AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA Markets MS Why Morgan Stanley Stock Sank by 4% Today March 12, 2026 — 08:12 pm EDT Written by Eric Volkman for The Motley Fool -> Key Points The financial services giant's investment management arm imposed a limit on redemptions from a private credit fund. Market players are worried that private credit providers are more risky than previously thought. 10 stocks we like better than Morgan Stanley › Something close to a crisis is unfolding in the world of private credit, and on Thursday, Morgan Stanley' s (NYSE: MS) stock was affected. On news that its investment management unit capped withdrawals from one such fund, investors bailed on Morgan Stanley shares, leaving them with a nearly 5% loss that trading session. Private panic Late on Wednesday, Morgan Stanley's North Haven Private Income Fund (PIF) sent its unit holders a letter notifying them of the new cap. Specifically, the fund wrote that it will limit tender requests to 5% of all units outstanding, as of the count last Dec. 31. This followed the fund returning around $169 million to its unit holders in redemptions already this quarter, for about 45.8% of the total requested. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue » Image source: Getty Images. Although that cap is a standing rule of the fund, it was the latest in a series of crisis moments for the private credit industry. Last month one of Blue Owl Capita l's funds unexpectedly made a similar move following a fraud investigation into auto parts specialist First Brands Group . That company was supported by private credit. All of this has caused a stir in that world, with investors in such funds rushing to redeem their units and shares. Reuters quoted Morgan Stanley as saying that North Haven had investments in 312 borrowers in 44 industries as of the end of January. It claimed, in the news agency's words, that "credit fundamentals at the fund remain broadly stable." No need to press the red button... yet Morgan Stanley is a large, complex, and sprawling financial services company, so North Haven's travails aren't going to short-circuit the entire company. That being said, Morgan Stanley's success is due in no small part to its reputation as an effective and clever operator throughout the finance ecosystem, so North Haven's move (and its exposure) isn't making it look very sharp just now. All the same, I wouldn't sell Morgan Stanley stock if I were an investor; for now, the private credit rout is a challenge it can overcome. Should you buy stock in Morgan Stanley right now? Before you buy stock in Morgan Stanley, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Morgan Stanley wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $511,735 !* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,140,464 !* Now, it’s worth noting Stock Advisor’s total average return is 946 % — a market-crushing outperformance compared to 191% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor , and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of March 12, 2026. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy . The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Tags Markets The Motley Fool Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off. Visit Fool.com for more market news -> More articles by this source -> Stocks mentioned MS OWL More Related Articles This data feed is not a