NPORT-EX 2 NPORT_MGGA_43999696_0922.htm

  

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

Third Quarter Report

September 30, 2022 (unaudited)

(Showing Percentage of Total Value of Investments)

   

    Face
Amount
(000)		     Value
(000)		  
FIXED INCOME SECURITIES (95.1%)                
Albania (0.1%)                
Sovereign (0.1%)                
Albania Government International Bond,                
3.50%, 10/9/25   EUR 109     $ 98  
                 
Angola (1.1%)                
Sovereign (1.1%)                
Angolan Government International Bond,                
8.00%, 11/26/29   $ 550       415  
8.00%, 11/26/29 (a)     1,400       1,057  
9.38%, 5/8/48 (a)     200       136  
              1,608  
Argentina (0.4%)                
Corporate Bond (0.2%)                
Provincia de Cordoba,                
6.88%, 12/10/25     456       348  
                 
Sovereign (0.2%)                
Argentine Republic Government International Bond,                
3.50%, 7/9/41 (b)     1,310       282  
              630  
Armenia (0.5%)                
Sovereign (0.5%)                
Republic of Armenia International Bond,                
3.60%, 2/2/31     500       341  
3.95%, 9/26/29     550       392  
              733  
Azerbaijan (0.5%)                
Sovereign (0.5%)                
Republic of Azerbaijan International Bond,                
3.50%, 9/1/32     808       653  
                 
Bahrain (1.4%)                
Sovereign (1.4%)                
Bahrain Government International Bond,                
7.50%, 9/20/47     2,500       1,993  
                 
Barbados (1.5%)                
Sovereign (1.5%)                
Barbados Government International Bond,                
6.50%, 10/1/29     2,410       2,138  
                 
Benin (1.6%)                
Sovereign (1.6%)                
Benin Government International Bond,                
4.88%, 1/19/32   EUR 981       659  
4.95%, 1/22/35     2,345       1,459  
6.88%, 1/19/52     273       170  
              2,288  

  

 

 

  

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

Third Quarter Report

September 30, 2022 (unaudited)(cont’d)

(Showing Percentage of Total Value of Investments)

 

Brazil (1.7%)                
Corporate Bonds (1.4%)                
Arcos Dorados BV,                
6.13%, 5/27/29 (a)   $ 250       227  
Braskem Netherlands Finance BV,                
4.50%, 1/31/30 (a)     530       429  
Hidrovias International Finance SARL,                
4.95%, 2/8/31     1,000       773  
Natura &Co Luxembourg Holdings Sarl,                
6.00%, 4/19/29 (a)     500       412  
Suzano Austria GmbH,                
3.75%, 1/15/31     225       177  
              2,018  
Sovereign (0.3%)                
Brazilian Government International Bond,                
3.88%, 6/12/30     590       489  
              2,507  
Chile (1.8%)                
Corporate Bonds (0.9%)                
AES Andes SA,                
7.13%, 3/26/79     459       404  
VTR Comunicaciones SpA,                
4.38%, 4/15/29     622       387  
5.13%, 1/15/28     808       547  
              1,338  
Sovereign (0.9%)                
Chile Government International Bond,                
3.50%, 1/25/50 (c)     1,570       1,072  
3.86%, 6/21/47     250       185  
              1,257  
              2,595  
China (2.7%)                
Corporate Bonds (0.4%)                
KWG Group Holdings Ltd.,                
7.88%, 9/1/23     430       111  
Shimao Group Holdings Ltd.,                
5.60%, 7/15/26     970       123  
Sunac China Holdings Ltd.,                
8.35%, 4/19/23 (d)     1,080       157  
Times China Holdings Ltd.,                
5.55%, 6/4/24     480       72  
6.75%, 7/16/23     410       88  
              551  
Sovereign (2.3%)                
Sinopec Group Overseas Development 2012 Ltd.,                
4.88%, 5/17/42     970       921  
Sinopec Group Overseas Development 2018 Ltd.,                
2.95%, 11/12/29 (a)     1,770       1,592  

  

 

 

  

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

Third Quarter Report

September 30, 2022 (unaudited)(cont’d)

(Showing Percentage of Total Value of Investments)

 

