摩根士丹利-全球固定收益简报深度：立足韧性构筑体系 GLOBAL FIXED INCOME BULLETIN Built on Resilience 2026

GlobalFixedIncomeBulletin

RiskAssetsPersist

MACROINSIGHT|BROADMARKETSFIXEDINCOMETEAM|June2026

MonthlyReview

MaywasmarkedbycontinuedU.S.economicresilience,

persistentinflationconcerns,andafurtherrepricingof

monetarypolicyexpectations,evenasriskassetsremainedwell-supported.Stronger-than-expectedpayrollsand

unemploymentnear4.3%pointedtoastill-tightlabor

market,whilefirmconsumptionwassupportedbywealtheffectsfromstrongerequitymarketsandcontinuedfiscalimpulse.Inflationremainedakeyfocus,withcoreCPIrisingfromitsFebruarylowsandstrongPPIdataraisingconcernsaroundeventualpass-throughintoPCE.

Ratesmarketsreflectedthismoreresilientgrowthand

stickyinflationbackdrop.TheU.S.10-yearyieldrose6

basispoints(bps)to4.44%,whileJapanalsosawyields

movehigher.Bycontrast,severalotherdevelopedmarketsrallied,withUK,Canada,Australia,andNewZealandyieldsdeclining.U.S.10-yearbreakevensfell9bps,suggestingsomemoderationinmarket-impliedinflationexpectationseven

asinflationrisksremainedcentraltothemacrodiscussion.TheU.S.dollarstrengthenedmodestly,withICEU.S.DollarIndexup0.9%.

Creditmarketsremainedresilientdespitetightvaluations.

U.S.investmentgrade(IG)spreadstightened6bpsto72

bps,whileEuroIGtightened3bpsto79bps.Carryremainedthedominantdriverofreturns,supportedbyexceptionallystrongtechnicalsandcontinueddemandforall-inyield.

BothU.S.andEuropeanmarketsabsorbedrecordissuancewithlittledisruption,asstronginflowsandhealthyinvestordemandoffsetelevatedsupply.InEurope,Maymarked

DISPLAY1

-0.35

-0.74

-1.60

24.7

10.7

9.61

5.29

4.47

3.10

2.19l1.88

1.68I1.32I1.20

0.89

0.77

0.67

0.65

0.63

0.63

0.62

0.38

6

3

52.14

AssetPerformanceYear-to-Date(%)

Oil

MSClEmergingEquitiesS&P500

MSClDevelopedEquitiesGlobalConvertiblesEuroStoxx(Euro)

EMLocalEMExternalUSTlPS

USHYEURHY

S&PLeveragedLoanlndexEURlGUSMBS

USlG USCMBSGerman10yBund DollarlndexGlobalAgg

USAGGUS10YTreasury

EURvsUSD

JPYVSUSD

-20%0%20%40%60%

Note:USD-basedperformance.Source:Bloomberg.DataasofMay31,2026.Theindexesareprovidedforillustrativepurposesonlyandarenotmeant

todepicttheperformanceofaspecificinvestment.Pastperformanceisnoguaranteeoffutureresults.Seepages6-7forindexdefinitions.

TheviewsandopinionsexpressedarethoseofthePortfolioManagementteamasofJune2026andaresubjecttochangebasedonmarket,economicandotherconditions.DatasourcedfromBloombergasofMay31,2026unlessotherwisestated.Pastperformanceisnotindicativeoffutureresults.

thelargestissuancemonthonrecord,whileU.S.issuance

alsoexceededexpectations,withthevastmajorityofnewdealstighteninginsecondarytrading.Anotabletheme

wasthecontinuedaccelerationofAI-relatedfinancing,

particularlyamonglargetechnologyandhyperscaleissuers,reinforcingexpectationsthatinfrastructurespendingwill

remainanimportantdriverofcorporateissuance.Highyieldalsoperformedwell,withU.S.HighYield(HY)tightening

11bpsto257bpsandEuroHYtightening18bpsto263

bps.Despitetheconstructivebackdrop,valuationsremaintightanddispersionpersistsacrosssectors,reinforcingtheimportanceofsecurityselection.

