Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.

CEF Market Weekly Review: EM Debt Gives Back Some Outperformance

We review the CEF market valuation and performance through the last week of March and highlight recent market action. March marked the worst month for CEFs in over three years, with broad sector underperformance and widening discounts, except for Utilities and MLPs. Emerging Market debt CEFs like EDD experienced significant volatility due to FX moves, energy shocks, and pro-cyclical risk factors, challenging income investors' conviction.