Three Gorges Finance I Cayman Islands Ltd.,                
3.70%, 6/10/25 (a)     780       761  
              3,274  
              3,753  
Colombia (2.3%)                
Corporate Bond (0.2%)                
Millicom International Cellular SA,                
4.50%, 4/27/31 (a)     384       275  
                 
Sovereign (2.1%)                
Colombia Government International Bond,                
3.00%, 1/30/30     1,791       1,287  
4.13%, 5/15/51     580       313  
5.00%, 6/15/45     2,230       1,358  
              2,958  
              3,233  
Costa Rica (0.7%)                
Sovereign (0.7%)                
Costa Rica Government International Bond,                
6.13%, 2/19/31 (a)     505       464  
7.00%, 4/4/44     680       568  
              1,032  
Dominican Republic (3.8%)                
Sovereign (3.8%)                
Dominican Republic International Bond,                
4.88%, 9/23/32 (a)     400       302  
5.30%, 1/21/41 (a)     550       374  
5.50%, 2/22/29 (a)     490       424  
5.88%, 1/30/60     500       332  
5.88%, 1/30/60 (a)     1,190       790  
6.85%, 1/27/45 (a)     1,252       979  
6.88%, 1/29/26     500       488  
6.88%, 1/29/26 (a)     1,000       977  
7.45%, 4/30/44 (a)     800       675  
              5,341  
Ecuador (1.5%)                
Sovereign (1.5%)                
Ecuador Government International Bond,                
0.00%, 7/31/30 (a)     351       103  
1.50%, 7/31/40 (a)(b)     1,421       423  
1.50%, 7/31/40 (b)     522       155  
2.50%, 7/31/35 (a)(b)     2,302       763  
2.50%, 7/31/35 (b)     550       182  
5.50%, 7/31/30 (a)(b)     1,184       566  
              2,192  
Egypt (2.4%)                
Sovereign (2.4%)                
Egypt Government International Bond,                
4.75%, 4/16/26   EUR 480       335  
6.38%, 4/11/31 (a)     800       459  

  

 

 

  

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

Third Quarter Report

September 30, 2022 (unaudited)(cont’d)

(Showing Percentage of Total Value of Investments)

  

7.50%, 2/16/61 (a)   $ 1,030       547  
7.90%, 2/21/48 (a)     490       257  
8.15%, 11/20/59 (a)     2,000       1,085  
8.88%, 5/29/50     750       419  
8.88%, 5/29/50 (a)     430       240  
              3,342  
El Salvador (1.7%)                
Sovereign (1.7%)                
El Salvador Government International Bond,                
6.38%, 1/18/27     1,785       675  
7.75%, 1/24/23     1,793       1,641  
8.63%, 2/28/29 (a)     250       92  
              2,408  
Ethiopia (0.3%)                
Sovereign (0.3%)                
Ethiopia International Bond,                
6.63%, 12/11/24     870       445  
                 
Gabon (1.0%)                
Sovereign (1.0%)                
Gabon Government International Bond,                
6.95%, 6/16/25 (a)     740       614  
7.00%, 11/24/31     1,100       729  
              1,343  
Ghana (0.9%)                
Sovereign (0.9%)                
Ghana Government International Bond,                
7.75%, 4/7/29     1,350       518  
7.88%, 2/11/35     460       172  
8.63%, 6/16/49 (a)     690       257  
8.88%, 5/7/42 (a)     910       339  
              1,286  
Guatemala (0.4%)                
Sovereign (0.4%)                
Guatemala Government Bond,                
4.65%, 10/7/41 (a)     400       282  
6.13%, 6/1/50 (a)     380       313  
              595  
Honduras (1.6%)                
Sovereign (1.6%)                
Honduras Government International Bond,                
5.63%, 6/24/30 (a)     230       167  
5.63%, 6/24/30     635       462  
6.25%, 1/19/27     2,015       1,663  
              2,292  
Hungary (1.2%)                
Sovereign (1.2%)                
Hungary Government International Bond,                
5.38%, 3/25/24     1,250       1,231  

  

 

 

  

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

Third Quarter Report

September 30, 2022 (unaudited)(cont’d)

(Showing Percentage of Total Value of Investments)

  

