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Morgan Stanley Out of Junk Debt, Which It Expects To Crash

Jan. 5, 2018 (EIRNS)—A day after releasing a research note warning of a crash in high-yield debt, Morgan Stanley announced on Jan. 3 that its $2 trillion-assets wealth management division has gotten completely out of junk debt markets.

"We recently took our remaining high-yield positions to zero," said chief investment officer Michael Wilson. Wilson said the bank expected it to be "much tougher to make money" on credit markets, "as the risk of a recession comes closer."