UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number: 811-22011

 

Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.

(Exact name of registrant as specified in charter)

 

1585 Broadway, New York, New York                10036
(Address of principal executive offices)                (Zip code)

 

John H. Gernon
1585 Broadway, New York, New York 10036
(Name and address of agent for service)

 

Registrant's telephone number, including area code: 212-762-1886

 

Date of fiscal year end: October 31,

 

Date of reporting period: October 31, 2023

 

 

 

 

 

 

Item 1 - Report to Shareholders

 

 

 

Morgan Stanley Investment Management Inc.
Adviser

Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.
NYSE: EDD

Annual Report

October 31, 2023


Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.

October 31, 2023

Table of Contents (unaudited)

Letter to Stockholders

   

3

   
Performance Summary    

6

   
Portfolio of Investments    

8

   
Statement of Assets and Liabilities    

21

   
Statement of Operations    

22

   
Statements of Changes in Net Assets    

23

   
Statement of Cash Flows    

24

   
Financial Highlights    

25

   
Notes to Financial Statements    

26

   
Report of Independent Registered Public Accounting Firm    

40

   
Investment Advisory Agreement Approval    

41

   
Portfolio Management    

44

   
Investment Policy    

45

   
Principal Risks    

61

   
Additional Information Regarding the Fund    

79

   
Dividend Reinvestment Plan    

81

   
Potential Conflicts of Interest    

82

   

Important Notices

   

85

   
U.S. Customer Privacy Notice    

86

   
Directors and Officers Information    

89

   


2


Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.

October 31, 2023

Letter to Stockholders (unaudited)

Performance

For the year ended October 31, 2023, the Morgan Stanley Emerging Markets Domestic Debt Fund, Inc. (the "Fund") had total returns of 12.64%, based on net asset value, and 14.77% based on market value per share (including reinvestment of distributions), compared to its benchmark, the J.P. Morgan Government Bond Index — Emerging Markets Global Diversified Index (the "Index"), which returned 13.50%. On October 31, 2023, the closing price of the Fund's shares on the New York Stock Exchange was $4.33, representing a 14.76% discount to the Fund's net asset value per share. Past performance is no guarantee of future results.

Please keep in mind that double-digit returns are highly unusual and cannot be sustained. Investors should also be aware that these returns were primarily achieved during favorable market conditions.

Factors Affecting Performance

•  Emerging market (EM) domestic debt assets posted positive returns over the one-year period ended October 31, 2023 (as measured by the Index). Monthly returns were mixed during the 12-month period but were supported by improvements in the macro backdrop during the end of 2022 and beginning of 2023. The Federal Reserve's (Fed) rhetoric indicated that the end of the interest rate hiking cycle was near, but over the course of the 12-month period inflation continued to be elevated and the Fed responded with rate hikes, which weighed on EM currencies.

•  Broadly, for the Fund, yield curve positioning contributed positively to Index-relative performance, while currency and duration positioning were the largest detractors of Fund performance versus the Index.

•  The Fund's overweight positioning in the Dominican Republic and Serbia were positive contributors to Index-relative performance, as was an underweight to Turkey. An overweight to Malaysia and an overweight to Brazilian rates hurt Index-relative performance. An underweight to Mexico also detracted from Index-relative performance.

•  The Fund's use of derivatives both contributed to and detracted from Index-relative performance during the period. The primary instruments used were bond futures (U.S. Treasury and German bund), currency forwards and interest rate swaps. Bond futures and interest rate swaps were used to gain or hedge interest rate exposure, and currency forwards were used to hedge or add to currency exposure.

Management Strategies

•  While the Fed is closer to the end of its tightening cycle than the beginning, the terminal fed funds rate is uncertain, as is how long the Fed will keep its policy rate elevated. More orthodox monetary policy by many EM central banks has allowed them to end tightening cycles and, in an increasing number of cases, begin easing. However, some EM central banks have started to pivot back toward hikes, which further highlights the divergence across the asset class. The onset of war in the Middle East brought devastation and created uncertainty for the region, although spillover effects remain contained — however, this will continue to be closely monitored. Country- and credit-level analysis will be pivotal to uncover value in the asset class, especially as growth, inflation and policy vary significantly across the emerging markets universe.


3


Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.

October 31, 2023

Letter to Stockholders (unaudited) (cont'd)

Sincerely,

John H. Gernon
President and Principal Executive Officer  November 2023


4


(This page has been left blank intentionally.)


Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.

October 31, 2023

Performance Summary (unaudited)

Performance of $10,000 Investment as of October 31, 2023
Over 10 Years


6


Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.

October 31, 2023

Average Annual Total Returns as of October 31, 2023(1)​ (unaudited)

 

One Year

 

Five Years

 

Ten Years

 

NAV

   

12.64

%

   

0.14

%

   

-3.16

%  

Market price

   

14.77

%

   

0.37

%

   

-3.36

%

 
J.P. Morgan Government Bond Index — Emerging Markets Global
Diversified Index(2)
   

13.50

%

   

0.29

%

   

-1.16

%

 

Performance data quoted on the graph and table represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested at prices obtained under the Fund's dividend reinvestment plan. For the most recent month-end performance figures, please visit www.morganstanley.com/im/closedendfundsshareholderreports. Investment returns and principal value will fluctuate so that Fund shares, when sold, may be worth more or less than their original cost. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the sale of fund shares. Total return, market price, NAV, market price distribution rate, and NAV distribution rate will fluctuate with changes in market conditions. The Fund's total returns are based upon the market value and net asset value on the last business day of each period.

Distributions

 

Total Distributions per share for the period

 

$

0.32

   

Distribution Rate at NAV(3)

   

7.10

%

 

Distribution Rate at Market Price(3)

   

8.31

%

 

% Premium/(Discount) to NAV(4)

   

(14.76

)%

 

(1)  All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.

(2)  J.P. Morgan Government Bond Index — Emerging Markets Global Diversified Index tracks local currency government bonds issued by emerging markets. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

(3)  The Distribution Rate is based on the Fund's last regular distribution per share in the period (annualized) divided by the Fund's NAV or market price at the end of the period. The Fund's distributions may be comprised of amounts characterized for federal income tax purposes as qualified and non-qualified ordinary dividends, capital gains and non-dividend distributions, also known as return of capital. The Fund will determine the federal income tax character of distributions paid to a shareholder after the end of the calendar year. The Fund's distributions are determined by the investment adviser based on its current assessment of the Fund's long-term return potential. Fund distributions may be affected by numerous factors including changes in Fund performance, the cost of financing for leverage, portfolio holdings, realized and projected returns, and other factors. As portfolio and market conditions change, the rate of distributions paid by the Fund could change.

(4)  The shares of the Fund often trade at a discount or premium to their net asset value. The discount or premium may vary over time and may be higher or lower than what is quoted in this report.


7


Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.

