MSD Morgan Stanley Emerging Market Debt Fund Inc

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Third Quarter Report – September 30, 2024 (unaudited)

Portfolio of Investments

(Showing Percentage of Total Value of Investments)

 

		Face Amount (000)				Value (000)
FIXED INCOME SECURITIES (96.4%)
Albania (0.6%)
Sovereign (0.6%)
Albania Government International Bond,
3.50%, 11/23/31		EUR	539			$	568
5.90%, 6/9/28			349				407
							975
Angola (3.4%)
Sovereign (3.4%)
Angolan Government International Bond,
8.75%, 4/14/32		$	2,417				2,172
9.13%, 11/26/49			2,279				1,893
9.38%, 5/8/48			1,494				1,268
							5,333
Argentina (1.7%)
Corporate Bonds (1.1%)
Generacion Mediterranea SA/Central Termica Roca SA,
12.50%, 5/28/27 (a)			552				530
Pan American Energy LLC,
8.50%, 4/30/32 (a)			576				609
Telecom Argentina SA,
9.50%, 7/18/31 (a)			320				332
Transportadora de Gas del Sur SA,
8.50%, 7/24/31 (a)			270				282
							1,753
Senior Loan Interests (0.3%)
Provincia de Neuquen Argentina,
0.00%, 11/1/27			445				454
Sovereign (0.3%)
Argentine Republic Government International Bond,
3.50%, 7/9/41 (b)		$	300				137
4.13%, 7/9/35 (b)			400				193
5.00%, 1/9/38 (b)			300				157
							487
							2,694
Bahamas (1.8%)
Senior Loan Interests (1.0%)
Commonwealth of The Bahamas
3 Month EURIBOR + 6.850%,
10.51%, 11/24/28 (c)		EUR	1,500				1,665
Sovereign (0.8%)
Bahamas Government International Bond,
6.00%, 11/21/28		$	436				411
6.95%, 11/20/29			204				194
8.95%, 10/15/32			614				628
							1,233
							2,898
Barbados (0.6%)
Sovereign (0.6%)
Barbados Government International Bond,
6.50%, 10/1/29			942				907
Benin (2.8%)
Sovereign (2.8%)
Benin Government International Bond,
4.88%, 1/19/32		EUR	400				399
4.95%, 1/22/35			1,120				1,049
6.88%, 1/19/52			2,930				2,740
7.96%, 2/13/38		$	200				199
							4,387
Brazil (4.9%)
Corporate Bonds (4.9%)
Braskem Netherlands Finance BV,
8.50%, 1/23/81			700				701
Coruripe Netherlands BV,
10.00%, 2/10/27			830				787
FORESEA Holding SA,
7.50%, 6/15/30			980				939
Gol Finance SA, 1 Month Term SOFR + 10.50%,
15.34%, 1/29/25 (a)(c)			244				259
MV24 Capital BV,
6.75%, 6/1/34			473				463
OHI Group SA,
13.00%, 7/22/29 (a)			1,920				1,915
Samarco Mineracao SA
0.00% Cash, 9.00% PIK,
9.00%, 6/30/31 (d)(e)(f)			1,875				1,758
Yinson Boronia Production BV,
8.95%, 7/31/42 (a)			898				962
							7,784

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Third Quarter Report – September 30, 2024 (unaudited)

Portfolio of Investments (cont’d)

(Showing Percentage of Total Value of Investments)

 

