority: | ||||||||||||||
| Series A-2, Refunding | 4.000 | % | 6/1/48 | 350,000 | 401,597 | (e) | ||||||||
| Series B-2, Refunding | 5.000 | % | 6/1/55 | 550,000 | 621,984 | (e) | ||||||||
| Northeast Ohio Regional Sewer District Revenue, Waste Water Improvement, Series 2019, Refunding | 4.000 | % | 11/15/36 | 300,000 | 366,360 | |||||||||
| Ohio State Air Quality Development Authority Revenue, American Electric Company Project, Series B, Refunding | 2.500 | % | 10/1/29 | 500,000 | 532,140 | (a)(b)(c) | ||||||||
| Total Ohio | 1,922,081 | |||||||||||||
| Oklahoma - 0.0% | ||||||||||||||
| Oklahoma State Turnpike Authority Revenue, Second Series C | 5.000 | % | 1/1/47 | 40,000 | 48,455 | |||||||||
| Payne County, OK, EDA Revenue, Epworth Living at The Ranch, Series A | 6.250 | % | 11/1/31 | 113,130 | 283 | *(f) | ||||||||
| Total Oklahoma | 48,738 | |||||||||||||
| Oregon - 0.3% | ||||||||||||||
| Oregon State Facilities Authority Revenue, Legacy Health Project, Series A, Refunding | 5.000 | % | 6/1/46 | 650,000 | 773,676 | |||||||||
| Pennsylvania - 2.4% | ||||||||||||||
| Commonwealth Financing Authority, PA, Tobacco Master Settlement Payment Revenue | 5.000 | % | 6/1/30 | 250,000 | 317,735 | |||||||||
| Cumberland County, PA, Municipal Authority Revenue, Diakon Lutheran Social Ministries Project, Refunding | 5.000 | % | 1/1/27 | 1,000,000 | 1,151,260 | |||||||||
| Pennsylvania State Economic Development Financing Authority, Solid Waste Disposal Revenue, Waste Management Inc. Project | 2.150 | % | 7/1/24 | 350,000 | 364,326 | (a)(b)(c) | ||||||||
See Notes to Schedule of Investments.
10
Western Asset Municipal Defined Opportunity Trust Inc.
| Schedule of investments (unaudited) (cont’d) | February 29, 2020 |
| Security | Rate | Maturity Date |
Face Amount |
Value | ||||||||||||
| Pennsylvania - continued | ||||||||||||||||
| Pennsylvania State, GO, Refunding | 5.000 | % | 7/15/30 | $ | 1,000,000 | $ | 1,326,150 | |||||||||
| Philadelphia, PA, Authority for IDR: | ||||||||||||||||
| City Service Agreement Revenue, Rebuild Project | 5.000 | % | 5/1/35 | 1,000,000 | 1,260,870 | |||||||||||
| Lease Revenue, Refunding | 5.000 | % | 10/1/30 | 350,000 | 472,503 | |||||||||||
| Philadelphia, PA, GO, Series B | 5.000 | % | 2/1/37 | 500,000 | 651,390 | |||||||||||
| State Public School Building Authority, PA, Lease Revenue: | ||||||||||||||||
| Philadelphia School District Project, Series A, Refunding, AGM, State Aid Withholding | 5.000 | % | 6/1/31 | 200,000 | 245,696 | |||||||||||
| Philadelphia School District Project, Series A, Refunding, AGM, State Aid Withholding | 5.000 | % | 6/1/33 | 550,000 | 673,409 | |||||||||||
| Total Pennsylvania | 6,463,339 | |||||||||||||||
| Puerto Rico - 1.9% | ||||||||||||||||
| Puerto Rico Commonwealth Aqueduct & Sewer | ||||||||||||||||
| Authority Revenue, Senior Lien, Series A | 5.250 | % | 7/1/42 | 1,200,000 | 1,299,000 | |||||||||||
| Puerto Rico Electric Power Authority Revenue: | ||||||||||||||||
| Series A | 5.000 | % | 7/1/42 | 440,000 | 351,450 | *(f) | ||||||||||
| Series A | 5.050 | % | 7/1/42 | 100,000 | 79,875 | *(f) | ||||||||||
| Series XX | 5.250 | % | 7/1/40 | 920,000 | 737,150 | *(f) | ||||||||||
| Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue: | ||||||||||||||||
| CAB, Restructured, Series A-1 | 0.000 | % | 7/1/27 | 290,000 | 248,072 | |||||||||||
