NPORT-EX 2 NPORT_MGGA_55723522_0323.htm

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

First Quarter Report

March 31, 2023 (unaudited)

(Showing Percentage of Total Value of Investments)

 

    Face
Amount
(000)		     Value
(000)		  
FIXED INCOME SECURITIES (96.2%)                
Albania (0.2%)                
Sovereign (0.2%)                
Albania Government International Bond,                
3.50%, 10/9/25   EUR 324     $ 332  
                 
Argentina (1.1%)                
Sovereign (0.7%)                
Provincia de Cordoba,                
6.88%, 12/10/25   $ 1,293       1,103  
                 
Sovereign (0.4%)                
Argentine Republic Government International Bond,                
3.50%, 7/9/41 (a)     1,720       490  
Province of Salta Argentina,                
8.50%, 12/1/27     152       125  
              615  
              1,718  
Armenia (0.4%)                
Corporate Bond (0.4%)                
Ardshinbank CJSC Via Dilijan Finance BV,                
6.50%, 1/28/25     670       653  
                 
Azerbaijan (0.5%)                
Sovereign (0.5%)                
Republic of Azerbaijan International Bond,                
3.50%, 9/1/32     808       691  
                 
Bahrain (1.5%)                
Sovereign (1.5%)                
Bahrain Government International Bond,                
5.45%, 9/16/32     1,720       1,539  
5.63%, 5/18/34     340       298  
7.50%, 9/20/47     420       381  
              2,218  
Barbados (1.4%)                
Sovereign (1.4%)                
Barbados Government International Bond,                
6.50%, 10/1/29     2,210       2,063  
                 
Benin (2.0%)                
Sovereign (2.0%)                
Benin Government International Bond,                
4.88%, 1/19/32     400       328  
4.95%, 1/22/35     2,345       1,756  
6.88%, 1/19/52     1,207       911  
              2,995  

 

 

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

First Quarter Report

March 31, 2023 (unaudited)(cont’d)

(Showing Percentage of Total Value of Investments)

 

Bolivia (0.1%)          
Sovereign (0.1%)          
Bolivian Government International Bond,          
5.95%, 8/22/23  $207    176 
           
Brazil (4.1%)          
Corporate Bonds (3.3%)          
Coruripe Netherlands BV,          
10.00%, 2/10/27   1,230    867 
Gol Finance SA,          
8.00%, 6/30/26   1,000    503 
Guara Norte Sarl,          
5.20%, 6/15/34   911    785 
Hidrovias International Finance Sarl,          
4.95%, 2/8/31   1,000    706 
MC Brazil Downstream Trading Sarl,          
7.25%, 6/30/31   957    753 
MV24 Capital BV,          
6.75%, 6/1/34   862    795 
Natura &Co Luxembourg Holdings Sarl,          
6.00%, 4/19/29 (b)   500    434 
Suzano Austria GmbH,          
3.75%, 1/15/31   225    196 
         5,039 
Sovereign (0.8%)          
Brazilian Government International Bond,          
3.88%, 6/12/30   590    530 
5.00%, 1/27/45   800    630 
         1,160 
         6,199 
Burkina Faso (0.7%)          
Corporate Bond (0.7%)          
Endeavour Mining PLC,          
5.00%, 10/14/26   1,280    1,077 
           
Chile (2.7%)          
Corporate Bonds (2.1%)          
AES Andes SA,          
7.13%, 3/26/79   459    439 
Latam Airlines Group SA,          
13.38%, 10/15/27 (b)   720    749 
Liberty Latin America Ltd.,          
2.00%, 7/15/24   1,208    1,118 
VTR Comunicaciones SpA,          
4.38%, 4/15/29   622    378 
5.13%, 1/15/28   808    500 
         3,184 

 

 

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

First Quarter Report

March 31, 2023 (unaudited)(cont’d)

(Showing Percentage of Total Value of Investments)

 

