Paring back global operations.
Morgan Stanley began cutting its fixed-income business in London and may continue reductions on Monday as it pares back global operations, according to people familiar with the matter.
Bloomberg News reports that cuts are said to have taken place in financial credit trading, research for investment-grade and high-yield credit, emerging markets, and European credit sales and bond trading.
Morgan Stanley is planning a reduction of as much as a quarter of its fixed-income staff after years of revenue declines and insufficient returns, people with knowledge of the plans said last week. The U.S. firm reported a 42% plunge in bond-trading revenue in October, in what CEO James Gorman called its worst quarter for fixed income, currencies and commodities since he took over in 2010.
Morgan Stanley joins Credit Suisse, RBS and Nomura Holdings Inc. in scaling back their fixed income businesses this year.
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