Morgan Stanley Direct Lending: The Good And The Bad (Rating Downgrade)

MSDL is downgraded to Hold due to increased risk and less attractive valuation. MSDL's portfolio remains well-diversified and focused on non-cyclical sectors, with limited near-term AI disruption risk. Dividend per share was cut 10%, and NII coverage remains weak, raising concerns about further dividend sustainability. MSDL's P/BV multiple has risen to ~0.78x, while NAV declined and internal performance ratings worsened, reducing risk-reward appeal.

I was once a fan of Morgan Stanley Direct Lending Fund (MSDL). But some of my investments in it were not good. Still, my last bullish article finally performed well. I see that its stock price jumped by over