Sovereign (0.6%)          
Chile Government International Bond,          
2.45%, 1/31/31   800    692 
3.50%, 1/25/50   300    225 
         917 
         4,101 
China (2.7%)          
Corporate Bonds (1.0%)          
KWG Group Holdings Ltd.,          
7.88%, 8/30/24   430    151 
Meituan,          
0.00%, 4/27/27   900    789 
Shimao Group Holdings Ltd.,          
5.60%, 7/15/26   970    143 
Sunac China Holdings Ltd.,          
8.35%, 4/19/23 (c)(d)   1,080    262 
Times China Holdings Ltd.,          
5.55%, 6/4/24 (c)(d)   480    77 
6.75%, 7/16/23 (c)(d)   410    63 
         1,485 
Sovereign (1.7%)          
Sinopec Group Overseas Development 2012 Ltd.,          
4.88%, 5/17/42   970    946 
Sinopec Group Overseas Development 2018 Ltd.,          
2.95%, 11/12/29 (b)   1,770    1,619 
         2,565 
         4,050 
Colombia (0.8%)          
Corporate Bonds (0.8%)          
Aris Mining Corp.,          
6.88%, 8/9/26   900    737 
Canacol Energy Ltd.,          
5.75%, 11/24/28   627    507 
         1,244 
Costa Rica (0.4%)          
Corporate Bond (0.4%)          
Liberty Costa Rica Senior Secured Finance,          
10.88%, 1/15/31 (b)   630    593 
           
Dominican Republic (1.9%)          
Sovereign (1.9%)          
Dominican Republic International Bond,          
4.88%, 9/23/32 (b)   400    341 
4.88%, 9/23/32   500    426 
5.88%, 1/30/60   800    614 
6.85%, 1/27/45 (b)   900    807 
7.45%, 4/30/44 (b)   800    772 
         2,960 

 

 

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

First Quarter Report

March 31, 2023 (unaudited)(cont’d)

(Showing Percentage of Total Value of Investments)

 

Ecuador (0.6%)          
Sovereign (0.6%)          
Ecuador Government International Bond,          
1.50%, 7/31/40 (a)   522    158 
2.50%, 7/31/35 (a)(b)   500    169 
2.50%, 7/31/35 (a)   550    185 
5.50%, 7/31/30 (a)(b)   600    282 
5.50%, 7/31/30 (a)   200    94 
         888 
Egypt (2.9%)          
Sovereign (2.9%)          
Egypt Government International Bond,          
4.75%, 4/16/26   480    385 
5.75%, 5/29/24   850    772 
6.38%, 4/11/31 (b)   800    521 
6.88%, 4/30/40   121    67 
7.50%, 2/16/61 (b)   1,030    560 
7.90%, 2/21/48 (b)   490    273 
8.15%, 11/20/59 (b)   2,000    1,119 
8.88%, 5/29/50 (b)   430    255 
8.88%, 5/29/50   390    231 
Egyptian Financial Co. for Sovereign Taskeek,          
10.88%, 2/28/26 (b)   201    185 
         4,368 
El Salvador (0.5%)          
Sovereign (0.5%)          
El Salvador Government International Bond,          
5.88%, 1/30/25   138    108 
6.38%, 1/18/27   1,207    680 
         788 
Ethiopia (0.9%)          
Sovereign (0.9%)          
Ethiopia International Bond,          
6.63%, 12/11/24   2,030    1,431 
           
Gabon (0.2%)          
Sovereign (0.2%)          
Gabon Government International Bond,          
6.95%, 6/16/25 (b)   400    373 
           
Georgia (0.3%)          
Corporate Bond (0.3%)          
TBC Bank JSC,          
10.78%, 10/3/24   540    513 

 

 

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

First Quarter Report

March 31, 2023 (unaudited)(cont’d)

(Showing Percentage of Total Value of Investments)

 

Ghana (1.6%)          
Corporate Bonds (1.2%)          
Puma International Financing SA,          
5.13%, 10/6/24   1,150    1,098 
Tullow Oil PLC,          
10.25%, 5/15/26   910    702 
         1,800 
Sovereign (0.4%)          
Ghana Government International Bond,          
8.63%, 6/16/49   1,800    606 
         2,406 
Guatemala (0.8%)          
Sovereign (0.8%)          
Guatemala Government Bond,          
3.70%, 10/7/33   600    503 
4.65%, 10/7/41 (b)   400    329 
6.13%, 6/1/50 (b)   380    361 
         1,193 
Honduras (1.3%)          
Sovereign (1.3%)          
Honduras Government International Bond,          
5.63%, 6/24/30   635    504 
6.25%, 1/19/27   1,602    1,433 
         1,937 
Hungary (2.2%)          
Corporate Bond (0.5%)          
OTP Bank Nyrt,          
8.75%, 5/15/33   810    775 
           
