EDD Morgan Stanley Emerging Markets Domestic Debt Fund Inc

 

Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.

Third Quarter Report − July 31, 2024 (unaudited)

Portfolio of Investments

(Showing Percentage of Total Value of Investments)

 

		Face
		Amount				Value
		(000)				(000)
FIXED INCOME SECURITIES (94.2%)
Albania (1.2%)
Sovereign (1.2%)
Albanian Government Bond,
4.30%, 7/10/27		ALL	63,900			$	699
4.70%, 2/23/27			37,000				409
4.95%, 7/22/29			85,800				941
5.25%, 1/26/29			203,400				2,263
							4,312
Argentina (0.4%)
Sovereign (0.4%)
Bonos Para La Reconstruccion De Una Argentina Libre,
3.00%, 5/31/26		$	1,921				1,418
Armenia (3.0%)
Sovereign (3.0%)
Republic of Armenia Treasury Bond,
9.00%, 4/29/26		AMD	99,880				257
9.25%, 4/29/28			840,130				2,154
9.60%, 10/29/33			2,573,538				6,666
9.75%, 10/29/50 - 10/29/52			757,312				1,972
							11,049
Benin (1.1%)
Sovereign (1.1%)
Benin Government International Bond,
4.88%, 1/19/32		EUR	1,314				1,213
6.88%, 1/19/52			1,086				935
7.96%, 2/13/38		$	2,065				1,930
							4,078
Chile (0.7%)
Sovereign (0.7%)
Bonos de la Tesoreria de la Republica en pesos,
5.30%, 11/1/37		CLP	2,410,000				2,441
Colombia (6.8%)
Corporate Bond (0.3%)
Fideicomiso PA Costera,
6.25%, 1/15/34 (a)		COP	4,979,415				1,091
Sovereign (6.5%)
Colombian TES,
3.00%, 3/25/33			4,675,013				961
3.75%, 2/25/37			10,600,891				2,163
4.75%, 4/4/35			2,000,260				457
7.00%, 3/26/31			8,239,000				1,724
Colombian TES, Series B
5.75%, 11/3/27			24,995,000				5,561
6.00%, 4/28/28			8,982,000				1,972
6.25%, 7/9/36			4,382,700				749
7.00%, 6/30/32			15,440,600				3,118
7.75%, 9/18/30			6,916,000				1,534
9.25%, 5/28/42			1,486,900				304
Financiera de Desarrollo Territorial SA Findeter,
7.88%, 8/12/24 (a)			20,551,000				5,100
							23,643
							24,734
Dominican Republic (7.1%)
Sovereign (7.1%)
Dominican Republic Central Bank Note,
8.00%, 3/12/27 (a)		DOP	15,000				235
12.00%, 10/3/25 (a)			59,260				1,001
13.00%, 12/5/25 (a)			97,000				1,662
13.00%, 12/5/25			120,000				2,055
Dominican Republic International Bond,
8.00%, 1/15/27 - 2/12/27 (a)			114,000				1,791
11.25%, 9/15/35 (a)			60,850				1,083
11.25%, 9/15/35			200,300				3,566
12.00%, 8/8/25 (a)			262,700				4,444
12.75%, 9/23/29 (a)			357,200				6,683
13.63%, 2/3/33			160,750				3,204
							25,724
Egypt (10.8%)
Sovereign (10.8%)
Egypt Treasury Bills,
25.00%, 8/6/24		EGP	175				4
27.49%, 9/24/24			675,125				13,406
28.40%, 12/17/24			107,150				2,013
28.50%, 12/17/24			10,000				188
28.52%, 3/18/25			35,725				633
28.75%, 12/3/24			91,950				1,744

 

 

Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.

Third Quarter Report − July 31, 2024 (unaudited)

 Portfolio of Investments (cont'd) 

(Showing Percentage of Total Value of Investments)

 

		Face Amount				Value
		(000)				(000)
Sovereign (cont’d)
28.75%, 12/10/24		EGP	459,725			$	8,677
29.25%, 12/17/24			260,550			4,895
31.50%, 12/10/24			282,650			5,335
32.50%, 3/11/25			115,125			2,050
						38,945
Hungary (1.6%)
Sovereign (1.6%)
Hungary Government Bond,
2.25%, 4/20/33		HUF	438,100			891
3.00%, 10/27/27 - 4/25/41			1,172,280			2,623
3.25%, 10/22/31			687,060			1,584
4.00%, 4/28/51			139,450			263
4.50%, 5/27/32			110,380			272
						5,633
Indonesia (11.4%)
Sovereign (11.4%)
Indonesia Treasury Bond,
6.50%, 2/15/31		IDR	114,953,000			6,937
6.63%, 2/15/34			87,251,000			5,259
7.00%, 9/15/30 - 2/15/33			142,861,000			8,863
7.13%, 6/15/42 - 6/15/43			98,087,000			6,069
7.38%, 5/15/48			7,875,000			497
7.50%, 6/15/35			83,000,000			5,306
8.38%, 4/15/39			65,600,000			4,512
8.75%, 5/15/31			58,978,000			3,988
						41,431
Jordan (0.7%)
Sovereign (0.7%)
Jordan Government International Bond,
4.95%, 7/7/25		$	2,735			2,691
Kazakhstan (1.1%)
Sovereign (1.1%)
Development Bank of Kazakhstan JSC,
13.00%, 4/15/27 (a)		KZT	1,922,000			4,049
Malaysia (1.7%)
Sovereign (1.7%)
Malaysia Government Bond,
3.76%, 5/22/40		MYR	24,620			5,236
4.70%, 10/15/42			3,900			925
						6,161
Mexico (1.1%)
Sovereign (1.1%)
Mexican Bonos,
8.50%, 11/18/38		MXN	32,679			1,570
Mexico Udibonos,
4.50%, 11/22/35			12,424			629
Petroleos Mexicanos,
6.88%, 10/16/25		$	1,720			1,717
						3,916
Nigeria (4.8%)
Sovereign (4.8%)
Nigeria OMO Bill,
18.90%, 1/28/25		NGN	593,474			325
24.65%, 4/1/25			943,147			493
25.09%, 4/1/25			671,056			350
26.12%, 2/25/25			990,635			531
26.34%, 5/20/25			287,895			145
26.81%, 5/20/25			292,570			147
27.07%, 5/27/25			271,150			136
27.15%, 5/20/25			2,388,065			1,201
27.29%, 5/27/25			162,690			81
27.31%, 5/27/25			271,149			136
27.36%, 5/20/25			542,299			273
27.39%, 5/27/25			1,097,993			549
27.43%, 5/27/25			813,449			407
27.45%, 5/27/25			1,370,932			686
27.51%, 5/27/25			542,299			271
27.60%, 5/20/25			460,954			232
27.75%, 5/27/25			1,084,598			543
27.84%, 6/17/25			508,199			250
27.85%, 5/27/25			2,087,851			1,045
28.13%, 5/27/25			81,345			41
32.15%, 6/10/25			390,850			193
32.35%, 6/17/25			390,840			192

 

 

Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.