October 31, 2023

Portfolio of Investments

(Showing Percentage of Total Value of Investments)

    Face
Amount
(000)
 
Value
(000)
 

FIXED INCOME SECURITIES (89.6%)

 

Armenia (3.3%)

 

Sovereign (3.3%)

 
Republic of Armenia
Treasury Bond,
9.00%, 4/29/26
 

AMD

99,880

   

$

242

   

9.25%, 4/29/28

   

1,221,820

     

2,911

   

9.60%, 10/29/33

   

2,727,998

     

6,484

   

9.75%, 10/29/50 - 10/29/52

   

694,472

     

1,655

   
         

11,292

   

Benin (0.1%)

 

Sovereign (0.1%)

 
Benin Government
International Bond,
5.75%, 3/26/26
 

EUR

204

     

211

   

Brazil (1.7%)

 

Sovereign (1.7%)

 
Brazil Notas do Tesouro
Nacional, Series F,
10.00%, 1/1/27 - 1/1/29
 

BRL

31,000

     

5,876

   

Chile (1.8%)

 

Sovereign (1.8%)

 
Bonos de la Tesoreria de la
Republica en pesos,
5.00%, 10/1/28
 

CLP

3,520,000

     

3,681

   

5.30%, 11/1/37

   

2,410,000

     

2,485

   
         

6,166

   

Colombia (5.2%)

 

Corporate Bond (0.3%)

 
Fideicomiso PA Costera,
6.25%, 1/15/34 (a)
 

COP

4,979,415

     

1,037

   

Sovereign (4.9%)

 
Colombian TES, Series B
5.75%, 11/3/27
   

24,995,000

     

5,086

   

6.00%, 4/28/28

   

8,982,000

     

1,808

   

7.00%, 3/26/31

   

8,239,000

     

1,580

   

7.00%, 6/30/32

   

12,440,000

     

2,288

   

7.75%, 9/18/30

   

6,916,000

     

1,410

   
Financiera de Desarrollo
Territorial SA Findeter,
7.88%, 8/12/24 (a)
   

20,551,000

     

4,776

   
         

16,948

   
         

17,985

   
    Face
Amount
(000)
 
Value
(000)
 

Czech Republic (4.2%)

 

Sovereign (4.2%)

 
Czech Republic
Government Bond,
1.20%, 3/13/31
 

CZK

57,320

   

$

1,957

   

2.00%, 10/13/33

   

117,440

     

4,012

   

2.75%, 7/23/29

   

214,430

     

8,431

   
         

14,400

   

Dominican Republic (6.5%)

 

Sovereign (6.5%)

 
Dominican Republic
Central Bank Note,
8.00%, 3/12/27 (a)
 

DOP

15,000

     

242

   

12.00%, 10/3/25 (a)

   

59,260

     

1,066

   

13.00%, 12/5/25 (a)

   

97,000

     

1,763

   

13.00%, 12/5/25

   

120,000

     

2,182

   
Dominican Republic
International Bond,
8.00%, 1/15/27 - 2/12/27 (a)
   

114,000

     

1,866

   

11.25%, 9/15/35 (a)

   

60,850

     

1,063

   

12.00%, 8/8/25 (a)

   

262,700

     

4,765

   

12.75%, 9/23/29 (a)

   

357,200

     

6,967

   

13.63%, 2/3/33

   

120,250

     

2,412

   
         

22,326

   

Honduras (0.0%)‡

 

Sovereign (0.0%)‡

 
Honduras Government
International Bond,
7.50%, 3/15/24
 

$

92

     

92

   

Hungary (2.8%)

 

Sovereign (2.8%)

 
Hungary Government Bond,
2.25%, 4/20/33
 

HUF

677,000

     

1,257

   

3.00%, 10/27/27

   

1,387,460

     

3,261

   

3.00%, 4/25/41

   

1,548,910

     

2,439

   

3.25%, 10/22/31

   

375,640

     

795

   

4.00%, 4/28/51

   

139,450

     

231

   

4.75%, 11/24/32

   

687,250

     

1,569

   
         

9,552

   

The accompanying notes are an integral part of the financial statements.


8


Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.

October 31, 2023

Portfolio of Investments (cont'd)

(Showing Percentage of Total Value of Investments)

    Face
Amount
(000)
 
Value
(000)
 

India (4.5%)

 

Sovereign (4.5%)

 
India Government Bond,
7.10%, 4/18/29
 

INR

962,360

   

$

11,414

   

7.26%, 2/6/33

   

336,750

     

4,018

   
         

15,432

   

Indonesia (8.7%)

 

Sovereign (8.7%)

 
Indonesia Treasury Bond,
6.50%, 2/15/31
 

IDR

114,953,000

     

6,964

   

7.00%, 9/15/30

   

6,015,000

     

376

   

7.00%, 2/15/33

   

50,965,000

     

3,184

   

7.13%, 6/15/42 - 6/15/43

   

83,550,000

     

5,240

   

7.38%, 5/15/48

   

7,875,000

     

505

   

7.50%, 6/15/35

   

83,000,000

     

5,334

   

8.38%, 4/15/39

   

65,600,000

     

4,534

   

8.75%, 5/15/31

   

58,978,000

     

4,032

   
         

30,169

   

Jordan (0.7%)

 

Sovereign (0.7%)

 
Jordan Government
International Bond,
4.95%, 7/7/25
 

$

2,735

     

2,556

   

Malaysia (5.7%)

 

Sovereign (5.7%)

 
Malaysia Government Bond,
3.58%, 7/15/32
 

MYR

6,289

     

1,265

   

3.76%, 5/22/40

   

60,220

     

11,612

   

4.07%, 6/15/50

   

3,400

     

659

   

4.23%, 6/30/31

   

29,504

     

6,233

   
         

19,769

   

Mexico (5.1%)

 

Sovereign (5.1%)

 
Mexican Bonos,
7.50%, 6/3/27
 

MXN

50,000

     

2,540

   

7.75%, 5/29/31

   

133,000

     

6,431

   

8.50%, 5/31/29 - 11/18/38

   

105,000

     

5,354

   
Petroleos Mexicanos,
4.25%, 1/15/25
 

$

1,850

     

1,776

   

6.88%, 10/16/25

   

1,720

     

1,653

   
         

17,754

   
    Face
Amount
(000)
 
Value
(000)
 

Panama (0.0%)‡

 

Sovereign (0.0%)‡

 
Panama Bonos del Tesoro,
6.38%, 7/25/33
 

$

118

   

$

108

   

Peru (7.2%)

 

Sovereign (7.2%)

 
Peru Government Bond,
5.94%, 2/12/29
 

PEN

59,570

     

14,869

   

6.15%, 8/12/32

   

15,580

     

3,710

   

6.35%, 8/12/28

   

10,000

     

2,568

   

7.30%, 8/12/33

   

14,016

     

3,577

   
         

24,724

   

Romania (4.5%)

 

Sovereign (4.5%)

 
Romania Government Bond,
2.50%, 10/25/27
 

RON

31,700

     

5,839

   

4.25%, 4/28/36

   

5,500

     

902

   

4.75%, 2/24/25 - 10/11/34

   

29,455

     

6,015

   

5.80%, 7/26/27

   

9,410

     

1,953

   

8.75%, 10/30/28

   

3,970

     

916

   
         

15,625

   

Serbia (2.9%)

 

Sovereign (2.9%)

 
Serbia Treasury Bonds,
4.50%, 8/20/32
 

RSD

1,174,820

     

9,346

   

5.88%, 2/8/28

   

81,860

     

756

   
         

10,102

   

South Africa (10.8%)

 

Sovereign (10.8%)

 
Republic of South Africa
Government Bond,
8.00%, 1/31/30
 

ZAR

72,930

     

3,444

   

8.75%, 1/31/44

   

336,800

     

12,742

   

9.00%, 1/31/40

   

343,230

     

13,692

   

10.50%, 12/21/26

   

136,800

     

7,572

   
         

37,450

   

The accompanying notes are an integral part of the financial statements.