7.63%, 3/29/41     454       452  
              1,683  
India (2.5%)                
Corporate Bonds (1.1%)                
JSW Infrastructure Ltd.,                
4.95%, 1/21/29     1,130       879  
Vedanta Resources Finance II PLC,                
13.88%, 1/21/24     800       670  
              1,549  
Sovereign (1.4%)                
Export-Import Bank of India,                
2.25%, 1/13/31     340       256  
3.25%, 1/15/30     1,140       954  
3.38%, 8/5/26 (a)     800       742  
              1,952  
              3,501  
Indonesia (4.5%)                
Sovereign (4.5%)                
Indonesia Government International Bond,                
3.85%, 7/18/27     450       422  
4.13%, 1/15/25     1,300       1,278  
4.45%, 4/15/70     700       529  
4.65%, 9/20/32     800       752  
5.13%, 1/15/45 (a)     1,014       889  
5.35%, 2/11/49 (c)     200       178  
6.75%, 1/15/44     400       419  
Pertamina Persero PT,                
4.30%, 5/20/23     1,500       1,489  
6.50%, 11/7/48 (a)     500       461  
              6,417  
Iraq (2.1%)                
Sovereign (2.1%)                
Iraq International Bond,                
5.80%, 1/15/28     3,691       3,043  
                 
Ireland (0.5%)                
Corporate Bond (0.5%)                
Aragvi Finance International DAC,                
8.45%, 4/29/26     1,090       762  
                 
Ivory Coast (0.9%)                
Sovereign (0.9%)                
Ivory Coast Government International Bond,                
4.88%, 1/30/32 (a)   EUR 500       330  
4.88%, 1/30/32     870       574  
6.63%, 3/22/48     608       354  
              1,258  

  

 

 

  

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

Third Quarter Report

September 30, 2022 (unaudited)(cont’d)

(Showing Percentage of Total Value of Investments)

  

Jamaica (1.3%)                
Corporate Bond (1.3%)                
Digicel International Finance Ltd.                
8.75%, 5/25/24   $ 2,039       1,870  
                 
Jordan (0.5%)                
Sovereign (0.5%)                
Jordan Government International Bond,                
7.38%, 10/10/47 (a)     950       697  
                 
Kazakhstan (0.7%)                
Sovereign (0.7%)                
Kazakhstan Government International Bond,                
6.50%, 7/21/45     1,100       1,022  
                 
Kenya (0.7%)                
Sovereign (0.7%)                
Kenya Government International Bond,                
8.00%, 5/22/32 (a)     1,500       1,021  
                 
Lebanon (0.2%)                
Sovereign (0.2%)                
Lebanon Government International Bond,                
6.85%, 3/23/27 – 5/25/29 (d)(e)     3,490       217  
                 
Luxembourg (1.2%)                
Corporate Bonds (1.2%)                
Gol Finance SA,                
8.00%, 6/30/26     680       417  
Guara Norte Sarl,                
5.20%, 6/15/34     386       308  
Kernel Holding SA,                
6.50%, 10/17/24     200       79  
6.75%, 10/27/27     219       81  
MC Brazil Downstream Trading Sarl,                
7.25%, 6/30/31     990       747  
              1,632  
Macedonia (0.8%)                
Sovereign (0.8%)                
North Macedonia Government International Bond,                
1.63%, 3/10/28   EUR 1,481       1,084  
                 
Mexico (6.6%)                
Corporate Bonds (1.5%)                
Braskem Idesa SAPI,                
7.45%, 11/15/29   $ 1,810       1,376  
Total Play Telecomunicaciones SA de CV,                
7.50%, 11/12/25     827       704  
              2,080  
Sovereign (5.1%)                
Banco Nacional de Comercio Exterior SNC,                
2.72%, 8/11/31 (a)     800       691  
Petroleos Mexicanos,                
5.95%, 1/28/31     1,200       812  
6.35%, 2/12/48     2,200       1,186  

  

 

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

Third Quarter Report

September 30, 2022 (unaudited)(cont’d)

(Showing Percentage of Total Value of Investments)

  

6.70%, 2/16/32     3,263       2,294  
6.95%, 1/28/60     500       278  
7.69%, 1/23/50     3,200       1,965  
              7,226  
              9,306  
Mongolia (0.5%)                
Sovereign (0.5%)                
Mongolia Government International Bond,                
5.13%, 4/7/26 (a)     310       259  
5.63%, 5/1/23     506       479  
              738  
Morocco (0.7%)                
Corporate Bond (0.4%)                
OCP SA,                
5.13%, 6/23/51     860       551  
                 