		Face Amount (000)				Value (000)
Cameroon (3.0%)
Sovereign (3.0%)
Republic of Cameroon International Bond,
5.95%, 7/7/32		EUR	1,212			$	1,098
9.50%, 7/31/31		$	3,700				3,610
							4,708
Chile (1.1%)
Sovereign (1.1%)
Chile Government International Bond,
2.55%, 7/27/33			1,413				1,213
3.50%, 1/25/50			600				463
							1,676
China (1.8%)
Corporate Bonds (1.8%)
Alibaba Group Holding Ltd.,
0.50%, 6/1/31 (a)			144				177
China Oil & Gas Group Ltd.,
4.70%, 6/30/26			880				813
Greentown China Holdings Ltd.,
4.70%, 4/29/25			810				794
H World Group Ltd.,
3.00%, 5/1/26			140				165
KWG Group Holdings Ltd.,
7.88%, 8/30/24 (e)(f)			654				41
PDD Holdings, Inc.,
0.00%, 12/1/25			143				144
Shimao Group Holdings Ltd.,
5.60%, 7/15/26 (e)(f)			1,783				92
Sunac China Holdings Ltd.,
0.00% Cash, 1.00% PIK,
1.00%, 9/30/32 (d)(e)(f)			123				13
5.00% Cash, 6.00% PIK,
11.00%, 9/30/26 (d)(e)(f)			102				13
5.25% Cash, 6.25% PIK,
11.50%, 9/30/27 (d)(e)(f)			102				11
5.50% Cash, 6.50% PIK,
12.00%, 9/30/27 (d)(e)(f)			205				20
5.75% Cash, 6.75% PIK,
12.50%, 9/30/28 (d)(e)(f)			308				29
6.00% Cash, 7.00% PIK,
13.00%, 9/30/29 (d)(e)(f)			319				26
6.25% Cash, 7.25% PIK,
13.50%, 9/30/30 (d)(e)(f)			150				12
Times China Holdings Ltd.,
5.55%, 6/4/24 (e)(f)			2,015				55
6.75%, 7/16/23 (e)(f)			410				11
West China Cement Ltd.,
4.95%, 7/8/26			480				371
							2,787
Colombia (2.6%)
Corporate Bonds (2.6%)
ABRA Global Finance
6.00% Cash, 5.50% PIK,
11.50%, 3/2/28 (a)(d)			14				14
Avianca Midco 2 PLC,
9.00%, 12/1/28			1,025				1,024
Banco Davivienda SA,
6.65%, 4/22/31 (g)			208				178
Banco de Occidente SA,
10.88%, 8/13/34			1,160				1,265
Bancolombia SA,
8.63%, 12/24/34			1,022				1,098
Canacol Energy Ltd.,
5.75%, 11/24/28			1,000				530
							4,109
Costa Rica (0.8%)
Sovereign (0.8%)
Costa Rica Government International Bond,
6.55%, 4/3/34			1,117				1,191
Dominican Republic (1.7%)
Sovereign (1.7%)
Dominican Republic International Bond,
4.88%, 9/23/32			1,200				1,145
5.95%, 1/25/27			200				203
6.00%, 7/19/28			600				616
6.85%, 1/27/45 (a)			500				534
7.45%, 4/30/44 (a)			200				227
							2,725

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Third Quarter Report – September 30, 2024 (unaudited)

Portfolio of Investments (cont’d)

(Showing Percentage of Total Value of Investments)

 

