Morgan Stanley Direct Lending Is Too Good To Miss Out On; Highly Defensive
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Morgan Stanley Direct Lending Fund (MSDL) is a highly defensive BDC focusing on first-lien debt in non-cyclical sectors. It offers attractive dividend coverage but may face challenges if Fed rate cuts occur due to its floating-rate debt investments. MSDL's valuation is appealing, with potential for premium reestablishment.
December 15, 2024 | 4:30 am
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Morgan Stanley Direct Lending Fund is a defensive BDC with strong dividend coverage and appealing valuation. However, potential Fed rate cuts could impact its floating-rate debt investments.
MSDL is highlighted as a defensive investment with strong dividend coverage. However, its reliance on floating-rate debt means that Fed rate cuts could negatively impact its dividend coverage. The valuation is appealing, suggesting potential for price stability or growth.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100