Western Asset Investment Grade Income Fund Inc. (PAI)

FairStock Score: 56/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Western Asset Investment Grade Income Fund is not a conventional operating business; it is a closed-end bond fund. Its raw material is credit, not factories. At the 2026-10-13 close of $11.29, it had a $115.7 million market cap. FairStock calculations show a P/E of 12.41 and a P/B of 0.86, so investors are paying less than stated net asset value. The Graham Number, another FairStock calculation, is $16.38, implying a 31.07% margin of safety. The 5.58% dividend yield and 0.49 beta offer income and low sensitivity to equity markets. But quality is not obvious. FairStock reports ROE of 4.60% and ROCE of 3.06%, which are modest. The Piotroski F-Score is only 1/9, a weak signal on recent financial strength. The Altman Z-Score of 35.74 is very high, though for a fund it is less meaningful. There is no filed revenue or profit growth record in the data, and the Lynch category is none because only zero years of filed results exist, needing three. That means I cannot judge a durable growth trajectory. The investment-grade mandate suggests a high-quality portfolio, but Western Asset is an outside manager and the fund's discount can persist. Valuation is the attraction: P/B below one and a double-digit discount to the Graham Number. Still, low returns and weak Piotroski argue for caution. This looks like a cigar-butt income play, cheap enough to watch, but not a high-quality compounder. I would want evidence that distributions are sustainable and the discount is narrowing before calling it a true value opportunity.

In plain English: Western Asset Investment Grade Income Fund is a closed-end fund that owns mostly high-quality U.S. bonds and aims to pay income. Its returns and financial signals look modest, but it offers a 5.58% dividend yield and trades below the accounting value of its assets. At $11.29 on 2026-10-13, the price looks inexpensive compared with its asset value and a conservative valuation estimate, though weak recent signals mean it is not a clear bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer