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MSD: U.S. Dollar-Heavy Portfolio Likely To Weigh On Returns (Downgrade)

Interest Rates Summary Morgan Stanley Emerging Markets Debt Fund yields 8.61%, but its predominantly dollar-denominated portfolio faces persistent inflation and interest-rate pressure. MSD’s sovereign-heavy portfolio carries junk-bond-like risk: just 22.88% of assets are investment-grade, while dollar strength raises issuers’ debt-service costs. MSD’s quarterly distribution varies, but first-half net investment income…

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