9


Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.

October 31, 2023

Portfolio of Investments (cont'd)

(Showing Percentage of Total Value of Investments)

    Face
Amount
(000)
 
Value
(000)
 

Sri Lanka (1.2%)

 

Sovereign (1.2%)

 
Sri Lanka Treasury Bill,
0.00%, 12/8/23
 

LKR

504,000

   

$

1,509

   

0.00%, 12/15/23

   

912,000

     

2,726

   
         

4,235

   

Supranational (0.2%)

 

Sovereign (0.2%)

 
International Finance Corp.,
16.00%, 2/21/25
 

UZS

7,000,000

     

575

   

Suriname (0.9%)

 

Sovereign (0.9%)

 
Suriname Government
International Bond,
9.25%, 10/26/26 (b)(c)
 

$

2,587

     

2,361

   

12.88%, 12/30/23 (a)(b)(c)

   

946

     

883

   
         

3,244

   

Thailand (3.0%)

 

Sovereign (3.0%)

 
Thailand Government Bond,
1.59%, 12/17/35
 

THB

70,000

     

1,603

   

1.60%, 12/17/29 - 6/17/35

   

70,328

     

1,725

   

1.88%, 6/17/49

   

50,000

     

938

   

2.00%, 6/17/42

   

226,000

     

4,896

   

3.30%, 6/17/38

   

50,000

     

1,343

   
         

10,505

   

Uruguay (2.9%)

 

Sovereign (2.9%)

 
Uruguay Government
International Bond,
3.88%, 7/2/40
 

UYU

153,416

     

3,895

   

8.50%, 3/15/28 (a)

   

69,890

     

1,668

   

9.75%, 7/20/33

   

160,157

     

3,994

   
Uruguay Monetary
Regulation Bill,
0.00%, 7/3/24
   

15,950

     

375

   
         

9,932

   
    Face
Amount
(000)
 
Value
(000)
 

Uzbekistan (4.9%)

 

Corporate Bonds (1.4%)

 
Ipoteka-Bank ATIB,
16.00%, 4/16/24
 

UZS

10,170,000

   

$

820

   
Uzbek Industrial &
Construction Bank
ATB via Daryo Finance BV,
18.75%, 6/15/25
   

48,515,300

     

3,877

   
         

4,697

   

Senior Loan Interests (1.1%)

 
Europe Asia Investment
Finance BV,
18.70%, 7/21/26
 

UZS

51,573,170

     

3,930

   

Sovereign (2.4%)

 
Republic of Uzbekistan
International Bond,
14.00%, 7/19/24
   

45,910,000

     

3,749

   

16.25%, 10/12/26

   

55,720,000

     

4,577

   
         

8,326

   
   

   

16,953

   

Zambia (0.8%)

 

Sovereign (0.8%)

 
Zambia Government Bond,
11.00%, 1/25/26 - 6/28/26
 

ZMW

44,154

     

1,745

   

12.00%, 6/28/28 - 11/29/28

   

9,000

     

290

   

13.00%, 1/25/31

   

15,270

     

430

   

13.00%, 12/27/31

   

1,070

     

29

   

14.00%, 4/24/32

   

3,515

     

99

   
         

2,593

   
TOTAL FIXED INCOME SECURITIES (Cost $339,593)        

309,626

   

SHORT-TERM INVESTMENTS (10.3%)

 

U.S. Treasury Security (2.6%)

 
U.S. Treasury Bill,
5.57%, 4/18/24
(Cost $9,076) (d)
 

$

9,308

     

9,075

   

The accompanying notes are an integral part of the financial statements.


10


Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.

October 31, 2023

Portfolio of Investments (cont'd)

(Showing Percentage of Total Value of Investments)

   

Shares

  Value
(000)
 

Investment Company (7.7%)

 
Morgan Stanley Institutional
Liquidity Funds — Treasury
Securities Portfolio
(See Note F) (Cost $26,614)
   

26,613,919

   

$

26,614

   
TOTAL SHORT-TERM INVESTMENTS (Cost $35,690)        

35,689

   
TOTAL INVESTMENTS EXCLUDING PURCHASED
OPTIONS (99.9%)
(COST $375,283)
       

345,315

   
TOTAL PURCHASED OPTIONS OUTSTANDING
(0.1%)
(COST $163)
       

127

   
TOTAL INVESTMENTS (100%) (Cost $375,446) (e)(f)        

345,442

   

LIABILITIES IN EXCESS OF OTHER ASSETS

       

(14,211

)

 

NET ASSETS

     

$

331,231

   

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.

(a)  144A security — Certain conditions for public sale may exist. Unless otherwise noted, these securities are deemed to be liquid.

(b)  Issuer in bankruptcy.

(c)  Non-income producing security; bond in default.

(d)  Rate shown is the yield to maturity at October 31, 2023.

(e)  Securities are available for collateral in connection with open foreign currency forward exchange contracts, futures contracts and swap agreements.

(f)  At October 31, 2023, the aggregate cost for federal income tax purposes is approximately $379,007,000. The aggregate gross unrealized appreciation is approximately $5,561,000 and the aggregate gross unrealized depreciation is approximately $43,087,000, resulting in net unrealized depreciation of approximately $37,526,000.

Foreign Currency Forward Exchange Contracts:

The Fund had the following foreign currency forward exchange contracts open at October 31, 2023:

Counterparty

  Contracts
to
Deliver
(000)
  In
Exchange
For
(000)
  Delivery
Date
  Unrealized
Appreciation
(Depreciation)
(000)
 

Australia & New Zealand Banking Group Ltd.