| CAB, Restructured, Series A-1 | 0.000 | % | 7/1/46 | 2,990,000 | 889,585 | |||||||||||
| Restructured, Series A-1 | 4.750 | % | 7/1/53 | 150,000 | 169,818 | |||||||||||
| Restructured, Series A-1 | 5.000 | % | 7/1/58 | 1,060,000 | 1,215,682 | |||||||||||
| Total Puerto Rico | 4,990,632 | |||||||||||||||
| South Carolina - 0.2% | ||||||||||||||||
| South Carolina State Ports Authority Revenue, Series 2018 | 5.000 | % | 7/1/36 | 500,000 | 627,805 | (a) | ||||||||||
| Texas - 7.9% | ||||||||||||||||
| Arlington, TX, Higher Education Finance Corp., Education Revenue, Uplift Education, Series A, Refunding, PSF - GTD | 5.000 | % | 12/1/35 | 300,000 | 372,096 | |||||||||||
| Arlington, TX, Special Tax Revenue, Subordinated Lien, Series C, BAM | 5.000 | % | 2/15/41 | 400,000 | 457,856 | |||||||||||
| City of Austin, TX, Airport System Revenue, Series B | 5.000 | % | 11/15/37 | 600,000 | 773,886 | (a) | ||||||||||
See Notes to Schedule of Investments.
11
Western Asset Municipal Defined Opportunity Trust Inc.
| Schedule of investments (unaudited) (cont’d) | February 29, 2020 |
| Security | Rate | Maturity Date | Face Amount | Value | ||||||||||||
| Texas - continued | ||||||||||||||||
| Grand Parkway Transportation Corp., TX, System Toll Revenue, Subordinated Tier, Series A | 5.000 | % | 10/1/48 | $ | 2,500,000 | $ | 3,117,600 | |||||||||
| Harris County, TX, Cultural Education Facilities Finance Corp., Thermal Utility Revenue, Teco Project, Refunding | 5.000 | % | 11/15/33 | 250,000 | 313,542 | |||||||||||
| Houston, TX, Airport System Revenue: | ||||||||||||||||
| Public Improvement Project, Series A, Refunding | 5.000 | % | 3/1/32 | 1,100,000 | 1,436,666 | |||||||||||
| Special Facilities, United Airlines Inc., Airport Improvement Project | 5.000 | % | 7/15/28 | 1,000,000 | 1,240,470 | (a) | ||||||||||
| Subordinate, Series C, Refunding | 5.000 | % | 7/1/31 | 1,750,000 | 2,217,530 | (a) | ||||||||||
| Love Field, TX, Airport Modernization Corp., General Airport Revenue, Series 2017 | 5.000 | % | 11/1/31 | 120,000 | 146,413 | (a) | ||||||||||
| Love Field, TX, Airport Modernization Corp., Special Facilities Revenue, Southwest Airlines Co. Project | 5.250 | % | 11/1/40 | 3,000,000 | 3,083,850 | |||||||||||
| Prosper, TX, ISD, GO, School Building, PSF - GTD | 5.000 | % | 2/15/49 | 1,000,000 | 1,273,070 | |||||||||||
| Tarrant County, TX, Cultural Education Facilities Finance Corp., Retirement Facility Revenue, Buckner Senior Living Ventana Project, Series A | 6.625 | % | 11/15/37 | 190,000 | 231,815 | |||||||||||
| Texas State Municipal Gas Acquisition & Supply Corp. I, Gas Supply Revenue, Senior Lien, Series D | 6.250 | % | 12/15/26 | 1,115,000 | 1,327,564 | |||||||||||
| Texas State Private Activity Bond Surface Transportation Corp. Revenue, Senior Lien, Blueridge Transportation Group LLC | 5.000 | % | 12/31/40 | 500,000 | 587,820 | (a) | ||||||||||
| Texas State Public Finance Authority Lease Revenue, Series A, Refunding | 4.000 | % | 2/1/37 | 500,000 | 596,415 | |||||||||||
| Texas State Water Development Board Revenue, State Water Implementation Fund, Series A | 5.000 | % | 10/15/43 | 1,700,000 | 2,156,841 | (g) | ||||||||||
| University of Texas, TX, System Revenue, Financing System Board of Regents, Series B, Refunding | 5.000 | % | 8/15/29 | 1,000,000 | 1,353,900 | |||||||||||
See Notes to Schedule of Investments.
