Morgan Stanley combines trading teams to boost sales

Morgan Stanley HQ

Morgan Stanley, the Wall Street firm most dependent on wealth management, is combining some trading teams from its investment bank and brokerage to boost bond sales to rich clients.

Bloomberg News reports that the firm is joining corporate and government bond-trading desks to give wealth-management clients access to the broader pool of securities and research available to institutional customers, said Andy Saperstein, co-head of the division. It’s an expansion of an effort that brought municipal-bond teams together in 2014, he said.

“That was a proof of concept, that by putting them together, we outpaced the Street by a lot, we increased our share,” Saperstein, 49, said in a telephone interview. “It allows you to have more inventory, more scale in the market when looking for inventory. It’s also more effective to manage risk across the book when they’re not separate.”

Wealth management has increased in scale and stature at Morgan Stanley under Chief Executive Officer James Gorman. The business accounted for 43% of the firm’s $35.2bn in revenue last year as fixed income became less profitable amid regulations and a trading slump.

To access the complete Bloomberg News article hit the link below:

Morgan Stanley Fuses Desks to Boost Bond Sales to Rich Clients

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