More Morgan Stanley assets hard to value in Q1

MNB

Morgan Stanley said that more of its assets became illiquid or hard to value during the turbulent Q1.

According to its quarterly filing with the Securities and Exchange Commission, Morgan Stanley classified $78.2 billion of assets as “Level 3” at the end of February, up from $73.7 billion at the end of November.

In both periods, Morgan Stanley said these assets represented 15% of total assets, measured at fair value, or 7% of total assets.

The second-largest investment bank said it downgraded $2 billion of corporate and other debt from Level 2 to Level 3, driven mostly by loans and loan commitments for leveraged buyouts. The changes reflect “a reduction in recently executed transactions and market-price quotations for these instruments,” the bank said. (Reuters)

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.

Support the BBJ

Finance