Leveragedloansdeliveredsolidperformance,supportedbystrongearningsandhealthyCLOdemand.Software

loansstabilizedafterearlierweaknesstiedtoAIdisruptionconcerns,thoughthesectorcontinuedtolagyear-to-date.Investorsremainedfocusedonhigher-quality,mission-

criticalissuers,whilehousing,lower-incomeconsumer,andpackagingexposuresshowedmorestrain.

Securitizedmarketsweresupportedbystrongdemandandimprovingtechnicals.AgencyMortgage-BackedSecurities

(MBS)spreadstightenedasratevolatilityeased,while

bankandGSEdemandhelpedoffsetFedbalancesheet

runoff.Securitizedcreditissuanceremainedrobustacross

ResidentialMBS(RMBS),Asset-BackedSecurities(ABS),andCommercialMBS(CMBS),withresidentialcreditcontinuingtostandoutonstablecollateralperformanceandstrong

investordemand.

Emergingmarkets(EM)weremixedbutbroadly

constructive.EMexternalspreadstightened11bpsto215bps,withsupportfromselectLatinAmericanmarketsandimprovingpoliticaldevelopmentsinColombia.Asiafacedmoreinflationandcurrencypressure,includingIndonesia’sratehikeandexportrestrictions.Oil-linkedriskpremia

remainedrelevantgivenstill-lowvesseltrafficthroughtheStraitofHormuz.

DISPLAY2

CurrencyMonthlyChangesversusUSD

(+=appreciation)

Russia

SouthAfrica

Hungary

NewZealand

Chile

Malaysia

Norway

Switzerland

Poland

Sweden

Australia

Singapore

Euro

U.K.

Colombia

Canada

Brazil

Japanlndonesia

-3036

%Change

Note:PositivechangemeansappreciationofthecurrencyagainsttheUSD.

Source:Bloomberg.DataasMay31,2026.

Municipalscontinuedtoperformstrongly,supportedby

substantialinflowsandfavorabletechnicalsdespiterecordissuance.Highyieldmunisremainedoneofthestronger

areasofU.S.fixedincome,helpedbylimitedsupplyandstrongdemand.

Overall,Mayreinforcedtheresilienceofriskmarketsdespitestickyinflation,tighterpolicyexpectations,andongoing

geopoliticaluncertainty.Technicaldemandremaineda

powerfulsupport,buttightvaluationsandrisingdispersioncontinuedtoplaceapremiumonsectorallocationand

securityselection.

2.72.4

1.3

1.1

0.0

-0.1

-0.2

-0.3

-0.6

-1.1

-1.3

-1.5

-1.6

-1.7

-2.9

5.9

I0.20.1 0.1

TheviewsandopinionsexpressedarethoseofthePortfolioManagementteamasofJune2026andaresubjecttochangebasedonmarket,economicandotherconditions.DatasourcedfromBloombergasofMay31,2026unlessotherwisestated.Pastperformanceisnotindicativeoffutureresults.

2MORGANSTANLEYINVESTMENTMANAGEMENT|BROADMARKETSFIXEDINCOME

DISPLAY3

MajorMonthlyChangesin10-YearYieldsandSpreads

COUNTRY10-YRYIELDLEVEL(%)MONTHCHANGE(BPS)10-YRSPREAD(BPS)MONTHCHANGE(BPS)

(SPREADOVERUSTS)

UnitedStates

4.44

6

UnitedKingdom

4.81

-20

38-26

Germany

2.94

-10

-150-16

Japan

2.67

14

-1778

Australia

4.83

-23

40-30

Canada

3.41

-13

-102-19

NewZealand

4.51

-22

8-29

EUROPE

(SPREADOVERBUNDS)

France

3.55

-14

61-5

Greece

3.60

-21

67-11

Italy

3.65

-21

71-11

Portugal

3.30

-14

36-5

Spain

3.35

-15

42-5

EM

10-YRLOCALYIELD(%)

MTDCHANGE(BPS)

SPREAD(BPS)MTDCHANGE(BPS)