Third Quarter Report − July 31, 2024 (unaudited)

Portfolio of Investments (cont'd) 

(Showing Percentage of Total Value of Investments)

 

		Face Amount (000)				Value (000)
Sovereign (cont’d)
Nigeria Treasury Bill,
21.80%, 2/20/25		NGN	1,854,140			$	998
22.54%, 2/20/25			1,483,312			799
22.96%, 2/6/25			395,331			215
22.98%, 2/20/25			1,483,312			799
23.30%, 2/6/25			716,636			390
23.88%, 4/10/25			564,758			293
25.27%, 4/10/25			1,976,654			1,025
25.34%, 3/27/25			225,903			118
25.60%, 4/10/25			1,129,517			586
25.67%, 3/27/25			1,980,382			1,038
25.85%, 3/27/25			1,980,000			1,038
26.08%, 3/27/25			1,245,000			653
26.10%, 3/27/25			282,379			148
27.02%, 3/6/25			1,673,200			891
						17,218
Paraguay (2.2%)
Corporate Bond (0.8%)
Itau BBA International PLC,
0.00%, 2/19/30		PYG	18,493,970			2,683
Sovereign (1.4%)
Paraguay Government International Bond,
7.90%, 2/9/31 (a)			37,660,000			5,170
						7,853
Peru (4.4%)
Sovereign (4.4%)
Peru Government Bond,
5.40%, 8/12/34		PEN	34,098			8,138
6.90%, 8/12/37			18,206			4,743
7.60%, 8/12/39			10,994			3,012
						15,893
Romania (2.5%)
Sovereign (2.5%)
Romania Government Bond,
2.50%, 10/25/27		RON	9,000			1,753
4.25%, 4/28/36			8,910			1,557
4.75%, 10/11/34			25,000			4,673
8.75%, 10/30/28			3,970			941
						8,924
Serbia (4.7%)
Sovereign (4.7%)
Serbia Treasury Bonds,
4.50%, 8/20/32		RSD	869,800				7,699
7.00%, 10/26/31		926,490				9,494
						17,193
South Africa (9.6%)
Sovereign (9.6%)
Republic of South Africa Government Bond,
8.00%, 1/31/30		ZAR	168,030			8,693
8.75%, 1/31/44		106,539				4,578
8.88%, 2/28/35		162,370				7,802
9.00%, 1/31/40		304,430				13,722
						34,795
Supranational (1.6%)
Corporate Bonds (1.4%)
European Bank for Reconstruction & Development,
6.75%, 3/14/31		INR	342,000			4,051
Inter-American Development Bank,
7.35%, 10/6/30		92,000				1,124
						5,175
Sovereign (0.2%)
International Finance Corp.,
16.00%, 2/21/25		UZS	7,000,000			548
						5,723
Suriname (0.2%)
Sovereign (0.2%)
Suriname Government International Bond,
7.85%, 12/31/50 (a)(b)		$	308			271
4.95% Cash, 3.00% PIK,
7.95%, 7/15/33 (a)(c)		19				18
9.00%, 12/31/50 (a)(b)		363				320
						609
Thailand (2.4%)
Sovereign (2.4%)
Thailand Government Bond,
1.60%, 6/17/35		THB	30,700			775
1.88%, 6/17/49		50,000				1,079

 

 

Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.

Third Quarter Report − July 31, 2024 (unaudited)

Portfolio of Investments (cont'd) 

(Showing Percentage of Total Value of Investments)

 

		Face
		Amount				Value
		(000)				(000)
Sovereign (cont’d)
2.00%, 6/17/42		THB	226,000			$	5,540
3.30%, 6/17/38			50,000			1,483
						8,877
Turkey (1.2%)
Sovereign (1.2%)
Turkiye Government Bond,
17.30%, 7/19/28		TRY	52,600			1,181
26.20%, 10/5/33			30,000			894
50.00%, 5/17/28 (b)			73,301			2,200
						4,275
Uruguay (2.2%)
Sovereign (2.2%)
Uruguay Government International Bond,
3.40%, 5/16/45		UYU	35,773			879
3.88%, 7/2/40			107,165			2,796
9.75%, 7/20/33			173,337			4,340
						8,015
Uzbekistan (8.8%)
Corporate Bonds (5.2%)
European Bank for Reconstruction & Development,
17.20%, 4/9/26		$	1,700			1,713
17.35%, 3/1/27			700			693
Ipoteka-Bank ATIB,
20.50%, 4/25/27		UZS	15,590,000			1,229
Uzbek Industrial & Construction Bank ATB,
21.00%, 7/24/27			141,910,000			11,313
Uzbek Industrial & Construction Bank ATB via Daryo Finance BV,
18.75%, 6/15/25			47,679,150			3,824
						18,772
Senior Loan Interests (1.1%)
Europe Asia Investment Finance BV,
18.70%, 7/21/26			51,573,170			4,100
Sovereign (2.5%)
National Bank of Uzbekistan,
19.88%, 7/5/27			14,170,000			1,122
Republic of Uzbekistan International Bond,
16.25%, 10/12/26		UZS	55,720,000			4,518
16.63%, 5/29/27			40,000,000			3,188
						8,828
						31,700
Venezuela (0.9%)
Sovereign (0.9%)
Petroleos de Venezuela SA,
5.38%, 4/12/27 (d)(e)(f)		$	1,817			207
5.50%, 4/12/37 (d)(e)(f)			507			57
6.00%, 5/16/24 - 11/15/26 (d)(e)(f)			11,367			1,315
9.00%, 11/17/21 (d)(e)(f)			375			45
9.75%, 5/17/35 (d)(e)(f)			690			86
12.75%, 2/17/22 (d)(e)(f)			291			40
Venezuela Government International Bond,
6.00%, 12/9/49 (d)(e)(f)			322			43
7.00%, 3/31/38 (d)(e)(f)			430			63
7.65%, 4/21/25 (d)(e)(f)			607			95
7.75%, 10/13/49 (d)(e)(f)			710			103
8.25%, 10/13/24 (d)(e)(f)			1,410			220
9.00%, 5/7/23 (d)(e)(f)			307			48
9.25%, 9/15/27 - 5/7/28 (d)(e)(f)			4,610			825
9.38%, 1/13/34 (d)(e)(f)			108			21
11.75%, 10/21/26 (d)(e)(f)			366			68
11.95%, 8/5/31 (d)(e)(f)			405			74
12.75%, 8/23/22 (d)(e)(f)			237			43
						3,353
TOTAL FIXED INCOME SECURITIES (Cost $358,018)						341,010

 

  

Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.

Third Quarter Report − July 31, 2024 (unaudited)

Portfolio of Investments (cont'd) 

(Showing Percentage of Total Value of Investments)

  

		Face
		Amount				Value
		(000)				(000)
SHORT-TERM INVESTMENTS (5.7%)
U.S. Treasury Security (3.6%)
5.19%, 1/16/25 (Cost $12,962) (g)		$	13,271			$	12,967

 

			Shares
Investment Company (2.1%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class, 5.15% (h) (Cost $7,809)			7,808,964				7,809
TOTAL SHORT-TERM INVESTMENTS (Cost $20,771)							20,776
TOTAL INVESTMENTS EXCLUDING PURCHASED OPTIONS (99.9%)(Cost $378,789)							361,786
TOTAL PURCHASED OPTIONS OUTSTANDING (0.1%) (Cost $328)							284
TOTAL INVESTMENTS (100%) (Cost $379,117)(i)(j)							362,070
LIABILITIES IN EXCESS OF OTHER ASSETS							(19,084	)
NET ASSETS						$	342,986

 

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)	Floating or variable rate securities: The rates disclosed are as of July 31, 2024. For securities based on a published reference rate and spread, the reference rate and spread are indicated in the description in the Portfolio of Investments. Certain variable rate securities may not be based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description in the Portfolio of Investments.
(c)	Income may be paid in additional securities and/or cash at the discretion of the issuer.
(d)	Issuer in bankruptcy.
(e)	Non-income producing security; bond in default.
(f)	All or a portion of the security is subject to delayed delivery.
(g)	Rate shown is the yield to maturity at July 31, 2024.
(h)	The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - (the "Liquidity Fund"), an open-end management investment company managed by the Adviser. 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 Fund. For the nine months ended July 31, 2024, advisory fees paid were reduced by approximately $18,000 relating to the Fund's investment in the Liquidity Fund.
(i)	Securities are available for collateral in connection with securities purchased on a forward commitment basis, open foreign currency forward exchange contracts, futures contracts and swap agreements.
(j)	At July 31, 2024, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $22,532,000 and the aggregate gross unrealized depreciation is approximately $36,530,000, resulting in net unrealized depreciation of approximately $13,998,000.
PIK	Payment-in-Kind.

