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Morgan Stanley Direct Lending: 12% Yield And 25% Discount...
2026-05-15 · via All Articles on Seeking Alpha

Summary

  • 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.
  • I maintain a 'Strong Buy' on MSDL, citing robust dividend coverage, shareholder-friendly buybacks, and attractive risk-adjusted returns.
  • Looking for a portfolio of ideas like this one? Members of iREIT®+HOYA Capital get exclusive access to our subscriber-only portfolios. Learn More »
twelve percent on white background. Isolated 3D illustration

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The market as a whole has remained resilient since going through an initial oil shock a couple of months ago. This has largely been driven by the AI rally, with hardware names like Intel (

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of MSDL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I am not an investment advisor. This article is for informational purposes and does not constitute as financial advice. Readers are encouraged and expected to perform due diligence and draw their own conclusions prior to making any investment decisions.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.