Morgan Stanley was upgraded to A- from BBB+ by S&P on the transformation of its business model where it has lowered risk and added stability over several years. Morgan Stanley’s successful integration of E*TRADE and Eaton Vance should strengthen its ability to “deliver consistent results in more challenging economic times”. These moves also enhance its revenue in the lower-risk wealth and investment management businesses whose AUM has jumped from $2.4tn in 2014 to $6.2tn currently. S&P adds that Morgan Stanley’s preprovision revenue from other business lines can help absorb losses that from its capital markets division.
Morgan Stanley’s 5.875% Perp was up 0.4 points to 99.75, yielding 5.94%.