 

 

Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.

Third Quarter Report − July 31, 2024 (unaudited)

Portfolio of Investments (cont'd)

 

Foreign Currency Forward Exchange Contracts:

The Fund had the following foreign currency forward exchange contracts open at July 31, 2024:

 

					In					Unrealized
		Contracts			Exchange					Appreciation
		to Deliver			For			Delivery		(Depreciation)
Counterparty		(000)			(000)			Date		(000)
Bank of America NA		PEN	14,041		$	3,735		9/18/24		$	(21	)
Bank of America NA		PEN	27,762		$	7,385		9/18/24			(41	)
Bank of America NA		PEN	3,506		$	919		9/18/24			(19	)
Bank of America NA		TRY	31,975		$	746		2/10/25			(40	)
Bank of America NA		$	1,449		TRY	62,053		2/10/25			78
Bank of America NA		$	563		TRY	24,109		2/10/25			30
Bank of America NA		$	793		ZAR	15,070		9/18/24			31
Bank of America NA		ZAR	144,774		$	7,621		9/18/24			(299	)
Bank of America NA		ZAR	81,396		$	4,285		9/18/24			(168	)
Bank of America NA		ZAR	12,895		$	679		9/18/24			(27	)
Barclays Bank PLC		COP	4,342,600		$	1,043		9/18/24			(21	)
Barclays Bank PLC		COP	17,950,600		$	4,313		9/18/24			(89	)
Barclays Bank PLC		CZK	6,250		EUR	251		9/18/24			6
Barclays Bank PLC		EUR	1,199		HUF	479,657		8/12/24			18
Barclays Bank PLC		EUR	1,214		HUF	481,043		8/12/24			6
Barclays Bank PLC		EUR	2,580		HUF	1,012,205		8/22/24			(17	)
Barclays Bank PLC		EUR	5,256		PLN	22,754		9/18/24			37
Barclays Bank PLC		EUR	23,786		PLN	102,973		9/18/24			166
Barclays Bank PLC		IDR	11,785,000		$	716		9/18/24			(8	)
Barclays Bank PLC		IDR	60,000,000		$	3,676		9/18/24			(9	)
Barclays Bank PLC		IDR	110,000,000		$	6,739		9/18/24			(16	)
Barclays Bank PLC		MXN	89,400		$	4,836		9/18/24			72
Barclays Bank PLC		PEN	72		$	19		9/18/24			(—@	)
Barclays Bank PLC		PLN	13,900		EUR	3,211		9/18/24			(22	)
Barclays Bank PLC		PLN	2,901		EUR	671		9/18/24			(4	)
Barclays Bank PLC		RON	18,600		EUR	3,720		9/18/24			(9	)
Barclays Bank PLC		TRY	28,815		$	747		11/8/24			(35	)
Barclays Bank PLC		TRY	76,912		$	1,993		11/8/24			(96	)
Barclays Bank PLC		TRY	134,977		$	3,488		11/8/24			(178	)
Barclays Bank PLC		TRY	57,745		$	1,495		11/8/24			(74	)
Barclays Bank PLC		TRY	36,964		$	955		11/8/24			(49	)
Barclays Bank PLC		TRY	96,212		$	2,491		11/8/24			(122	)
Barclays Bank PLC		TRY	69,301		$	1,809		9/20/24			(172	)
Barclays Bank PLC		TRY	17,879		$	466		9/23/24			(43	)
Barclays Bank PLC		TRY	267,880		$	6,811		1/6/25			(20	)
Barclays Bank PLC		$	19,194		EUR	17,700		8/9/24			(32	)
Barclays Bank PLC		$	1,483		KRW	2,028,500		9/19/24			(6	)
Barclays Bank PLC		$	1,442		MXN	26,800		9/18/24			(14	)
Barclays Bank PLC		$	7,930		MYR	37,039		9/18/24			158

 

 

Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.

Third Quarter Report − July 31, 2024 (unaudited)

Portfolio of Investments (cont'd)

 

Foreign Currency Forward Exchange Contracts: (cont'd)

 

					In					Unrealized
		Contracts			Exchange					Appreciation
		to Deliver			For			Delivery		(Depreciation)
Counterparty		(000)			(000)			Date		(000)
Barclays Bank PLC		$	681		MYR	3,200		9/18/24		$	18
Barclays Bank PLC		$	3,857		PEN	14,745		9/18/24			87
Barclays Bank PLC		$	18,765		SGD	25,158		9/18/24			100
Barclays Bank PLC		$	563		TRY	21,727		11/8/24			27
Barclays Bank PLC		$	1,450		TRY	55,922		11/8/24			69
Barclays Bank PLC		$	2,517		TRY	98,894		12/20/24			50
Barclays Bank PLC		$	1,892		TRY	69,301		9/20/24			89
Barclays Bank PLC		$	1,780		TRY	69,688		9/23/24			206
Barclays Bank PLC		$	481		TRY	17,879		9/23/24			28
Barclays Bank PLC		$	4,296		TRY	167,216		12/16/24			63
Barclays Bank PLC		$	1,537		TRY	66,738		1/29/25			125
Barclays Bank PLC		$	1,862		TRY	78,718		1/6/25			145
Barclays Bank PLC		$	4,234		ZAR	81,059		9/18/24			201
Barclays Bank PLC		$	2,873		ZAR	51,953		9/18/24			(31	)
Barclays Bank PLC		ZAR	69,895		$	3,771		9/18/24			(53	)
Barclays Bank PLC		ZAR	157,200		$	8,419		9/18/24			(181	)
Barclays Bank PLC		ZAR	28,300		$	1,525		9/18/24			(23	)
BNP Paribas SA		BRL	24,232		$	4,492		8/2/24			208
BNP Paribas SA		BRL	3,580		$	654		9/4/24			23
BNP Paribas SA		BRL	158,073		$	27,870		8/2/24			(77	)
BNP Paribas SA		BRL	44,645		$	7,845		9/4/24			(22	)
BNP Paribas SA		BRL	29,896		$	5,271		8/2/24			(15	)
BNP Paribas SA		BRL	47,400		$	8,329		9/4/24			(24	)
BNP Paribas SA		BRL	47,400		$	8,371		8/2/24			(9	)
BNP Paribas SA		BRL	44,645		$	7,885		8/2/24			(8	)
BNP Paribas SA		CLP	2,466,386		$	2,665		9/23/24			47
BNP Paribas SA		CLP	745,030		$	805		9/23/24			14
BNP Paribas SA		CNH	24,950		$	3,463		9/19/24			(3	)
BNP Paribas SA		CNH	88,900		$	12,339		9/19/24			(12	)
BNP Paribas SA		EUR	9,945		CZK	251,313		9/18/24			(71	)
BNP Paribas SA		EUR	4,450		HUF	1,740,000		8/22/24			(44	)
BNP Paribas SA		KRW	4,795,000		$	3,501		9/19/24			9
BNP Paribas SA		THB	48,800		$	1,331		9/18/24			(44	)
BNP Paribas SA		THB	326,400		$	8,900		9/18/24			(292	)
BNP Paribas SA		$	5,253		BRL	29,896		9/4/24			15
BNP Paribas SA		$	27,777		BRL	158,073		9/4/24			79
BNP Paribas SA		$	7,872		BRL	44,645		8/2/24			22
BNP Paribas SA		$	8,357		BRL	47,400		8/2/24			23
BNP Paribas SA		$	4,280		BRL	24,232		8/2/24			4
BNP Paribas SA		$	27,918		BRL	158,073		8/2/24			29

 

 

Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.

