Direct Lending: Selective Exposure

Private credit has entered a new phase. Stronger underwriting, wider spreads and greater manager differentiation are reshaping the direct lending market, creating new opportunities for institutional investors focused on income and portfolio resilience.

Morgan Stanley Investment Management, through investment funds managed by Morgan Stanley Real Estate Investing (MSREI), announced today the acquisition of a newly developed, 1.5 million-square-foot distribution facility in Kansas City, Missouri, for $158.5 million.

A shift is occurring toward a higher nominal growth environment, evolving Fed communication strategies, and implications for both bond and equity markets. Volatility may rise as a result, we discuss how we are managing our asset allocation in this new regime.

A narrow AI-driven rally is reshaping global markets, with a small group of stocks accounting for a growing share of returns. While supported by strong earnings, this concentration raises questions about sustainability and valuation. What does this mean for long-term investors? The International Equity Team explores the risks of crowding, the durability of AI-driven profits and the opportunities emerging beyond the current market leaders.