		Face Amount (000)				Value (000)
Ecuador (3.9%)
Sovereign (3.9%)
Ecuador Government International Bond,
0.00%, 7/31/30		$	3,408			$	1,909
5.50%, 7/31/35 (b)			1,895				1,082
6.90%, 7/31/30 (b)			4,263				3,111
							6,102
Egypt (5.8%)
Sovereign (5.8%)
Egypt Government International Bond,
4.75%, 4/16/26		EUR	480				520
5.25%, 10/6/25 (a)		$	440				437
5.63%, 4/16/30		EUR	1,400				1,305
6.38%, 4/11/31			1,436				1,342
6.88%, 4/30/40		$	121				91
7.05%, 1/15/32			466				405
7.50%, 2/16/61			500				363
7.60%, 3/1/29			200				193
7.63%, 5/29/32			200				178
7.90%, 2/21/48 (a)			490				379
7.90%, 2/21/48			627				486
8.15%, 11/20/59			200				155
8.50%, 1/31/47			800				647
8.70%, 3/1/49			800				656
8.75%, 9/30/51			648				532
8.88%, 5/29/50			1,710				1,419
							9,108
El Salvador (0.6%)
Sovereign (0.6%)
El Salvador Government International Bond,
8.25%, 4/10/32			909				848
9.25%, 4/17/30			152				151
							999
Ethiopia (2.0%)
Sovereign (2.0%)
Ethiopia International Bond,
6.63%, 12/11/24 (e)(f)			4,077				3,180
Gabon (0.2%)
Sovereign (0.2%)
Gabon Government International Bond,
6.95%, 6/16/25 (a)			400				376
Georgia (1.7%)
Corporate Bonds (1.6%)
Bank of Georgia JSC,
9.50%, 7/16/29 (g)			1,030				1,012
TBC Bank JSC,
10.25%, 7/30/29 (g)			1,550				1,539
							2,551
Sovereign (0.1%)
Georgia Government International Bond,
2.75%, 4/22/26			203				192
							2,743
Ghana (3.8%)
Corporate Bonds (1.0%)
Kosmos Energy Ltd.,
8.75%, 10/1/31			1,048				1,034
Tullow Oil PLC,
10.25%, 5/15/26			609				553
							1,587
Sovereign (2.8%)
Ghana Government International Bond,
6.38%, 2/11/27 (e)(f)			1,217				638
7.63%, 5/16/29 (e)(f)			600				315
7.75%, 4/7/29 (a)(e)(f)			1,160				615
7.88%, 3/26/27 - 2/11/35 (e)(f)			947				503
8.13%, 1/18/26 - 3/26/32 (e)(f)			852				453
8.63%, 4/7/34 - 6/16/49 (e)(f)			1,859				983
8.75%, 3/11/61 (e)(f)			1,013				544
8.88%, 5/7/42 (e)(f)			710				376
							4,427
							6,014
Greece (1.0%)
Corporate Bonds (1.0%)
Piraeus Financial Holdings SA,
7.25%, 4/17/34		EUR	420				505
8.75%, 6/16/26 (g)			1,000				1,144
							1,649

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Third Quarter Report – September 30, 2024 (unaudited)

Portfolio of Investments (cont’d)

(Showing Percentage of Total Value of Investments)

 

		Face Amount (000)				Value (000)
Guatemala (0.4%)
Sovereign (0.4%)
Guatemala Government Bond,
3.70%, 10/7/33		$	400			$	344
4.65%, 10/7/41 (a)			400				332
							676
Honduras (0.1%)
Sovereign (0.1%)
Honduras Government International Bond,
6.25%, 1/19/27			150				146
Hong Kong (1.0%)
Corporate Bonds (1.0%)
CAS Capital No. 1 Ltd.,
4.00%, 7/12/26 (g)			400				384
Elect Global Investments Ltd.,
4.10%, 6/3/25 (g)			303				293
Yuexiu Co. Ltd. REIT MTN,
2.65%, 2/2/26			900				836
							1,513
Hungary (1.5%)
Corporate Bonds (0.6%)
MBH Bank Nyrt,
8.63%, 10/19/27		EUR	493				585
OTP Bank Nyrt,
8.75%, 5/15/33		$	376				400
							985
Sovereign (0.9%)
Hungary Government International Bond,
5.50%, 3/26/36			800				807
6.25%, 9/22/32 (a)			600				647
							1,454
							2,439
India (1.0%)
Corporate Bonds (1.0%)
Piramal Capital & Housing Finance Ltd.,
7.80%, 1/29/28			550				563
Vedanta Resources Finance II PLC,
13.88%, 12/9/28			1,030				1,033
							1,596
Indonesia (2.6%)
Corporate Bonds (1.0%)
Indika Energy Tbk. PT,
8.75%, 5/7/29 (a)			980				1,003
LLPL Capital Pte. Ltd.,
6.88%, 2/4/39			567				587
							1,590
Sovereign (1.6%)
Indonesia Government International Bond,
4.70%, 2/10/34			1,800				1,817
5.10%, 2/10/54			700				711
							2,528
							4,118
Iraq (0.1%)
Sovereign (0.1%)
Iraq International Bond,
5.80%, 1/15/28			179				174
Ivory Coast (0.9%)
Sovereign (0.9%)
Ivory Coast Government International Bond,
6.63%, 3/22/48		EUR	1,562				1,437
Jamaica (1.6%)
Corporate Bond (1.0%)
Digicel Intermediate Holdings Ltd./Digicel International Finance Ltd./Difl U.S.
9.00% Cash, 1.50% PIK,
10.50%, 5/25/27 (d)		$	1,544				1,555

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Third Quarter Report – September 30, 2024 (unaudited)