Sovereign (0.3%)                
Morocco Government International Bond,                
4.00%, 12/15/50 (a)     820       471  
              1,022  
Netherlands (1.0%)                
Corporate Bonds (1.0%)                
Ardshinbank CJSC Via Dilijan Finance BV,                
6.50%, 1/28/25     670       644  
Coruripe Netherlands BV,                
10.00%, 2/10/27     860       737  
              1,381  
Nigeria (3.0%)                
Corporate Bonds (1.2%)                
IHS Netherlands Holdco BV,                
8.00%, 9/18/27 (a)     1,100       927  
SEPLAT Energy PLC,                
7.75%, 4/1/26     880       724  
              1,651  
Sovereign (1.8%)                
Nigeria Government International Bond,                
6.38%, 7/12/23     530       516  
6.50%, 11/28/27 (a)     620       450  
7.14%, 2/23/30 (a)     600       393  
7.38%, 9/28/33 (a)     220       134  
8.25%, 9/28/51 (a)     490       277  
9.25%, 1/21/49 (a)     800       516  
Republic of Nigeria,                
8.38%, 3/24/29 (a)     300       216  
              2,502  
              4,153  

  

 

 

  

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

Third Quarter Report

September 30, 2022 (unaudited)(cont’d)

(Showing Percentage of Total Value of Investments)

  

Oman (2.9%)                
Sovereign (2.9%)                
Oman Government International Bond,                
4.13%, 1/17/23     450       447  
6.00%, 8/1/29 (a)     790       738  
6.25%, 1/25/31 (a)     1,900       1,775  
6.75%, 1/17/48     1,486       1,197  
              4,157  
Pakistan (0.7%)                
Sovereign (0.7%)                
Pakistan Government International Bond,                
6.88%, 12/5/27     340       131  
7.38%, 4/8/31     325       122  
8.88%, 4/8/51     2,200       806  
              1,059  
Panama (2.9%)                
Corporate Bond (0.3%)                
AES Panama Generation Holdings SRL,                
4.38%, 5/31/30 (a)     500       395  
                 
Sovereign (2.6%)                
Panama Government International Bond,                
2.25%, 9/29/32     1,580       1,116  
3.87%, 7/23/60     550       329  
4.00%, 9/22/24     800       782  
4.50%, 4/1/56     1,770       1,201  
8.88%, 9/30/27     278       318  
              3,746  
              4,141  
Paraguay (1.4%)                
Corporate Bond (0.5%)                
Frigorifico Concepcion SA,                
7.70%, 7/21/28     857       681  
                 
Sovereign (0.9%)                
Paraguay Government International Bond,                
4.95%, 4/28/31 (a)     800       715  
5.40%, 3/30/50 (a)     700       517  
              1,232  
              1,913  
Peru (3.0%)                
Corporate Bond (0.4%)                
Auna SAA,                
6.50%, 11/20/25     690       560  
                 
Sovereign (2.6%)                
Corporación Financiera de Desarrollo SA,                
5.25%, 7/15/29 (a)     978       926  
Fondo MIVIVIENDA SA,                
4.63%, 4/12/27 (a)     360       338  

  

 

 

  

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

Third Quarter Report

September 30, 2022 (unaudited)(cont’d)

(Showing Percentage of Total Value of Investments)

   

Peruvian Government International Bond,                
3.55%, 3/10/51     1,170       787  
6.55%, 3/14/37     1,550       1,594  
              3,645  
              4,205  
Philippines (1.9%)                
Sovereign (1.9%)                
Philippine Government International Bond,                
9.50%, 2/2/30     2,200       2,729  
                 
Qatar (0.1%)                
Sovereign (0.1%)                
Qatar Government International Bond,                
4.00%, 3/14/29     200       192  
                 
Romania (3.0%)                
Sovereign (3.0%)                
Romanian Government International Bonds,                
1.75%, 7/13/30 (a)   EUR 420       268  
2.00%, 4/14/33   $ 420       245  
3.00%, 2/27/27 (a)   EUR 866       734  
3.75%, 2/7/34 (a)     830       564  
4.00%, 2/14/51   $ 1,100       617  
5.00%, 9/27/26   EUR 672       637  
6.13%, 1/22/44   $ 800       641  
6.63%, 9/27/29   EUR 655       609  
              4,315  
Senegal (0.6%)                
Sovereign (0.6%)                
Senegal Government International Bond,                
6.75%, 3/13/48   $ 1,329       832  
                 
