Morgan Stanley (MS) 16 Apr 242024 Q1 Earnings call transcript

Good morning, welcome to Morgan Stanley's First Quarter 2024 Earnings Call. On behalf of Morgan Stanley, I will begin the call with the following information and disclaimers. This call is being recorded.

During today's presentation, we will refer to our earnings release and financial supplement, copies of which are available at morganstanley.com. Today's presentation may include forward-looking statements that are subject to risks and uncertainties that may cause actual results to differ materially. undertake the not this statements does discussion. Stanley to forward-looking update in Morgan

our statements may regarding that refer consent. notices Please to forward-looking or without the release. duplicated appear earnings and This be presentation not reproduced our in measures non-GAAP

the now to over turn Ted Chief I Officer, Pick. call will Executive

management an in XX% per institutional York. with relatively them as to improving our return constructive by manage optimism, you and XX% allocate $X.XX The increasingly tone joining and our for clients. power and from efficiency positive a morning wealth results trusted strong. on adviser a and Good $XX these clear ratio, serving New us. the was highlight in share and happy raise and encouraged of capital. boardroom spring strategy helping billion environment, In clients, Thank We We XXXX quarter confidence of entered generated earnings tangible equity. our a consistent revenue,

higher the and also based grew new $XX Across Net by flows an trillion, advancing billion. quarter. base. $X Investment We trillion to prices Wealth in quarter, Investment in client activity, in both During positive and $XX XX%. greater of self-directed management both backdrop Management, adviser channels, goal. grew margins total long-term assets Management assets generated client the improved our toward supported with higher resulting wealth saw the asset and confidence our adjusted economic

calendar it in regain issue position the new our a quarters, us was capital the As see of time markets. equity returned to for first in great number leadership

across equities very out results fixed our sponsor both Institutional income both M&A securities. quarter momentum round building saw corporate in and broadly, More banking, investment to strong institutional clients. in and financial pipelines in and a generated solid underwriting we

our managing on focused capital. and with income remain statement sweating resources, we ever, being judicious the our As

was ratio XX.X%. CETX Our

regulators particularly to position support businesses capital continue Our our allows capital shareholders, in return invest III Basel excess our endgame. to and as our to evaluate us clients,

across clarity on franchise, integrated recovery unlocking Additional monitoring short unique sustained with effect client the the our global capital business touch a multiplier wanted wealth observations. our of the topic regulatory markets and further onboarding to of a in and X firm. I should have power

this results with across strong margins the speak First, management assets. wealth revenues new and quarter's and themselves including strong record for board, net metrics very strong

pleased this are with really going performance, are we ongoing. We to and terrific keep

our good this for Second, not We've client a processes is been on and while. new a monitoring matter. focused onboarding

banks have with do. We communications ongoing as our the large all regulators

aspect ensure world-class in continue said about to we this business. is clear, be James January, in to growing we And want to processes. As every of third, this be

expense We've spending the effort are multiple with costs largely have years, on in time, it is the it rate. been We money and this been for and associated ongoing. and run

aligns of client conclude, on revenue, To of ratio, goals the billion of with and $XX return January trillion outlined $X first quarter a tangible. efficiency earnings, the $X in deck, of XX% the XXXX a assets strategy XX%

in and We every have firm. part the backlogs momentum of strong

economic and of uncertainty. are While geopolitical backdrop the there healthy, pipelines a remains

clients deliver to intensity. basis. Our X,XXX our of and behalf generate Directors, what results I'm integrity for in is will to XX,XXX a its Managing we ahead that integrated job unmatched and on optimistic its an on of firm Stanley. the is shareholders consistent employees, and lies in both And durable listening Morgan these kinds say, to call, very those to

in quarter over our Now more to CFO, excellent the I'll Yeshaya, turn discuss detail. it to Sharon

first morning. firm good and you, $XX.X of revenues In quarter, produced Thank the billion. the

Our EPS was was $X.XX and and XX.X%. ROTCE our

working model as is Our intended.

expense contributed firm's the all the a efforts XX%, benefits business multiple the model and fees of first of business, consolidate statement and wealth and our capital illustrating the leverage improving particularly our an of strength The focus demonstrate revenues, operating in stronger The on management ongoing following asset markets first quarter to income to durable in ratio quarter scaled managing backdrop, the full results our base efficiency inherent was management years results. continued integrations.