Portfolio of Investments (cont’d)

(Showing Percentage of Total Value of Investments)

 

		Face Amount (000)				Value (000)
Senior Loan Interests (0.6%)
Digicel International Finance Ltd.
3 Month USD SOFR + 6.75%,
12.00%, 5/25/27 (c)		$	925			$	917
							2,472
Jordan (0.4%)
Sovereign (0.4%)
Jordan Government International Bond,
5.85%, 7/7/30			539				509
7.38%, 10/10/47			173				160
							669
Kenya (1.5%)
Sovereign (1.5%)
Republic of Kenya Government International Bond,
7.00%, 5/22/27			411				404
8.00%, 5/22/32			1,305				1,216
8.25%, 2/28/48			347				295
9.75%, 2/16/31			504				510
							2,425
Kuwait (0.3%)
Sovereign (0.3%)
Kuwait International Government Bond,
3.50%, 3/20/27			450				445
Lebanon (0.1%)
Sovereign (0.1%)
Lebanon Government International Bond,
6.85%, 3/23/27 (e)(f)			1,960				158
Mexico (3.8%)
Corporate Bonds (1.7%)
BBVA Bancomer SA,
5.13%, 1/18/33			550				523
8.45%, 6/29/38 (a)			220				240
8.45%, 6/29/38			398				434
Fideicomiso Irrevocable de Administracion y Fuente de Pago Numero CIB/4323
0.00% Cash, 11.00% PIK,
11.00%, 9/12/30 (d)			798				815
Total Play Telecomunicaciones SA de CV,
10.50%, 12/31/28 (a)			950				733
							2,745
Sovereign (2.1%)
Mexico Government International Bond,
3.50%, 2/12/34			809				690
Petroleos Mexicanos,
6.75%, 9/21/47			685				491
6.84%, 1/23/30			1,025				950
6.88%, 8/4/26			1,120				1,117
							3,248
							5,993
Moldova (0.2%)
Corporate Bond (0.2%)
Aragvi Finance International DAC,
8.45%, 4/29/26			349				325
Mongolia (0.2%)
Sovereign (0.2%)
Mongolia Government International Bond,
7.88%, 6/5/29 (e)(f)			280				297
Montenegro (0.9%)
Sovereign (0.9%)
Montenegro Government International Bond,
2.88%, 12/16/27		EUR	276				291
7.25%, 3/12/31		$	1,137				1,193
							1,484
Morocco (0.5%)
Sovereign (0.5%)
Morocco Government International Bond,
3.00%, 12/15/32			500				430
4.00%, 12/15/50 (a)			400				297
							727

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Third Quarter Report – September 30, 2024 (unaudited)

Portfolio of Investments (cont’d)

(Showing Percentage of Total Value of Investments)

 