 

INR

60,000

   

$

722

   

12/20/23

 

$

3

   

Barclays Bank PLC

 

EUR

1,905

   

HUF

813,165

   

1/30/24

   

198

   

Barclays Bank PLC

 

ILS

4,522

   

$

1,147

   

11/13/23

   

28

   

Barclays Bank PLC

 

MYR

1,700

   

$

365

   

12/20/23

   

7

   

Barclays Bank PLC

 

TRY

69,301

   

$

1,809

   

9/20/24

   

2

   

Barclays Bank PLC

 

TRY

16,168

   

$

460

   

6/21/24

   

(—

@)

 

Barclays Bank PLC

 

TRY

17,879

   

$

466

   

9/23/24

   

1

   

Barclays Bank PLC

 

$

9,352

   

BRL

46,152

   

12/4/23

   

(232

)

 

Barclays Bank PLC

 

$

195

   

CLP

174,945

   

12/20/23

   

(—

@)

 

Barclays Bank PLC

 

$

3,639

   

MYR

16,938

   

12/20/23

   

(73

)

 

Barclays Bank PLC

 

$

4,700

   

MYR

21,876

   

12/20/23

   

(94

)

 

Barclays Bank PLC

 

$

1,892

   

TRY

69,301

   

9/20/24

   

(84

)

 

Barclays Bank PLC

 

$

478

   

TRY

16,168

   

6/21/24

   

(18

)

 

Barclays Bank PLC

 

$

481

   

TRY

17,879

   

9/23/24

   

(16

)

 

Barclays Bank PLC

 

$

1,176

   

ZAR

22,600

   

12/20/23

   

32

   

BNP Paribas SA

 

CNH

74,000

   

$

10,186

   

12/20/23

   

74

   

BNP Paribas SA

 

EUR

447

   

HUF

182,066

   

1/11/24

   

24

   

BNP Paribas SA

 

EUR

493

   

HUF

201,134

   

1/11/24

   

27

   

BNP Paribas SA

 

EUR

1,152

   

HUF

451,667

   

12/20/23

   

19

   

BNP Paribas SA

 

EUR

3,074

   

HUF

1,204,948

   

12/20/23

   

51

   

The accompanying notes are an integral part of the financial statements.


11


Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.

October 31, 2023

Portfolio of Investments (cont'd)

Foreign Currency Forward Exchange Contracts: (cont'd)

Counterparty

  Contracts
to
Deliver
(000)
  In
Exchange
For
(000)
  Delivery
Date
  Unrealized
Appreciation
(Depreciation)
(000)
 

BNP Paribas SA

 

EUR

2,089

   

PLN

9,760

   

12/20/23

 

$

99

   

BNP Paribas SA

 

EUR

8,815

   

PLN

41,191

   

12/20/23

   

418

   

BNP Paribas SA

 

HUF

447,251

   

EUR

1,141

   

12/20/23

   

(19

)

 

BNP Paribas SA

 

IDR

12,141,100

   

$

778

   

12/20/23

   

14

   

BNP Paribas SA

 

ILS

10,132

   

$

2,563

   

11/28/23

   

54

   

BNP Paribas SA

 

ILS

9,055

   

$

2,293

   

11/24/23

   

50

   

BNP Paribas SA

 

INR

652,100

   

$

7,808

   

12/20/23

   

(15

)

 

BNP Paribas SA

 

PEN

8,119

   

$

2,184

   

12/20/23

   

74

   

BNP Paribas SA

 

PLN

5,560

   

EUR

1,190

   

12/20/23

   

(56

)

 

BNP Paribas SA

 

$

2,695

   

ILS

10,132

   

11/28/23

   

(186

)

 

BNP Paribas SA

 

$

2,501

   

ILS

9,495

   

12/20/23

   

(145

)

 

BNP Paribas SA

 

$

1,095

   

MXN

19,276

   

12/20/23

   

(34

)

 

Citibank NA

 

AMD

74,630

   

$

187

   

9/6/24

   

13

   

Citibank NA

 

AMD

225,194

   

$

554

   

9/16/24

   

30

   

Citibank NA

 

CNH

4,210

   

$

583

   

12/20/23

   

8

   

Citibank NA

 

CZK

123,300

   

EUR

4,974

   

12/20/23

   

(30

)

 

Citibank NA

 

EUR

1,429

   

HUF

574,800

   

1/11/24

   

57

   

Citibank NA

 

MXN

15,000

   

$

861

   

12/20/23

   

35

   

Citibank NA

 

$

56

   

BRL

279

   

12/4/23

   

(1

)

 

Citibank NA

 

$

6,644

   

MXN

118,846

   

12/20/23

   

(103

)

 

Citibank NA

 

$

7,274

   

MXN

132,492

   

12/20/23

   

19

   

Citibank NA

 

$

1,768

   

PEN

6,868

   

12/20/23

   

16

   

Citibank NA

 

$

142

   

THB

5,000

   

12/20/23

   

(2

)

 

Citibank NA

 

$

9,774

   

THB

344,000

   

12/20/23

   

(162

)

 

Citibank NA

 

UYU

43,278

   

$

1,108

   

12/20/23

   

32

   

Citibank NA

 

UYU

86,652

   

$

2,223

   

12/20/23

   

68

   

Citibank NA

 

ZAR

20,900

   

$

1,101

   

12/20/23

   

(15

)

 

Credit Agricole CIB

 

IDR

216,015,580

   

$

14,041

   

12/20/23

   

447

   

Goldman Sachs International

 

BRL

8,570

   

$

1,736

   

12/4/23

   

43

   

Goldman Sachs International

 

BRL

6,600

   

$

1,276

   

12/4/23

   

(28

)

 

Goldman Sachs International

 

COP

15,751,829

   

$

3,808

   

12/20/23

   

22

   

Goldman Sachs International

 

COP

2,017,400

   

$

482

   

12/20/23

   

(3

)

 

Goldman Sachs International

 

CZK

10,301

   

EUR

419

   

12/20/23

   

1

   

Goldman Sachs International

 

CZK

2,025

   

EUR

82

   

12/20/23

   

@

 

Goldman Sachs International

 

EUR

561

   

CZK

13,814

   

12/20/23

   

(1

)

 

Goldman Sachs International

 

EUR

504

   

CZK

12,405

   

12/20/23

   

(1

)

 

Goldman Sachs International

 

EUR

3,835

   

CZK

94,303

   

12/20/23

   

(10

)

 

Goldman Sachs International

 

EUR

4,271

   

CZK

105,016

   

12/20/23

   

(11

)

 

Goldman Sachs International

 

EUR

771

   

HUF

302,285

   

12/20/23

   

13

   

Goldman Sachs International

 

EUR

289

   

HUF

113,309

   

12/20/23

   

5

   

Goldman Sachs International

 

EUR

452

   

HUF

176,739

   

12/20/23

   

6

   

Goldman Sachs International

 

EUR

1,206

   

HUF

471,501

   

12/20/23

   

17

   

Goldman Sachs International

 

EUR

1,119

   

HUF

437,521

   

12/20/23

   

15

   

Goldman Sachs International

 

EUR

2,986

   

HUF

1,167,210

   

12/20/23

   

40

   

The accompanying notes are an integral part of the financial statements.


12


Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.