12
Western Asset Municipal Defined Opportunity Trust Inc.
| Schedule of investments (unaudited) (cont’d) | February 29, 2020 |
| Security | Rate | Maturity Date | Face Amount | Value | ||||||||||||
| Texas - continued | ||||||||||||||||
| Woodloch, TX, Health Facilities Development Corp., Senior Housing Revenue: | ||||||||||||||||
| Inspired Living at Lewisville Project, Series A-1 | 6.750 | % | 12/1/51 | $ | 150,000 | $ | 122,484 | (d) | ||||||||
| Subordinate, Inspired Living at Lewisville Project, Series B | 10.000 | % | 12/1/51 | 50,000 | 35,177 | |||||||||||
| Total Texas | 20,844,995 | |||||||||||||||
| U.S. Virgin Islands - 0.7% | ||||||||||||||||
| Virgin Islands Public Finance Authority Revenue, Subordinated, Matching Fund Loan, Diageo Project, Series A | 6.625 | % | 10/1/29 | 1,800,000 | 1,804,572 | |||||||||||
| Utah - 1.3% | ||||||||||||||||
| Salt Lake City, UT, Airport Revenue, Salt Lake City International Airport, Series A | 5.000 | % | 7/1/43 | 1,750,000 | 2,169,615 | (a) | ||||||||||
| Utah Infrastructure Agency, Telecommunications Revenue, Series 2019 | 5.000 | % | 10/15/26 | 300,000 | 359,802 | |||||||||||
| Utah State Charter School Finance Authority, Charter School Revenue: | ||||||||||||||||
| Syracuse Arts Academy Project, UT CSCE | 5.000 | % | 4/15/47 | 250,000 | 294,847 | |||||||||||
| Utah Charter Academies Project, Series 2018, UT CSCE | 5.000 | % | 10/15/38 | 500,000 | 618,925 | |||||||||||
| Total Utah | 3,443,189 | |||||||||||||||
| Virginia - 1.1% | ||||||||||||||||
| Virginia State Port Authority, Port Facilities Revenue: | ||||||||||||||||
| Series B, Refunding | 5.000 | % | 7/1/41 | 400,000 | 480,008 | (a) | ||||||||||
| Series B, Refunding | 5.000 | % | 7/1/45 | 500,000 | 596,150 | (a) | ||||||||||
| Virginia State Small Business Financing Authority Revenue, Senior Lien, Elizabeth River Crossings OpCo LLC Project | 5.000 | % | 7/1/23 | 1,775,000 | 1,934,484 | (a) | ||||||||||
| Total Virginia | 3,010,642 | |||||||||||||||
| Washington - 1.5% | ||||||||||||||||
| Port of Seattle, WA, Intermediate Lien Revenue: | ||||||||||||||||
| Series 2019 | 5.000 | % | 4/1/34 | 750,000 | 960,045 | (a) | ||||||||||
| Series A | 5.000 | % | 5/1/36 | 500,000 | 611,905 | (a) | ||||||||||
| Washington State Health Care Facilities Authority Revenue, Commonspirit Health, Series B, Refunding | 5.000 | % | 8/1/26 | 300,000 | 363,726 | (b)(c) | ||||||||||
See Notes to Schedule of Investments.