EMExternalSpreads

214-11

EMCorporateSpreads

171-3

EMLocalYields

6.18

-6

(SPREADOVERUSTS)

Brazil

14.11

15

9689

Colombia

13.25

12

8815

Hungary

5.30

-66

87-72

lndonesia

6.70

-12

227-19

Malaysia

3.56

0

-87-6

Mexico

9.18

-3

475-9

Peru

6.67

-6

223-12

Poland

5.61

-13

117-19

SouthAfrica

8.56

-37

412-43

CREDIT

SPREAD(BPS)MTDCHANGE(BPS)

U.S.IG

72-6

EURIG

79-3

U.S.HY

257-11

EURHY

263-18

SECURITIZED

AgencyMBS

109-7

U.S.BBBCMBS

544-35

PositiveNeutralNegative

Source:Bloomberg,JPMorgan.DataasofMay31,2026.

TheviewsandopinionsexpressedarethoseofthePortfolioManagementteamasofJune2026andaresubjecttochangebasedonmarket,economicandotherconditions.DatasourcedfromBloombergasofMay31,2026unlessotherwisestated.Pastperformanceisnotindicativeoffutureresults.

BROADMARKETSFIXEDINCOME|MORGANSTANLEYINVESTMENTMANAGEMENT3

4MORGANSTANLEYINVESTMENTMANAGEMENT|BROADMARKETSFIXEDINCOME

BroadMarketsFixedIncomeGlobalAssetAllocationandOutlook

DevelopedMarketRate/ForeignCurrency(LONGDURATION,NEUTRALCURVEPOSITIONING)

Themarketnarrativehascontinuedtoshiftawayfrom

recessionconcernsandtowardthedurabilityofgrowth

andinflation.IntheUnitedStates,stronger-than-expectedlabormarketdata,resilientconsumption,andfirminflationreadingshaveledinvestorstosignificantlyrepricemonetarypolicyexpectations,withmarketsnowanticipatingamuchmorerestrictivepolicypaththanwasexpectedatthe

beginningoftheyear.Elsewhereindevelopedmarkets,

muchofthisrepricingoccurredearlierintheyear,thoughinflationandenergy-relatedriskscontinuetoinfluence

centralbankexpectations.Whilegeopoliticaldevelopmentsremainanimportantdriverofsentiment,thedominant

macroquestionhasbecomewhetherinflationproves

sufficientlypersistenttodelayorreversetheeasingcycle.

Againstthisbackdrop,wecontinuetomaintainalongdurationstanceacrossdevelopedmarkets,thoughpositioningremainshighlyselectiveandfocusedonregionswheregrowthappearsmorevulnerabletotighterfinancialconditions.Exposureis

concentratedinfront-endratesmarketsoutsidetheUnited

States,alongsidealongpositioninU.S.Treasuries.Wehave

moderatedsomeexposureinCanadafollowingrecent

developmentsandweakergrowthdata,whilecontinuingto

favormarketswhereeconomicmomentumappearslessrobustthanintheU.S.Durationexposureremainspartiallyoffset

byshortpositionsinmarketswherepolicynormalizationandtechnicaldynamicscreateasymmetricupsideriskstoyields.

Inflationremainstheprimarymacrorisk.Althoughlonger-datedinflationexpectationsretracedmodestlyduringMay,coreinflationmeasureshavecontinuedtomovehigherandproducerpricepressuresremainfirm.WethereforemaintainmeaningfulexposuretoU.S.inflation-linkedmarkets,wherewecontinuetoseevalueinhedgingportfoliosagainsttheriskthatinflationremainsabovecentralbanktargetsfor

longerthancurrentlyanticipated.

Curvedynamicshavegenerallystabilizedfollowingthe

sharprepricingseenearlierintheyear,andweremain

neutralonoutrightcurvepositioning.Whileelevatedfiscaldeficits,AI-relatedinvestmentspending,andenergymarketuncertaintycontinuetosupporthighertermpremiaoverthemediumterm,recentmoveshavereducedtheattractivenessofdirectionalcurveexpressions.