Efforts in spend. professional expenses business by in services improvement reduction supported development evidenced year-over-year and are and efficiency the further legal marketing ratio. the Lower

the Securities performance prior to Now businesses. were revenues reflecting of versus billion $X X% year, strong businesses. Institutional the up across

power improves breadth positioned quarter cross-divisional on us across the of firm revenues underscore the center our geographical distinguish collaboration market franchise at opportunities. the and our regions. client to as the puts continues integrated First backdrop capitalize as to of us The activity

reopened XX% billion for were in revenues both conducive in preliminary activity. alongside $XXX income revenues decline offsetting up year-over-year fixed of as advisory. Advisory Leading positively, the and more follow-ons. reflected prior Investment for year, to the sponsor continue of the million $XXX quarter, M&A of results, underwriting of million in doubled the the underwriting decline including completed reemergence markets markets transactions. first revenues $X.X from a versus quarter, progress the most indicators year banking Equity prior for equity IPO a pickup supported than

to took reach driven strength ability spreads. in leadership tighter million. issuance bond investment-grade up. equity position income Results regained volumes cross-border league in market advantage and supported by $XXX lead our premier credit clients underwriting global as Fixed to tables of as picked noninvestment-grade our Our we were transactions, increased and underwriting global and year-over-year

we to of expect steady underwriting ahead, health by and Looking continue, pipelines. encouraged the of the advisory build we the business are this

that to underlying may of see increasing. as our pipeline diverse hires, the pipeline and continue we trends sponsor over on developments the realize, particularly improve focused activity. confidence increased We the to near-term and path uncertainty through While is opportunistic reach And expanding conditions should of geopolitical conversion remain suggest rate impact time. the

to Turning equity.

strong, Performance in volumes. were prior strength year broad-based derivatives across equity continue supported increased We cash regions. reflecting the Results a and benefited and by scale this year-over-year, supported to markets increasing were performance particularly Brokerage to global leader higher Prime from Cash be in from X% the the $X.X strong, Revenues business. the billion. business. franchise by was Japan of our revenues in in

should unique augmented coverage supportive increased our time. Our be over MUFG by long-standing with partnership and

robust integrated idiosyncratic as partial as the client offset the to Results those declined compared Derivative strong increased revenues increased Client last year's the the including reflecting back were last related revenues acted corporate levels. market our billion. results balances U.S. strength the strong. events, from demand client the Prime and regional to client and Results a environment well, back on as slightly year. on Recall, activity was Fixed all-time towards were higher of result engagement of solutions client revenues the banks. navigated income market benefited franchise. solid mix for brokerage of reflect spreads. were highs business narrower balances $X.X

in which and activity, increased Micro and modestly Macro America on gas revenues in commodities lower less in volatility Results and supported flow. transactional year-over-year business. year-over-year, North by power higher declined client resulted the revenues

across built. prior excluding in record investors. management as relationships Management. alongside asset serve strong delivered key Record sentiment better the strong by fees results from market clients power billion, The revenues Wealth Transactional success increased demonstrating to business rising institutional continued needs. year of to Turning $X.X the a we differentiation their driven to all and metrics, and retail improved were engine revenues, have also the DCP, migrating from advisory to both ongoing

Importantly, net in sequentially. income remained interest line

basis higher impacted rise was in DCP clients Pretax fee-based the leverage as The the as more in the profit the and invest back the particularly was approximately assessment cumulative XXX results by $X.X beta FDIC of business, inherent XX.X%. revenues flows activity special embedded rebounds. margin margin points. Together, billion, and the transactional PBT and operating highlight strong assets on

to strength at should $XX Fee-based from assets assets multiple migration ability fee-based to Net quarter, were we into lead from This new channels, stand and to the brokerage demonstrates office attract strong migrate over assets of time, now Fee-based recurring particular time, the over offering. the assets billion accounts. assets saw clients to $X accounts. strong. Within accounts to were Over adviser-led this at deliver funnel solutions that with share from flows quarter revenue-generating our continue capture. for $XX through fee-based family trillion. including billion of unique flows the contributions our

Asset were year. flows. the strong levels of up versus revenues excluding impact X% the billion, market reflecting of and higher revenues And impact up fee-based primarily the prior $X.X billion. management were XX% were $X DCP, Transactional year-over-year, cumulative

The Investments in driven products. in results by platform our were including record quarter's client structured support us first activity engagement increased to across allow products, demand. client

the slightly savings offering. of flat Bank demand Total lending up were sweep by were quarter-over-quarter billion, in mortgages. balances roughly decline in quarter-over-quarter, balances was reflecting $XXX our as $XXX for modest continued growth billion deposits offset

quarter's interest in with balances several in at on sweep cost last market While down roughly deposit were The was Net moderate to income the flat results, increase basis, the higher guidance. fourth of our consistent $X.X spot-to-spot quarter, average modeled billion, sweeps by a line reinvestments broadly offset with our was rates. consistent with were including average factors, assets expectations.