Third Quarter Report − July 31, 2024 (unaudited)

Portfolio of Investments (cont'd)

 

Foreign Currency Forward Exchange Contracts: (cont'd)

 

					In					Unrealized
		Contracts			Exchange					Appreciation
		to Deliver			For			Delivery		(Depreciation)
Counterparty		(000)			(000)			Date		(000)
BNP Paribas SA		$	5,280		BRL	29,896		8/2/24		$	6
BNP Paribas SA		$	7,402		CLP	6,850,494		9/23/24			(131	)
BNP Paribas SA		$	14,958		CNH	107,775		9/19/24			14
BNP Paribas SA		$	1,444		COP	5,917,000		9/18/24			7
BNP Paribas SA		$	459		COP	1,876,500		9/18/24			1
BNP Paribas SA		$	16,082		KRW	22,023,500		9/19/24			(40	)
BNP Paribas SA		$	954		TRY	40,367		1/6/25			75
BNP Paribas SA		$	1,162		TRY	49,321		1/6/25			96
BNP Paribas SA		$	1,090		TRY	43,890		10/17/24			130
BNP Paribas SA		$	1,408		TRY	61,476		1/29/25			123
Citibank NA		AMD	74,630		$	187		9/6/24			(4	)
Citibank NA		AMD	225,194		$	554		9/16/24			(22	)
Citibank NA		COP	860,100		$	215		9/18/24			4
Citibank NA		COP	931,900		$	229		9/18/24			—	@
Citibank NA		COP	4,802,400		$	1,185		9/18/24			7
Citibank NA		CZK	24,000		$	1,047		9/18/24			24
Citibank NA		EUR	3,469		HUF	1,376,771		8/30/24			19
Citibank NA		EUR	2,126		HUF	843,858		8/30/24			12
Citibank NA		EUR	1,284		PLN	5,600		9/18/24			19
Citibank NA		EUR	4,174		RON	20,886		9/18/24			14
Citibank NA		EUR	1,259		RON	6,300		9/18/24			4
Citibank NA		HUF	775,767		EUR	1,954		8/30/24			(11	)
Citibank NA		PEN	870		$	228		9/18/24			(5	)
Citibank NA		RON	2,832		EUR	566		9/18/24			(2	)
Citibank NA		$	65		CLP	61,300		9/23/24			—	@
Citibank NA		$	1,231		COP	5,040,200		9/18/24			5
Citibank NA		$	1,728		EGP	104,021		2/13/25			270
Citibank NA		$	346		EGP	21,392		2/20/25			64
Citibank NA		$	576		EGP	34,846		2/20/25			92
Citibank NA		$	288		EGP	17,999		2/20/25			57
Citibank NA		$	288		EGP	18,806		2/27/25			71
Citibank NA		$	9		EGP	466		12/18/24			—	@
Citibank NA		$	728		IDR	11,870,000		9/18/24			1
Citibank NA		$	213		KES	31,111		4/16/25			18
Citibank NA		$	214		KES	31,143		4/9/25			17
Citibank NA		$	364		KES	52,486		3/21/25			28
Citibank NA		$	698		KES	101,979		4/4/25			60
Citibank NA		$	227		KES	31,840		12/18/24			14
Citibank NA		$	416		KES	60,000		3/21/25			32
Citibank NA		$	93		KES	13,420		4/4/25			7

 

 

Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.

Third Quarter Report − July 31, 2024 (unaudited)

Portfolio of Investments (cont'd)

 

Foreign Currency Forward Exchange Contracts: (cont'd)

 

					In					Unrealized
		Contracts			Exchange					Appreciation
		to Deliver			For			Delivery		(Depreciation)
Counterparty		(000)			(000)			Date		(000)
Citibank NA		$	1,130		KZT	527,198		9/23/24		$	(33	)
Citibank NA		$	1,219		KZT	572,356		8/26/24			(20	)
Citibank NA		$	609		KZT	288,804		9/26/24			(9	)
Citibank NA		$	1,979		KZT	954,848		10/7/24			(—@	)
Citibank NA		$	2,329		PEN	8,804		9/18/24			26
Citibank NA		$	2,586		PEN	9,893		9/18/24			60
Citibank NA		$	536		SGD	720		9/18/24			4
Citibank NA		$	493		THB	18,000		9/18/24			14
Citibank NA		$	1,341		TRY	56,708		1/6/25			104
Citibank NA		$	2,128		TRY	83,000		11/8/24			126
Citibank NA		$	7,380		ZAR	139,342		9/18/24			243
Citibank NA		$	1,879		ZAR	34,242		9/18/24			(5	)
Citibank NA		$	2,833		ZAR	51,288		9/18/24			(27	)
Citibank NA		UYU	15,702		$	396		9/12/24			7
Goldman Sachs International		BRL	15,170		$	2,905		8/2/24			223
Goldman Sachs International		COP	15,751,829		$	3,752		9/18/24			(111	)
Goldman Sachs International		COP	13,692,331		$	3,262		9/18/24			(96	)
Goldman Sachs International		COP	14,250,460		$	3,395		9/18/24			(100	)
Goldman Sachs International		COP	5,208,350		$	1,241		9/18/24			(37	)
Goldman Sachs International		EUR	1,480		HUF	580,000		8/22/24			(11	)
Goldman Sachs International		EUR	1,714		$	1,842		8/9/24			(14	)
Goldman Sachs International		EUR	2,855		$	3,067		8/9/24			(23	)
Goldman Sachs International		EUR	925		$	994		8/9/24			(7	)
Goldman Sachs International		EUR	284		$	306		8/9/24			(2	)
Goldman Sachs International		EUR	569		$	611		8/9/24			(5	)
Goldman Sachs International		EUR	1,771		$	1,903		8/9/24			(14	)
Goldman Sachs International		EUR	1,870		$	2,010		8/9/24			(15	)
Goldman Sachs International		EUR	4,261		$	4,579		8/9/24			(34	)
Goldman Sachs International		HUF	333,000		EUR	833		8/30/24			(11	)
Goldman Sachs International		MXN	11,623		$	652		9/18/24			33
Goldman Sachs International		MXN	104,315		$	5,589		9/18/24			30
Goldman Sachs International		MXN	90,000		$	4,878		9/18/24			82
Goldman Sachs International		MYR	3,000		$	639		9/18/24			(16	)
Goldman Sachs International		MYR	3,944		$	837		9/18/24			(24	)
Goldman Sachs International		MYR	1,956		$	415		9/18/24			(12	)
Goldman Sachs International		MYR	30,485		$	6,473		9/18/24			(183	)
Goldman Sachs International		MYR	15,115		$	3,206		9/18/24			(94	)
Goldman Sachs International		PEN	48,064		$	12,740		9/18/24			(115	)
Goldman Sachs International		PEN	24,307		$	6,443		9/18/24			(58	)
Goldman Sachs International		PLN	31,100		EUR	7,168		9/18/24			(68	)

 

 

Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.

