Says has not yet received a formal update from Morgan Stanley (MS) on MSSB JV. Estimates that the sale of the remaining 35% interest in Morgan Stanley Smith Barney will add approximately 40bps to Basel III Tier 1 capital ratios. In Q1, says signed deals to sell $2.8B of residential first mortgage loans, including $1B of delinquent mortgages and $1.8B of current loans. Says it, most other banks continue to see pressure on loan and investment portfolio yields. Says expects NIM to decline sequentially in Q2 by a few bps. Continue to expect long-term debt outstanding to decrease, but at a slower pace this year. Says capital structure positions it well to adapt to a potential OLA requirement; says many questions about the implementation of OLA remain including the timing of the proposed rules.
- Morgan Stanley
- Morgan Stanley Smith Barney