Serbia (0.8%)                
Sovereign (0.8%)                
Serbia International Bond,                
2.05%, 9/23/36   EUR 432       224  
2.13%, 12/1/30 (a)   $ 400       263  
2.13%, 12/1/30     1,000       658  
              1,145  
South Africa (1.7%)                
Sovereign (1.7%)                
Eskom Holdings SOC Ltd.,                
8.45%, 8/10/28     929       794  
Republic of South Africa Government International Bond,                
4.30%, 10/12/28     2,000       1,669  
              2,463  
Sri Lanka (1.6%)                
Sovereign (1.6%)                
Sri Lanka Government International Bond,                
5.75%, 4/18/23     320       83  
6.20%, 5/11/27 (d)(e)     2,650       677  
6.83%, 7/18/26     200       53  
6.85%, 3/14/24     200       51  

  

 

 

  

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

Third Quarter Report

September 30, 2022 (unaudited)(cont’d)

(Showing Percentage of Total Value of Investments)

  

6.85%, 11/3/25 (d)(e)     2,170       585  
7.55%, 3/28/30 (d)(e)     3,140       800  
7.85%, 3/14/29     200       51  
              2,300  
Suriname (1.3%)                
Sovereign (1.3%)                
Suriname Government International Bond,                
9.25%, 10/26/26     2,326       1,844  
                 
Turkey (2.5%)                
Corporate Bonds (1.3%)                
Limak Iskenderun Uluslararasi Liman Isletmeciligi AS,                
9.50%, 7/10/36     1,390       1,136  
Ulker Biskuvi Sanayi AS,                
6.95%, 10/30/25     1,080       748  
              1,884  
Sovereign (1.2%)                
Turkey Government International Bond,                
4.88%, 4/16/43     800       454  
5.75%, 3/22/24     400       388  
5.88%, 6/26/31     500       364  
6.88%, 3/17/36 (c)     700       511  
              1,717  
              3,601  
Ukraine (1.0%)                
Corporate Bond (0.1%)                
NPC Ukrenergo,                
6.88%, 11/9/28 (a)     690       135  
                 
Sovereign (0.9%)                
Ukraine Government International Bond,                
6.75%, 6/20/28   EUR 2,200       423  
6.88%, 5/21/31   $ 1,500       281  
7.75%, 9/1/25     2,310       552  
              1,256  
              1,391  
United Arab Emirates (4.9%)                
Corporate Bonds (2.2%)                
DP World Salaam,                
6.00%, 10/1/25 (f)     740       721  
Galaxy Pipeline Assets Bidco Ltd.,                
3.25%, 9/30/40 (a)     1,265       929  
Shelf Drilling Holdings Ltd.,                
8.88%, 11/15/24     1,580       1,536  
              3,186  
Sovereign (2.7%)                
Abu Dhabi Government International Bond,                
2.50%, 9/30/29 (a)     1,000       872  
3.13%, 4/16/30     1,040       942  

  

 

 

  

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

Third Quarter Report

September 30, 2022 (unaudited)(cont’d)

(Showing Percentage of Total Value of Investments)

 

Finance Department Government of Sharjah,                
4.00%, 7/28/50     2,562       1,523  
4.38%, 3/10/51     791       486  
              3,823  
              7,009  
United Kingdom (0.9%)                
Corporate Bonds (0.9%)                
Endeavour Mining PLC,                
5.00%, 10/14/26     1,034       826  
Petra Diamonds U.S. Treasury PLC,                
10.50%, 3/8/26     417       422  
              1,248  
United States (0.3%)                
Corporate Bond (0.3%)                
Mercury Chile Holdco LLC,                
6.50%, 1/24/27     460       402  
                 
Uruguay (0.9%)                
Sovereign (0.9%)                
Uruguay Government International Bond,                
5.10%, 6/18/50     1,385       1,272  
                 
Uzbekistan (0.9%)                
Sovereign (0.9%)                
Republic of Uzbekistan International Bond,                
3.70%, 11/25/30 (a)     550       395  
3.90%, 10/19/31     1,230       866  
              1,261  
Venezuela (0.3%)                
Sovereign (0.3%)                
Petroleos de Venezuela SA,                
6.00%, 11/15/26 (d)(e)     15,570       370  
                 