Inforeignexchange,wecontinuetofavorselectivehigh-

carrycurrencieswherefundamentalsandvaluationremainsupportive.PositioningisfocusedontheMexicanpeso

andHungarianforintagainsttheeuro,reflectingattractivecarrycharacteristicsanddifferentiateddomesticdrivers.

Morebroadly,weexpectcurrencymarketstoremainhighlysensitivetoevolvingcentralbankexpectations,energy

prices,andgeopoliticaldevelopments,withrelativegrowthandinflationdynamicscontinuingtodriveperformance

acrossdevelopedandemergingmarkets.

EmergingMarketDebt

(OVERWEIGHT)

Emergingmarketsovereignandcorporatedebtremainsanattractiveopportunity,supportedbyelevatedrealyields,resilienttechnicals,andimprovingfundamentalsinselectcountries.Despitepersistentgeopoliticaluncertaintyandamorehawkishglobalpolicybackdrop,EMcreditmarketshaveremainedbroadlyresilient,withspreadscontinuingtoretracetowardpre-conflictlevelsinseveralregions.

Carryandincomeremaincentraldriversofexpectedreturns,thoughcountryselectionremainscriticalgivenelevated

dispersionacrossregions.Higherenergypricescontinue

tocreatedivergencebetweencommodityexportersand

importers,whilelocalpoliticaldevelopmentsremainan

importantsourceofidiosyncraticopportunityandrisk.

RecentdevelopmentsinmarketssuchasColombia,Hungary,Indonesia,andthePhilippineshighlighttheincreasingly

differentiatednatureoftheopportunityset.

Valuationsremainattractiveacrossselectlocalandhard-

currencymarkets,andmanyEMcurrenciescontinueto

offercompellingcarryrelativetodevelopedmarkets.Whiletighterglobalfinancialconditionsandpersistentinflation

remainimportantrisks,wecontinuetofavorcountrieswithcrediblemonetaryframeworks,improvingfundamentals,andattractiverealyielddifferentials.Inanenvironment

whereglobalgrowthremainspositiveanddefaultrisksremaincontained,webelievetheassetclasscontinuestoofferattractiverisk-adjustedreturnpotential.

CorporateCredit

(UNDERWEIGHTIG,SMALLOVERWEIGHTHY)

Ourbasecaseremainscautiouslyconstructiveforcredit,

evenasinflationrisks,tightermonetarypolicyexpectations,andgeopoliticaluncertaintycontinuetoshapethemacro

backdrop.Despitetheseheadwinds,resilienteconomic

TheviewsandopinionsexpressedarethoseofthePortfolioManagementteamasofJune2026andaresubjecttochangebasedonmarket,economicandotherconditions.DatasourcedfromBloombergasofMay31,2026unlessotherwisestated.Pastperformanceisnotindicativeoffutureresults.

BROADMARKETSFIXEDINCOME|MORGANSTANLEYINVESTMENTMANAGEMENT5

growth,stronglabormarkets,andcontinuedfiscalsupporthavehelpedsustaincorporatefundamentalsandsupportdemandforriskassets.

Wecontinuetobelievethatameaningfuldemand

destructionscenarioisunlikelytobethebasecase.

Expectationsforlowbutpositiveeconomicgrowth—

supportedbyongoingfiscalsupport,energy-related

spending,andcontinuedAIandinfrastructureinvestment—remainconsistentwithabroadlybenigndefault

environment.Corporatebalancesheetsalsoremain

healthy,thoughthemarketisincreasinglyenteringalate-cyclephasecharacterizedbyelevatedM&Aactivity,AI-andinfrastructure-relatedcapex,andhighershareholderdistributions.Thisbackdropreinforcestheimportanceofsectorandsecurityselection.

Atcurrentspreadlevels,wecontinuetoviewcarryastheprimarydriverofexpectedreturns,supportedbystrong

technicaldemandforhigh-qualitycreditandresilient

corporatefundamentals.Demandforall-inyieldremains

robust,helpingabsorbelevatedissuancevolumesand

supportingspreadstabilitydespitetightvaluations.Whilebroad-basedspreadcompressionappearsincreasingly

limited,wecontinuetoseeopportunitiesforexcessreturnthroughsectorallocationandsecurityselection.Regionally,wecontinuetopreferEuropeovertheU.S.,supportedbyrelativelymorebalancedsupplydynamicsandstronger

demandforhigh-qualitycarry.

