Lower costs boost Morgan Stanley

摘要

Morgan Stanley - the last of the big Wall Street banks to see its funding costs fall meaningfully after the crisis - has said it expects these cheaper rates to start burnishing its bottom line this year, in turn helping it to hit its targeted return on equity of 10%. Morgan Stanley's CDS have tightened dramatically in the past three years to about 88bp last week from 298bp in January 2012. "As the market has recognised the improvements to our business mix and balance sheet, our spreads have contracted dramatically, more so than those of our peers," said chief executive James Gorman.