October 31, 2023

Portfolio of Investments (cont'd)

Foreign Currency Forward Exchange Contracts: (cont'd)

Counterparty

  Contracts
to
Deliver
(000)
  In
Exchange
For
(000)
  Delivery
Date
  Unrealized
Appreciation
(Depreciation)
(000)
 

Goldman Sachs International

 

EUR

333

   

PLN

1,500

   

12/20/23

 

$

3

   

Goldman Sachs International

 

EUR

524

   

PLN

2,451

   

12/20/23

   

25

   

Goldman Sachs International

 

EUR

2,214

   

PLN

10,343

   

12/20/23

   

105

   

Goldman Sachs International

 

HUF

111,813

   

EUR

285

   

12/20/23

   

(5

)

 

Goldman Sachs International

 

HUF

174,806

   

EUR

447

   

12/20/23

   

(6

)

 

Goldman Sachs International

 

HUF

430,855

   

EUR

1,102

   

12/20/23

   

(15

)

 

Goldman Sachs International

 

MXN

227,358

   

$

12,785

   

12/20/23

   

272

   

Goldman Sachs International

 

MYR

2,060

   

$

456

   

11/15/23

   

24

   

Goldman Sachs International

 

PEN

10,469

   

$

2,811

   

12/20/23

   

91

   

Goldman Sachs International

 

PEN

4,952

   

$

1,289

   

12/20/23

   

3

   

Goldman Sachs International

 

PLN

1,390

   

EUR

297

   

12/20/23

   

(14

)

 

Goldman Sachs International

 

$

196

   

CLP

174,946

   

12/20/23

   

(1

)

 

Goldman Sachs International

 

$

462

   

COP

1,910,000

   

12/20/23

   

(3

)

 

Goldman Sachs International

 

$

1,194

   

ILS

4,522

   

11/13/23

   

(75

)

 

Goldman Sachs International

 

$

12,854

   

MXN

228,586

   

12/20/23

   

(273

)

 

Goldman Sachs International

 

$

326

   

MXN

5,665

   

12/20/23

   

(14

)

 

Goldman Sachs International

 

$

2,140

   

MYR

9,660

   

11/15/23

   

(110

)

 

Goldman Sachs International

 

$

1,603

   

MYR

7,452

   

12/20/23

   

(33

)

 

Goldman Sachs International

 

$

2,070

   

MYR

9,624

   

12/20/23

   

(43

)

 

Goldman Sachs International

 

$

772

   

TRY

22,230

   

12/8/23

   

(9

)

 

Goldman Sachs International

 

ZAR

10,347

   

$

539

   

12/20/23

   

(14

)

 

Goldman Sachs International

 

ZAR

10,544

   

$

550

   

12/20/23

   

(14

)

 

Goldman Sachs International

 

ZAR

2,806

   

$

146

   

12/20/23

   

(4

)

 

Goldman Sachs International

 

ZAR

11,032

   

$

575

   

12/20/23

   

(15

)

 

Goldman Sachs International

 

ZAR

41,458

   

$

2,160

   

12/20/23

   

(56

)

 

Goldman Sachs International

 

ZAR

40,684

   

$

2,119

   

12/20/23

   

(54

)

 

Goldman Sachs International

 

ZAR

855

   

$

45

   

12/20/23

   

(1

)

 

Goldman Sachs International

 

ZAR

5,601

   

$

293

   

12/20/23

   

(6

)

 

Goldman Sachs International

 

ZAR

9,073

   

$

474

   

12/20/23

   

(11

)

 

Goldman Sachs International

 

ZAR

5,043

   

$

264

   

12/20/23

   

(6

)

 

Goldman Sachs International

 

ZAR

16,767

   

$

876

   

12/20/23

   

(20

)

 

Goldman Sachs International

 

ZAR

18,625

   

$

973

   

12/20/23

   

(22

)

 

Goldman Sachs International

 

ZAR

2,842

   

$

148

   

12/20/23

   

(3

)

 

Goldman Sachs International

 

ZAR

30,167

   

$

1,576

   

12/20/23

   

(36

)

 

Goldman Sachs International

 

ZAR

8,619

   

$

452

   

12/20/23

   

(9

)

 

Goldman Sachs International

 

ZAR

5,321

   

$

279

   

12/20/23

   

(6

)

 

Goldman Sachs International

 

ZAR

812

   

$

43

   

12/20/23

   

(1

)

 

Goldman Sachs International

 

ZAR

4,790

   

$

251

   

12/20/23

   

(5

)

 

HSBC Bank PLC

 

EUR

289

   

HUF

113,309

   

12/20/23

   

5

   

HSBC Bank PLC

 

EUR

771

   

HUF

302,285

   

12/20/23

   

13

   

HSBC Bank PLC

 

HUF

111,813

   

EUR

285

   

12/20/23

   

(5

)

 

HSBC Bank PLC

 

$

767

   

IDR

12,070,000

   

12/20/23

   

(7

)

 

HSBC Bank PLC

 

$

2,730

   

ILS

10,320

   

11/24/23

   

(175

)

 

HSBC Bank PLC

 

$

501

   

THB

18,500

   

12/20/23

   

16

   

The accompanying notes are an integral part of the financial statements.


13


Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.

October 31, 2023

Portfolio of Investments (cont'd)

Foreign Currency Forward Exchange Contracts: (cont'd)

Counterparty

  Contracts
to
Deliver
(000)
  In
Exchange
For
(000)
  Delivery
Date
  Unrealized
Appreciation
(Depreciation)
(000)
 

HSBC Bank PLC

 

$

711

   

ZAR

13,495

   

12/20/23

 

$

10

   

HSBC Bank PLC

 

$

358

   

ZAR

6,747

   

12/20/23

   

3

   

HSBC Bank PLC

 

ZAR

10,469

   

$

546

   

12/20/23

   

(14

)

 

HSBC Bank PLC

 

ZAR

10,668

   

$

556

   

12/20/23

   

(14

)

 

HSBC Bank PLC

 

ZAR

2,839

   

$

148

   

12/20/23

   

(4

)

 

HSBC Bank PLC

 

ZAR

5,601

   

$

293

   

12/20/23

   

(7

)

 

HSBC Bank PLC

 

ZAR

855

   

$

45

   

12/20/23

   

(1

)

 

HSBC Bank PLC

 

ZAR

9,073

   

$

474

   

12/20/23

   

(11

)

 

HSBC Bank PLC

 

ZAR

5,043

   

$

263

   

12/20/23

   

(6

)

 

HSBC Bank PLC

 

ZAR

18,625

   

$

973

   

12/20/23

   

(23

)

 

HSBC Bank PLC

 

ZAR

16,767

   

$

876

   

12/20/23

   

(20

)

 

HSBC Bank PLC

 

ZAR

2,842

   

$

148

   

12/20/23

   

(3

)

 

HSBC Bank PLC

 

ZAR

30,167

   

$

1,575

   

12/20/23

   

(37

)

 

HSBC Bank PLC

 

ZAR

812

   

$

43

   

12/20/23

   

(1

)

 

HSBC Bank PLC

 

ZAR

5,321

   

$

279

   

12/20/23

   

(6

)

 

HSBC Bank PLC

 

ZAR

8,619

   

$

452

   

12/20/23

   

(9

)

 

HSBC Bank PLC

 

ZAR

4,790

   

$

251

   

12/20/23

   

(5

)

 

HSBC Bank PLC

 

ZAR

13,523

   

$

709

   

12/20/23

   

