Morgan Stanley Direct Lending: 12% Yield And 25% Discount Make It A Buy

Morgan Stanley Direct Lending offers an 11.9% yield and trades at a 25% discount to NAV, presenting a compelling value opportunity. MSDL's conservatively managed, diversified portfolio is 94% first-lien, with strong alignment from Morgan Stanley's 11% ownership. Growth drivers include the Capstone joint venture, improving direct lending spreads, and a recovering sponsor-backed M&A environment.