Third Quarter Report − July 31, 2024 (unaudited)

Portfolio of Investments (cont'd)

 

Foreign Currency Forward Exchange Contracts: (cont'd)

 

					In					Unrealized
		Contracts			Exchange					Appreciation
		to Deliver			For			Delivery		(Depreciation)
Counterparty		(000)			(000)			Date		(000)
Goldman Sachs International		THB	44,400		$	1,222		9/18/24		$	(28	)
Goldman Sachs International		THB	339,120		$	9,277		9/18/24			(273	)
Goldman Sachs International		TRY	79,900		$	1,806		12/16/24			(277	)
Goldman Sachs International		TRY	118,000		$	3,157		11/8/24			(48	)
Goldman Sachs International		$	30,271		BRL	158,073		8/2/24			(2,323	)
Goldman Sachs International		$	5,725		BRL	29,896		8/2/24			(439	)
Goldman Sachs International		$	5,837		BRL	32,310		9/4/24			(143	)
Goldman Sachs International		$	159		EGP	8,605		2/26/25			5
Goldman Sachs International		$	8,061		EUR	7,502		8/9/24			60
Goldman Sachs International		$	8,164		EUR	7,597		8/9/24			61
Goldman Sachs International		$	18,288		MXN	347,432		9/18/24			225
Goldman Sachs International		$	24,863		MXN	472,336		9/18/24			305
Goldman Sachs International		$	21,282		MYR	99,833		9/18/24			517
Goldman Sachs International		$	1,084		MYR	4,970		11/4/24			5
Goldman Sachs International		$	2,367		MYR	10,851		9/18/24			3
Goldman Sachs International		$	1,876		MYR	8,612		9/18/24			4
Goldman Sachs International		$	13,814		PEN	52,113		9/18/24			125
Goldman Sachs International		$	172		PEN	650		9/18/24			2
Goldman Sachs International		$	2,954		THB	107,978		9/18/24			87
Goldman Sachs International		$	22,103		THB	808,012		9/18/24			650
Goldman Sachs International		$	1,058		TRY	38,809		9/20/24			51
Goldman Sachs International		$	1,383		TRY	55,620		10/17/24			163
Goldman Sachs International		$	2,128		TRY	83,000		11/8/24			126
HSBC Bank PLC		IDR	18,536,000		$	1,128		9/18/24			(10	)
HSBC Bank PLC		IDR	158,950,300		$	9,672		9/18/24			(88	)
HSBC Bank PLC		IDR	73,758,785		$	4,514		9/18/24			(15	)
HSBC Bank PLC		IDR	56,486,140		$	3,457		9/18/24			(11	)
HSBC Bank PLC		TRY	118,040		$	3,028		12/20/24			(36	)
HSBC Bank PLC		TRY	148,817		$	4,246		9/23/24			5
HSBC Bank PLC		$	2		EGP	121		4/8/25			—	@
HSBC Bank PLC		$	5		EGP	298		7/8/25			—	@
HSBC Bank PLC		$	292		EGP	16,193		2/27/25			18
HSBC Bank PLC		$	292		EGP	15,099		11/27/24			6
HSBC Bank PLC		$	12,634		IDR	206,413,973		9/18/24			42
HSBC Bank PLC		$	9,020		THB	330,222		9/18/24			279
HSBC Bank PLC		$	876		TRY	31,855		9/20/24			35
HSBC Bank PLC		UYU	8,123		$	200		10/10/24			(1	)
JPMorgan Chase Bank NA		BRL	21,400		$	3,823		8/2/24			39
JPMorgan Chase Bank NA		BRL	27,400		$	4,806		8/2/24			(38	)
JPMorgan Chase Bank NA		BRL	16,157		$	2,854		8/2/24			(3	)

 

 

Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.

Third Quarter Report − July 31, 2024 (unaudited)

Portfolio of Investments (cont'd)

 

Foreign Currency Forward Exchange Contracts: (cont'd)

 

					In					Unrealized
		Contracts			Exchange					Appreciation
		to Deliver			For			Delivery		(Depreciation)
Counterparty		(000)			(000)			Date		(000)
JPMorgan Chase Bank NA		CZK	24,520		EUR	991		9/18/24		$	29
JPMorgan Chase Bank NA		CZK	25,400		EUR	1,007		9/18/24			9
JPMorgan Chase Bank NA		EUR	2,470		CZK	61,110		9/18/24			(73	)
JPMorgan Chase Bank NA		EUR	3,868		CZK	95,709		9/18/24			(114	)
JPMorgan Chase Bank NA		EUR	6,450		CZK	159,598		9/18/24			(190	)
JPMorgan Chase Bank NA		EUR	1,707		HUF	675,085		8/30/24			3
JPMorgan Chase Bank NA		EUR	2,784		HUF	1,101,416		8/30/24			5
JPMorgan Chase Bank NA		EUR	2,715		HUF	1,062,997		8/22/24			(24	)
JPMorgan Chase Bank NA		EUR	70		RON	349		9/18/24			(—@	)
JPMorgan Chase Bank NA		HUF	620,614		EUR	1,569		8/30/24			(3	)
JPMorgan Chase Bank NA		HUF	2,008,551		EUR	5,099		8/22/24			11
JPMorgan Chase Bank NA		HUF	5,575,949		EUR	14,106		8/22/24			(24	)
JPMorgan Chase Bank NA		PEN	1,701		$	446		9/18/24			(9	)
JPMorgan Chase Bank NA		PEN	4,844		$	1,271		9/18/24			(25	)
JPMorgan Chase Bank NA		SGD	4,969		$	3,692		9/18/24			(34	)
JPMorgan Chase Bank NA		TRY	121,560		$	3,446		9/23/24			(18	)
JPMorgan Chase Bank NA		TRY	121,150		$	2,986		2/10/25			6
JPMorgan Chase Bank NA		TRY	141,655		$	3,832		11/8/24			(16	)
JPMorgan Chase Bank NA		$	3,067		BRL	16,157		8/2/24			(210	)
JPMorgan Chase Bank NA		$	3,780		BRL	21,400		8/2/24			4
JPMorgan Chase Bank NA		$	4,839		BRL	27,400		8/2/24			5
JPMorgan Chase Bank NA		$	802		KZT	375,996		9/20/24			(20	)
JPMorgan Chase Bank NA		$	535		KZT	250,798		9/20/24			(13	)
JPMorgan Chase Bank NA		$	615		NGN	1,016,429		2/25/25			(49	)
JPMorgan Chase Bank NA		$	898		PEN	3,400		9/18/24			12
JPMorgan Chase Bank NA		$	674		TRY	28,930		1/15/25			57
JPMorgan Chase Bank NA		$	11,386		TRY	447,631		11/8/24			773
JPMorgan Chase Bank NA		$	1,492		TRY	58,968		11/6/24			113
JPMorgan Chase Bank NA		$	2,517		TRY	98,887		12/20/24			49
JPMorgan Chase Bank NA		$	573		UZS	7,827,844		11/1/24			32
JPMorgan Chase Bank NA		$	503		UZS	7,044,984		1/6/25			28
JPMorgan Chase Bank NA		$	349		UZS	4,745,798		10/22/24			19
JPMorgan Chase Bank NA		$	349		UZS	4,763,246		10/24/24			20
JPMorgan Chase Bank NA		$	2,578		UZS	36,224,675		2/13/25			113
JPMorgan Chase Bank NA		$	904		UZS	12,708,426		2/18/25			38
JPMorgan Chase Bank NA		$	900		UZS	12,643,992		2/13/25			39
JPMorgan Chase Bank NA		$	327		UZS	4,611,719		3/17/25			11
JPMorgan Chase Bank NA		$	339		UZS	4,780,770		3/20/25			12
JPMorgan Chase Bank NA		$	754		UZS	10,116,802		10/4/24			37
JPMorgan Chase Bank NA		$	377		UZS	5,350,413		4/4/25			13

 

 

Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.