		Face Amount (000)				Value (000)
Nigeria (0.5%)
Corporate Bond (0.5%)
Access Bank PLC,
6.13%, 9/21/26		$	825			$	788
Oman (1.5%)
Sovereign (1.5%)
Oman Government International Bond,
5.38%, 3/8/27			500				507
6.25%, 1/25/31			1,000				1,069
6.75%, 1/17/48			500				543
7.38%, 10/28/32			270				310
							2,429
Pakistan (0.5%)
Sovereign (0.5%)
Pakistan Government International Bond,
6.88%, 12/5/27			407				370
7.38%, 4/8/31			428				364
							734
Panama (1.7%)
Corporate Bond (0.3%)
AES Panama Generation Holdings SRL,
4.38%, 5/31/30			579				526
Sovereign (1.4%)
Panama Government International Bond,
2.25%, 9/29/32			500				388
3.16%, 1/23/30			700				628
3.30%, 1/19/33			700				586
4.50%, 4/1/56			800				577
							2,179
							2,705
Paraguay (1.4%)
Corporate Bond (0.6%)
Frigorifico Concepcion SA,
7.70%, 7/21/28			1,352				946
Senior Loan Interests (0.8%)
Frigorifico Concepcion SA 3 Month USD SOFR + 5.50%,
10.49%, 12/8/26 (c)			1,180				1,193
							2,139
Peru (1.2%)
Corporate Bonds (1.2%)
Auna SA,
10.00%, 12/15/29 (a)			1,060				1,124
Peru LNG Srl,
5.38%, 3/22/30			772				713
							1,837
Philippines (1.3%)
Sovereign (1.3%)
Philippine Government International Bond,
5.00%, 7/17/33			1,300				1,343
5.50%, 1/17/48			700				748
							2,091
Romania (1.5%)
Sovereign (1.5%)
Romanian Government International Bond,
1.75%, 7/13/30		EUR	1,000				952
2.00%, 4/14/33			745				647
6.38%, 1/30/34		$	300				313
6.63%, 9/27/29		EUR	400				489
							2,401
Serbia (0.9%)
Sovereign (0.9%)
Serbia International Bond,
2.05%, 9/23/36			432				359
2.13%, 12/1/30		$	1,000				841
6.50%, 9/26/33			200				214
							1,414
Singapore (0.3%)
Corporate Bond (0.3%)
Puma International Financing SA,
7.75%, 4/25/29 (a)			503				518
Sri Lanka (2.9%)
Sovereign (2.9%)
Sri Lanka Government International Bond,
5.75%, 4/18/23 (e)(f)			320				177
6.20%, 5/11/27 (e)(f)			2,850				1,601
6.35%, 6/28/49 (e)(f)			200				111
6.75%, 4/18/28 (e)(f)			941				531
6.83%, 7/18/26 (e)(f)			731				413
6.85%, 3/14/24 - 11/3/25 (e)(f)			2,938				1,663
							4,496

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Third Quarter Report – September 30, 2024 (unaudited)

Portfolio of Investments (cont’d)

(Showing Percentage of Total Value of Investments)

 

		Face Amount (000)				Value (000)
Suriname (2.9%)
Sovereign (2.9%)
Suriname Government International Bond,
7.85%, 12/31/50 (a)(c)(e)(f)		$	872			$	854
4.95% Cash, 3.00% PIK,
7.95%, 7/15/33 (a)(d)(e)(f)			2,674				2,597
9.00%, 12/31/50 (a)(c)(e)(f)			1,068				1,047
							4,498
Tanzania, United Republic Of (4.2%)
Corporate Bond (0.1%)
HTA Group Ltd.,
2.88%, 3/18/27			200				187
Senior Loan Interests (4.1%)
HTA Group Ltd. 3 Month SOFR + 4.311%,
9.64%, 9/13/28			880				878
Tanzania 3 Month USD SOFR + 5.45%,
10.16%, 2/27/31 (c)			5,600				5,571
							6,449
							6,636
Trinidad And Tobago (0.3%)
Sovereign (0.3%)
Trinidad & Tobago Government International Bond,
4.50%, 6/26/30			500				478
Tunisia (0.8%)
Sovereign (0.8%)
Tunisian Republic,
5.75%, 1/30/25			220				214
6.38%, 7/15/26		EUR	1,038				1,046
							1,260
Turkey (3.0%)
Corporate Bonds (1.4%)
Eregli Demir ve Celik Fabrikalari TAS,
8.38%, 7/23/29		$	597				616
Limak Iskenderun Uluslararasi Liman Isletmeciligi AS,
9.50%, 7/10/36			684				647
WE Soda Investments Holding PLC,
9.50%, 10/6/28			880				917
							2,180
Sovereign (1.6%)
Turkiye Government International Bond,
4.88%, 4/16/43			560				424
6.13%, 10/24/28			1,300				1,330
7.63%, 5/15/34			800				851
							2,605
							4,785
Ukraine (0.7%)
Sovereign (0.7%)
Ukraine Government International Bond,
1.75%, 2/1/29 - 2/1/36 (b)			1,664				749
3.00%, 2/1/30 - 2/1/36 (b)			1,107				393
							1,142
United Arab Emirates (2.4%)
Corporate Bond (0.5%)
Ittihad International Ltd.,
9.75%, 11/9/28			790				820
Sovereign (1.9%)
Finance Department Government of Sharjah,
4.00%, 7/28/50			600				421
4.38%, 3/10/51			300				222
6.50%, 11/23/32			2,140				2,302
							2,945
							3,765
Uruguay (0.9%)
Sovereign (0.9%)
Uruguay Government International Bond,
4.38%, 1/23/31			200				201
5.10%, 6/18/50			500				501
5.75%, 10/28/34			600				652
							1,354

