Chillin' out till it needs to be funded
Apart from fronting attacks on its likely and unlikely exposures in the Eurozone, MS marshalled resources from its partners Mitsubishi to affirm the strategic partnership with Japan’s finest and also filed a shelf registration with the Japanese Ministry of Finance for $5 bln worth of ‘uridashi’ bonds i.e. bonds targeted for subscription by Japanese retail investors.
Also with 241 deals, Morgan Stanley is ahead of Merrill Lynch, JP Morgan and many more in the M&A deal tables for the first nine months of the year. However the near 300 transactions by GS were worth $500 bln only while MS’s 240 odd deals totaled almost the same at $437 bln Barclays and Deutsche Bank somehow managed a larger deal ticket but still less than half the volume of the leaders. Evercore and Qatalyst among the boutique firms shone in the changed deal scenario and even those could be a big cuppa for Morgan Stanley to tackle in the coming months without John Mack to talk to his European and Asian friends
Morgan Stanley had been running a lot of discussions with Korean investors for a $9 bln capital raising effort in the same month in 2008 and had pulled through even then. I talso contributed to shorting hedgie’s losses in 2011 when it was one of the few which survived the mini holocaust in the H1 results. Here is the City.com updates:
The Wall Street Journal also reports that James Gorman, Morgan Stanley’s CEO, sent an email to staff Monday in another attempt to reassure them. It said, in part: ‘Over the past few weeks, there has been an enormous amount of confusion and misinformation about Morgan Stanley and others in our peer group. In fragile markets, where fear triumphs over common sense, these things are bound to happen’.