(14

)

 

HSBC Bank PLC

 

ZAR

15,021

   

$

787

   

12/20/23

   

(16

)

 

HSBC Bank PLC

 

ZAR

2,292

   

$

120

   

12/20/23

   

(2

)

 

HSBC Bank PLC

 

ZAR

24,331

   

$

1,275

   

12/20/23

   

(25

)

 

JPMorgan Chase Bank NA

 

BRL

41,508

   

$

8,295

   

11/3/23

   

62

   

JPMorgan Chase Bank NA

 

CLP

600,000

   

$

667

   

12/20/23

   

(1

)

 

JPMorgan Chase Bank NA

 

CLP

3,691,004

   

$

4,105

   

12/20/23

   

(8

)

 

JPMorgan Chase Bank NA

 

EUR

512

   

CZK

12,600

   

12/20/23

   

(1

)

 

JPMorgan Chase Bank NA

 

EUR

420

   

RON

2,100

   

12/20/23

   

2

   

JPMorgan Chase Bank NA

 

ILS

7,586

   

$

1,934

   

12/20/23

   

52

   

JPMorgan Chase Bank NA

 

ILS

1,264

   

$

320

   

11/24/23

   

7

   

JPMorgan Chase Bank NA

 

ILS

1,909

   

$

484

   

12/20/23

   

10

   

JPMorgan Chase Bank NA

 

PEN

24,468

   

$

6,578

   

12/20/23

   

221

   

JPMorgan Chase Bank NA

 

PEN

4,314

   

$

1,160

   

12/20/23

   

39

   

JPMorgan Chase Bank NA

 

PEN

11,372

   

$

3,057

   

12/20/23

   

103

   

JPMorgan Chase Bank NA

 

PEN

10,315

   

$

2,773

   

12/20/23

   

93

   

JPMorgan Chase Bank NA

 

PEN

1,818

   

$

489

   

12/20/23

   

16

   

JPMorgan Chase Bank NA

 

PEN

4,793

   

$

1,289

   

12/20/23

   

43

   

JPMorgan Chase Bank NA

 

PLN

6,430

   

EUR

1,385

   

12/20/23

   

(55

)

 

JPMorgan Chase Bank NA

 

RON

4,400

   

EUR

883

   

12/20/23

   

(1

)

 

JPMorgan Chase Bank NA

 

RON

11,400

   

EUR

2,280

   

12/20/23

   

(9

)

 

JPMorgan Chase Bank NA

 

RON

2,570

   

EUR

514

   

12/20/23

   

(2

)

 

JPMorgan Chase Bank NA

 

TRY

28,567

   

$

887

   

3/20/24

   

(5

)

 

JPMorgan Chase Bank NA

 

$

8,238

   

BRL

41,508

   

1/3/24

   

(62

)

 

JPMorgan Chase Bank NA

 

$

8,207

   

BRL

41,508

   

11/3/23

   

26

   

JPMorgan Chase Bank NA

 

$

3,699

   

CLP

3,326,715

   

12/20/23

   

7

   

JPMorgan Chase Bank NA

 

$

542

   

MXN

9,413

   

12/20/23

   

(24

)

 

The accompanying notes are an integral part of the financial statements.


14


Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.

October 31, 2023

Portfolio of Investments (cont'd)

Foreign Currency Forward Exchange Contracts: (cont'd)

Counterparty

  Contracts
to
Deliver
(000)
  In
Exchange
For
(000)
  Delivery
Date
  Unrealized
Appreciation
(Depreciation)
(000)
 

JPMorgan Chase Bank NA

 

$

5,856

   

MXN

106,608

   

12/20/23

 

$

12

   

JPMorgan Chase Bank NA

 

$

140

   

NGN

118,852

   

6/20/24

   

(27

)

 

JPMorgan Chase Bank NA

 

$

4,664

   

PEN

18,100

   

12/20/23

   

39

   

JPMorgan Chase Bank NA

 

$

341

   

TRY

9,781

   

12/8/23

   

(5

)

 

JPMorgan Chase Bank NA

 

$

1,267

   

TRY

36,343

   

12/8/23

   

(20

)

 

JPMorgan Chase Bank NA

 

$

915

   

TRY

28,567

   

3/20/24

   

(23

)

 

JPMorgan Chase Bank NA

 

$

630

   

UZS

7,827,844

   

11/7/23

   

8

   

JPMorgan Chase Bank NA

 

$

503

   

UZS

6,315,325

   

1/10/24

   

(1

)

 

JPMorgan Chase Bank NA

 

$

1,839

   

UZS

23,672,156

   

4/19/24

   

(29

)

 

JPMorgan Chase Bank NA

 

$

573

   

UZS

7,827,844

   

11/1/24

   

(6

)

 

JPMorgan Chase Bank NA

 

UZS

7,827,844

   

$

639

   

11/6/23

   

@

 

JPMorgan Chase Bank NA

 

ZAR

41,230

   

$

2,150

   

12/20/23

   

(53

)

 

JPMorgan Chase Bank NA

 

ZAR

40,460

   

$

2,110

   

12/20/23

   

(52

)

 

JPMorgan Chase Bank NA

 

ZAR

10,972

   

$

572

   

12/20/23

   

(14

)

 

Standard Chartered Bank

 

BRL

36,624

   

$

7,300

   

11/3/23

   

36

   

Standard Chartered Bank

 

BRL

44,281

   

$

8,756

   

11/3/23

   

(27

)

 

Standard Chartered Bank

 

EUR

452

   

HUF

176,739

   

12/20/23

   

6

   

Standard Chartered Bank

 

EUR

1,206

   

HUF

471,501

   

12/20/23

   

17

   

Standard Chartered Bank

 

EUR

1,130

   

HUF

441,848

   

12/20/23

   

16

   

Standard Chartered Bank

 

EUR

3,014

   

HUF

1,178,753

   

12/20/23

   

42

   

Standard Chartered Bank

 

HUF

174,806

   

EUR

447

   

12/20/23

   

(6

)

 

Standard Chartered Bank

 

HUF

433,077

   

EUR

1,107

   

12/20/23

   

(15

)

 

Standard Chartered Bank

 

KRW

4,795,000

   

$

3,621

   

12/20/23

   

61

   

Standard Chartered Bank

 

PEN

3,164

   

$

849

   

12/20/23

   

27

   

Standard Chartered Bank

 

PEN

6,807

   

$

1,826

   

12/20/23

   

57

   

Standard Chartered Bank

 

PEN

1,200

   

$

322

   

12/20/23

   

10

   

Standard Chartered Bank

 

PEN

5,055

   

$

1,315

   

12/20/23

   

2

   

Standard Chartered Bank

 

$

6,436

   

BRL

31,770

   

12/4/23

   

(158

)

 

Standard Chartered Bank

 

$

8,878

   

BRL

44,281

   

11/3/23

   

(95

)

 

Standard Chartered Bank

 

$

7,250

   

BRL

36,624

   

1/3/24

   

(36

)

 

Standard Chartered Bank

 

$

7,242

   

BRL

36,624

   

11/3/23

   

23

   

Standard Chartered Bank

 

$

731

   

ZAR

13,856

   

12/20/23

   

9

   

State Street Bank and Trust Co.