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Third Quarter Report – September 30, 2024 (unaudited)

Portfolio of Investments (cont’d)

(Showing Percentage of Total Value of Investments)

 

		Face Amount (000)				Value (000)
Uzbekistan (2.6%)
Corporate Bonds (1.4%)
Ipoteka-Bank ATIB,
5.50%, 11/19/25		$	230			$	226
Jscb Agrobank,
9.25%, 10/2/29 (h)			1,456				1,465
Uzbek Industrial & Construction Bank ATB,
8.95%, 7/24/29			550				554
							2,245
Senior Loan Interests (0.5%)
Navoi Mining and Metallurgical Company 3 Month SOFR + 4.760%,
10.06%, 4/23/27 (c)			708				706
Sovereign (0.7%)
National Bank of Uzbekistan,
8.50%, 7/5/29			1,120				1,145
							4,096
Venezuela (1.7%)
Sovereign (1.7%)
Petroleos de Venezuela SA,
5.38%, 4/12/27 (e)(f)			2,523				245
5.50%, 4/12/37 (e)(f)			961				96
6.00%, 10/28/22 - 11/15/26 (e)(f)			9,277				896
8.50%, 10/27/20 (e)(f)			128				118
9.00%, 11/17/49 (e)(f)			1,023				107
9.75%, 5/17/35 (e)(f)			1,307				144
12.75%, 2/17/22 (e)(f)			691				79
Venezuela Government International Bond,
6.00%, 12/9/20 (e)(f)			711				87
7.00%, 3/31/38 (e)(f)			198				27
7.65%, 4/21/25 (e)(f)			1,085				151
7.75%, 10/13/19 (e)(f)			827				108
8.25%, 10/13/24 (e)(f)			290				41
9.00%, 5/7/23 (e)(f)			111				16
9.25%, 9/15/27 - 5/7/28 (e)(f)			2,334				364
9.38%, 1/13/34 (e)(f)			36				6
11.75%, 10/21/26 (e)(f)			443				74
11.95%, 8/5/31 (e)(f)			302				49
12.75%, 8/23/22 (e)(f)			314				52
							2,660
Vietnam (0.3%)
Corporate Bond (0.3%)
Mong Duong Finance Holdings BV, 5.13%, 5/7/29			411				399
Total Fixed Income Securities (Cost $156,079)							152,064

 

		No. of Warrants
Warrants (0.8%)
Ukraine (0.8%)
Ukraine Government International Bond, expires 8/1/41 (i)		1,614,000				1,146
Venezuela (0.0%)‡
Venezuela Government International Bond, Oil-Linked Payment Obligation expires 4/15/20 (g)(i)			5,450				38
Total Warrants (Cost $1,093)							1,184

 

		Shares
Short-Term Investments (4.3%)
Investment Company (4.1%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class, 4.88% (j) (Cost $6,536)			6,536,610				6,537

 

		Face Amount (000)
United States (0.2%)
U.S. Treasury Security (0.2%)
U.S. Treasury Bill,
5.19%, 1/16/25 (k) (Cost $321)		$	325				321
Total Short-Term Investments (Cost $6,857)							6,858
Total Investments (101.5%) (Cost $164,029)(l)(m)(n)							160,106
Liabilities in Excess of Other Assets (1.5%)							(2,403	)
Net Assets (100.0%)						$	157,703

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Third Quarter Report – September 30, 2024 (unaudited)

Portfolio of Investments (cont’d)

 

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.