Vietnam (1.3%)                
Sovereign (1.3%)                
Vietnam Government International Bond,                
4.80%, 11/19/24     1,900       1,883  
                 
Zambia (1.4%)                
Sovereign (1.4%)                
Zambia Government International Bond,                
5.38%, 9/20/22     1,961       927  
8.50%, 4/14/24     433       210  
8.97%, 7/30/27     1,850       885  
              2,022  
TOTAL FIXED INCOME SECURITIES (Cost $190,544)             135,138  

  

 

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

Third Quarter Report

September 30, 2022 (unaudited)(cont’d)

(Showing Percentage of Total Value of Investments)

  

    No. of
Warrants		          
WARRANTS (0.0%) (g)                
Venezuela ((0.0%) (g)                
Venezuela Government International Bond, Oil-Linked Payment Obligation, expires 4/15/20 (h) (Cost $—)     5,450       27  
               
    Shares          
SHORT-TERM INVESTMENTS (4.9%)                
Securities held as Collateral on Loaned Securities (0.1%)                
Investment Company (0.1%)                
Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class (i)     67,106       67  
                 
    Face
Amount
(000)		          
Repurchase Agreements (0.0%) (g)                
HSBC Securities USA, Inc., (2.97%, dated 9/30/22, due 10/3/22; proceeds $10; fully collateralized by a U.S. Government obligation; 0.00% due 7/13/23; valued at $10)   $ 9       9  
Merrill Lynch & Co., Inc., (2.95%, dated 9/30/22, due 10/3/22; proceeds $3; fully collateralized by a U.S. Government obligation; 1.88% due 2/28/27; valued at $3)     3       3  
              12  
TOTAL SECURITIES HELD AS COLLATERAL ON LOANED SECURITIES (Cost $79)             79  
               
    Shares          
Investment Company (4.8%)                
Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class (i) (Cost $6,784)     6,784,185       6,784  
TOTAL SHORT-TERM INVESTMENTS (Cost $6,863)             6,863  
TOTAL INVESTMENTS (100.0%) (Cost $197,407) Including $1,336 of Securities Loaned (j)(k)(l)             142,028  
OTHER ASSETS IN EXCESS OF LIABILITIES             801  
NET ASSETS           $ 142,829  

  

Country assignments and aggregations are based generally on third party vendor classifications and information, and may be different from the assignments and aggregations under the policies set forth in the Fund's prospectus and/or statement of additional information relating to geographic classifications.

 

(a) 144A security — Certain conditions for public sale may exist. Unless otherwise noted, these securities are deemed to be liquid.
(b) Multi-step — Coupon rate changes in predetermined increments to maturity. Rate disclosed is as of September 30, 2022. Maturity date disclosed is the ultimate maturity date.

  

 

 

  

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

Third Quarter Report

September 30, 2022 (unaudited)(cont’d)

(Showing Percentage of Total Value of Investments)

   

(c) All or a portion of this security was on loan. The value of loaned securities and related collateral outstanding at September 30, 2022, were approximately $1,336,000 and $1,361,000, respectively. The Fund received cash collateral of approximately $81,000, of which approximately $79,000 was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class as reported in the Portfolio of Investments. At September 30, 2022, there was uninvested cash collateral of approximately $2,000, which is not reflected in the Portfolio of Investments. The remaining collateral of approximately $1,280 was received in the form of U.S. Government obligations, which the Fund cannot sell or re-pledge and accordingly are not reflected in the Portfolio of Investments.  The Fund has the right under the securities lending agreement to recover the securities from the borrower on demand.
(d) Issuer in bankruptcy.
(e) Non-income producing security; bond in default.
(f) Perpetual — One or more securities do not have a predetermined maturity date. Rates for these securities are fixed for a period of time, after which they revert to a floating rate. Interest rates in effect are as of September 30, 2022.
(g) Amount is less than 0.05%.
(h) Perpetual maturity date. Date disclosed is the last expiration date.
(i) The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the nine months ended September 30, 2022, advisory fees paid were reduced by approximately $6,000 relating to the Fund's investment in the Liquidity Funds.
(j) The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley Funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the nine months ended September 30, 2022, the Fund did not engage in any cross-trade transactions.
(k) Securities are available for collateral in connection with purchase of open foreign currency forward exchange contracts and futures contracts.
(l) At September 30, 2022, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $1,715,000 and the aggregate gross unrealized depreciation is approximately $57,688,000, resulting in net unrealized depreciation of approximately $55,973,000.