13
Western Asset Municipal Defined Opportunity Trust Inc.
| Schedule of investments (unaudited) (cont’d) | February 29, 2020 |
| Security | Rate | Maturity Date | Face Amount | Value | ||||||||||||
| Washington - continued | ||||||||||||||||
| Washington State HFC, Non-Profit Housing Revenue, Heron’s Key, Series A | 6.000 | % | 7/1/25 | $ | 675,000 | $ | 765,808 | (d) | ||||||||
| Washington State, GO, Series R, 2018D, Refunding | 5.000 | % | 8/1/33 | 1,000,000 | 1,273,150 | |||||||||||
| Total Washington | 3,974,634 | |||||||||||||||
| West Virginia - 0.2% | ||||||||||||||||
| West Virginia University Revenue, West Virginia Projects, Series B, Refunding | 5.000 | % | 10/1/29 | 400,000 | 531,028 | (b)(c) | ||||||||||
| Wisconsin - 1.2% | ||||||||||||||||
| Public Finance Authority, WI, Limited Obligation Pilot Revenue, American Dream @ Meadowlands Project, Series 2017 | 5.000 | % | 12/1/27 | 750,000 | 867,525 | (d) | ||||||||||
| Public Finance Authority, WI, Revenue, Series A, AGM | 5.000 | % | 7/1/44 | 1,000,000 | 1,226,200 | |||||||||||
| Village of Mount Pleasant, WI, Tax Increment Revenue, Series A | 5.000 | % | 4/1/43 | 750,000 | 932,295 | |||||||||||
| Total Wisconsin | 3,026,020 | |||||||||||||||
| Total
Investments before Short-Term Investments (Cost - $233,249,089) | 264,825,596 | |||||||||||||||
| Short-Term Investments - 1.1% | ||||||||||||||||
| Municipal Bonds - 1.1% | ||||||||||||||||
| Mississippi - 0.4% | ||||||||||||||||
| Mississippi State Business Finance Corp., Gulf Opportunity Zone, IDR, Chevron USA Inc. Project, Series L | 1.200 | % | 11/1/35 | 1,000,000 | 1,000,000 | (h)(i) | ||||||||||
| Missouri - 0.0% | ||||||||||||||||
| Missouri State HEFA Revenue, St. Louis University, Series B, LOC - U.S. Bank N.A. | 1.160 | % | 10/1/24 | 100,000 | 100,000 | (h)(i) | ||||||||||
| New York - 0.1% | ||||||||||||||||
| New York City, NY, Municipal Water Finance Authority, Water & Sewer System Revenue, Second General Resolution, Series AA-2, SPA - PNC Bank N.A. | 1.250 | % | 6/15/48 | 100,000 | 100,000 | (h)(i) | ||||||||||
| Pennsylvania - 0.0% | ||||||||||||||||
| Philadelphia, PA, Authority for IDR, Series B, Refunding, LOC - TD Bank N.A. | 1.120 | % | 10/1/30 | 100,000 | 100,000 | (h)(i) | ||||||||||
| Texas - 0.4% | ||||||||||||||||
| Harris County, TX, Health Facilities Development Corp. Revenue, Methodist Hospital System, Series A-2, Refunding | 1.220 | % | 12/1/41 | 200,000 | 200,000 | (h)(i) | ||||||||||
See Notes to Schedule of Investments.