 

‡	Amount is less than 0.05%.
(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, 2024. Maturity date disclosed is the ultimate maturity date.
(c)	Floating or variable rate securities: The rates disclosed are as of September 30, 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.
(d)	Income may be paid in additional securities and/or cash at the discretion of the issuer.
(e)	Issuer in bankruptcy.
(f)	Non-income producing security; bond in default.
(g)	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, 2024.
(h)	When-issued security.
(i)	Non-income producing security.
(j)	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 September 30, 2024, advisory fees paid were reduced by approximately $10,000 relating to the Fund's investment in the Liquidity Fund.
(k)	Rate shown is the yield to maturity at September 30, 2024.
(l)	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.
(m)	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, 2024, the Fund did not engage in any cross-trade transactions.
(n)	At September 30, 2024, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $9,893,000 and the aggregate gross unrealized depreciation is approximately $14,521,000, resulting in net unrealized depreciation of approximately $4,628,000.
DAC	Designated Activity Company.
EURIBOR	Euro Interbank Offered Rate.
MTN	Medium Term Note.
PIK	Payment-in-Kind.
REIT	Real Estate Investment Trust.
SOFR	Secured Overnight Financing Rate.
USD	United States Dollar.

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Third Quarter Report – September 30, 2024 (unaudited)

Portfolio of Investments (cont’d)

 

Foreign Currency Forward Exchange Contracts:

The Fund had the following foreign currency forward exchange contracts open at September 30, 2024:  

 

Counterparty		Contracts to Deliver (000)				In Exchange For (000)				Delivery Date		Unrealized Appreciation (Depreciation) (000)
Citibank NA		EUR	1,105			$	1,235			10/4/24		$	5
Citibank NA		$	473			EUR	429			10/4/24		4
Citibank NA		$	952			EUR	863			10/4/24		9
Goldman Sachs International		EUR	750			$	831			10/4/24		(4		)
Goldman Sachs International		EUR	1,099			$	1,217			10/4/24		(6		)
Goldman Sachs International		EUR	76			$	84			10/4/24		(1		)
Goldman Sachs International		EUR	720			$	798			10/4/24		(4		)
Goldman Sachs International		EUR	8			$	9			10/4/24		(—		@)
Goldman Sachs International		EUR	246			$	273			10/4/24		(1		)
Goldman Sachs International		EUR	2,331			$	2,582			10/4/24		(13		)
Goldman Sachs International		EUR	241			$	267			10/4/24		(1		)
Goldman Sachs International		EUR	822			$	910			10/4/24		(5		)
Goldman Sachs International		EUR	318			$	352			10/4/24		(2		)
Goldman Sachs International		EUR	1,287			$	1,426			10/4/24		(7		)
Goldman Sachs International		EUR	922			$	1,021			10/4/24		(5		)
Goldman Sachs International		EUR	391			$	433			10/4/24		(2		)
Goldman Sachs International		$	18			EUR	16			10/4/24		—		@
Goldman Sachs International		$	321			EUR	290			10/4/24		1
Goldman Sachs International		$	166			EUR	150			10/4/24		1
UBS AG		EUR	1,287			$	1,426			10/4/24		(7		)
UBS AG		EUR	247			$	273			10/4/24		(1		)
UBS AG		EUR	1,099			$	1,217			10/4/24		(6		)
UBS AG		EUR	2,331			$	2,582			10/4/24		(13		)
UBS AG		EUR	822			$	910			10/4/24		(5		)
UBS AG		EUR	922			$	1,021			10/4/24		(5		)
UBS AG		EUR	318			$	352			10/4/24		(2		)
UBS AG		EUR	8			$	9			10/4/24		(—		@)
UBS AG		EUR	750			$	831			10/4/24		(4		)
UBS AG		EUR	76			$	84			10/4/24		(1		)
UBS AG		EUR	241			$	267			10/4/24		(1		)
UBS AG		EUR	720			$	798			10/4/24		(4		)
UBS AG		EUR	391			$	433			10/4/24		(2		)
UBS AG		$	319			EUR	288			10/4/24		2
UBS AG		$	18			EUR	16			10/4/24		—		@
UBS AG		$	165			EUR	149			10/4/24		1
											$	(79		)

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Third Quarter Report – September 30, 2024 (unaudited)

Portfolio of Investments (cont’d)

 

Futures Contracts:

The Fund had the following futures contracts open at September 30, 2024:

 

