Jed Finn to Speak at the UBS Financial Services Conference-# Jed Finn to Speak at the UBS Financial Services ConferenceShare---NEW YORK--([BUSINESS WIRE])--Jed Finn, Head of Wealth Management at Morgan Stanley, will speak at the UBS Financial Services Conference on February 10, 2026, at 3:30 p.m. (ET).Both live and on-demand versions of the webcast will be available on [www.morganstanley.com] in the Investor Relations section.Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a ...

Core Insights - Morgan Stanley Direct Lending Fund (MSDL) has shown significant interest among investors in recent quarters, maintaining a bullish outlook on its performance [1] Company Overview - MSDL is categorized as a Business Development Company (BDC), which focuses on providing capital to small and mid-sized businesses [1] Investment Strategy - The emphasis on dividend investing is highlighted as a key strategy for achieving financial freedom, with MSDL being a notable example in this context [1] - The author combines financial expertise with value investing principles to build a robust investment portfolio centered around dividend income [1] Sector Focus - The investment focus spans various sectors including technology, real estate, software, finance, and consumer staples, which are also reflected in the author's personal investment portfolio [1]

Group 1 - Business development companies are currently facing challenges, leading to significant discounts in their net asset value (NAV) valuations [1] - The Morgan Stanley Direct Lending Fund (MSDL) is noted to be trading at one of the deepest discounts among its peers [1] - A hybrid investment strategy combining classic dividend growth stocks with business development companies, REITs, and closed-end funds is suggested as an effective way to enhance investment income while achieving total returns comparable to traditional index funds like the S&P [1]

Group 1 - Private credit pools, also known as BDCs, are identified as suitable income vehicles for investors seeking high dividends and NAV appreciation potential [1] Group 2 - The retail investment landscape is increasingly focused on AI-driven companies, with a strong emphasis on achieving financial independence through strategic investments [2] - The ongoing transformation of industries by artificial intelligence is creating new investment opportunities, particularly in leading AI-related companies like NVIDIA [2] - The next decade is anticipated to present remarkable opportunities for both retail and institutional investors in the AI sector [2]

Core Viewpoint - The article discusses the risks associated with Business Development Companies (BDCs), particularly focusing on interest rates and their potential impact on dividends and net asset values [1]. Group 1: Risks to BDCs - Interest rates are identified as a primary risk that could damage dividends or erode net asset values for BDCs [1].

Group 1 - Morgan Stanley Direct Lending Fund (MSDL) has gained significant attention from analysts and investors due to recent volatility affecting its share price [1] - The share price of MSDL has experienced extreme fluctuations, prompting interest from the investment community [1] Group 2 - Roberts Berzins has over a decade of experience in financial management, focusing on shaping financial strategies for top-tier corporates [1] - Berzins has contributed to institutionalizing the REIT framework in Latvia to enhance liquidity in pan-Baltic capital markets [1] - His work includes developing national SOE financing guidelines and frameworks for channeling private capital into affordable housing [1]

Upgrades - Argus upgraded Herbalife (HLF) to Buy from Hold, citing a Q3 earnings beat and raising FY25 EPS view by $0.03 to $2.15 and FY26 view by $0.04 to $2.64 [2] - JPMorgan upgraded Atmus Filtration (ATMU) to Overweight from Neutral with a price target increase to $60 from $53, following the proposed acquisition of Koch Filter [2] - Morgan Stanley upgraded Amentum (AMTM) to Equal Weight from Underweight, raising the price target to $35 from $20, indicating a more balanced risk/reward at current share levels [3] - Northland upgraded NetApp (NTAP) to Outperform from Market Perform, increasing the price target to $137 from $120, after reporting revenue growth of 4% year-over-year in fiscal Q2 and guidance for 5% growth in the second half of FY26 [3] - Deutsche Bank upgraded Autodesk (ADSK) to Buy from Hold, raising the price target to $375 from $345, following "very healthy" Q3 results described as one of the "cleanest" quarterly prints in recent years [4] Downgrades - Macquarie downgraded Nio (NIO) to Neutral from Outperform, lowering the price target to $5.30 from $6.70, after issuing "weak" Q4 volume guidance of 122,500 units at the midpoint [5] - Craig-Hallum downgraded PagerDuty (PD) to Hold from Buy, reducing the price target to $15 from $20, noting a fundamental change in end markets negatively affecting PagerDuty [5] - UBS downgraded Biohaven (BHVN) to Neutral from Buy, with a price target decrease to $11 from $26, citing multiple R&D and regulatory setbacks impacting confidence in its pipeline [5] - Bernstein downgraded Ambev (ABEV) to Market Perform from Outperform, setting a price target of $2.88, attributing the downgrade to valuation concerns as shares rose 16% year-to-date [5] - RBC Capital downgraded Morgan Stanley Direct Lending (MSDL) to Sector Perform from Outperform, lowering the price target to $18 from $19, suggesting lower net interest income return on equity expectations for 2026 [5]