Sovereign (1.7%)          
Hungary Government International Bond,          
5.38%, 3/25/24   208    208 
6.25%, 9/22/32 (b)   1,770    1,809 
7.63%, 3/29/41   454    512 
         2,529 
         3,304 
India (1.9%)          
Corporate Bonds (1.0%)          
JSW Infrastructure Ltd.,          
4.95%, 1/21/29   1,130    954 
Vedanta Resources Finance II PLC,          
13.88%, 1/21/24   800    641 
         1,595 

 

 

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

First Quarter Report

March 31, 2023 (unaudited)(cont’d)

(Showing Percentage of Total Value of Investments)

 

Sovereign (0.9%)          
Export-Import Bank of India,          
3.25%, 1/15/30   600    528 
5.50%, 1/18/33 (b)   790    790 
         1,318 
         2,913 
Indonesia (4.6%)          
Corporate Bonds (1.2%)          
Alam Sutera Realty Tbk PT,          
6.50% Cash, 4.50% PIK, 11/2/25 (e)   1,030    866 
Minejesa Capital BV,          
4.63%, 8/10/30   1,113    983 
         1,849 
Sovereign (3.4%)          
Indonesia Government International Bond,          
3.85%, 7/18/27   450    439 
4.65%, 9/20/32   2,530    2,525 
5.13%, 1/15/45 (b)   800    788 
Pertamina Persero PT,          
4.30%, 5/20/23   1,500    1,496 
         5,248 
         7,097 
Iraq (1.9%)          
Sovereign (1.9%)          
Iraq International Bond,          
5.80%, 1/15/28   3,125    2,922 
           
Ivory Coast (0.5%)          
Sovereign (0.5%)          
Ivory Coast Government International Bond,          
4.88%, 1/30/32   700    580 
6.63%, 3/22/48   200    151 
         731 
Jamaica (0.8%)          
Corporate Bond (0.8%)          
Digicel International Finance Ltd./Digicel international Holdings Ltd.,          
8.75%, 5/25/24  $1,300    1,170 
           
Jordan (1.1%)          
Sovereign (1.1%)          
Jordan Government International Bond,          
7.38%, 10/10/47 (b)   950    805 
7.75%, 1/15/28   800    814 
         1,619 
Kazakhstan (0.8%)          
Sovereign (0.8%)          
Kazakhstan Government International Bond,          
6.50%, 7/21/45   1,100    1,149 

 

 

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

First Quarter Report

March 31, 2023 (unaudited)(cont’d)

(Showing Percentage of Total Value of Investments)

 

Kenya (2.4%)          
Sovereign (2.4%)          
Kenya Government International Bond,          
7.25%, 2/28/28   1,224    1,007 
8.00%, 5/22/32 (b)   370    301 
Republic of Kenya Government International Bond,          
6.30%, 1/23/34   423    300 
7.00%, 5/22/27   413    351 
8.00%, 5/22/32   2,130    1,735 
         3,694 
Kuwait (0.5%)          
Sovereign (0.5%)          
Kuwait International Government Bond,          
3.50%, 3/20/27   720    707 
           
Lebanon (0.2%)          
Sovereign (0.2%)          
Lebanon Government International Bond,           
6.85%, 3/23/27 – 5/25/29 (c)(d)   3,490    232 
           
Macedonia (2.6%)          
Sovereign (2.6%)          
North Macedonia Government International Bond,          
1.63%, 3/10/28   1,921    1,657 
6.96%, 3/13/27   2,092    2,282 
         3,939 
Mexico (9.5%)          
Corporate Bonds (3.1%)          
Banco Mercantil del Norte SA,          
8.38%, 10/14/30 (f)  $254    236 
BBVA Bancomer SA,          
5.13%, 1/18/33   474    406 
Braskem Idesa SAPI,          
6.99%, 2/20/32   660    499 
7.45%, 11/15/29   1,159    932 
Cemex SAB de CV,          
5.13%, 12/31/99 (f)   1,220    1,093 
9.13%, 12/31/99 (b)   710    712 
Total Play Telecomunicaciones SA de CV,          
7.50%, 11/12/25   1,449    868 
         4,746 
Sovereign (6.4%)          
Mexico Government International Bond,          
5.00%, 4/27/51   549    472 
Petroleos Mexicanos,          
4.25%, 1/15/25   490    464 
5.35%, 2/12/28   950    805 
5.95%, 1/28/31   1,200    919 

