Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.
Third Quarter Report − July 31, 2023 (unaudited)
Portfolio of Investments
(Showing Percentage of Total Value of Investments)
 
 
Face
Amount
(000)
 
Value
(000)
Fixed Income Securities (93.4%)
Armenia (2.7%)
 
 
Sovereign (2.7%)
 
 
Republic of Armenia Treasury Bond,
 
 
8.00%, 10/29/31
AMD
    281,250
$628
9.00%, 4/29/26
 
    295,710
736
9.25%, 4/29/28
 
    225,790
554
9.60%, 10/29/33
 
  2,807,668
6,867
9.75%, 10/29/50 - 10/29/52
 
    694,472
1,694
 
 
 
10,479
Benin (0.1%)
 
 
Sovereign (0.1%)
 
 
Benin Government International Bond,
 
 
5.75%, 3/26/26
EUR
        204
222
Brazil (1.7%)
 
 
Sovereign (1.7%)
 
 
Brazil Notas do Tesouro Nacional,
Series F,
 
 
10.00%, 1/1/27
BRL
     17,000
3,598
10.00%, 1/1/29
 
     14,000
2,921
 
 
 
6,519
Chile (1.4%)
 
 
Sovereign (1.4%)
 
 
Bonos de la Tesoreria de la Republica
en pesos,
 
 
5.30%, 11/1/37
CLP
  4,480,000
5,387
Colombia (5.1%)
 
 
Corporate Bond (0.3%)
 
 
Fideicomiso PA Costera,
 
 
6.25%, 1/15/34 (a)
COP
  4,979,415
1,064
Sovereign (4.8%)
 
 
Colombia Government International
Bond,
 
 
9.85%, 6/28/27
 
  1,466,000
362
Colombian TES,
 
 
5.75%, 11/3/27
 
 24,995,000
5,489
6.00%, 4/28/28
 
  8,982,000
1,963
7.00%, 6/30/32
 
 12,440,000
2,610
Colombian TES, Series B
 
 
7.00%, 3/26/31
 
  8,239,000
1,765
7.75%, 9/18/30
 
  6,916,000
1,567
 
Face
Amount
(000)
 
Value
(000)
 
 
 
Financiera de Desarrollo Territorial SA
Findeter,
 
 
7.88%, 8/12/24 (a)
COP
 20,551,000
$4,952
 
 
 
18,708
 
 
 
19,772
Czech Republic (4.0%)
 
 
Sovereign (4.0%)
 
 
Czech Republic Government Bond,
 
 
1.20%, 3/13/31
CZK
     57,320
2,148
2.00%, 10/13/33
 
    117,440
4,501
2.75%, 7/23/29
 
    214,430
9,139
 
 
 
15,788
Dominican Republic (6.8%)
 
 
Sovereign (6.8%)
 
 
Dominican Republic Central Bank
Note,
 
 
13.00%, 12/5/25 (a)
DOP
     97,000
1,840
13.00%, 12/5/25
 
    120,000
2,276
Dominican Republic International
Bond,
 
 
8.00%, 1/15/27 - 3/12/27 (a)
 
    129,000
2,160
9.75%, 6/5/26 (a)
 
    224,000
4,073
12.00%, 8/8/25 - 10/3/25 (a)
 
    332,790
6,164
12.75%, 9/23/29 (a)
 
    357,200
7,359
13.63%, 2/3/33
 
    120,250
2,650
 
 
 
26,522
El Salvador (0.1%)
 
 
Sovereign (0.1%)
 
 
El Salvador Government International
Bond,
 
 
5.88%, 1/30/25
$
        250
229
Honduras (0.0%)‡
 
 
Sovereign (0.0%)‡
 
 
Honduras Government International
Bond,
 
 
7.50%, 3/15/24
 
         92
92
Hungary (2.5%)
 
 
Sovereign (2.5%)
 
 
Hungary Government Bond,
 
 
2.25%, 4/20/33
HUF
    677,000
1,294
3.00%, 10/27/27
 
  1,387,460
3,274
Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.
Third Quarter Report − July 31, 2023 (unaudited)
Portfolio of Investments (cont'd)
(Showing Percentage of Total Value of Investments)
 
Face
Amount
(000)
 
Value
(000)
Sovereign (cont’d)
 
 
3.00%, 4/25/41
HUF
  1,548,910
$2,553
3.25%, 10/22/31
 
    375,640
820
4.00%, 4/28/51
 
    139,450
241
4.75%, 11/24/32
 
    687,250
1,624
 
 
 
9,806
India (3.8%)
 
 
Sovereign (3.8%)
 
 
India Government Bond,
 
 
7.10%, 4/18/29
INR
    897,900
10,873
7.26%, 2/6/33
 
    336,750
4,131
 
 
 
15,004
Indonesia (9.0%)
 
 
Sovereign (9.0%)
 
 
Indonesia Treasury Bond,
 
 
6.50%, 2/15/31
IDR
114,953,000
7,679
7.00%, 9/15/30
 
 20,194,000
1,391
7.00%, 2/15/33
 
 25,000,000
1,746
7.13%, 6/15/42 - 6/15/43
 
113,394,000
8,030
7.38%, 5/15/48
 
  7,875,000
558
7.50%, 6/15/35
 
 83,000,000
5,995
8.38%, 4/15/39
 
 65,600,000
5,114
8.75%, 5/15/31
 
 58,978,000
4,502
 
 
 