Core Viewpoint - The current market environment poses significant challenges for income-focused investors, with declining bond yields and high valuations in the S&P 500 index. Business Development Companies (BDCs) are highlighted as a viable option for achieving high returns, particularly Blackstone Secured Lending (BXSL) and Morgan Stanley Direct Lending (MSDL), both offering yields exceeding 11% [1][3][20]. Group 1: Market Environment - The past year has been difficult for income investors due to falling interest rates and declining bond yields, making it challenging to find attractive dividend yields [1]. - BDCs are becoming increasingly attractive as they provide direct loans to private market companies, typically yielding double-digit returns [1][2]. Group 2: Company Analysis - BXSL and MSDL are favored BDCs, both investing primarily in first-lien debt, which offers strong security and predictable cash flows. Their stock prices are currently below book value, presenting a potential long-term buying opportunity for income investors [3][20]. - BXSL has invested 97.5% of its total capital in first-lien debt, while MSDL has allocated 96% to the same, ensuring high stability even in bankruptcy scenarios [4][8]. Group 3: Portfolio Quality - BXSL's loan portfolio consists of loans to 311 underlying companies, with the top ten loans accounting for only 19% of the overall risk exposure, indicating a well-diversified risk profile [6]. - MSDL has provided loans to 218 companies, with the largest outstanding loan representing only 2% of total capital, making it more diversified than BXSL [11]. Group 4: Dividend Safety and Yield - Both BXSL and MSDL maintain stable quarterly dividends, with BXSL paying $0.77 per share and MSDL $0.50 per share, translating to annualized yields of approximately 11.5% and 12%, respectively [14][16]. - The cost-to-income ratio for both companies has remained stable, indicating responsible dividend payments supported by actual earnings [16][17]. Group 5: Valuation - Over the past year, BXSL's stock price has decreased by about 16%, while MSDL's has fallen nearly 20%, primarily due to lower interest rates affecting their fair value [18][19]. - MSDL is currently trading at a significant discount of approximately 20% to its fair value, while BXSL's discount is only 2.5%, suggesting that MSDL offers better value for investors [19]. Group 6: Investment Recommendation - Overall, both BXSL and MSDL are considered excellent choices for income investors due to their high-quality portfolios and attractive dividend yields. However, MSDL is preferred due to its higher yield and greater discount, indicating substantial upside potential if its stock price aligns with fair value [20].

Market Overview - As interest rates decline, bond yields are also decreasing, leading to a perception of an expensive market with the S&P 500 trading at 25 times blended earnings [1] Investment Strategy - PropNotes focuses on identifying high-yield investment opportunities for individual investors, simplifying complex concepts, and providing actionable insights to enhance returns [1]

Group 1 - The Q3 earnings season is nearing its end, with most major BDCs having reported their financial results [1] - Roberts Berzins has over a decade of experience in financial management, focusing on corporate financial strategies and large-scale financings [1] - Berzins has contributed to the institutionalization of the REIT framework in Latvia to enhance liquidity in pan-Baltic capital markets [1] Group 2 - Berzins has been involved in developing national SOE financing guidelines and frameworks to channel private capital into affordable housing [1] - He holds a CFA Charter and an ESG investing certificate, and has experience with the Chicago Board of Trade [1] - Berzins actively participates in thought-leadership activities to support the development of pan-Baltic capital markets [1]