 

CNH

690

   

$

95

   

12/20/23

   

@

 

State Street Bank and Trust Co.

 

EUR

563

   

$

591

   

11/3/23

   

(5

)

 

State Street Bank and Trust Co.

 

EUR

2,544

   

$

2,668

   

11/3/23

   

(24

)

 

State Street Bank and Trust Co.

 

EUR

1,754

   

$

1,840

   

11/3/23

   

(16

)

 

State Street Bank and Trust Co.

 

EUR

282

   

$

295

   

11/3/23

   

(3

)

 

State Street Bank and Trust Co.

 

EUR

2,562

   

$

2,686

   

11/3/23

   

(25

)

 

State Street Bank and Trust Co.

 

EUR

284

   

$

297

   

11/3/23

   

(3

)

 

State Street Bank and Trust Co.

 

EUR

1,766

   

$

1,852

   

11/3/23

   

(17

)

 

State Street Bank and Trust Co.

 

EUR

567

   

$

595

   

11/3/23

   

(6

)

 

State Street Bank and Trust Co.

 

$

14,778

   

CNH

107,775

   

12/20/23

   

(50

)

 

State Street Bank and Trust Co.

 

$

7,245

   

EUR

6,907

   

11/3/23

   

64

   

State Street Bank and Trust Co.

 

$

7,442

   

EUR

7,098

   

11/3/23

   

69

   

The accompanying notes are an integral part of the financial statements.


15


Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.

October 31, 2023

Portfolio of Investments (cont'd)

Foreign Currency Forward Exchange Contracts: (cont'd)

Counterparty

  Contracts
to
Deliver
(000)
  In
Exchange
For
(000)
  Delivery
Date
  Unrealized
Appreciation
(Depreciation)
(000)
 

State Street Bank and Trust Co.

 

$

8,785

   

MXN

152,453

   

12/20/23

 

$

(394

)

 

State Street Bank and Trust Co.

 

$

2,322

   

ZAR

44,000

   

12/20/23

   

29

   

State Street Bank and Trust Co.

 

$

358

   

ZAR

6,747

   

12/20/23

   

3

   

UBS AG

 

BRL

33,851

   

$

6,693

   

11/3/23

   

(21

)

 

UBS AG

 

CZK

2,025

   

EUR

82

   

12/20/23

   

@

 

UBS AG

 

CZK

10,168

   

EUR

413

   

12/20/23

   

1

   

UBS AG

 

CZK

24,000

   

$

1,046

   

12/20/23

   

13

   

UBS AG

 

EUR

562

   

CZK

13,814

   

12/20/23

   

(1

)

 

UBS AG

 

EUR

504

   

CZK

12,405

   

12/20/23

   

(1

)

 

UBS AG

 

EUR

1,408

   

CZK

34,636

   

12/20/23

   

(3

)

 

UBS AG

 

EUR

1,264

   

CZK

31,103

   

12/20/23

   

(2

)

 

UBS AG

 

EUR

379

   

CZK

9,383

   

12/20/23

   

1

   

UBS AG

 

EUR

3,072

   

HUF

1,204,948

   

12/20/23

   

53

   

UBS AG

 

EUR

1,152

   

HUF

451,667

   

12/20/23

   

20

   

UBS AG

 

EUR

2,215

   

PLN

10,343

   

12/20/23

   

102

   

UBS AG

 

EUR

525

   

PLN

2,451

   

12/20/23

   

24

   

UBS AG

 

EUR

2,084

   

PLN

9,738

   

12/20/23

   

99

   

UBS AG

 

EUR

8,794

   

PLN

41,098

   

12/20/23

   

417

   

UBS AG

 

HUF

447,251

   

EUR

1,140

   

12/20/23

   

(20

)

 

UBS AG

 

IDR

26,731,000

   

$

1,698

   

12/20/23

   

16

   

UBS AG

 

PLN

1,390

   

EUR

298

   

12/20/23

   

(14

)

 

UBS AG

 

PLN

5,560

   

EUR

1,190

   

12/20/23

   

(56

)

 

UBS AG

 

THB

16,000

   

$

440

   

12/20/23

   

(7

)

 

UBS AG

 

$

6,788

   

BRL

33,851

   

11/3/23

   

(74

)

 

UBS AG

 

$

195

   

CLP

174,945

   

12/20/23

   

(—

@)

 

UBS AG

 

$

195

   

CLP

174,945

   

12/20/23

   

(1

)

 

UBS AG

 

$

195

   

CLP

174,946

   

12/20/23

   

(1

)

 

UBS AG

 

$

390

   

CLP

349,891

   

12/20/23

   

(—

@)

 

UBS AG

 

$

16,556

   

IDR

260,648,354

   

12/20/23

   

(154

)

 

UBS AG

 

$

19,874

   

KRW

26,357,000

   

12/20/23

   

(305

)

 

UBS AG

 

$

2,329

   

MXN

40,551

   

12/20/23

   

(97

)

 

UBS AG

 

$

178

   

THB

6,300

   

12/20/23

   

(2

)

 

UBS AG

 

$

13,088

   

THB

464,012

   

12/20/23

   

(123

)

 

UBS AG

 

ZAR

14,984

   

$

786

   

12/20/23

   

(15

)

 

UBS AG

 

ZAR

2,286

   

$

120

   

12/20/23

   

(2

)

 

UBS AG

 

ZAR

13,489

   

$

707

   

12/20/23

   

(14

)

 

UBS AG

 

ZAR

24,270

   

$

1,272

   

12/20/23

   

(24

)

 
               

$

(254

)

 

The accompanying notes are an integral part of the financial statements.


16


Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.

October 31, 2023

Portfolio of Investments (cont'd)

Call Options Purchased:

The Fund had the following call options purchased open at October 31, 2023:

Counterparty

 

Description

  Strike
Price
  Expiration
Date
  Number of
Contracts
  Notional
Amount
(000)
  Value
(000)
  Premiums
Paid
(000)
  Unrealized
Depreciation
(000)
 

BNP Paribas SA

    USD/CNH      

7.30

   

Jan-24

   

14,400,000

   

$

14,400

   

$

127

   

$

163

   

$

(36

)

 

Call Options Written:

The Fund had the following call options written open at October 31, 2023:

Counterparty

 

Description

  Strike
Price
  Expiration
Date
  Number of
Contracts
  Notional
Amount
(000)
  Value
(000)
  Premiums
Received
(000)
  Unrealized
Appreciation
(000)
 

BNP Paribas SA

    USD/CNH    

CNH

7.50

   

Jan-26

   

(14,400,000

)

 

$

14,400

   

$

(33

)

 

$

(53

)

 

$

20

   

Futures Contracts:

The Fund had the following futures contracts open at October 31, 2023:

    Number
of
Contracts
  Expiration
Date
  Notional
Amount
(000)
  Value
(000)
  Unrealized
Appreciation
(000)
 