 

 

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

First Quarter Report

March 31, 2023 (unaudited)(cont’d)

(Showing Percentage of Total Value of Investments)

 

6.35%, 2/12/48   1,200    739 
6.50%, 3/13/27 – 1/23/29   1,810    1,602 
6.70%, 2/16/32   2,032    1,619 
6.88%, 10/16/25 – 8/4/26   960    930 
6.95%, 1/28/60   500    324 
7.69%, 1/23/50   1,800    1,272 
10.00%, 2/7/33 (b)   587    563 
         9,709 
         14,455 
Moldova (0.5%)          
Corporate Bond (0.5%)          
Aragvi Finance International DAC,          
8.45%, 4/29/26   1,090    765 
           
Mongolia (0.2%)          
Sovereign (0.2%)          
Mongolia Government International Bond,          
5.13%, 4/7/26 (b)   310    275 
           
Morocco (0.4%)          
Sovereign (0.4%)          
Morocco Government International Bond,          
4.00%, 12/15/50 (b)   820    561 
           
Mozambique (0.4%)          
Sovereign (0.4%)          
Mozambique International Bond,          
5.00%, 9/15/31 (a)   856    619 
           
Nigeria (1.8%)          
Corporate Bonds (1.1%)          
IHS Netherlands Holdco BV,          
8.00%, 9/18/27 (b)   1,100    978 
SEPLAT Energy PLC,          
7.75%, 4/1/26   880    692 
         1,670 
Sovereign (0.7%)          
Nigeria Government International Bond,          
6.38%, 7/12/23   530    527 
6.50%, 11/28/27 (b)   620    507 
         1,034 
         2,704 
Oman (2.3%)          
Sovereign (2.3%)          
Oman Government International Bond,          
6.25%, 1/25/31 (b)   1,500    1,530 
6.25%, 1/25/31   1,530    1,561 
6.75%, 1/17/48   500    474 
         3,565 

 

 

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

First Quarter Report

March 31, 2023 (unaudited)(cont’d)

(Showing Percentage of Total Value of Investments)

 

Pakistan (0.2%)          
Sovereign (0.2%)          
Pakistan Government International Bond,          
7.38%, 4/8/31   325    117 
8.88%, 4/8/51   600    208 
         325 
Panama (1.9%)          
Corporate Bonds (0.6%)          
AES Panama Generation Holdings SRL,          
4.38%, 5/31/30 (b)   500    431 
Multibank, Inc.,          
7.75%, 2/3/28 (b)   546    547 
         978 
Sovereign (1.3%)          
Panama Government International Bond,          
2.25%, 9/29/32   1,580    1,215 
3.87%, 7/23/60   550    362 
4.50%, 4/1/56   610    455 
         2,032 
         3,010 
Paraguay (1.3%)          
Corporate Bond (0.7%)          
Frigorifico Concepcion SA,          
7.70%, 7/21/28   1,530    1,103 
           
Sovereign (0.6%)          
Paraguay Government International Bond,          
3.85%, 6/28/33   300    265 
5.40%, 3/30/50 (b)   700    605 
         870 
         1,973 
Peru (2.1%)          
Corporate Bonds (1.3%)          
Auna SAA,          
6.50%, 11/20/25   1,840    1,508 
Peru LNG Srl,          
5.38%, 3/22/30   576    461 
         1,969 
Sovereign (0.8%)          
Peruvian Government International Bond,          
2.78%, 1/23/31   400    343 
3.55%, 3/10/51   200    147 
6.55%, 3/14/37   600    654 
         1,144 
         3,113 

 

 

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

First Quarter Report

March 31, 2023 (unaudited)(cont’d)

(Showing Percentage of Total Value of Investments)

 

Romania (4.7%)          
Sovereign (4.7%)          
Romanian Government International Bond,          
1.75%, 7/13/30 (b)   420    336 
1.75%, 7/13/30   131    105 
2.00%, 4/14/33   420    312 
2.12%, 7/16/31   593    468 
2.13%, 3/7/28   632    586 
3.00%, 2/27/27 (b)   866    790 
3.75%, 2/7/34 (b)   830    705 
4.00%, 2/14/51   1,100    771 
5.00%, 9/27/26   672    729 
6.13%, 1/22/44   800    767 
6.63%, 9/27/29   1,395    1,549 
         7,118 
Senegal (0.2%)          
Sovereign (0.2%)          
Senegal Government International Bond,          
6.25%, 5/23/33  $400    319 
           