35,015
Jordan (0.7%)
 
 
Sovereign (0.7%)
 
 
Jordan Government International
Bond,
 
 
4.95%, 7/7/25
$
      2,735
2,671
Malaysia (6.0%)
 
 
Sovereign (6.0%)
 
 
Malaysia Government Bond,
 
 
3.58%, 7/15/32
MYR
      6,289
1,363
3.76%, 5/22/40
 
     60,220
12,831
4.07%, 6/15/50
 
      3,400
731
4.23%, 6/30/31
 
     37,167
8,475
 
 
 
23,400
Mexico (11.9%)
 
 
Sovereign (11.9%)
 
 
Mexican Bonos,
 
 
7.50%, 6/3/27
MXN
     50,000
2,820
 
Face
Amount
(000)
 
Value
(000)
 
 
 
7.75%, 5/29/31
MXN
    262,000
$14,698
8.50%, 5/31/29 - 11/18/38
 
    105,000
6,159
Mexican Udibonos,
 
 
2.75%, 11/27/31
 
    140,207
7,357
4.00%, 11/30/28
 
    204,002
11,837
Petroleos Mexicanos,
 
 
4.25%, 1/15/25
$
      1,850
1,759
6.88%, 10/16/25
 
      1,720
1,659
 
 
 
46,289
Panama (0.1%)
 
 
Sovereign (0.1%)
 
 
Panama Bonos del Tesoro,
 
 
6.38%, 7/25/33
 
        226
224
Peru (5.0%)
 
 
Sovereign (5.0%)
 
 
Peru Government Bond,
 
 
5.35%, 8/12/40
PEN
      8,818
2,091
5.40%, 8/12/34
 
      3,376
840
5.94%, 2/12/29
 
      1,570
431
6.15%, 8/12/32
 
     33,880
9,104
6.35%, 8/12/28
 
     10,000
2,813
7.30%, 8/12/33
 
     14,016
4,047
 
 
 
19,326
Romania (3.9%)
 
 
Sovereign (3.9%)
 
 
Romania Government Bond,
 
 
2.50%, 10/25/27
RON
     31,700
6,081
4.75%, 2/24/25 - 10/11/34
 
     29,455
6,296
5.80%, 7/26/27
 
      9,410
2,050
8.75%, 10/30/28
 
      3,970
974
 
 
 
15,401
Serbia (5.0%)
 
 
Sovereign (5.0%)
 
 
Serbia Treasury Bonds,
 
 
4.50%, 1/11/26 - 8/20/32
RSD
  1,942,790
16,705
5.88%, 2/8/28
 
    268,050
2,597
 
 
 
19,302
Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.
Third Quarter Report − July 31, 2023 (unaudited)
Portfolio of Investments (cont'd)
(Showing Percentage of Total Value of Investments)
 
Face
Amount
(000)
 
Value
(000)
South Africa (10.9%)
 
 
Sovereign (10.9%)
 
 
Republic of South Africa Government
Bond,
 
 
8.00%, 1/31/30
ZAR
     38,330
$1,923
8.75%, 1/31/44
 
    423,900
17,639
9.00%, 1/31/40
 
    343,230
14,995
10.50%, 12/21/26
 
    136,800
8,004
 
 
 
42,561
Sri Lanka (1.3%)
 
 
Sovereign (1.3%)
 
 
Sri Lanka Treasury Bill,
 
 
0.00%, 8/11/23 - 12/8/23
LKR
  1,712,000
5,184
Supranational (0.1%)
 
 
Sovereign (0.1%)
 
 
International Finance Corp.,
 
 
16.00%, 2/21/25
UZS
  7,000,000
605
Suriname (0.8%)
 
 
Sovereign (0.8%)
 
 
Suriname Government International
Bond,
 
 
9.25%, 10/26/26
$
      2,587
2,164
12.88%, 12/30/23 (a)(b)
 
        326
276
12.88%, 12/30/23 (b)
 
        620
525
 
 
 
2,965
Thailand (3.1%)
 
 
Sovereign (3.1%)
 
 
Thailand Government Bond,
 
 
1.59%, 12/17/35
THB
     70,000
1,809
1.60%, 12/17/29 - 6/17/35
 
     70,328
1,901
1.88%, 6/17/49
 
     50,000
1,128
2.00%, 6/17/42
 
    226,000
5,746
3.30%, 6/17/38
 
     50,000
1,542
 
 
 
12,126
Uruguay (3.7%)
 
 
Sovereign (3.7%)
 
 
Uruguay Government International
Bond,
 
 
3.88%, 7/2/40
UYU
    274,902
7,923
8.50%, 3/15/28 (a)
 
     69,890
1,825
9.75%, 7/20/33
 
    160,157
4,483
 
Face
Amount
(000)
 
Value
(000)
 
 
 
Uruguay Monetary Regulation Bill,
 
 
0.00%, 7/3/24
UYU
     15,950
$390
 
 
 
14,621
Uzbekistan (2.9%)
 
 
Corporate Bonds (1.3%)
 
 
Ipoteka-Bank ATIB,
 
 
16.00%, 4/16/24
UZS
 10,170,000
850
Uzbek Industrial & Construction Bank
ATB via Daryo Finance BV,
 