Third Quarter Report − July 31, 2024 (unaudited)

Portfolio of Investments (cont'd)

 

Foreign Currency Forward Exchange Contracts: (cont'd)

 

					In					Unrealized
		Contracts			Exchange					Appreciation
		to Deliver			For			Delivery		(Depreciation)
Counterparty		(000)			(000)			Date		(000)
JPMorgan Chase Bank NA		$	1,785		UZS	24,701,691		1/29/25		$	62
JPMorgan Chase Bank NA		$	1,373		UZS	19,426,908		4/4/25			43
JPMorgan Chase Bank NA		$	1,059		UZS	15,185,750		6/9/25			22
JPMorgan Chase Bank NA		UYU	16,409		$	404		10/3/24			(1	)
Standard Chartered Bank		IDR	26,731,000		$	1,639		9/18/24			(2	)
Standard Chartered Bank		KES	110,236		$	750		12/18/24			(84	)
Standard Chartered Bank		KES	112,486		$	750		3/21/25			(89	)
Standard Chartered Bank		KES	163,950		$	1,125		4/4/25			(95	)
Standard Chartered Bank		KES	31,143		$	213		4/9/25			(18	)
Standard Chartered Bank		KES	31,111		$	213		4/16/25			(18	)
Standard Chartered Bank		MXN	104,116		$	5,629		9/18/24			81
Standard Chartered Bank		$	2,154		EUR	2,000		9/18/24			16
Standard Chartered Bank		$	560		KES	78,396		12/18/24			34
Standard Chartered Bank		$	338		KES	48,551		4/4/25			23
Standard Chartered Bank		$	712		NGN	1,309,603		2/24/25			17
Standard Chartered Bank		$	356		NGN	663,698		2/24/25			14
Standard Chartered Bank		$	1,888		TRY	74,437		9/23/24			233
Standard Chartered Bank		$	1,006		TRY	42,528		1/6/25			78
Standard Chartered Bank		$	1,444		TRY	60,238		12/18/24			123
Standard Chartered Bank		$	401		UZS	5,743,639		4/15/25			16
Standard Chartered Bank		$	1,773		UZS	25,375,879		6/23/25			24
Standard Chartered Bank		ZAR	68,567		$	3,695		9/18/24			(56	)
Standard Chartered Bank		ZAR	14,443		$	785		9/18/24			(5	)
State Street Bank and Trust Co.		EUR	1,848		$	1,986		8/9/24			(15	)
State Street Bank and Trust Co.		EUR	2,821		$	3,031		8/9/24			(23	)
State Street Bank and Trust Co.		EUR	1,750		$	1,880		8/9/24			(14	)
State Street Bank and Trust Co.		EUR	914		$	983		8/9/24			(7	)
State Street Bank and Trust Co.		EUR	562		$	604		8/9/24			(5	)
State Street Bank and Trust Co.		EUR	1,694		$	1,821		8/9/24			(14	)
State Street Bank and Trust Co.		EUR	4,211		$	4,525		8/9/24			(34	)
State Street Bank and Trust Co.		EUR	281		$	302		8/9/24			(2	)
State Street Bank and Trust Co.		$	8,385		EUR	7,803		8/9/24			62
State Street Bank and Trust Co.		$	8,492		EUR	7,903		8/9/24			63
State Street Bank and Trust Co.		$	3,128		MYR	14,337		11/4/24			12
State Street Bank and Trust Co.		$	5,004		TWD	162,300		9/18/24			(41	)
State Street Bank and Trust Co.		$	1,794		ZAR	32,845		9/18/24			3
UBS AG		BRL	20,000		$	3,523		8/2/24			(13	)
UBS AG		CZK	139,000		EUR	5,503		9/18/24			42
UBS AG		EUR	3,463		HUF	1,376,770		8/30/24			26
UBS AG		EUR	2,122		HUF	843,857		8/30/24			16

 

 

Morgan Stanley Emerging Markets Domestic Debt Fund, Inc. 

Third Quarter Report − July 31, 2024 (unaudited) 

Portfolio of Investments (cont'd)

 

Foreign Currency Forward Exchange Contracts: (cont'd)

 

Counterparty		Contracts to Deliver (000)			In Exchange For (000)			Delivery Date		Unrealized Appreciation (Depreciation) (000)
UBS AG		HUF	775,768		EUR	1,951		8/30/24		$	(14	)
UBS AG		$	3,532		BRL	20,000		8/2/24			4
UBS AG		$	876		TRY	31,855		9/20/24			35
UBS AG		$	1,547		TRY	66,963		2/10/25			100
UBS AG		$	15,861		TWD	510,010		9/18/24			(266	)
UBS AG		$	16,708		ZAR	304,526		9/18/24			(49	)
UBS AG		ZAR	129,519		$	7,106		9/18/24			21
UBS AG		ZAR	20,519		$	1,126		9/18/24			3
UBS AG		ZAR	230,366		$	12,639		9/18/24			37
										$	648

 

Put Options Purchased: 

The Fund had the following put options purchased open at July 31, 2024:

 

Counterparty		Description		Strike Price				Expiration Date		Number of Contracts				Notional Amount (000)				Value (000)				Premiums Paid (000)				Unrealized Depreciation (000)
BNP Paribas SA		USD/INR		INR	84.75			Apr–25			10,860,000			$	10,860			$	117			$	153			$	(36	)
JPMorgan Chase Bank NA		USD/INR		INR	85.50			Jan–29			9,800,000				9,800				78				80				(2	)
JPMorgan Chase Bank NA		USD/INR		INR	85.50			Jan–29			11,200,000				11,200				89				95				(6	)
																		$	284			$	328			$	(44	)

 

Futures Contracts: 

The Fund had the following futures contracts open at July 31, 2024:

 

		Number of Contracts		Expiration Date		Notional Amount (000)			Value (000)				Unrealized Depreciation (000)
Short:
Euro-Buxl 30 yr. Bond Index (Germany)		3		Sep-24		EUR	(300	)	$	(438	)		$	(25	)
German Euro-Bund Index (Germany)		8		Sep-24			(800	)		(1,158	)			(35	)
U.S. Treasury 10 yr. Ultra Note (United States)		19		Sep-24		$	(1,900	)		(2,196	)			(60	)
U.S. Treasury 5 yr. Note (United States)		7		Sep-24			(700	)		(755	)			(14	)
													$	(134	)

 

 

Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.