Serbia (2.2%)          
Sovereign (2.2%)          
Serbia International Bond,          
1.50%, 6/26/29   1,240    1,030 
2.05%, 9/23/36   432    284 
2.13%, 12/1/30 (b)   400    305 
2.13%, 12/1/30   1,000    761 
6.25%, 5/26/28   312    316 
6.50%, 9/26/33   637    634 
         3,330 
South Africa (1.0%)          
Corporate Bonds (1.0%)          
Petra Diamonds U.S. Treasury PLC,          
6.07% Cash, 3.96 % PIK, 3/8/26 (e)   439    424 
Sasol Financing USA LLC,          
5.50%, 3/18/31   1,270    1,063 
         1,487 
Sri Lanka (2.6%)          
Sovereign (2.6%)          
Sri Lanka Government International Bond,          
5.75%, 4/18/23 (c)(d)   320    108 
6.20%, 5/11/27 (c)(d)   2,850    1,027 
6.35%, 6/28/24 (c)(d)   200    73 
6.75%, 4/18/28 (c)(d)   400    144 
6.83%, 7/18/26 (c)(d)   200    74 

 

 

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

First Quarter Report

March 31, 2023 (unaudited)(cont’d)

(Showing Percentage of Total Value of Investments)

 

6.85%, 3/14/24 – 11/3/25 (c)(d)   2,770    1,024 
7.55%, 3/28/30 (c)(d)   3,340    1,202 
7.85%, 3/14/29 (c)(d)   1,000    360 
         4,012 
Suriname (3.1%)          
Sovereign (3.1%)          
Suriname Government International Bond,          
9.25%, 10/26/26 (c)(d)   5,314    3,868 
12.88%, 12/30/23 (b)(c)(d)   1,236    921 
         4,789 
Tanzania, United Republic of (0.6%)          
Corporate Bond (0.6%)          
HTA Group Ltd.,          
7.00%, 12/18/25   900    856 
           
Turkey (1.4%)          
Corporate Bonds (1.4%)          
Limak Iskenderun Uluslararasi Liman Isletmeciligi AS,          
9.50%, 7/10/36   1,390    1,162 
Ulker Biskuvi Sanayi AS,          
6.95%, 10/30/25   1,080    943 
         2,105 
Ukraine (1.2%)          
Corporate Bonds (0.2%)          
Kernel Holding SA,          
6.50%, 10/17/24   200    128 
6.75%, 10/27/27   219    128 
NPC Ukrenergo,          
6.88%, 11/9/28 (b)(c)(d)   690    119 
         375 
Sovereign (1.0%)          
Ukraine Government International Bond,          
6.75%, 6/20/28 (c)(d)   2,200    409 
6.88%, 5/21/31 (c)(d)   1,500    272 
7.75%, 9/1/25 (c)(d)   2,310    466 
Series GDP          
0.00%, 8/1/41 (c)(d)   1,570    423 
         1,570 
         1,945 
United Arab Emirates (4.5%)          
Corporate Bond (0.5%)          
Shelf Drilling Holdings Ltd.,          
8.88%, 11/15/24   773    768 
           
Sovereign (4.0%)          
Finance Department Government of Sharjah,          
4.00%, 7/28/50   2,562    1,628 
4.38%, 3/10/51   2,923    1,993 
6.50%, 11/23/32 (b)   2,350    2,400 
         6,021 
         6,789 

 

 

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

First Quarter Report

March 31, 2023 (unaudited)(cont’d)

(Showing Percentage of Total Value of Investments)

 

Uzbekistan (1.5%)          
Corporate Bonds (0.3%)          
Ipoteka-Bank ATIB,          
5.50%, 11/19/25   230    211 
Uzbek Industrial and Construction Bank ATB,          
5.75%, 12/2/24   249    231 
         442 
Sovereign (1.2%)          
Republic of Uzbekistan International Bond,          
3.70%, 11/25/30 (b)   301    242 
3.90%, 10/19/31   1,000    805 
5.38%, 2/20/29   900    826 
         1,873 
         2,315 
Venezuela (0.4%)          
Sovereign (0.4%)          
Petroleos de Venezuela SA,          
6.00%, 11/15/26 (c)(d)   15,570    681 
           