Wemaintainamodestoverweighttoselecthigh-yield

issuersinboththeU.S.andEurope.Althoughspreadsremainhistoricallytightandissuancehasaccelerated,fundamentalsremainsupportive,withimprovedaveragecreditquality,

manageableleverage,andcontaineddefaultexpectations.Elevateddispersionacrosssectorsandissuerscontinuestocreateopportunitiesforselectivepositioning,particularlyinbusinesseswithresilientcashflows,strongerpricingpower,andlessexposuretorefinancingrisk.

LeveragedLoans

(NEUTRAL)

Weviewleveragedloansmorefavorablythanearlierin

theyearasincreaseddispersionandspreadwideninghaveimprovedvaluationsacrossportionsofthemarket.Whiletheassetclassremainscharacterizedbyelevateddispersionandincreasinglyselectivetechnicals,valuationsare

becomingmoreattractive,particularlyrelativetohighyieldcorporates.CLOdemandcontinuestoprovideanimportant

sourceofsupport,andinvestorpreferenceremainsfocusedonhigher-qualityissuersandmoreresilientsectors.

Softwareandtechnology-linkedissuersremainanarea

ofcautiongivenongoinguncertaintysurroundingAI-

relateddisruption.However,thebroad-basedselloff

acrosspartsofthesectorhasalsocreatedselective

opportunitieswheremarketpricingappearsdisconnected

fromunderlyingfundamentals.Inseveralcases,investors

haveindiscriminatelyreducedexposuretosoftwareand

technologycredits,creatingattractiveentrypointsinhigher-quality,mission-criticalbusinesseswithdurablecashflows,proprietarydataadvantages,andhighswitchingcosts.

Morebroadly,economicallysensitivesectorscontinue

tofacepressurefromelevatedfinancingcosts,inflation

uncertainty,andrisinginputcosts,evenasoverallcorporatefundamentalsremainrelativelystable.CLOissuanceand

demandforfloating-rateexposureremainsupportive,helpingtooffsetmoremixedretailflows.

Giventheimprovementinvaluationsandthegrowing

opportunitysetcreatedbyelevateddispersion,wehave

movedtoamoreneutralstanceontheassetclass.While

selectivityremainsparamount,webelievecurrentvaluationsincreasinglycompensateinvestorsforrefinancingriskand

macrouncertainty,particularlyinhigher-qualitysegmentsofthemarket.

SecuritizedProducts

(OVERWEIGHT)

Agencymortgage-backedsecurities(MBS)andnon-agencyresidentialmortgage-backedsecurities(RMBS)remainahigh-convictionoverweightfor2026.Althoughagency

MBSexperiencedperiodsofvolatilityduringMayas

ratesmarketsadjustedtochanginginflationandpolicy

expectations,spreadsultimatelyretracedmuchoftheirwideningasdemandremainedstrongandmortgageratesmovedoffrecenthighs.RelativevaluationsacrossagencyMBScontinuetoappearattractiveversusbothhistoricallevelsandothercorefixedincomesectors.

Technicalconditionsremainhighlysupportiveacross

securitizedmarkets.Demandforhigh-qualitycollateral

continuestobenefitfromattractiveall-inyields,strong

moneymanagerdemand,andincreasingparticipationfrombanksandGovernment-SponsoredEnterprises(GSEs)as

balancesheetconstraintseaseandrelativevalueimproves.Atthesametime,theFederalReserve’smeasuredbalance

TheviewsandopinionsexpressedarethoseofthePortfolioManagementteamasofJune2026andaresubjecttochangebasedonmarket,economicandotherconditions.DatasourcedfromBloombergasofMay31,2026unlessotherwisestated.Pastperformanceisnotindicativeoffutureresults.