Third Quarter Report − July 31, 2024 (unaudited) 

Portfolio of Investments (cont'd)

 

Centrally Cleared Interest Rate Swap Agreements:

The Fund had the following centrally cleared interest rate swap agreements open at July 31, 2024:

 

Swap Counterparty		Floating Rate Index		Pay/ Receive Floating Rate		Fixed Rate			Payment Frequency Paid/ Received		Maturity Date		Notional Amount (000)			Value (000)				Upfront Payment Received (000)				Unrealized Appreciation (Depreciation) (000)
Morgan Stanley & Co. LLC		1 Month TIIE		Pay		8.21	%		Monthly/Monthly		7/13/33		MXN	(90,000	)	$	(296	)		$	—			$	(296	)
Morgan Stanley & Co. LLC		1 Month TIIE		Pay		8.66			Monthly/Monthly		3/2/29			(290,000	)		(394	)			—				(394	)
Morgan Stanley & Co. LLC		1 Month TIIE		Pay		8.73			Monthly/Monthly		4/17/28			(17,300	)		(22	)			—				(22	)
Morgan Stanley & Co. LLC		1 Month TIIE		Pay		9.14			Monthly/Monthly		9/4/28			(170,000	)		(85	)			—				(85	)
Morgan Stanley & Co. LLC		1 Month TIIE		Pay		9.19			Monthly/Monthly		2/18/28			(19,700	)		(11	)			—				(11	)
Morgan Stanley & Co. LLC		1 Month TIIE		Pay		9.44			Monthly/Monthly		5/23/34			(37,600	)		26				—				26
Morgan Stanley & Co. LLC		3 Month JIBAR		Pay		8.66			Quarterly/Quarterly		6/19/29		ZAR	(26,910	)		61				—				61
JPMorgan Chase Bank NA		3 Month KLIBO		Pay		3.68			Quarterly/Quarterly		6/19/29		MYR	(45,400	)		85				—				85
Morgan Stanley & Co. LLC		3 Month KSDA		Pay		3.02			Quarterly/Quarterly		9/18/34		KRW	(4,200,000	)		17				—				17
Morgan Stanley & Co. LLC		3 Month KSDA		Pay		3.32			Quarterly/Quarterly		6/21/33			(3,131,000	)		65				—				65
Morgan Stanley & Co. LLC		3 Month KSDA		Pay		3.59			Quarterly/Quarterly		9/20/33			(1,215,000	)		46				—				46
Morgan Stanley & Co. LLC		6 Month BUBOR		Receive		6.94			Semi-Annual/Semi-annual		6/19/29		HUF	(300,219	)		(46	)			(38	)			(8	)
Morgan Stanley & Co. LLC		6 Month BUBOR		Pay		6.74			Semi- Annual/ Annual		6/19/34			(400,000	)		71				—				71
Morgan Stanley & Co. LLC		6 Month BUBOR		Pay		6.92			Semi-Annual/Annual		6/19/29			(436,867	)		67				—				67
Morgan Stanley & Co. LLC		6 Month CLICP		Receive		5.56			Semi-Annual/Semi-annual		12/20/33		CLP	(1,900,000	)		(13	)			—				(13	)
Morgan Stanley & Co. LLC		6 Month CLICP		Receive		5.23			Semi-Annual/Semi-annual		9/20/33			(8,037,300	)		33				—				33
Morgan Stanley & Co. LLC		6 Month CLICP		Pay		4.79			Semi-Annual/Semi-annual		6/21/29			(2,750,000	)		(39	)			—				(39	)
Morgan Stanley & Co. LLC		6 Month PRIBO		Pay		3.94			Semi-Annual/Annual		9/20/33		CZK	(24,972	)		60				—				60
Morgan Stanley & Co. LLC		6 Month PRIBO		Pay		3.96			Semi-Annual/Annual		9/20/33			(49,943	)		123				—				123
Morgan Stanley & Co. LLC		6 Month PRIBO		Pay		3.96			Semi-Annual/Annual		9/20/33			(75,085	)		187				—				187
Morgan Stanley & Co. LLC		6 Month PRIBO		Pay		3.96			Semi-Annual/Annual		9/20/33			(20,700	)		51				—				51

 

 

Morgan Stanley Emerging Markets Domestic Debt Fund, Inc. 

Third Quarter Report − July 31, 2024 (unaudited) 

Portfolio of Investments (cont'd)

 

Centrally Cleared Interest Rate Swap Agreements: (cont'd)

 

Swap Counterparty		Floating Rate Index		Pay/ Receive Floating Rate		Fixed Rate			Payment Frequency Paid/ Received		Maturity Date		Notional Amount (000)			Value (000)				Upfront Payment Received (000)				Unrealized Appreciation (Depreciation) (000)
Morgan Stanley & Co. LLC		6 Month PRIBO		Pay		4.15	%		Semi-Annual/Annual		9/20/28			(37,900	)	$	76			$	—			$	76
Morgan Stanley & Co. LLC		6 Month PRIBO		Pay		4.33			Semi-Annual/Annual		12/20/33			(30	)		—	@			—				—	@
Morgan Stanley & Co. LLC		6 Month PRIBR		Pay		3.52			Semi-Annual/Annual		6/19/29			(29,000	)		8				—				8
Morgan Stanley & Co. LLC		6 Month PRIBR		Pay		3.74			Semi-Annual/Annual		6/19/34			(199,000	)		215				—				215
Morgan Stanley & Co. LLC		6 Month PRIBR		Pay		3.76			Semi-Annual/Annual		9/18/29			(259,000	)		255				—				255
Morgan Stanley & Co. LLC		6 Month WIBOR		Pay		5.02			Semi-Annual/Annual		9/18/29		PLN	(7,600	)		31				—				31
Morgan Stanley & Co. LLC		6 Month WIBOR		Pay		5.16			Semi-Annual/Annual		6/21/28			(17,000	)		56				—				56
Morgan Stanley & Co. LLC		6 Month WIBOR		Pay		5.26			Semi-Annual/Annual		6/12/28			(40,000	)		164				—				164
Morgan Stanley & Co. LLC		6 Month WIBOR		Pay		5.42			Semi-Annual/Annual		6/19/29			(13,500	)		104				—				104
Morgan Stanley & Co. LLC		6 Month WIBOR		Pay		5.50			Semi-Annual/Annual		6/19/34			(10,500	)		153				—				153
Morgan Stanley & Co. LLC		6 Month WIBOR		Pay		5.53			Semi-Annual/Annual		6/19/34			(4,390	)		67				—				67
Morgan Stanley & Co. LLC		BRL-CDI		Pay		9.70			Maturity/Maturity		1/4/27		BRL	(20,700	)		(152	)			—				(152	)
Morgan Stanley & Co. LLC		BRL-CDI		Pay		9.88			Maturity/Maturity		1/4/27			(15,600	)		(101	)			—				(101	)
Morgan Stanley & Co. LLC		BRL-CDI		Pay		10.31			Maturity/Maturity		1/2/25			(27,500	)		(24	)			—				(24	)
Morgan Stanley & Co. LLC		BRL-CDI		Pay		10.54			Maturity/Maturity		1/2/29			(16,983	)		(171	)			—				(171	)
Morgan Stanley & Co. LLC		BRL-CDI		Pay		10.65			Maturity/Maturity		1/2/26			(51,283	)		(113	)			—				(113	)
Morgan Stanley & Co. LLC		BRL-CDI		Pay		10.78			Maturity/Maturity		1/4/27			(7,060	)		(28	)			—				(28	)
Morgan Stanley & Co. LLC		BRL-CDI		Pay		11.00			Maturity/Maturity		1/2/25			(162,000	)		(20	)			—				(20	)
Morgan Stanley & Co. LLC		BRL-CDI		Pay		11.18			Maturity/Maturity		1/2/26			(47,700	)		(41	)			—				(41	)
Morgan Stanley & Co. LLC		BRL-CDI		Pay		11.65			Maturity/Maturity		1/4/27			(6,800	)		(4	)			—				(4	)
Morgan Stanley & Co. LLC		BRL-CDI		Pay		11.89			Maturity/Maturity		1/2/29			(6,980	)		1				—				1
Morgan Stanley & Co. LLC		CNRR		Pay		2.03			Quarterly/Quarterly		9/18/29		CNY	(14,100	)		21				—				21

 

 

Morgan Stanley Emerging Markets Domestic Debt Fund, Inc. 