Vietnam (1.9%)          
Corporate Bond (0.7%)          
Mong Duong Finance Holdings BV,          
5.13%, 5/7/29   1,269    1,078 
           
Sovereign (1.2%)          
Vietnam Government International Bond,          
4.80%, 11/19/24   1,900    1,862 
         2,940 
Zambia (1.2%)          
Sovereign (1.2%)          
Zambia Government International Bond,          
5.38%, 9/20/22 (c)(d)   1,200    510 
8.50%, 4/14/24 (c)(d)   429    196 
8.50%, 4/14/24 (c)(d)   635    290 
8.97%, 7/30/27 (c)(d)   1,850    826 
         1,822 
TOTAL FIXED INCOME SECURITIES (COST $179,294)        146,317 

 

 

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

First Quarter Report

March 31, 2023 (unaudited)(cont’d)

(Showing Percentage of Total Value of Investments)

 

   No. of
Warrants		     
WARRANT (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 (3.8%)          
Investment Company (3.7%)          
Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class (i) (Cost $5,578)   5,577,654    5,578 

 

   Face
Amount
(000)		     
U.S. Treasury Security  (0.1%)        
U.S. Treasury Bill, 4.47% 11/30/23 (j) (Cost $170)  $175,000    170 
TOTAL SHORT-TERM INVESTMENTS (COST $5,748)        5,748 
TOTAL INVESTMENTS (100.0%) (COST $185,042) (k)(l)(m)        152,092 
OTHER ASSETS IN EXCESS OF LIABILITIES        266 
NET ASSETS       $152,358 

 

(a)Multi-step — Coupon rate changes in predetermined increments to maturity. Rate disclosed is as of March 31, 2023. Maturity date disclosed is the ultimate maturity date.
(b)144A security — Certain conditions for public sale may exist. Unless otherwise noted, these securities are deemed to be liquid.
(c)Non-income producing security; bond in default.
(d)Issuer in bankruptcy.
(e)Income may be paid in additional securities and/or cash at the discretion of the issuer.
(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 March 31, 2023.
(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 three months ended March 31, 2023, advisory fees paid were reduced by approximately $5,000 relating to the Fund's investment in the Liquidity Funds.
(j)Rate shown is the yield to maturity at March 31, 2023.
(k)Securities are available for collateral in connection with an open foreign currency forward exchange contracts, futures contracts and swap agreements.
(l)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 three months ended March 31, 2023, the Fund did not engage in any cross-trade transactions.
(m)At March 31, 2023, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $3,968,000 and the aggregate gross unrealized depreciation is approximately $36,104,000, resulting in net unrealized depreciation of approximately $32,136,000.
  
PIKPayment-in-Kind.

 

 

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

First Quarter Report

March 31, 2023 (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 March 31, 2023:  

 
Counterparty  Contracts
to
Deliver
(000)		   In
Exchange
For
(000)		   Delivery
Date		  Unrealized
Appreciation
(Depreciation)
(000)		 
Citibank NA  EUR1,949   $2,083   4/14/23  $(32)
Citibank NA  $477   EUR444   4/14/23   5 
Goldman Sachs International  $81   EUR76   4/14/23   1 
JPMorgan Chase Bank NA  EUR1,159   $1,230   4/14/23   (27)
JPMorgan Chase Bank NA  EUR420   $446   4/14/23   (10)
JPMorgan Chase Bank NA  EUR329   $349   4/14/23   (8)
State Street Bank and Trust Co.  EUR2,081   $2,214   4/14/23   (44)
State Street Bank and Trust Co.  EUR96   $102   4/14/23   (2)
State Street Bank and Trust Co.  EUR9,010   $9,585   4/14/23   (192)
State Street Bank and Trust Co.  EUR1,189   $1,264   4/14/23   (25)
                $(334)

 

 

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

First Quarter Report

March 31, 2023 (unaudited)(cont’d)

(Showing Percentage of Total Value of Investments)

 

Futures Contracts:

The Fund had the following futures contracts open at March 31, 2023:  

 

