Morgan Stanley Direct Lending: Floating Rate Exposure Set To Lower Yield
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Morgan Stanley Direct Lending (MSDL) has benefited from high interest rates but faces potential yield reduction as rates are expected to decrease. The fund's strategy involves senior secured loans to stable mid-sized businesses, with a significant portion of its yield tied to floating rates.
February 03, 2025 | 6:00 am
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Morgan Stanley Direct Lending's yield may decrease from 9-10% to 6-8% due to expected lower interest rates. The fund's strategy involves senior secured loans and floating rate exposure, which could impact net interest margins.
MSDL's yield is heavily tied to floating rates, which are expected to decrease as the Fed lowers interest rates. This will likely reduce the fund's yield and impact net interest margins, making it a significant concern for investors.
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