Third Quarter Report − July 31, 2024 (unaudited) 

Portfolio of Investments (cont'd)

 

Centrally Cleared Interest Rate Swap Agreements: (cont'd)

 

Swap Counterparty		Floating Rate Index		Pay/ Receive Floating Rate		Fixed Rate			Payment Frequency Paid/ Received		Maturity Date		Notional Amount (000)			Value (000)				Upfront Payment Received (000)				Unrealized Appreciation (Depreciation) (000)
Morgan Stanley & Co. LLC		CNRR		Pay		2.11	%		Quarterly/Quarterly		6/20/29			(5,400	)	$	11			$	—			$	11
Morgan Stanley & Co. LLC		CNRR		Pay		2.12			Quarterly/Quarterly		6/19/29			(13,600	)		29				—				29
Morgan Stanley & Co. LLC		CNRR		Pay		2.29			Quarterly/Quarterly		9/20/28			(161,600	)		470				—				470
Morgan Stanley & Co. LLC		CNRR		Pay		2.35			Quarterly/Quarterly		3/20/29			(12,000	)		42				—				42
Morgan Stanley & Co. LLC		CNRR		Pay		2.39			Quarterly/Quarterly		12/20/28			(17,330	)		62				—				62
Morgan Stanley & Co. LLC		CNRR		Pay		2.42			Quarterly/Quarterly		12/21/27			(134,000	)		414				—				414
Morgan Stanley & Co. LLC		CNRR		Pay		2.44			Quarterly/Quarterly		12/20/28			(89,100	)		343				—				343
Morgan Stanley & Co. LLC		CNRR		Pay		2.48			Quarterly/Quarterly		9/20/28			(14,400	)		56				—				56
Morgan Stanley & Co. LLC		CPIBR		Pay		8.91			Quarterly/Quarterly		12/20/33		COP	(5,699,000	)		67				—				67
Morgan Stanley & Co. LLC		MIBOR		Pay		6.26			Semi-Annual/Semi-annual		3/20/29		INR	(970,400	)		14				—				14
Morgan Stanley & Co. LLC		MIBOR		Pay		6.61			Semi-Annual/Semi-annual		9/18/26			(2,407,700	)		152				—				152
Morgan Stanley & Co. LLC		THOR		Pay		2.19			Quarterly/Quarterly		6/19/29		THB	(66,190	)		1				—				1
Morgan Stanley & Co. LLC		THOR		Pay		2.68			Quarterly/Quarterly		6/21/33			(120,000	)		65				—				65
Morgan Stanley & Co. LLC		THOR		Pay		2.70			Quarterly/Quarterly		6/19/34			(89,700	)		44				—				44
Morgan Stanley & Co. LLC		THOR		Pay		2.95			Quarterly/Quarterly		12/20/28			(251,200	)		244				—				244
																$	2,497			$	(38	)		$	2,535

 

ALL	— Albanian Lek	INR	— Indian Rupee
AMD	— Armenian Dram	KES	— Kenyan Shilling
BRL	— Brazilian Real	KRW	— South Korean Won
CLP	— Chilean Peso	KZT	— Kazakhstan Tenge
CNH	— Chinese Yuan Renminbi Offshore	MXN	— Mexican Peso
CNY	— Chinese Yuan Renminbi	MYR	— Malaysian Ringgit
COP	— Colombian Peso	NGN	— Nigerian Naira
CZK	— Czech Koruna	PEN	— Peruvian Nuevo Sol
DOP	— Dominican Peso	PLN	— Polish Zloty
EGP	— Egyptian Pound	PYG	— Paraguay Guarani
EUR	— Euro	RON	— Romanian New Leu
HUF	— Hungarian Forint	RSD	— Serbia Dinar
IDR	— Indonesian Rupiah	SGD	— Singapore Dollar

 

THB	— Thai Baht
TRY	— Turkish Lira
TWD	— Taiwan Dollar
USD	— United States Dollar
UYU	— Uruguay Peso
UZS	— Uzbekistan Som
ZAR	— South African Rand

 

   

Portfolio Composition

 

Classification		Percentage of Total Investments
Sovereign			85.5	%
Corporate Bonds			7.7
Short-Term Investments			5.7
Other*			1.1
Total Investments			100.0	%**

 

*

Industries and/or investment types representing less than 5% of total investments.

**

Does not include open futures contracts with a value of approximately $4,547,000 and net unrealized depreciation of approximately $134,000. Does not include open foreign currency forward exchange contracts with net unrealized appreciation of approximately $648,000. Also does not include open swap agreements with net unrealized appreciation of approximately $2,535,000.

 

 

Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.

July 31, 2024 (unaudited) 

Notes to Portfolio of Investments

 

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”) or Morgan Stanley Investment Management Limited (“MSIM Limited”)(the “Sub-Adviser”), each a wholly-owned subsidiary of Morgan Stanley, 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 reputable 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 reputable brokers/dealers; (2) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, including circumstances under which the Adviser or the Sub-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 Directors. Each business day, the Fund uses a third-party pricing service approved by the Directors to assist with the valuation of foreign equity securities. Events occurring after the close of trading on foreign exchanges may result in adjustments to the valuation of foreign securities to reflect market trading that occurs after the close of the applicable foreign markets of comparable securities or other instruments that have a strong correlation to the fair-valued securities to more accurately reflect their fair value as of the close of regular trading on the NYSE; (3) listed options are valued at the last reported sales price on the exchange on which they are listed (or at the exchange official closing price if such exchange reports an official closing price). If an official closing price or last reported sales price is unavailable, the listed option should be fair valued at the mean between its latest bid and ask prices. Unlisted options are valued at the mean between their latest bid and ask prices from a broker/dealer or valued by a pricing service/ vendor; (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) over-the-counter (“OTC”) swaps may be valued by an outside pricing service approved by the Directors or quotes from a broker/dealer. Swaps cleared on a clearinghouse or exchange may be valued using the closing price provided by the clearinghouse or exchange; (6) 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 (7) 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.

 

 

Morgan Stanley Emerging Markets Domestic Debt Fund, Inc. 

July 31, 2024 (unaudited) 

Notes to Portfolio of Investments (cont'd)

 

Fair Value Measurement: Financial Accounting Standards Board (“FASB”) Accounting Standards Codification^TM ("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.

 

 

Morgan Stanley Emerging Markets Domestic Debt Fund, Inc. 

July 31, 2024 (unaudited) 

Notes to Portfolio of Investments (cont'd)

 

The following is a summary of the inputs used to value the Fund’s investments as of July 31, 2024:

 

		Level 1 Unadjusted quoted prices				Level 2 Other significant observable inputs				Level 3 Significant unobservable inputs				Total
Investment Type		(000)				(000)				(000)				(000)
Assets:
Fixed Income Securities
Corporate Bonds		$	—			$	27,721			$	—			$	27,721
Senior Loan Interests			—				4,100				—				4,100
Sovereign			—				309,189				—				309,189
Total Fixed Income Securities			—				341,010				—				341,010
Put Options Purchased			—				284				—				284
Short-Term Investments
U.S. Treasury Securities			—				12,967				—				12,967
Investment Company			7,809				—				—				7,809
Total Short-Term Investments			7,809				12,967				—				20,776
Foreign Currency Forward Exchange Contracts			—				9,987				—				9,987
Centrally Cleared Interest Rate Swap Agreements			—				4,057				—				4,057
Total Assets		$	7,809			$	368,305			$	—			$	376,114
Liabilities:
Foreign Currency Forward Exchange Contracts			—				(9,339	)			—				(9,339	)
Futures Contracts			(134	)			—				—				(134	)
Centrally Cleared Interest Rate Swap Agreements			—				(1,522	)			—				(1,522	)
Total Liabilities			(134	)			(10,861	)			—				(10,995	)
Total		$	7,675			$	357,444			$	—			$	365,119

 

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

 

 

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