   Number
of
Contracts		   Expiration
Date		  Notional
Amount
(000)		   Value
(000)		   Unrealized
Appreciation
(Depreciation)
(000)		 
Long:    
U.S. Treasury 10 yr. Ultra Note
(United States)		   123   Jun-23  $12,300   $14,900   $527 
U.S. Treasury 5 yr. Note
(United States)		   30   Jun-23   3,000    3,285    70 
U.S. Treasury Long Bond
(United States)		   28   Jun-23   2,800    3,673    167 
U.S. Treasury Ultra Bond
(United States)		   120   Jun-23   12,000    16,935    806 
                        
Short:                       
German Euro-Bobl Index (Germany)   40   Jun-23  EUR(4,000)   (5,114)   (123)
German Euro-Bund Index (Germany)   43   Jun-23   (4,300)   (6,335)   (231)
Euro-Buxl 30 yr. Bond (Germany)   2   Jun-23   (200)   (306)   (17)
U.S. Treasury 10 yr. Note
(United States)		   7   Jun-23  $(700)   (804)   (2)
U.S. Treasury 2 yr. Note
(United States)		   14   Jun-23   (2,800)   (2,890)   (36)
                    $1,161 

 

Credit Default Swap Agreements:

The Fund had the following credit default swap agreements open at March 31, 2023:  

 

Swap Counterparty and
Reference Obligation		  Credit
Rating of
Reference
Obligation†		  Buy/Sell
Protection		  Pay/Receive
Fixed Rate		   Payment
Frequency		  Maturity
Date		  Notional
Amount
(000)		   Value
(000)		   Upfront
Payment
Paid
(000)		   Unrealized 
Appreciation 
(Depreciation)
(000)		 
                                 
Goldman Sachs International                               
Vietnam Government International Bonds  NR  Buy   1.00%  Quarterly  6/20/28  $9,099   $(130)  $(152)  $22 
Morgan Stanley & Co. LLC                               
Mexico Government International Bonds  NR  Buy   1.00%  Quarterly  6/20/28   3,414    29    64    (35)
                         $101   $88   $(13)

 

 

 

 

Portfolio Composition*

 
Classification  Percentage of
Total Investments		 
Sovereign   70.3%
Corporate Bonds   25.9 
Other**   3.8 
Total Investments   100.0%***

 

*Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of March 31, 2023.
**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 $54,242,000 and net unrealized appreciation of approximately $1,161,000. Does not include open foreign currency forward exchange contracts with net unrealized depreciation of approximately $334,000. Also does not include an open swap agreement with total unrealized depreciation of approximately $13.

 

 

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

 

Notes to the Portfolio of Investments ▪ March 31, 2023 (unaudited)

 

The continued conflict between Russia and Ukraine resulted in many countries, including the U.S., imposing economic sanctions on Russian governmental institutions, Russian entities, and Russian individuals, which have had a negative impact on the Russian economy and currency, and on investments and companies economically tied to Russia and Ukraine and certain other neighboring countries. Russia in turn imposed its own restrictions against investors and countries outside Russia. 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 conflict on the global economy. The escalation or continuation of the conflict 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. This conflict 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) Fixed income securities may be valued by an outside pricing service/vendor approved by the Fund's Board of Directors (the "Directors"). 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 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, as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Fund's Board of Directors (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, 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 March 31, 2023:

 

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  $—   $39,319   $                   —   $39,319 
Sovereign   —    106,626    —    106,626 
Total Fixed Income Securities   —    145,945    —    145,945 
Warrants   —    27    —    27 
Short-Term Investments                    
Investment Company   5,578    —    —    5,578 
Sovereign   —    372    —    372 
U.S. Treasury Security   —    170    —    170 
Total Short-Term Investments   5,578    542    —    6,120 
Foreign Currency Forward Exchange Contracts   —    6    —    6 
Futures Contracts   1,570    —    —    1,570 
Credit Default Swap Agreement   —    22    —    22 
Total Assets   7,148    146,542    —    153,690 
Liabilities:                    
Foreign Currency Forward Exchange Contracts   —    (340)   —    (340)
Futures Contracts   (409)   —    —    (409)
Credit Default Swap Agreement   —    (35)   —    (35)
Total Liabilities   (409)   (375)   —    (784)
Total  $6,739   $146,167   $—   $152,906 

 

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