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Morgan Stanley Direct Lending Fund cuts advisory fees in 2027, boosting income amid NAV drop and credit concerns.

Market News
10 Nov 2026, 06:55 WIB
Seeking Alpha
View Source
Bearish
Morgan Stanley Direct Lending Fund cuts advisory fees in 2027, boosting income amid NAV drop and credit concerns.

Morgan Stanley Direct Lending Fund (MSDL) will reduce its advisory fees starting January 1, 2027, aiming to increase net investment income and improve dividend coverage. Recently, MSDL's net asset value (NAV) fell 3.8% to $18.76, impacted by a major restructuring and rising non-accrual loans now at 3.4% of cost. The fund trades at a steep 27% discount to NAV, reflecting market concerns about potential credit losses beyond current levels. Analysts estimate the fair value at 90-95% of NAV ($17-$18 per share), suggesting the current market price factors in more severe losses than presently recorded.

Morgan Stanley Direct Lending Fund provides context for Financials-sector trading on Pluang. As of Nov 10, 2026 11:11 WIB, 127 of 142 Financials stocks rose while 15 fell. Notable movers include AVAT at USD 0.90 (+8.51%), WULF at USD 12.28 (+8.00%), and BTBT at USD 0.79 (+7.69%).

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