  

 

 

  

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

Third Quarter Report

September 30, 2022 (unaudited)(cont’d)

(Showing Percentage of Total Value of Investments)

 

Foreign Currency Forward Exchange Contracts:

 

The Fund had the following foreign currency forward exchange contracts open at September 30, 2022:  

 

Counterparty   Contracts
to
Deliver
(000)		   In
Exchange
For
(000)		   Delivery
Date		   Unrealized
Appreciation
(Depreciation)
(000)		  
Bank of America NA   EUR 562   $ 556   10/7/22   $ 5  
Citibank NA   EUR 7,650   $ 7,798   10/7/22     299  
Citibank NA   EUR 155   $ 151   10/7/22     (1 )
HSBC Bank PLC   EUR 175   $ 173   10/7/22     1  
JPMorgan Chase Bank NA   $ 957   EUR 1,000   10/7/22     23  
State Street Bank and Trust Co.   EUR 221   $ 215   10/7/22     (2 )
State Street Bank and Trust Co.   EUR 75   $ 72   10/7/22     (1 )
State Street Bank and Trust Co.   EUR 688   $ 667   10/7/22     (8 )
State Street Bank and Trust Co.   EUR 692   $ 671   10/7/22     (7 )
State Street Bank and Trust Co.   EUR 228   $ 223   10/7/22     (1 )
                      308  

   

 

 

  

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

Third Quarter Report

September 30, 2022 (unaudited)(cont’d)

(Showing Percentage of Total Value of Investments)

  

Futures Contracts:

 

The Fund had the following futures contracts open at September 30, 2022:

  

    Number
of
Contracts		   Expiration
Date		   Notional
Amount
(000)		   Value
(000)		   Unrealized
Appreciation
(Depreciation)
(000)		  
Long:                      
U.S. Treasury 10 yr. Ultra Note (United States)   35   Dec-22   $ 3,500     4,147     (219 )
U.S. Treasury 2 yr. Note (United States)   10   Dec-22     2,000     2,054     (32 )
U.S. Treasury 5 yr. Note (United States)   124   Dec-22     12,400     13,331     (456 )
U.S. Treasury Long Bond (United States)   8   Dec-22     800     1,011     (76 )
U.S. Treasury Ultra Bond (United States)   50   Dec-22     5,000     6,850     (534 )
Short:                            
Euro-Buxl 30yr. Bond (Germany)   1   Dec-22   EUR (100 ) $ (144 ) $ 8  
U.S. Treasury 10 yr. Note (United States)   33   Dec-22   $ (3,300 )   (3,698 )   174  
German Euro-BOBL Index (Germany)   35   Dec-22   EUR (3,500 )   (4,108 )   67  
German Euro-Bund Index (Germany)   29   Dec-22     (2,900 )   (3,936 )   155  
U.S. Treasury 5 yr. Note (United States)   3   Dec-22   $ (300 )   (322 )   11  
                        $ (902 )

  

EUR –    Euro

  

 

 

 

Portfolio Composition*

 

Classification   Percentage of
Total Investments		  
Sovereign     77.9 %
Corporate Bonds     17.3  
Other**     4.8  
Total Investments     100.0 %***

 

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of September 30, 2022.
** Industries and/or investment types representing less than 5% of total investments.
*** Does not include open long/short futures contracts with a value of approximately $39,601,000 and net unrealized depreciation of approximately $902,000. Does not include open foreign currency forward exchange contracts with net unrealized appreciation of approximately $308,000.

  

 

 

   

Morgan Stanley Emerging Markets Debt Fund, Inc.

