Morgan Stanley's capital secret

3 January 2017/No Comments
By Nick Dunbar
Is the bank using bond ETFs for regulatory capital arbitrage?

In the last few years, Morgan Stanley’s balance sheet has changed almost beyond recognition. From having almost $2 trillion in assets in 2010 (measured on an IRFS basis), the bank now has a third less. Derivatives notional fell to $14.9 trillion from $26.2 trillion, a 43% decline. And corporate debt in the bank’s trading book plunged by 58% from $69 billion to $28 billion.

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