Morgan Stanley Direct Lending: Risk Is Overstated Relative To NAV Discount

Core Viewpoint - The private credit industry is viewed with skepticism due to the perception that many of their loans carry higher risks than they appear, and investment vehicles associated with private credit are often trading significantly above their net asset value (NAV) [1]. Group 1 - The private credit industry is considered risky, with loans that may not be as secure as they seem [1]. - Investment vehicles linked to private credit are trading at prices that exceed their NAV, indicating potential overvaluation [1].