New York City cuts Morgan Stanley

New York City cut Morgan Stanley from the ranks of its senior general obligation and Transitional Finance Authority bond underwriters, while elevating Samuel A. Ramirez & Co. and Royal Bank of Canada.

Bloomberg News reports that New York, one of the largest issuers of municipal bonds in the $3.7tril market, plans to issue about $14bn of general-obligation bonds and $15.2bn of Transitional Finance Authority debt in the next four fiscal years, according to the city’s financial plan.

The Transitional Finance Authority was created in 1997 to circumvent limits on New York City general-obligation bond sales. State law doesn’t allow it to file for bankruptcy and they are backed by the city’s income tax, and if needed, its sales tax.

Morgan Stanley’s demotion comes five months after the eliminated about 25% of it’s fixed-income staff. The investment bank is included as a senior co-manager for the city’s GO and TFA debt.

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

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