234,235 Morgan Stanley - GlobalCapital · 2013-05-13 · of Morgan Stanley Smith Barney, LLC is...
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Morgan Stanley 234 EuroWeek Financing financial institutions Morgan Stanley Subordinated debt Senior unsecured Securitisation - 20,000 40,000 60,000 80,000 100,000 120,000 2005 2006 2007 2008 2009 2010 Source: Dealogic. Data to August 20 2010 $m Debt issuance Debt issuance Pricing date: August 3, 2010 Value: €1.5bn Maturity date: August 10, 2020 coupon: 5.375% spread to swaps: 250bp bookrunners: Morgan Stanley Pricing date: July 21, 2010 Value: $1.25bn Maturity date: July 24, 2015 coupon: 4% spread to benchmark: 245bp over USTs bookrunners: Morgan Stanley Pricing date: July 21, 2010 Value: $1.75bn Maturity date: July 24, 2020 coupon: 5.5% spread to benchmark: 270bp over USTs bookrunners: Morgan Stanley Source: Dealogic Rank Lead Manager amount $m no of issues % share 1 Morgan Stanley 26,568 185 100 subtotal 26,568 185 100 total 26,568 185 100 Source: Dealogic (Sep 20, 2009 to Sep 19, 2010) Recent DeaLs - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021-2040 2041+ Source: Dealogic. Data to September 1, 2010 (securitisations not included) $m MatuRity PRofiLe toP bookRunneRs cfo Ruth Porat investor relations Suzanne Charnas +1 212 761 3043 key contacts Second quarter 2010, source: Morgan Stanley $bn Institutional Securities 26.3 Global Wealth Management Group 3 Asset management 2 Parent capital 20.2 Discontinued operations 0.2 aVeRage tieR one caPitaL Morgan stanley Long term iDR a short term iDR f1 individual Rating b/c support Rating 5 support Rating floor no floor summary: MS’ ratings reflect the significant challenges faced by the firm during the past few years, mitigated to some extent by considerable improvement in capital and liquidity measures. MS’ profitability, which was weak both nominally and compared to peers through the recent global downturn, was decidedly stronger in 1H10, with higher contributions from a broader mix of institutional securities businesses. The company has significantly reduced its balance sheet, while increasing the proportion of cash and cash equivalent assets. Further, its US bank has helped improve funding options at the margin. In the investment bank, the scope and scale of cash products is being broadened to facilitate customer-initiated flows. The current focus on the global wealth segment is an effort to develop more fee generating businesses to counterbalance less predictable trading and proprietary investment activities. Significant resources are being allocated to the global wealth management group (GWM), while the integration of Morgan Stanley Smith Barney, LLC is proceeding as anticipated. Fitch believes it may be several years, however, before contributions by GWM are consistently and proportionately significant, given the highly competitive, fluid wealth management market. Regulatory uncertainty, including potential business constraints, is an important consideration over the near to intermediate term. fitch Ratings uPDate
Transcript of 234,235 Morgan Stanley - GlobalCapital · 2013-05-13 · of Morgan Stanley Smith Barney, LLC is...