 
18.75%, 6/15/25
 
 48,515,300
4,200
 
 
 
5,050
Sovereign (1.6%)
 
 
Republic of Uzbekistan International
Bond,
 
 
14.00%, 7/19/24
 
 45,910,000
3,896
14.50%, 11/25/23
 
 27,520,000
2,378
 
 
 
6,274
 
 
 
11,324
Zambia (0.8%)
 
 
Sovereign (0.8%)
 
 
Zambia Government Bond,
 
 
11.00%, 1/25/26 - 6/28/26
ZMW
     44,154
1,973
12.00%, 6/28/28 - 11/29/28
 
      9,000
318
13.00%, 1/25/31
 
     15,270
507
13.00%, 12/27/31
 
      1,070
33
14.00%, 4/24/32
 
      3,515
113
 
 
 
2,944
Total Fixed Income Securities (Cost $368,827)
363,778
Short-Term Investments (6.3%)
 
U.S. Treasury Security (1.7%)
 
 
U.S. Treasury Bill,
 
 
5.01%, 11/30/23  (c)
$
      4,416
$4,338
5.32%, 11/30/23  (c)
 
        250
$246
5.40%, 11/30/23  (c)
 
        380
$373
5.43%, 11/30/23  (c)
 
      1,372
$1,348
5.44%, 11/30/23  (c)
 
        150
$148
Total U.S. Treasury
Security (Cost $6,460)
 
 
6,453
Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.
Third Quarter Report − July 31, 2023 (unaudited)
Portfolio of Investments (cont'd)
(Showing Percentage of Total Value of Investments)
 
 
Shares

 Value
(000)
Investment Company (4.6%)
 
 
Morgan Stanley Institutional Liquidity
Funds - Treasury Securities
Portfolio - Institutional
Class (d) (Cost $17,894)
 
 17,894,257
$17,894
Total Short-Term Investments (Cost $24,354)
24,347
TOTAL INVESTMENTS EXCLUDING PURCHASED
OPTIONS (105.2%)(COST $393,181)
388,125
TOTAL PURCHASED OPTIONS OUTSTANDING
(0.3%) (COST $1,006)
1,199
TOTAL INVESTMENTS (100%) (Cost $394,187)(e)(f)(g)
 
389,324
LIABILITIES IN EXCESS OF OTHER ASSETS
 
(20,205
)
NET ASSETS
 
369,119
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. 
‡
Amount is less than 0.05%.
(a)
144A security − Certain conditions for public sale may
exist. Unless otherwise noted, these securities are
deemed to be liquid.
(b)
Multi-step — Coupon rate changes in predetermined
increments to maturity. Rate disclosed is as of July 31,
2023. Maturity date disclosed is the ultimate maturity
date.
(c)
Rate shown is the yield to maturity at July 31, 2023.
(d)
The Fund invests in the Institutional Class of the Morgan
Stanley Institutional Liquidity Funds - Treasury Securities
Portfolio - (the "Liquidity Funds"), an open-end management
investment company managed by the Adviser. Advisory
fees paid by the Fund are reduced by an amount equal to
its pro-rata share of the advisory and administration fees
paid by the Fund due to its investment in the Liquidity
Funds. For the nine months ended July 31, 2023 advisory
fees paid were reduced by approximately $16,000
relating to the Fund's investment in the Liquidity Funds.
(e)
Securities are available for collateral in connection with
securities purchased on a forward commitment basis,
open foreign currency forward exchange contracts,
futures contracts and swap agreements.
(f)
The Fund is permitted to purchase and sell securities
("cross-trade") from and to other Morgan Stanley Funds as
well as other funds and client accounts for which the
Adviser or an affiliate of the Adviser serves as investment
adviser, pursuant to procedures approved by
the Directorss in compliance with Rule 17a-7 under the Act
(the "Rule"). Each cross-trade is executed at the current
market price in compliance with provisions of the Rule. For
the nine months ended July 31, 2023, the Fund did not
engage in any cross-trade transactions.
(g)
At July 31, 2023, the aggregate cost for federal income
tax purposes approximates the aggregate cost for book
purposes. The aggregate gross unrealized appreciation is
approximately $25,461,000 and the aggregate gross
unrealized depreciation is approximately $32,768,000,
resulting in net unrealized depreciation of approximately
$7,307,000.
Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.
Third Quarter Report − July 31, 2023 (unaudited)
Portfolio of Investments (cont'd)
(Showing Percentage of Total Value of Investments)
 
Foreign Currency Forward Exchange Contracts:
The Fund had the following foreign currency forward exchange contracts open at July 31, 2023:
Counterparty
Contracts
to Deliver
(000)
In
Exchange
For
(000)
Delivery
Date
Unrealized
Appreciation
(Depreciation)
(000)
Australia & New Zealand Banking Group Ltd.
EUR
1,429
HUF
574,800
1/11/24
$3
Australia & New Zealand Banking Group Ltd.
EUR
421
RON
2,100
9/20/23
4
Australia & New Zealand Banking Group Ltd.
MXN
83,345
$
4,708
9/20/23
(226
)
Bank of America NA
$
9,617
EUR
8,868
9/20/23
156
Bank of America NA
ZAR
1,795
$
93
9/18/23
(7
)
Barclays Bank PLC
COP
4,660,000
$
1,106
9/20/23
(66
)
Barclays Bank PLC
EUR
1,905
HUF
813,165
1/30/24
127
Barclays Bank PLC
MYR
2,060
$
467
8/15/23
9
Barclays Bank PLC
MYR
49,630
$
10,802
9/20/23
(240
)
Barclays Bank PLC
PEN
18,300
$
4,976
9/20/23
(84
)
Barclays Bank PLC
$
3,838
COP
17,107,000
9/20/23
466
Barclays Bank PLC
$
6,480
MXN
110,732
9/20/23
75
Barclays Bank PLC
$
16
MXN
268
9/20/23
—@
Barclays Bank PLC
$
1,146
MYR
5,060
8/15/23
(23
)
Barclays Bank PLC
$
11,367
MYR
52,120
9/20/23
229
Barclays Bank PLC
$
934
PEN
3,430
9/20/23
14
Barclays Bank PLC
ZAR
30,000
$
1,597
9/20/23
(73
)
Barclays Bank PLC
ZAR
27,000
$
1,437
9/20/23
(66
)
Barclays Bank PLC
ZAR
74,000
$
3,939
9/20/23
(180
)
Barclays Bank PLC
ZAR
4,500
$
240
9/20/23
(11
)
BNP Paribas SA
BRL
2,493
$
525
9/5/23
1
BNP Paribas SA
BRL
2,493
$
526
8/2/23
(1
)
BNP Paribas SA
CLP
4,480,000
$
5,382
9/20/23
69
BNP Paribas SA
COP
2,582,000
$
602
9/20/23
(47
)
BNP Paribas SA
EUR
2,522
HUF
958,000
9/20/23
(88
)
BNP Paribas SA
EUR
447
HUF
182,066
1/11/24
8
BNP Paribas SA
EUR
493
HUF
201,134
1/11/24
9
BNP Paribas SA
EUR
2,148
PLN
9,638
9/20/23
33
BNP Paribas SA
EUR
2,072
PLN
9,297
9/20/23
32
BNP Paribas SA
EUR
8,778
PLN
39,664
9/20/23
203
BNP Paribas SA
PLN
5,600
EUR
1,248
9/20/23
(19
)
BNP Paribas SA
$
529
BRL
2,493
8/2/23
(1
)
BNP Paribas SA
$
4,791
IDR
72,000,000
10/18/23
(18
)
BNP Paribas SA
$
334
KRW
422,000
9/20/23
(2
)
Citibank NA
CZK
24,000
$
1,086
9/20/23
(16
)
Citibank NA
EUR
2,614
$
2,853
8/4/23
(21
)
Citibank NA
EUR
2,492
$
2,720
8/4/23
(21
)
Citibank NA
EUR
289
$
316
8/4/23
(2
)
Citibank NA
EUR
579
$
632
8/4/23
(5
)
Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.
Third Quarter Report − July 31, 2023 (unaudited)
Portfolio of Investments (cont'd)
(Showing Percentage of Total Value of Investments)
Foreign Currency Forward Exchange Contracts: (cont'd)
 
Counterparty
Contracts
to Deliver
(000)
In
Exchange
For
(000)
Delivery
Date
Unrealized
Appreciation
(Depreciation)
(000)
Citibank NA
EUR
552
$
602
8/4/23
$(5
)
Citibank NA
EUR
276
$
301
8/4/23
(2
)
Citibank NA
EUR
1,802
$
1,967
8/4/23
(15
)
Citibank NA
EUR
1,718
$
1,875
8/4/23
(14
)
Citibank NA
$
7,309
BRL
35,000
9/5/23
48
Citibank NA
$
2,864
EUR
2,624
8/4/23
21
Citibank NA
$
3,397
EUR
3,113
8/4/23
26
Citibank NA
$
7,427
ILS
27,500
8/28/23
59
Citibank NA
$
4,075
KRW
5,200,000
9/20/23
15
Citibank NA
$
1,506
PEN
5,375
9/20/23
(20
)
Citibank NA
$
255
UYU
9,937
9/20/23
8
Citibank NA
UYU
139,867
$
3,591
9/20/23
(116
)
Citibank NA
ZAR
27,764
$
1,475
9/20/23
(71
)
Citibank NA
ZAR
4,595
$
244
9/20/23
(12
)
Citibank NA
ZAR
73,300
$
3,894
9/20/23
(187
)
Citibank NA
ZAR
29,100
$
1,546
9/20/23
(74
)
Credit Agricole CIB
$
6,696
MYR
30,670
9/20/23
128
Goldman Sachs International
BRL
3,770
$
780
9/5/23
(13
)
Goldman Sachs International
BRL
2,307
$
485
9/5/23
—@
Goldman Sachs International
BRL
2,307
$
486
8/2/23
(1
)
Goldman Sachs International
COP
11,091,829
$
2,616
9/20/23
(174
)
Goldman Sachs International
CZK
9,770
EUR
408
9/20/23
1
Goldman Sachs International
CZK
5,000
EUR
209
9/20/23
1
Goldman Sachs International
EUR
4,249
CZK
101,695
9/20/23
(11
)
Goldman Sachs International
EUR
1,253
CZK
30,000
9/20/23
(3
)
Goldman Sachs International
EUR
877
CZK
21,000
9/20/23
(2
)
Goldman Sachs International
EUR
2,354
HUF
901,750
9/20/23
(62
)
Goldman Sachs International
EUR
2,499
HUF
958,000
9/20/23
(63
)
Goldman Sachs International
EUR
987
HUF
387,753
9/20/23
2
Goldman Sachs International
PEN
10,000
$
2,720
9/20/23
(45
)
Goldman Sachs International
PEN
2,000
$
544
9/20/23
(9
)
Goldman Sachs International
RON
11,400
EUR
2,283
9/20/23
(21
)
Goldman Sachs International
$
4,866
BRL
23,524
9/5/23
79
Goldman Sachs International
$
488
BRL
2,307
8/2/23
(—@
)
Goldman Sachs International
$
2,868
MYR
13,160
9/20/23
60
Goldman Sachs International
$
2,085
MYR
9,570
9/20/23
44
Goldman Sachs International
$
1,004
MYR
4,600
8/15/23
17
Goldman Sachs International
$
1,815
ZAR
32,746
9/20/23
8
HSBC Bank PLC
CNH
9,100
$
1,273
9/20/23
(6
)
HSBC Bank PLC
EUR
8,839
PLN
39,902
9/20/23
196
Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.
Third Quarter Report − July 31, 2023 (unaudited)
Portfolio of Investments (cont'd)
(Showing Percentage of Total Value of Investments)
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
EUR
2,141
PLN
9,610
9/20/23
$33
HSBC Bank PLC
EUR
2,094
PLN
9,400
9/20/23
33
HSBC Bank PLC
EUR
1,081
PLN
4,852
9/20/23
17
HSBC Bank PLC
EUR
1,049
PLN
4,710
9/20/23
17
HSBC Bank PLC
KRW
4,795,000
$
3,779
9/20/23
7
HSBC Bank PLC
PLN
5,500
EUR
1,225
9/20/23
(19
)
HSBC Bank PLC
PLN
2,800
EUR
624
9/20/23
(10
)
HSBC Bank PLC
$
57
BRL
279
9/20/23
1
HSBC Bank PLC
$
21,669
KRW
27,495,000
9/20/23
(39
)
HSBC Bank PLC
ZAR
27,000
$
1,434
9/20/23
(70
)
HSBC Bank PLC
ZAR
74,000
$
3,929
9/20/23
(191
)
HSBC Bank PLC
ZAR
30,000
$
1,593
9/20/23
(77
)
JPMorgan Chase Bank NA
BRL
4,800
$
997
8/2/23
(18
)
JPMorgan Chase Bank NA
EUR
973
HUF
383,200
9/20/23
4
JPMorgan Chase Bank NA
EUR
1,486
HUF
574,800
9/20/23
(23
)
JPMorgan Chase Bank NA
$
1,012
BRL
4,800
8/2/23
3
JPMorgan Chase Bank NA
$
8,577
CLP
6,930,500
9/20/23
(359
)
JPMorgan Chase Bank NA
$
2,811
ILS
10,392
8/24/23
18
JPMorgan Chase Bank NA
$
2,765
ILS
10,233
8/24/23
20
JPMorgan Chase Bank NA
$
140
NGN
118,852
6/20/24
(1
)
JPMorgan Chase Bank NA
$
3,166
THB
108,717
9/20/23
25
JPMorgan Chase Bank NA
$
6,092
THB
209,045
9/20/23
44
JPMorgan Chase Bank NA
$
1,328
TRY
34,000
8/8/23
(70
)
JPMorgan Chase Bank NA
$
360
TRY
9,150
8/8/23
(22
)
JPMorgan Chase Bank NA
$
1,886
UZS
23,672,156
10/24/23
122
JPMorgan Chase Bank NA
$
630
UZS
7,827,844
11/7/23
32
JPMorgan Chase Bank NA
ZAR
103,900
$
5,497
9/18/23
(288
)
Standard Chartered Bank
COP
10,715,000
$
2,490
9/20/23
(205
)
Standard Chartered Bank
INR
60,000
$
728
9/20/23
(—@
)
Standard Chartered Bank
MXN
134,900
$
7,647
9/20/23
(339
)
Standard Chartered Bank
PEN
963
$
262
9/20/23
(4
)
Standard Chartered Bank
PEN
18,852
$
5,125
9/20/23
(88
)
Standard Chartered Bank
PEN
4,876
$
1,326
9/20/23
(23
)
Standard Chartered Bank
$
20,122
BRL
97,530
9/5/23
380
Standard Chartered Bank
$
15,249
CNH
104,775
8/8/23
(581
)
Standard Chartered Bank
$
6,665
MXN
117,586
9/20/23
295
Standard Chartered Bank
$
14,230
THB
490,250
9/20/23
158
Standard Chartered Bank
$
1,071
THB
36,900
9/20/23
12
Standard Chartered Bank
ZAR
4,500
$
239
9/20/23
(12
)
State Street Bank and Trust Co.
MXN
25,000
$
1,415
9/20/23
(64
)
Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.
Third Quarter Report − July 31, 2023 (unaudited)
Portfolio of Investments (cont'd)
(Showing Percentage of Total Value of Investments)
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.
MXN
81,000
$
4,569
9/20/23
$(226
)
State Street Bank and Trust Co.
PEN
7,574
$
2,066
9/20/23
(28
)
State Street Bank and Trust Co.
PEN
770
$
210
9/20/23
(3
)
State Street Bank and Trust Co.
PEN
2,599
$
709
9/20/23
(10
)
State Street Bank and Trust Co.
$
1,171
CNH
8,410
9/20/23
11
State Street Bank and Trust Co.
$
6,107
PEN
22,292
9/20/23
56
UBS AG
CZK
9,750
EUR
407
9/20/23
1
UBS AG
EUR
2,506
CZK
60,000
9/20/23
(6
)
UBS AG
EUR
1,712
CZK
41,000
9/20/23
(4
)
UBS AG
EUR
5,641
HUF
2,139,926
9/20/23
(206
)
UBS AG
EUR
6,229
HUF
2,362,800
9/20/23
(228
)
UBS AG
EUR
405
PLN
1,800
9/20/23
2
UBS AG
HUF
2,331,670
EUR
6,146
9/20/23
225
UBS AG
IDR
98,731,000
$
6,576
10/18/23
32
UBS AG
$
17,361
IDR
260,648,354
10/18/23
(85
)
UBS AG
ZAR
27,648
$
1,506
9/18/23
(34
)
UBS AG
ZAR
40,959
$
2,231
9/18/23
(50
)
UBS AG
ZAR
59,205
$
3,057
9/18/23
(240
)
 
 
 
 
 
 
$(2,067
)
 
Call Options Purchased:
The Fund had the following call options purchased open at July 31, 2023:
Counterparty
Description
Strike
Price
Expiration
Date
Number of
Contracts
Notional
Amount
(000)

Value
(000)
Premiums
Paid
(000)
Unrealized
Appreciation
(000)
BNP Paribas SA
USD/CNH
CNH
7.00
Jan–24
14,400,000
$14,400
$253
$150
$103
 
Put Options Purchased:
The Fund had the following put options purchased open at July 31, 2023:
Counterparty
Description
Strike
Price
Expiration
Date
Number of
Contracts
Notional
Amount
(000)

Value
(000)
Premiums
Paid
(000)
Unrealized
Appreciation
(000)
Barclays Bank PLC
USD/BRL
BRL
4.90
Jan–24
22,240,000
$22,240
$946
$856
$90
 
Call Options Written:
The Fund had the following call options written open at July 31, 2023:
Counterparty
Description
Strike
Price
Expiration
Date
Number of
Contracts
Notional
Amount
(000)
Value
(000)
Premiums
Paid
(000)
Unrealized
Appreciation
(000)
BNP Paribas SA
USD/CNH
CNH
7.50
Jan 26
(14,400,000)
$14,400
$(33
)
$(53
)
$20
Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.
Third Quarter Report − July 31, 2023 (unaudited)
Portfolio of Investments (cont'd)
(Showing Percentage of Total Value of Investments)
 
Futures Contracts:
The Fund had the following futures contracts open at July 31, 2023:
 
Number of
Contracts
Expiration
Date
Notional
Amount
(000)
Value
(000)
Unrealized
Appreciation
(000)
Short:
 
 
 
 
U.S. Treasury 10 yr. Note (United States)
2
Sep-23
$
(200)
$(223
)
$1
 
Interest Rate Swap Agreement:
The Fund had the following interest rate swap agreement open at July 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
Paid
(Received)
(000)
Unrealized
Appreciation
(Depreciation)
(000)
Morgan Stanley & Co. LLC
PIBR
Pay
(8.93
)%
Quarterly/
Quarterly
6/21/28
COP
33,000,000
$(318
)
$—
$(318
)
Morgan Stanley & Co. LLC
WIBOR
Receive
(6.02
)
Annual/
Semi-Annual
12/21/27
PLN
15,270
(298
)
—
(298
)
Morgan Stanley & Co. LLC
WIBOR
Receive
(5.85
)
Annual/
Semi-Annual
12/21/32
 
9,110
(256
)
—
(256
)
Morgan Stanley & Co. LLC
WIBOR
Receive
(5.56
)
Annual/
Semi-Annual
12/21/27
 
13,330
(193
)
—
(193
)
Morgan Stanley & Co. LLC
WIBOR
Receive
(5.53
)
Annual/
Semi-Annual
12/21/32
 
7,990
(175
)
—
(175
)
Morgan Stanley & Co. LLC
THOR
Receive
2.37
Quarterly/
Quarterly
6/21/28
THB
300,000
(35
)
—
(35
)
Morgan Stanley & Co. LLC
CNRR
Pay
2.42
Quarterly/
Quarterly
12/21/27
CNY
284,209
(13
)
—
(13
)
Morgan Stanley & Co. LLC
CNRR
Pay
2.43
Quarterly/
Quarterly
9/20/28
 
11,240
(5
)
—
(5
)
Morgan Stanley & Co. LLC
CNRR
Pay
2.5
Quarterly/
Quarterly
6/21/28
 
34,000
7
—
7
Morgan Stanley & Co. LLC
THOR
Receive
2.68
Quarterly/
Quarterly
6/21/33
THB
120,000
(14
)
—
(14
)
Morgan Stanley & Co. LLC
3 Month KSDA
Receive
3.32
Quarterly/
Quarterly
6/21/33
KRW
4,500,000
(64
)
—
(64
)
Morgan Stanley & Co. LLC
3 Month KSDA
Pay
3.59
Quarterly/
Quarterly
9/20/33
 
7,265,000
37
—
37
Morgan Stanley & Co. LLC
3 Month KSDA
Receive
3.61
Quarterly/
Quarterly
6/21/28
 
13,120,000
16
—
16
Morgan Stanley & Co. LLC
PRIBO
Pay
3.94
Semi-
Annual/
Annual
9/20/33
CZK
24,972
—@
—
—@
Morgan Stanley & Co. LLC
PRIBO
Pay
3.96
Semi-
Annual/
Annual
9/20/33
 
49,943
3
—
3
Morgan Stanley & Co. LLC
PRIBO
Pay
3.96
Semi-
Annual/
Annual
9/20/33
 
75,085
7
—
7
Morgan Stanley & Co. LLC
WIBOR
Receive
5.16
Semi-
Annual/
Annual
6/21/28
PLN
17,000
86
—
86
Morgan Stanley & Co. LLC
WIBOR
Receive
5.26
Semi-
Annual/
Annual
6/12/28
 
40,000
241
—
241
Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.
Third Quarter Report − July 31, 2023 (unaudited)
Portfolio of Investments (cont'd)
(Showing Percentage of Total Value of Investments)
Interest Rate Swap Agreement: (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
Paid
(Received)
(000)
Unrealized
Appreciation
(Depreciation)
(000)
Morgan Stanley & Co. LLC
MIBOR
Pay
6.52
%
Semi-
Annual/
Semi-Annual
9/20/25
INR
1,815,000
$(37
)
$—
$(37
)
Morgan Stanley & Co. LLC
JIBAR
Receive
7.67
Quarterly/
Quarterly
1/19/28
ZAR
13,200
(19
)
—
(19
)
Morgan Stanley & Co. LLC
JIBAR
Receive
7.71
Quarterly/
Quarterly
1/19/28
 
12,810
(17
)
—
(17
)
Morgan Stanley & Co. LLC
JIBAR
Receive
7.71
Quarterly/
Quarterly
1/20/28
 
13,590
(18
)
—
(18
)
Morgan Stanley & Co. LLC
1 Month TIIE
Receive
8.21
Monthly/
Monthly
7/13/33
MXN
90,000
(29
)
—
(29
)
Morgan Stanley & Co. LLC
JIBAR
Receive
8.26
Quarterly/
Quarterly
2/27/28
ZAR
46,319
(11
)
—
(11
)
Morgan Stanley & Co. LLC
JIBAR
Receive
8.38
Quarterly/
Quarterly
2/27/28
 
44,310
2
—
2
Morgan Stanley & Co. LLC
JIBAR
Receive
8.39
Quarterly/
Quarterly
2/24/28
 
41,356
4
—
4
Morgan Stanley & Co. LLC
JIBAR
Receive
8.39
Quarterly/
Quarterly
2/24/28
 
44,015
4
—
4
Morgan Stanley & Co. LLC
1 Month TIIE
Receive
8.73
Quarterly/
Quarterly
4/17/28
MXN
61,000
30
—
30
Morgan Stanley & Co. LLC
1 Month TIIE
Receive
9.19
Quarterly/
Quarterly
2/18/28
 
150,700
216
—
216
Morgan Stanley & Co. LLC
6 Month CLICP
Pay
9.22
Semi-
Annual/
Semi-Annual
1/27/24
CLP
16,448,000
42
—
42
Morgan Stanley & Co. LLC
6 Month CLICP
Pay
9.26
Semi-
Annual/
Maturity
1/28/24
 
19,625,000
57
—
57
Morgan Stanley & Co. LLC
6 Month CLICP
Pay
9.38
Semi-
Annual/
Semi-Annual
1/20/24
 
9,270,400
23
—
23
Morgan Stanley & Co. LLC
6 Month CLICP
Pay
9.39
Semi-
Annual/
Semi-Annual
1/21/24
 
32,446,600
83
—
83
Morgan Stanley & Co. LLC
BRL-CDI
Pay
9.99
Maturity/
Maturity
1/4/27
BRL
30,000
(12
)
—
(12
)
Morgan Stanley & Co. LLC
BRL-CDI
Pay
10.02
Maturity/
Maturity
1/4/27
 
30,200
(17
)
—
(17
)
Morgan Stanley & Co. LLC
BRL-CDI
Pay
13.24
Maturity/
Maturity
1/2/24
 
215,000
69
—
69
Morgan Stanley & Co. LLC
BRL-CDI
Pay
14.52
Annual/
Semi-Annual
1/2/24
 
82,920
205
—
205
 
 
 
 
 
 
 
$(399
)
$—
$(399
)
 
 
@
Value is less than $500.
 
AMD
— Armenian Dram
BRL
— Brazilian Real
CLP
— Chilean Peso
CNH
— Chinese Yuan Renminbi Offshore
CNY
— Chinese Yuan Renminbi
COP
— Colombian Peso
CZK
— Czech Koruna
DOP
— Dominican Peso
EUR
— Euro
Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.
Third Quarter Report − July 31, 2023 (unaudited)
Portfolio of Investments (cont'd)
(Showing Percentage of Total Value of Investments)
HUF
— Hungarian Forint
IDR
— Indonesian Rupiah
ILS
— Israeli Shekel
INR
— Indian Rupee
KRW
— South Korean Won
LKR
— Sri Lankan Rupee
MXN
— Mexican Peso
MYR
— Malaysian Ringgit
NGN
— Nigerian Naira
PEN
— Peruvian Nuevo Sol
PLN
— Polish Zloty
RON
— Romanian New Leu
RSD
— Serbia Dinar
THB
— Thai Baht
TRY
— Turkish Lira
USD
— United States Dollar
UYU
— Uruguay Peso
UZS
— Uzbekistan Som
ZAR
— South African Rand
ZMW
— Zambian Kwacha
 
Portfolio Composition
Classification
Percentage of
Total Investments
Sovereign
92.1%
Short-Term Investments
6.3
Other*
1.6
Total Investments
100.0%**
 
*
Industries and/or investment types representing less than 5% of total
investments.
**
Does not include open long/short futures contracts with a value of
approximately $223,000 and net unrealized appreciation of approximately
$1,000. Does not include open foreign currency forward exchange
contracts with net unrealized depreciation of approximately $2,067,000.
Also does not include open swap agreements with net unrealized
depreciation of approximately $399,000.
Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.
July 31, 2023 (unaudited)
Notes to Portfolio of Investments
Security Valuation: (1) Fixed income securities may be valued by an outside pricing service/vendor approved by the Fund’s Board of Directors ("the Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. If Morgan stanley Investment Management Inc. (the "Adviser") or Morgan Stanley Investment Management Limited ("MSIM Limited")(the "Sub-Adviser"), each a wholly-owned subsidiary of Morgan stanley, determines that the price provided by the outside pricing service/ vendor does not reflect the security’s fair value or is unable to provide a price, prices from brokers/dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers/dealers; (2) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, including circumstances under which the Adviser or the Sub- Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security’s market value, portfolio securities are valued at their fair value as determined in good faith under procedures approved by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange (“NYSE”). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors, Adviser or the Sub-Adviser by using a pricing service and/or procedures approved by the Directors; (3) listed options are valued at the last reported sales price on the exchange on which they are listed (or at the exchange official closing price if such exchange reports an official closing price). If an official closing price or last reported sales price is unavailable, the listed option should be fair valued at the mean between its latest bid and ask prices. Unlisted options are valued at the mean between their latest bid and ask prices from a broker/ dealer or valued by a pricing service/vendor; (4) futures are valued at the settlement price on the exchange on which they trade or, if a settlement price is unavailable, at the last sale price on the exchange; (5) over-the-counter (“OTC”) swaps may be valued by an outside pricing service approved by the Directors or quotes from a broker/dealer. Swaps cleared on a clearinghouse or exchange may be valued using the closing price provided by the clearinghouse or exchange; (6) foreign exchange transactions (“spot contracts”) and foreign exchange forward contracts (“forward contracts”) are valued daily using an independent pricing vendor at the spot and forward rates, respectively, as of the close of the NYSE; and (7) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value as of the close of each business day.
In connection with Rule 2a-5 of the Act, the Directors have designated the Fund’s Adviser as its valuation designee. The valuation designee has responsibility for determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Fund’s Adviser, as valuation designee, has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the Fund’s valuation policies and procedures, which are reviewed at least annually by the Directors. These procedures allow the Fund to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
Fair Value Measurement: Financial Accounting Standards Board (“FASB”) Accounting Standards CodificationTM ("ASC") 820, "Fair Value Measurement" (“ASC 820”), defines fair value as the price that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in valuing an asset or liability developed based on market
Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.
July 31, 2023 (unaudited)
Notes to Portfolio of Investments (cont'd)
data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in valuing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund's investments. The inputs are summarized in the three broad levels listed below:
•
Level 1 – unadjusted quoted prices in active markets for identical investments
•
Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
•
Level 3 – significant unobservable inputs including the Fund’s own assumptions in determining the fair value of investments. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer's financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and the determination of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each security.
Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.
July 31, 2023 (unaudited)
Notes to Portfolio of Investments (cont'd)
The following is a summary of the inputs used to value the Fund’s investments as of July 31, 2023: 
Investment Type
Level 1
Unadjusted
Quoted
Prices
(000)
Level 2
Other
Significant
Observable
Inputs
(000)
Level 3
Significant
Unobservable
Inputs
(000)
Total
(000)
Assets:
Fixed Income Securities
Corporate Bonds
$—
$6,114
$—
$6,114
Sovereign
—
357,664
—
357,664
Total Fixed Income Securities
—
363,778
—
363,778
Call Options Purchased
—
253
—
253
Put Options Purchased
—
946
—
946
Short-Term Investments
U.S. Treasury Securities
—
6,453
—
6,453
Investment Company
17,894
—
—
17,894
Total Short-Term Investments
17,894
6,453
—
24,347
Foreign Currency Forward Exchange Contracts
—
3,699
—
3,699
Future Contract
1
—
—
1
Interest Rate Swap Agreements
—
1,132
—
1,132
Total Assets
17,895
376,261
—
394,156
Liabilities:
Call Option Written
—
(33
)
—
(33
)
Foreign Currency Forward Exchange Contracts
—
(5,766
)
—
(5,766
)
Interest Rate Swap Agreements
—
(1,531
)
—
(1,531
)
Total Liabilities
—
(7,330
)
—
(7,330
)
Total
$17,895
$368,931
$—
$386,826
Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes.
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