14
Western Asset Municipal Defined Opportunity Trust Inc.
| Schedule of investments (unaudited) (cont’d) | February 29, 2020 |
| Security | Rate | Maturity Date | Face Amount | Value | ||||||||||||
| Texas - continued | ||||||||||||||||
| Lower Neches Valley Authority, TX, Industrial Development Corp. Revenue: | ||||||||||||||||
| ExxonMobil Corp., Series A, Refunding | 1.200 | % | 8/1/22 | $ | 100,000 | $ | 100,000 | (h)(i) | ||||||||
| ExxonMobil Corp., Series B, Refunding | 1.240 | % | 11/1/29 | 600,000 | 600,000 | (a)(h)(i) | ||||||||||
| Total Texas | 900,000 | |||||||||||||||
| Utah - 0.2% | ||||||||||||||||
| Murray City, UT, Hospital Revenue, IHC Health Services Inc., Series D | 1.180 | % | 5/15/36 | 600,000 | 600,000 | (h)(i) | ||||||||||
| Total Municipal Bonds (Cost - $2,800,000) | 2,800,000 | |||||||||||||||
| Shares | ||||||||||||
| Money Market Funds - 0.0% | ||||||||||||
| Dreyfus Government Cash Management, Institutional Shares (Cost - $60,907) | 1.491 | % | 60,907 | 60,907 | ||||||||
| Total
Short-Term Investments (Cost - $2,860,907) | 2,860,907 | |||||||||||
| Total
Investments - 101.0% (Cost - $236,109,996) | 267,686,503 | |||||||||||
| Liabilities in Excess of Other Assets - (1.0)% | (2,665,116 | ) | ||||||||||
| Total Net Assets - 100.0% | $ | 265,021,387 | ||||||||||
| * | Non-income producing security. |
| (a) | Income from this issue is considered a preference item for purposes of calculating the alternative minimum tax (“AMT”). |
| (b) | Maturity date shown represents the mandatory tender date. |
| (c) | 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. |
| (d) | 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. |
| (e) | Securities traded on a when-issued or delayed delivery basis. |
| (f) | The coupon payment on these securities is currently in default as of February 29, 2020. |
| (g) | All or a portion of this security is held at the broker as collateral for open futures contracts. |
| (h) | Variable rate demand obligations (“VRDOs”) have a demand feature under which the Fund can tender them back to the issuer or liquidity provider on no more than 7 days notice. The interest rate generally resets on a daily or weekly basis and is determined on the specific interest rate reset date by the Remarketing Agent, pursuant to a formula specified in official documents for the VRDO, or set at the highest rate allowable as specified in official documents for the VRDO. VRDOs are benchmarked to the Securities Industry and Financial Markets Association (“SIFMA”) Municipal Swap Index. The SIFMA Municipal Swap Index is compiled from weekly interest rate resets of tax-exempt VRDOs reported to the Municipal Securities Rulemaking Board’s Short-term Obligation Rate Transparency System. |
| (i) | Maturity date shown is the final maturity date. The security may be sold back to the issuer before final maturity. |
See Notes to Schedule of Investments.
15
Western Asset Municipal Defined Opportunity Trust Inc.
| Schedule of investments (unaudited) (cont’d) | February 29, 2020 |
Abbreviations used in this schedule:
| AGM | — | Assured Guaranty Municipal Corporation — Insured Bonds |
| BAM | — | Build America Mutual — Insured Bonds |
| CAB | — | Capital Appreciation Bonds |
| CDA | — | Communities Development Authority |
| COP | — | Certificates of Participation |
| CSCE | — | Charter School Credit Enhancement |
| CWA | — | Clean Water Act |
| DFA | — | Development Finance Agency |
| EDA | — | Economic Development Authority |
| GO | — | General Obligation |
| GTD | — | Guaranteed |
| HEFA | — | Health & Educational Facilities Authority |
| HFC | — | Housing Finance Commission |
| IDA | — | Industrial Development Authority |
| IDR | — | Industrial Development Revenue |
| ISD | — | Independent School District |
| LOC | — | Letter of Credit |
| MFA | — | Municipal Finance Authority |
| MTA | — | Metropolitan Transportation Authority |
| NATL | — | National Public Finance Guarantee Corporation — Insured Bonds |
| PCFA | — | Pollution Control Financing Authority |
| PEA | — | Public Energy Authority |
| PFA | — | Public Facilities Authority |
| PSF | — | Permanent School Fund |
| SPA | — | Standby Bond Purchase Agreement — Insured Bonds |
| USD | — | Unified School District |
At February 29, 2020, the Fund had the following open futures contracts:
| Number of | Expiration | Notional | Market | Unrealized | ||||||||||||||||
| Contracts | Date | Amount | Value | Depreciation | ||||||||||||||||
| Contracts to Sell: | ||||||||||||||||||||
| U.S. Treasury Ultra Long-Term | ||||||||||||||||||||
| Bonds | 54 | 6 | /20 | $ | 10,950,346 | $ | 11,205,000 | $ | (254,654 | ) | ||||||||||
This Schedule of Investments is unaudited and is intended to provide information about the Fund’s investments as of the date of the schedule. Other information regarding the Fund is available in the Fund’s most recent annual or semi-annual shareholder report.
