NEW YORK ( TheStreet) -- Morgan Stanley (MS) may need to speed up its plans to reduce its fixed income assets in order to generate acceptable returns for investors, according to one Wall Street analyst.
"We have begun to hear more global investment banks with sub-scale FICC
Hawken said that "in the most likely scenarios, MS could improve its return on regulatory capital by 40 bps to 100 bps, even with revenue headwinds and margin compression," and that the "downside scenarios were fairly moderate if the impact of such a wind down is more severe than we expect." The analyst said that "we could see the announcement of more bold actions as a meaningful positive for MS shares."
Morgan Stanley CFO Ruth Porat at a conference on Sept. 11 said that the company planned "to drive fixed income risk-weighted assets
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