6MORGANSTANLEYINVESTMENTMANAGEMENT|BROADMARKETSFIXEDINCOME

sheetrunoffcontinuestolimitnetsupplypressure.Despiteelevatedissuanceacrosssecuritizedsectors,spreadshaveremainedwellcontained,highlightingthestrengthof

underlyingdemandandmarketliquidity.

Non-agencyRMBScontinuestoofferoneofthemore

attractiveopportunitysetswithinstructuredcredit.Stablehomeprices,lowloan-to-valueratios,improvingcollateralperformance,andlimitedrefinancingriskcontinueto

supportfundamentals.Strongissuancegrowthhasbeen

metwithequallyrobustinvestordemand,particularlyin

residentialcreditsectorswhererecentvintagescontinuetodemonstratefavorableperformancecharacteristics.

WithinCMBS,fundamentalsremainresilient,particularly

inhigher-qualitysegments.Strongtechnicaldemand

andimprovingsentimentcontinuetosupportselective

opportunitiesacrosshospitality,logistics,storage,andhigh-qualitymultifamilyassets.IssuanceacrossABS,RMBS,andCMBSmarketshasremainedrobust,withmanytransactionsheavilyoversubscribed,reinforcingthestrengthofinvestordemanddespitethehigher-rateenvironment.

WealsoremainconstructiveonDanishcoveredbonds,wheredefensivecharacteristics,stronglegalframeworks,andattractiveUSD-hedgedyieldscontinuetosupport

relativevalue.

RiskConsiderations

Diversificationneitherassuresaprofitnorguaranteesagainstlossinadecliningmarket.

Thereisnoassurancethataportfoliowillachieveitsinvestmentobjective.Portfoliosaresubjecttomarketrisk,whichisthepossibilitythatthemarketvaluesofsecuritiesownedbytheportfoliowilldeclineandthatthevalueofportfoliosharesmaythereforebeless

thanwhatyoupaidforthem.Marketvaluescanchangedailyduetoeconomicandotherevents(e.g.,naturaldisasters,healthcrises,terrorism,conflicts,andsocialunrest)thataffectmarkets,countries,companies,orgovernments.Itisdifficulttopredictthetiming,duration,andpotentialadverseeffects(e.g.,portfolioliquidity)ofevents.Accordingly,youcanlosemoneyinvestinginaportfolio.

Fixed-incomesecuritiesaresubjecttotheabilityofanissuertomaketimelyprincipalandinterestpayments(creditrisk),changesin

interestrates(interestraterisk),thecreditworthinessoftheissuerandgeneralmarketliquidity(marketrisk).Inarisinginterest-rate

environment,bondpricesmayfallandmayresultinperiodsofvolatilityandincreasedportfolioredemptions.Inadeclininginterest-rateenvironment,theportfoliomaygeneratelessincome.Longer-termsecuritiesmaybemoresensitivetointerestratechanges.Certain

U.S.governmentsecuritiespurchasedbythestrategy,suchasthoseissuedbyFannieMaeandFreddieMac,arenotbackedbythefullfaithandcreditoftheU.S.Itispossiblethattheseissuerswillnothavethefundstomeettheirpaymentobligationsinthefuture.Publicbankloansaresubjecttoliquidityriskandthecreditrisksoflower-ratedsecurities.High-yieldsecurities(junkbonds)arelower-ratedsecuritiesthatmayhaveahigherdegreeofcreditandliquidityrisk.Sovereigndebtsecuritiesaresubjecttodefaultrisk.Mortgage-

andasset-backedsecuritiesaresensitivetoearlyprepaymentriskandahigherriskofdefaultandmaybehardtovalueanddifficult

tosell(liquidityrisk).Theyarealsosubjecttocredit,market,andinterestraterisks.Thecurrencymarketishighlyvolatile.Pricesin

thesemarketsareinfluencedby,amongotherthings,changingsupplyanddemandforaparticularcurrency;trade;fiscal,moneyand

