SOVEREIGN DEBT RESTRUCTURING | MASTERCLASS

A deep dive masterclass on sovereign debt restructuring, to be conducted virtually by Asian high yield bond expert Florian Schmidt.

30 June 2022 (Thu), 5pm Singapore/HK time

Morgan Stanley (MS) reported Q1 net income of $4.1bn, more than double the $1.7bn it reported in Q1 2020. Net revenues came in at $15.7bn vs. $9.8bn a year ago. Provisions for credit losses were at $(98)mn vs. $407mn end-March 2020 reflecting a release in the allowance for credit losses. MS said that fixed income trading produced $2.97bn in revenue, ~$850mn more than analyst estimates helped by credit trading. Record equity underwriting saw IB revenues jump 128% to $2.61bn. The bank’s CET1 ratio stood at 16.8% vs. 15.7% a year ago. MS repurchased $2.1bn of its outstanding common stock. The Board declared a $0.35 quarterly dividend per share, payable on May 14, 2021 to shareholders. MS also added that it suffered a $911mn loss from the Archegos Capital blow-up noting that the “quarter includes a loss of $644 million related to a credit event for a single prime brokerage client, and $267 million of subsequent trading losses through the end of the quarter related to the same event.” CEO James Gorman said, “The Firm delivered record results. The integrated Investment Bank continues to thrive. We closed the acquisition of Eaton Vance which takes Investment Management to over $1.4 trillion of assets. Wealth Management brought in record flows of $105 billion. The Firm is very well positioned for growth in the years ahead.”

Morgan Stanley’s dollar bonds were stable – its 5.875% Perps were at 113.63, yielding 3.11%.

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