Fed Chair Kevin Warsh says he wants to listen to the signal from markets more. Strategists at Morgan Stanley say markets may regret being in charge.
Morgan Stanley preferreds MS.PR.A and MS.PR.E offer distinct risk-reward profiles amid changing rate environments and call risk. While the economic world has shifted since my last review, adding uncertainty to where interest rates are going, my ratings for both remain unchanged. MS.PR.A keeps it Sell rating due to risk of price drop if the coupon falls to the 4% floor, potentially reducing yield and capital value.
Morgan Stanley Direct Lending trades at a 22% discount to NAV and is paying out an 11.7% dividend yield that's fully covered by NII. MSDL faces negative net fundings, yield compression, and a shrinking portfolio, raising the risk of further dividend cuts. Short interest in MSDL has reached record highs amid negative sentiment and large redemption requests from private credit funds.
Western Digital (NASDAQ:WDC | WDC Price Prediction) stock is up 7% in Tuesday morning trading, changing hands near $701 and setting a fresh all-time high.
Western Digital (WDC) shares surged on Monday after Morgan Stanley raised its price target on the data-storage company and reiterated its bullish outlook on both Western Digital and Seagate Technology, citing strengthening demand for hard disk drives fueled by artificial intelligence. Western Digital stock jumped about 17% to $658.80, making it the top performer in the S&P 500.
Morgan Stanley reiterates Overweight ratings on the hard-disk drive makers in a pair of research notes Monday.
I'm assigning a hold to Morgan Stanley Direct Lending, reflecting a balanced risk/reward profile after recent price appreciation. MSDL's fundamentals remain solid with a 21% NAV discount, low non-accruals, and below-average PIK, but sector-relative valuation is no longer compelling. Key concerns include high debt-to-equity, limited NII growth prospects, and significant SaaS portfolio exposure that could pressure future performance.
At $212.66, Morgan Stanley (NYSE:MS | MS Price Prediction) is a Hold.
MS is keeping M&A options open as it targets $10T in wealth assets, with deals likely focused on advisors, private markets and alternatives.
Flagstar Bank, National Association (FLG) Presents at Morgan Stanley US Financials Conference 2026 Transcript
Jeanine Pirro, the U.S. Attorney for the District of Columbia, is investigating several major banks for allegedly “debanking” customers for political reasons, the Wall Street Journal reported—following up on one of President Donald Trump's major complaints after his 2020 election loss.
MS is opening its stock-plan platforms to clients' AI agents, a move that could reshape workplace wealth management and deepen client ties.