Morgan Stanley Direct Lending: Is This 10% Yield Safe?

  • MSDL boasts a highly diversified, low-risk portfolio with over 210 loans, minimal concentration risk, and 96% first-lien investments, ensuring portfolio resilience. The company consistently generates strong investment income, supporting a sustainable 10% dividend yield with potential for supplemental distributions. Risks include MSDL's short public track record and sensitivity to falling interest rates, which could reduce payouts by up to 25%.