Short:

 

U.S. Treasury 5 yr. Note (United States)

   

37

   

Dec-23

 

$

(3,700

)

 

$

(3,866

)

 

$

13

   

U.S. Treasury 10 yr. Note (United States)

   

2

   

Dec-23

   

(200

)

   

(212

)

   

8

   
                   

$

21

   

Interest Rate Swap Agreements:

The Fund had the following interest rate swap agreements open at October 31, 2023:

Swap
Counterparty
  Floating Rate
Index
  Pay/Receive
Floating Rate
  Fixed
Rate
  Payment
Frequency
Paid/
Received
  Maturity
Date
  Notional
Amount
(000)
  Value
(000)
  Upfront
Payment
Received
(000)
  Unrealized
Appreciation
(Depreciation)
(000)
 
Morgan Stanley &
Co. LLC*
 

JIBAR

 

Receive

   

8.94

%

  Quarterly/
Quarterly
 

12/20/28

 

ZAR

35,635

   

$

(17

)

 

$

   

$

(17

)

 
Morgan Stanley &
Co. LLC*
 

WIBOR

 

Receive

   

6.02

    Semi-Annual/
Semi-Annual
 

12/21/27

 

PLN

10,000

     

(177

)

   

     

(177

)

 
Morgan Stanley &
Co. LLC*
 

WIBOR

 

Receive

   

5.85

    Semi-Annual/
Semi-Annual
 

12/21/32

   

9,110

     

(193

)

   

     

(193

)

 
Morgan Stanley &
Co. LLC*
 

CLICP

 

Receive

   

5.56

    Semi-Annual/
Semi-Annual
 

12/20/33

 

CLP

1,900,000

     

26

     

     

26

   
Morgan Stanley &
Co. LLC*
 

WIBOR

 

Receive

   

5.56

    Semi-Annual/
Semi-Annual
 

12/21/27

 

PLN

13,330

     

(169

)

   

     

(169

)

 
Morgan Stanley &
Co. LLC*
 

CLICP

 

Receive

   

5.23

    Semi-Annual/
Semi-Annual
 

9/20/33

 

CLP

9,574,800

     

237

     

     

237

   
Morgan Stanley &
Co. LLC*
 

CNRR

 

Pay

   

2.29

    Quarterly/
Quarterly
 

9/20/28

 

CNY

161,600

     

(112

)

   

     

(112

)

 

The accompanying notes are an integral part of the financial statements.


17


Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.

October 31, 2023

Portfolio of Investments (cont'd)

Interest Rate Swap Agreements: (cont'd)

Swap
Counterparty
  Floating Rate
Index
  Pay/Receive
Floating Rate
  Fixed
Rate
  Payment
Frequency
Paid/
Received
  Maturity
Date
  Notional
Amount
(000)
  Value
(000)
  Upfront
Payment
Received
(000)
  Unrealized
Appreciation
(Depreciation)
(000)
 
Morgan Stanley &
Co. LLC*
 

CNRR

 

Pay

   

2.42

%

  Quarterly/
Quarterly
 

12/21/27

   

284,209

   

$

110

   

$

   

$

110

   
Morgan Stanley &
Co. LLC*
 

CNRR

 

Pay

   

2.43

    Quarterly/
Quarterly
 

9/20/28

   

11,240

     

2

     

     

2

   
Morgan Stanley &
Co. LLC*
 

CNRR

 

Pay

   

2.44

    Quarterly/
Quarterly
 

12/20/28

   

89,100

     

5

     

     

5

   
Morgan Stanley &
Co. LLC*
 

CNRR

 

Pay

   

2.48

    Quarterly/
Quarterly
 

9/20/28

   

14,400

     

6

     

     

6

   
Morgan Stanley &
Co. LLC*
 

CNRR

 

Pay

   

2.5

    Quarterly/
Quarterly
 

6/21/28

   

34,000

     

23

     

     

23

   
Morgan Stanley &
Co. LLC*
 

THOR

 

Pay

   

2.68

    Quarterly/
Quarterly
 

6/21/33

 

THB

120,000

     

(157

)

   

     

(157

)

 
Morgan Stanley &
Co. LLC*
 

THOR

 

Pay

   

2.95

    Quarterly/
Quarterly
 

12/20/28

   

251,200

     

22

     

     

22

   
Morgan Stanley &
Co. LLC*
  3 Month KSDA  

Pay

   

3.32

    Quarterly/
Quarterly
 

6/21/33

 

KRW

4,500,000

     

(221

)

   

     

(221

)

 
Morgan Stanley &
Co. LLC*
  3 Month KSDA  

Pay

   

3.59

    Quarterly/
Quarterly
 

9/20/33

   

7,265,000

     

(240

)

   

     

(240

)

 
Morgan Stanley &
Co. LLC*
  3 Month KSDA  

Pay

   

3.61

    Quarterly/
Quarterly
 

6/21/28

   

13,120,000

     

(196

)

   

     

(196

)

 
Morgan Stanley &
Co. LLC*
 

PRIBO

 

Pay

   

3.94

    Semi-Annual/
Annual
 

9/20/33

 

CZK

24,972

     

(52

)

   

     

(52

)

 
Morgan Stanley &
Co. LLC*
 

PRIBO

 

Pay

   

3.96

    Semi-Annual/
Annual
 

9/20/33

   

49,943

     

(101

)

   

     

(101

)

 
Morgan Stanley &
Co. LLC*
 

PRIBO

 

Pay

   

3.96

    Semi-Annual/
Annual
 

9/20/33

   

75,085

     

(150

)

   

     

(150

)

 
Morgan Stanley &
Co. LLC*
 

PRIBO

 

Pay

   

3.96

    Semi-Annual/
Annual
 

9/20/33

   

20,700

     

(42

)

   

     

(42

)

 
Morgan Stanley &
Co. LLC*
 

PRIBO

 

Pay

   

4.15

    Semi-Annual/
Annual
 

9/20/28

   

37,900

     

(28

)

   

     

(28

)

 
Morgan Stanley &
Co. LLC*
 

PRIBO

 

Pay

   

4.33

    Semi-Annual/
Annual
 

12/20/33

   

13,430

     

(6

)

   

     

(6

)

 
Morgan Stanley &
Co. LLC*
 

WIBOR

 

Pay

   

5.16

    Semi-Annual/
Annual
 

6/21/28

 

PLN

17,000

     

47

     

     

47

   
Morgan Stanley &
Co. LLC*
 

WIBOR

 

Pay

   

5.26

    Semi-Annual/
Annual
 

6/12/28

   

40,000

     

152

     

     

152

   
Morgan Stanley &
Co. LLC*
 

MIBOR

 

Pay

   

6.73

    Semi-Annual/
Semi-Annual
 

12/20/25

 

INR

1,917,000

     

30

     

     

30

   
Morgan Stanley &
Co. LLC*
 

MIBOR

 

Pay

   

6.74

    Semi-Annual/
Semi-Annual
 

12/20/25

   

526,000

     

10