Morgan Stanley
234 EuroWeek Financing financial institutions
Morgan Stanley
Subordinated debt Senior unsecured Securitisation
-
20,000
40,000
60,000
80,000
100,000
120,000
2005 2006 2007 2008 2009 2010
Source: Dealogic. Data to August 20 2010
$m
Debt issuance
Debt issuance
Pricing date: August3,2010
Value: €1.5bn
Maturity date: August10,2020
coupon: 5.375%
spread to swaps: 250bp
bookrunners: MorganStanley
Pricing date: July21,2010
Value: $1.25bn
Maturity date: July24,2015
coupon: 4%
spread to benchmark: 245bpoverUSTs
bookrunners: MorganStanley
Pricing date: July21,2010
Value: $1.75bn
Maturity date: July24,2020
coupon: 5.5%
spread to benchmark: 270bpoverUSTs
bookrunners: MorganStanley
Source: Dealogic
Rank Lead Manager amount $m no of issues
% share
1 Morgan Stanley 26,568 185 100
subtotal 26,568 185 100
total 26,568 185 100
Source: Dealogic (Sep 20, 2009 to Sep 19, 2010)
Recent DeaLs
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2010
20
11
2012
2013
2014
20
15
2016
2017
2018
2019
2020
2021
-204
0
2041
+
Source: Dealogic. Data to September 1, 2010 (securitisations not included)
$m
MatuRity PRofiLe
toP bookRunneRs
cfoRuth Porat
investor relationsSuzanne Charnas+1 212 761 3043
key contacts
Second quarter 2010, source: Morgan Stanley
$bn
Institutional Securities
26.3Global Wealth Management Group
3
Asset management
2
Parent capital 20.2
Discontinued operations
0.2
aVeRage tieR one caPitaL
Morgan stanley
Long term iDR ashort term iDR f1individual Rating b/csupport Rating 5support Rating floor no floor
summary:MS’ ratings reflect the significant challenges faced by the firm during the past few years, mitigated to some extent by considerable improvement in capital and liquidity measures. MS’ profitability, which was weak both nominally and compared to peers through the recent global downturn, was decidedly stronger in 1H10, with higher contributions from a broader mix of institutional securities businesses. The company has significantly reduced its balance sheet, while increasing the proportion of cash and cash equivalent assets. Further, its US bank has helped improve funding options at the margin. In the investment bank, the scope and scale of cash products is being broadened to facilitate customer-initiated flows. The current focus on the global wealth segment is an effort to develop more fee generating businesses to counterbalance less predictable trading and proprietary investment activities. Significant resources are being allocated to the global wealth management group (GWM), while the integration of Morgan Stanley Smith Barney, LLC is proceeding as anticipated. Fitch believes it may be several years, however, before contributions by GWM are consistently and proportionately significant, given the highly competitive, fluid wealth management market. Regulatory uncertainty, including potential business constraints, is an important consideration over the near to intermediate term.
fitch Ratings uPDate
Morgan Stanley
Financing financial institutions EuroWeek 235
bp
Five year senior CDS prices. Source: Markit
24-Au
g-2009
24-Se
p-2009
24-O
ct-20
09
24-N
ov-20
09
24-D
ec-20
09
24-Ja
n-201
0
24-Fe
b-201
0
24-M
ar-20
10
24-Ap
r-201
0
24-M
ay-20
10
24-Ju
n-201
0
24-Ju
l-201
0
24-Au
g-201
0 0
50
100
150
200
250
300
350 Morgan StanleyJPMorgan
Goldman SachsCiti
Bank of America
cDs PRicing
Second quarter 2010, source: Morgan Stanley
%
Long-term debt 35%
CP & other short-term borrowings
1%
Secured funding 42%
Deposits 12%
Shareholder equity
10%
Source: Morgan Stanley
$m
0
500
1000
1500
2000
2500
2Q09 1Q10 2Q10
Source: Morgan Stanley
$bn
0
100
200
300
400
500
600
700
800
900
1000
3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10
Total net revenues 2Q10: $8.0bnSecond quarter 2010, source: Morgan Stanley
%
Fixed income 28%
Investment banking
11% Global Wealth
Management Group 38%
Asset management
5%
Equities 18%
Second quarter 2010, source: Morgan Stanley
$bn
Institutional Securities
17.5
Global Wealth Management Group
6.8 Asset management
1.7
Parent capital 13.6
Discontinued operations
0.4
Source: Morgan Stanley
%
15.6
15.8
16
16.2
16.4
16.6
16.8
17
17.2
17.4
17.6
1Q10 2Q10
coMPosition of funDing LiabiLities & equity
net incoMe
totaL assets
net ReVenues by business aVeRage coMMon equity
RetuRn on aVeRage coMMon equity
