Morgan Stanley Emerging Markets Debt Fund

MSD

Market cap $149M

This month's top 10 closed-end funds offer an average yield of 9.25% and strong long-term performance across diverse asset classes. For income investors, closed-end funds remain an attractive investment class that covers various asset classes and promises high distributions and reasonable total returns. Closed-end funds, or CEFs, are generally characterized by higher volatility and deeper drawdowns than the broader market. For these reasons, they are not suited for everyone.

The Triple-Factor CEF Report screens over 400 funds for high yield (>6.5%), strong coverage (>90%), and discount to NAV, balancing yield, sustainability, and value. Top lists include funds with widest discounts, best z-scores, highest yields, and best combined metrics, offering potential for price appreciation and enhanced yields. Explore top lists for further research; these shortlists are not final buy/sell recommendations. Always verify coverage ratios with official fund documents.

NEW YORK--(BUSINESS WIRE)--Each of the Morgan Stanley closed-end funds listed below (the “Funds”) today declared the following dividends. RECORD DATE                   PAYABLE DATE 9/30/25   10/15/25 Name of Closed-End Fund NYSE Ticker  Net Investment Income Per Share Morgan Stanley Emerging Markets Debt Fund, Inc. MSD $0.17 Morgan Stanley Emerging Markets Domestic Debt Fund, Inc. EDD $0.12 For more information call: 1-800-231-2608. The amount of net investment income to be paid by the Funds is.

MS Emerging Markets Debt Fund currently yields 10.11%, higher than most peers and indices, but is heavily invested in U.S. dollar-denominated bonds. MSD's recent underperformance is attributed to U.S. dollar weakness and lack of local currency exposure, making it less attractive than peer funds in the current environment. The fund's distribution is not fully covered by net investment income, and its discount to NAV is less attractive than historical averages and some peers like TEI.

MSD is not a good hedge against a weaker dollar, as it primarily holds USD-denominated emerging market debt. The fund now trades at a rare premium to NAV, with stretched valuations and historically tight EM credit spreads, making upside limited. Distribution currently exceeds yield-to-maturity, and while not a chronic over-distributor, the payout is not fully supported by earnings.

NEW YORK--(BUSINESS WIRE)--Each of the Morgan Stanley closed-end funds listed below (the “Funds”) today declared the following dividends. RECORD DATE PAYABLE DATE 6/30/25 7/15/25 Name of Closed-End Fund NYSE Ticker Net Investment Income Per Share Morgan Stanley Emerging Markets Debt Fund, Inc. MSD $0.19 Morgan Stanley Emerging Markets Domestic Debt Fund, Inc. EDD $0.12 The amount of net investment income to be paid by the Funds is determined in accordance with federal income tax regulations. It.

Emerging Market Debt offers higher spreads and a better risk/return profile compared to developed market debt, making it a valuable portfolio addition. Despite past headwinds like a strong USD, EMD's fundamentals are solid, with low default rates and improving sovereign reserves. MSD CEF outperforms peers and ETFs, offering a 12% yield with no leverage and a diversified, conservative strategy.

NEW YORK--(BUSINESS WIRE)--Each of the Morgan Stanley closed-end funds listed below (the “Funds”) today declared the following dividends. RECORD DATE   PAYABLE DATE 3/31/25   4/15/25 Name of Closed-End Fund   NYSE Ticker Net Investment Income Per Share Morgan Stanley Emerging Markets Debt Fund, Inc. MSD $0.22 Morgan Stanley Emerging Markets Domestic Debt Fund, Inc. EDD $0.16  For more information call: 1-800-231-2608. The amount of net investment income to be paid by the Funds is determined in.

The Morgan Stanley Emerging Markets Debt Fund offers high current income and exposure to emerging market debt, boasting a 13.27% yield, better than the bond indices. Despite potential risks from U.S. protectionist policies, the fund's well-diversified portfolio mitigates country-specific risks and has shown strong performance since the 2024 U.S. election. The fund's shares are currently trading at a 2.57% premium to net asset value, making it expensive compared to historical averages and peers.

We review the CEF market valuation and performance through the second week of December and highlight recent market action. CEFs mostly declined this week due to a 0.25% rise in 10-year Treasury yields, with only the loan sector showing a slight NAV gain. The BlackRock Enhanced Government Fund (EGF) will merge into BlackRock Income Trust (BKT); high-quality funds like these are not ideal in CEFs.