“Corporate confidence will ultimately drive the cycle forward and we are encouraged by signs the CEO and boardroom optimism is growing, evidenced by the build of our advisory and IPO pipeline.”

In context

“owever, optimism began to rise midyear followed by a notable increase in Morgan Stanley's announced volumes starting in the third quarter and continuing into the fourth quarter. Fourth quarter revenues were $1.3 billion. Results were supported mostly by fixed income underwriting as the investment grade market remained open for regular way issuance and was supported by event driven activity. Advisory revenues have begun to recover versus recent quarters, and were roughly flat year over year. Equity underwriting revenues were also flat as activity remained muted. As we enter 2024, we are positioned to capitalize on the opportunity set, while downside risks are linked to the consumer with the rate path and geopolitics as two key determinants, we expect the US will lead the recovery globally. Corporate confidence will ultimately drive the cycle forward and we are encouraged by signs the CEO and boardroom optimism is growing, evidenced by the build of our advisory and IPO pipeline. Our integrated investment bank is well positioned to capitalize on the recovering backdrop, particularly where the institution works across the businesses with CEOs, CFOs and Treasurers on corporate solutions. Strength and sentiment should support broad M&A and new capital market issuance, and eventually feed through to the broader market activity. Equity full year revenues were $10 billion, reflecting lower revenues across regions. Tempered client engagement was reflective of broad market uncertainty. Revenues were $2.2 billion in the fourth quarter. Prime brokerage revenues in the fourth quarter were solid. Results reflected narrower spreads and the geographic mix of client balances. Cash results declined versus last year's fourth quarter, reflecting lower volumes, particularly in Asia,”