 

Notes to the Portfolio of Investments ■ September 30, 2022 (unaudited)

 

On February 24, 2022, Russia launched a large-scale invasion of Ukraine significantly amplifying already existing geopolitical tensions.  In response to the invasion, many countries, including the U.S., have imposed economic sanctions on Russian governmental institutions, Russian entities, and Russian individuals, which have had a negative impact on the Russian economy, on the Russian currency, and on the investments having exposure to Russia, Ukraine, and other combatants, including Belarus.  Russia in turn has imposed its own restrictions against investors and countries outside Russia and has proposed additional measures aimed at non-Russian-owned businesses. Businesses in the U.S. and globally have experienced shortages in materials and increased costs for transportation, energy and raw materials due, in part, to the negative effects of the war on the global economy. The escalation or continuation of the war between Russia and Ukraine or other hostilities presents heightened risks relating to cyber-attacks, the frequency and volume of failures to settle securities transactions, supply chain disruptions, inflation, as well as the potential for increased volatility in commodity, currency and other financial markets. The current events have had, and could continue to have, an adverse effect on global markets performance and liquidity, thereby negatively affecting the value of the Fund’s investments beyond any direct exposure to Russian or Ukrainian issuers, markets or economies. The duration and extent of the economic impacts resulting from the military conflict with Russia and the related sanctions is uncertain at this time.

  

Security Valuation: (1) Bonds and other fixed income securities may be valued according to the broadest and most representative market. In addition, bonds and other fixed income securities may be valued on the basis of prices provided by a pricing service/vendor. The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. If Morgan Stanley Investment Management Inc. (the “Adviser”) determines that the price provided by the outside pricing service/vendor or exchange does not reflect the security’s fair value or is unable to provide a price, prices from brokers/dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers/dealers; (2) an equity portfolio security listed or traded on an exchange is valued at its latest reported sales price (or at the exchange official closing price if such exchange reports an official closing price), and if there were no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant exchanges. If only bid prices are available then the latest bid price may be used. Listed equity securities not traded on the valuation date with no reported bid and asked prices available on the exchange are valued at the mean between the current bid and asked prices obtained from one or more reputable brokers/dealers. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (3) when market quotations are not readily available, including circumstances under which the Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security’s market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange (“NYSE”). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (4) futures are valued at the settlement price on the exchange on which they trade or, if a settlement price is unavailable, at the last sale price on the exchange; (5) foreign exchange transactions ("spot contracts") and foreign exchange forward contracts ("forward contracts") are valued daily using an independent pricing vendor at the spot and forward rates, respectively, as of the close of the NYSE; and (6) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value as of the close of each business day.

  

 

 

 

In connection with Rule 2a-5 of the Act, which became effective September 8, 2022, the Directors have designated the Fund's Adviser as its valuation designee. The valuation designee has responsibility for determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Fund's Adviser, as valuation designee, has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the Fund’s valuation policies and procedures, which are reviewed at least annually by the Directors. These procedures allow the Fund to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

 

Fair Value Measurement: Financial Accounting Standards Board (“FASB”) Accounting Standards CodificationTM ("ASC") 820, "Fair Value Measurement" (“ASC 820”), defines fair value as the price that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in valuing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in valuing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund's investments. The inputs are summarized in the three broad levels listed below:

 

• Level 1 – unadjusted quoted prices in active markets for identical investments

 

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

 

• Level 3 – significant unobservable inputs including the Fund’s own assumptions in determining the fair value of investments. Factors considered in making this  determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer's financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances.

 

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and the determination of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each security.

 

The following is a summary of the inputs used to value the Fund's investments as of September 30, 2022:

 

Investment Type   Level 1
Unadjusted
quoted
prices
(000)		     Level 2
Other
significant
observable
inputs
(000)		     Level 3
Significant
unobservable
inputs
(000)		     Total
(000)		  
Assets:                        
Fixed Income Securities                                
Corporate Bonds   $ —     $ 24,497     $ —     $ 24,497  
Sovereign     —       110,641       —       110,641  
Total Fixed Income Securities     —       135,138       —       135,138  
Warrants     —       27       —       27  
Short-Term Investments                                
Investment Company     6,851       —       —       6,851  
Repurchase Agreements     —       12       —       12  
Total Short-Term Investments     6,851       12       —       6,863  
Foreign Currency Forward Exchange Contracts     —       328       —       328  
Futures Contracts     415       —       —       415  
Total Assets     7,266       135,505       —       142,771  
Liabilities:                                
Foreign Currency Forward Exchange Contracts     —       (20 )     —       (20 )
Futures Contracts     (1,317 )     —       —       (1,317 )
Total Liabilities     (1,317 )     (20 )     —       (1,337 )
Total   $ 5,949     $ 135,485     $ —     $ 141,434  

  

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes.