MSDL vs. BBDC

Last updated Jun 23, 2026

MSDL (Morgan Stanley Direct Lending Fund) and BBDC (Barings BDC, Inc.) are both stocks. Both are in the Financial Services sector — MSDL in Asset Management, BBDC in Credit Services. Over the past year, MSDL returned -12.86% vs 0.92% for BBDC. At a 0.45 correlation, their price movements are largely independent.

Performance

MSDL vs. BBDC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Morgan Stanley Direct Lending Fund (MSDL) and Barings BDC, Inc. (BBDC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with MSDL having a -6.23% return and BBDC slightly lower at -6.34%.

MSDL

• 1D: -2.67%
• 1M: -0.86%
• YTD: -6.23%
• 6M: -5.62%
• 1Y: -12.86%
• 3Y*: —
• 5Y*: —
• 10Y*: —

BBDC

• 1D: -2.41%
• 1M: -2.03%
• YTD: -6.34%
• 6M: -2.62%
• 1Y: 0.92%
• 3Y*: 14.62%
• 5Y*: 6.04%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

MSDL vs. BBDC - Yearly Performance Comparison

	2026 (YTD)	2025	2024
MSDL Morgan Stanley Direct Lending Fund	-6.23%	-10.85%	11.98%
BBDC Barings BDC, Inc.	-6.34%	8.84%	17.95%

Correlation

The correlation between MSDL and BBDC is 0.71, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.71
Correlation (All Time) Calculated using the full available price history since Jan 24, 2024	0.45

Over the past year, MSDL and BBDC have become more correlated (0.71) than their long-term average of 0.45, meaning their price movements have been converging.

Fundamentals

Market Cap MSDL : $1.28B BBDC : $847.08M
EPS MSDL : $1.54 BBDC : $0.66
PE Ratio MSDL : 9.70 BBDC : 12.26
PEG Ratio MSDL : 0.14 BBDC : 0.02
PS Ratio MSDL : 4.14 BBDC : 4.88
PB Ratio MSDL : 0.76 BBDC : 0.73
Total Revenue (TTM) MSDL : $313.72M BBDC : $174.30M
Gross Profit (TTM) MSDL : $139.11M BBDC : $149.47M
EBITDA (TTM) MSDL : $126.37M BBDC : $90.27M

Return for Risk

MSDL vs. BBDC — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

MSDL

MSDL Risk / Return Rank: 18
MSDL Sharpe Ratio Rank: 15
MSDL Sortino Ratio Rank: 15
MSDL Omega Ratio Rank: 16
MSDL Calmar Ratio Rank: 23
MSDL Martin Ratio Rank: 23

BBDC

BBDC Risk / Return Rank: 41
BBDC Sharpe Ratio Rank: 44
BBDC Sortino Ratio Rank: 36
BBDC Omega Ratio Rank: 35
BBDC Calmar Ratio Rank: 44
BBDC Martin Ratio Rank: 43

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

MSDL vs. BBDC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Morgan Stanley Direct Lending Fund (MSDL) and Barings BDC, Inc. (BBDC). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	MSDL	BBDC	Difference
Sharpe ratio: Return per unit of total volatility	-0.63	0.05	-0.68
Sortino ratio: Return per unit of downside risk	-0.79	0.20	-0.99
Omega ratio: Gain probability vs. loss probability	0.91	1.02	-0.11
Calmar ratio: Return relative to maximum drawdown	-0.52	0.08	-0.60
Martin ratio: Return relative to average drawdown	-0.94	0.16	-1.10

MSDL vs. BBDC - Sharpe Ratio Comparison

The current MSDL Sharpe Ratio is -0.63, which is lower than the BBDC Sharpe Ratio of 0.05. The chart below compares the historical Sharpe Ratios of MSDL and BBDC, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

MSDL vs. BBDC - Drawdown Comparison

The maximum MSDL drawdown since its inception was -29.68%, smaller than the maximum BBDC drawdown of -48.45%. Use the drawdown chart below to compare losses from any high point for MSDL and BBDC.

Drawdown Indicators

	MSDL	BBDC	Difference
Max Drawdown Largest peak-to-trough decline	-29.68%	-48.45%	+18.77%
Max Drawdown (1Y) Largest decline over 1 year	-24.80%	-12.28%	-12.52%
Max Drawdown (3Y) Largest decline over 3 years	—	-24.51%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-27.55%	—
Current Drawdown Current decline from peak	-22.43%	-9.77%	-12.66%
Average Drawdown Average peak-to-trough decline	-12.19%	-7.98%	-4.21%
Ulcer Index Depth and duration of drawdowns from previous peaks	13.77%	5.69%	+8.08%

Volatility

MSDL vs. BBDC - Volatility Comparison

Morgan Stanley Direct Lending Fund (MSDL) has a higher volatility of 6.98% compared to Barings BDC, Inc. (BBDC) at 6.62%. This indicates that MSDL's price experiences larger fluctuations and is considered to be riskier than BBDC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSDL	BBDC	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.98%	6.62%	+0.36%
Volatility (6M) Calculated over the trailing 6-month period	16.83%	15.45%	+1.38%
Volatility (1Y) Calculated over the trailing 1-year period	20.61%	18.91%	+1.70%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.19%	19.45%	+3.74%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.19%	24.21%	-1.02%

Dividends

MSDL vs. BBDC - Dividend Comparison

MSDL's dividend yield for the trailing twelve months is around 13.03%, less than BBDC's 13.47% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
BBDC Barings BDC, Inc.	13.47%	12.96%	10.87%	11.89%	11.66%	7.44%	7.07%	5.25%	21.24%
MSDL Morgan Stanley Direct Lending Fund	13.03%	12.14%	10.65%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Financials

Frequently Asked Questions

Can I hold both MSDL and BBDC in my portfolio?

MSDL and BBDC have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MSDL or BBDC?

MSDL has higher volatility (6.98%) compared to BBDC (6.62%). In terms of maximum drawdown, MSDL dropped -29.68% vs BBDC's -48.45%.

Which has better risk-adjusted returns?

BBDC currently has the higher Sharpe Ratio (0.05 vs -0.63), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.