domesticorforeignexchangecontrolprogramsandpolicies;andchangesindomesticandforeigninterestrates.Investmentsinforeignmarketsentailspecialriskssuchascurrency,political,economicandmarketrisks.Therisksofinvestinginemergingmarketcountriesaregreaterthantherisksgenerallyassociatedwithforeigninvestments.Derivativeinstrumentsmaydisproportionatelyincreaselossesandhaveasignificantimpactonperformance.Theyalsomaybesubjecttocounterparty,liquidity,valuation,andcorrelationandmarketrisks.Restrictedandilliquidsecuritiesmaybemoredifficulttosellandvaluethanpubliclytradedsecurities(liquidityrisk).Duetothepossibilitythatprepaymentswillalterthecashflowsoncollateralizedmortgageobligations(CMOs),itisnotpossibletodetermineinadvancetheirfinalmaturitydateoraveragelife.Inaddition,ifthecollateralsecuringtheCMOsoranythird-partyguaranteesare

insufficienttomakepayments,theportfoliocouldsustainaloss.

DEFINITIONS

Basispoint(bp):Onebasispoint=0.01%.

INDEXDEFINITIONS

Theindexesshowninthisreportarenotmeanttodepicttheperformanceofanyspecificinvestment,andtheindexesshowndonotincludeany

expenses,fees,orsalescharges,whichwouldlowerperformance.Theindexesshownareunmanagedandshouldnotbeconsideredaninvestment.Itisnotpossibletoinvestdirectlyinanindex.

“Bloomberg®”andtheBloombergIndex/IndicesusedareservicemarksofBloombergFinanceL.P.anditsaffiliatesandhavebeenlicensedforuse

forcertainpurposesbyMorganStanleyInvestmentManagement(MSIM).BloombergisnotaffiliatedwithMSIM,doesnotapprove,endorse,review,orrecommendanyproduct,anddoesnotguaranteethetimeliness,

accurateness,orcompletenessofanydataorinformationrelatingtoanyproduct.

TheBloombergEuroAggregateCorporateIndex(BloombergEuroIGCorporate)isanindexdesignedtoreflecttheperformanceoftheeuro-denominatedinvestment-gradecorporatebondmarket.

TheBloombergGlobalAggregateCorporateIndexisthecorporate

componentoftheBloombergGlobalAggregateindex,whichprovidesa

broad-basedmeasureoftheglobalinvestment-gradefixedincomemarkets.

TheviewsandopinionsexpressedarethoseofthePortfolioManagementteamasofJune2026andaresubjecttochangebasedonmarket,economicandotherconditions.DatasourcedfromBloombergasofMay31,2026unlessotherwisestated.Pastperformanceisnotindicativeoffutureresults.

BROADMARKETSFIXEDINCOME|MORGANSTANLEYINVESTMENTMANAGEMENT7

TheBloombergUSCorporateHighYieldIndexmeasuresthemarketofUSD-denominated,non-investmentgrade,fixed-rate,taxablecorporatebonds.Securitiesareclassifiedashighyieldifthemiddleratingof

Moody’s,Fitch,andS&PisBa1/BB+/BB+orbelow.Theindexexcludesemergingmarketdebt.

TheBloombergUSCorporateIndexisabroad-basedbenchmarkthatmeasurestheinvestmentgrade,fixed-rate,taxable,corporatebondmarket.

TheBloombergUSMortgage-BackedSecurities(MBS)Indextracks

agencymortgage-backedpass-throughsecurities(bothfixed-rateand

hybridARM)guaranteedbyGinnieMae(GNMA),FannieMae(FNMA)andFreddieMac(FHLMC).Theindexisconstructedbygroupingindividual

TBA-deliverableMBSpoolsintoaggregatesorgenericsbasedonprogram,coupon,andvintage.Introducedin1985,theGNMA,FHLMCandFNMA

fixed-rateindexesfor30-and15-yearsecuritieswerebackdatedtoJanuary1976,May1977,andNovember1982,respectively.InApril2007,agency

hybridadjustable-ratemortgage(ARM)pass-throughsecuritieswereaddedtotheindex.

ConsumerPriceIndex(CPI)isameasurethatexaminestheweightedaverageofpricesofabask