		Number of Contracts			Expiration Date		Notional Amount (000)				Value (000)				Unrealized Appreciation (Depreciation) (000)
Long:
U.S. Treasury Ultra Long Bond (United States)		151			Dec-24		$	15,100			$	20,097			$	(336	)
U.S. Treasury Long Bond (United States)		40			Dec-24			4,000				4,968				(55	)
U.S. Treasury 5 yr. Note (United States)		38			Dec-24			3,800				4,176				(5	)
U.S. Treasury 10 yr. Note (United States)		17			Dec-24			1,700				1,943				(12	)
U.S. Treasury 10 yr. Ultra Note (United States)		140			Dec-24			14,000				16,562				(60	)
Short:
Euro-Buxl 30 yr. Bond Index (Germany)		5			Dec-24		EUR	(500	)			(759	)			(19	)
German Euro-Bobl Index (Germany)		49			Dec-24			(4,900	)			(6,548	)			(74	)
German Euro-Bund Index (Germany)		38			Dec-24			(3,800	)			(5,707	)			(78	)
German Euro-Schatz Index (Germany)		35			Dec-24			(3,500	)			(4,176	)			(22	)
U.S. Treasury 2 yr. Note (United States)		11			Dec-24		$	(2,200	)			(2,291	)			1
															$	(660	)

 

Credit Default Swap Agreements:

The Fund had the following credit default swap agreements open at September 30, 2024:  

 

Swap Counterparty and Reference Obligation		Credit Rating of Reference Obligation		Buy/Sell Protection		Pay/ Received Fixed Rate			Payment Frequency		Maturity Date		Notional Amount (000)				Value (000)				Upfront Payment Paid (Received) (000)				Unrealized Appreciation (Depreciation) (000)
Barclays Bank PLC Benin Government International Bonds		NR		Sell		1.00	%		Quarterly		6/20/27		$	100			$	(4	)		$	(8	)		$	4
Barclays Bank PLC Benin Government International Bonds		NR		Sell		1.00			Quarterly		6/20/27			100				(4	)			(7	)		$	3
Morgan Stanley & Co. LLC* Egypt Government International Bonds		NR		Sell		1.00			Quarterly		12/20/28			303				(49	)			(78	)		$	29
Goldman Sachs International Vietnam Government International Bonds		NR		Sell		1.00			Quarterly		12/20/29			900				1				3			$	(2	)
																	$	(56	)		$	(90	)		$	34

 

*		Cleared swap agreement, the broker is Morgan Stanley & Co. LLC.
EUR	—	Euro

 

 

Portfolio Composition

 

Classification		Percentage of Total Investments
Sovereign		60.9	%
Corporate Bonds		26.9
Senior Loan Interests		7.1
Other*		5.1
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 $67,227,000 and net unrealized depreciation of approximately $660,000. Does not include open foreign currency forward exchange contracts with net unrealized depreciation of approximately $79,000. Also does not include open swap agreements with net unrealized appreciation of approximately $34,000.

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Third Quarter Report – September 30, 2024 (unaudited)

Notes to the 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 the Adviser determines that the price provided by the outside pricing service/vendor does not reflect the security’s fair value or the pricing service/vendor or exchange 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) 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 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; (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 Debt Fund, Inc.

Third Quarter Report – September 30, 2024 (unaudited)

Notes to the 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 paid 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 Debt Fund, Inc.

Third Quarter Report – September 30, 2024 (unaudited)

Notes to the Portfolio of Investments (cont'd)

 

The following is a summary of the inputs used to value the Fund’s investments as of September 30, 2024:

 

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		$	—			$	42,975			$	—			$	42,975
Senior Loan Interests			—				11,384				—				11,384
Sovereign			—				97,705				—				97,705
Total Fixed Income Securities			—				152,064				—				152,064
Warrants			—				1,184				—				1,184
Short-Term Investments
U.S. Treasury Security			—				321				—				321
Investment Company			6,537				—				—				6,537
Total Short-Term Investments			6,537				321				—				6,858
Foreign Currency Forward Exchange Contracts			—				23				—				23
Future Contract			1				—				—				1
Credit Default Swap Agreements			—				36				—				36
Total Assets			6,538				153,628				—				160,166
Liabilities:
Foreign Currency Forward Exchange Contracts			—				(102	)			—				(102	)
Futures Contracts			(661	)			—				—				(661	)
Credit Default Swap Agreement			—				(2	)			—				(2	)
Total Liabilities			(661	)			(104	)			—				(765	)
Total		$	5,877			$	153,524			$	—			$	159,401

 

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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