See Notes to Schedule of Investments.
16
Notes to Schedule of Investments (unaudited)
1. Organization and significant accounting policies
Western Asset Municipal Defined Opportunity Trust Inc. (the “Fund”) was incorporated in Maryland on January 15, 2009 and is registered as a non-diversified, limited term, closed-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund’s primary investment objective is to provide high current income exempt from federal income tax and then to liquidate on or about April 30, 2021 and distribute all of the Fund’s net assets to shareholders. As a secondary investment objective, the Fund will seek total return. There can be no assurance the Fund’s investment objectives will be achieved.
The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”).
(a) Investment valuation. The valuations for fixed income securities (which may include, but are not limited to, corporate, government, municipal, mortgage-backed, collateralized mortgage obligations and asset-backed securities) and certain derivative instruments are typically the prices supplied by independent third party pricing services, which may use market prices or broker/dealer quotations or a variety of valuation techniques and methodologies. The independent third party pricing services use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. 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. If independent third party pricing services are unable to supply prices for a portfolio investment, or if the prices supplied are deemed by the manager to be unreliable, the market price may be determined by the manager using quotations from one or more broker/dealers or at the transaction price if the security has recently been purchased and no value has yet been obtained from a pricing service or pricing broker. When reliable prices are not readily available, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund values these securities as determined in accordance with procedures approved by the Fund’s Board of Directors.
The Board of Directors is responsible for the valuation process and has delegated the supervision of the daily valuation process to the Legg Mason North Atlantic Fund Valuation Committee (the “Valuation Committee”). The Valuation Committee, pursuant to the policies adopted by the Board of Directors, is responsible for making fair value determinations, evaluating the effectiveness of the Fund’s pricing policies, and reporting to the Board of Directors. When determining the reliability of third party pricing information for investments owned by the Fund, the Valuation Committee, among other things, conducts due diligence reviews of pricing vendors, monitors the daily change in prices and reviews transactions among market participants.
See Notes to Schedule of Investments.
17
Notes to Schedule of Investments (unaudited) (continued)
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 – 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.
See Notes to Schedule of Investments.
18
Notes to Schedule of Investments (unaudited) (continued)
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities carried at fair value:
| ASSETS | ||||||||||||||||
| Description | Quoted Prices (Level 1) | Other
Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
| Municipal Bonds† | — | $ | 264,825,596 | — | $ | 264,825,596 | ||||||||||
| Short-Term Investments†: | ||||||||||||||||
| Municipal Bonds | — | 2,800,000 | — | 2,800,000 | ||||||||||||
| Money Market Funds | $ | 60,907 | — | — | 60,907 | |||||||||||
| Total Short-Term Investments | 60,907 | 2,800,000 | — | 2,860,907 | ||||||||||||
| Total Investments | $ | 60,907 | $ | 267,625,596 | — | $ | 267,686,503 | |||||||||
| LIABILITIES | ||||||||||||||||
| Description | Quoted Prices (Level 1) | Other
Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
| Other Financial Instruments: | ||||||||||||||||
| Futures Contracts | $ | 254,654 | — | — | $ | 254,654 | ||||||||||
† See Schedule of Investments for additional detailed categorizations.
See Notes to Schedule of Investments.
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