Looking ahead of to the second primary continue will to driver deposit be NII. the the mix quarter,

the first be expect around in would NII to in that behavior quarter we forward Assuming roughly the current the and our materialize, with curve client assumptions again second quarter. line

Our strategy is working.

management to advice, focused our time. XX% $XX We profits Management. client over their platform We have on using and scaled sustainable path to a relationships assets Investment achieve across deepening to client path clients trillion remain wealth clear supporting in on and pretax existing

Inflows net and increased revenues, the which prior trillion. increasing year. product Investment X% at year-over-year, reflect Long-term increased diversified growth to Management average driven driven reported AUM strong $X.X management Results and strength revenues were reflect in higher solutions flows in of Total billion, AUM of by asset versus were offering. the our benefits by alternatives $X.X higher market levels. billion. $X.X on X%

allocated Parametric income other fixed $XX and value global private including Liquidity estate, of equity Within underscoring private wealth our interest platform. in strategies. $XX.X customized demonstrating were the in outflows were active revenues Asia private carried clients, a lowered alternatives our accrued services and integrated U.S. by million. investments of solutions, offset the model. products, own retail had robust to and in for credit the interest Flows was and billion. equity Parametric's Performance-based further benefits management real portfolios diversified Gains and as overlay supported clients, global demand income of equity-based

by to We focused ongoing our credit our evidenced and Parametric global benefits are private from the us Wealth the demand ongoing on has integrated allowed remain investments We this Management distribution. customization, particular, in the firm base. client business. seeing of deliver in

balance Total the to trillion. spot sheet. $X.X assets were Turning

we was standardized RWAs the from basis as points markets. clients increased quarter-over-quarter Standardized prior in XX.X%, Our quarter. XX CETX ratio actively constructive supported our down more

We return buying our capital quarter. common back shareholders, $X the continue deliver to billion during commitment of to stock our to

vast the rate share-based majority in first quarter, the in XX% place a of tax takes rate. for Our quarter. conversion was resulting tax The award lower

prior years, volatility. to our exhibit We similar expect XXXX some continue XX%, to quarter-to-quarter will to be rate approximately tax which

The first and at of as quarter capture $X to designed is client trillion across record is Wealth do strong clear it was Investment our backdrop positioned the franchise improves, as that footing. strategically assets to evidence on are upside we Management, with a

business our differentiated management clients our to well our continues as supporting offering wealth and supported franchise and on with delivering Our scale is growth by our in global institutional focus advice footprint. as our

us This investment of deliver the and the banking objectives to with momentum our with on build combined provides time. pipelines market over confidence

With line will questions. open now that, we to up the

[Operator Instructions]

from move Glenn to with Schorr question first We'll Evercore. our

assets or in it -- more if non-U.S. if us. focus wrong, just subject. think correct from push matter. wealth darn not if envelope I'm I'm I and good whether and X I then wonder obviously, you you appreciate follow-up, running the quarter. wealth on do client the if for had pretty you possible, a importantly, going me revenue piece, the the that's And sensitive be a could away to you size ask

your clients do grow any real day-to-day So onboard in think the this you impacts question. and That's future? main or my ability to

follow had take in just themselves. I we're great question, is, on said, record what Ted This up which exactly position. Happy and is think results speak as phenomenal you a really business. revenues, to it's great Glenn. the that We for a said, a and

changes have our to question strategic and do margins, business, business, strong to And clients. it we extremely that to Specific assets. is ability no to ability confident there have is and net deepen There your small. We breadth our the to the our relationship no, serve the international no with business. to we're of changes on our grow in in new strong are firm offerings

We'll Ebrahim to question our with America. move from Poonawala next of Bank

so the the -- behaved underwriting. strong about think we geopolitics. rates on inflation, as There banking you, for Ted, to have a Maybe, quarter mission back of on was macro a based what seems be fragility it outlook how -- point to

to trends talking DCM, desire you're see to engage the look we when the large sort year of the check in corporates of and ECM appetite resilient into in U.S. do later elections? corporate of sentiment into your and a clients, as us give M&A, Just for of banking how M&A you investment like or activity the sort either sort

continue It's in be Thanks point are that grow, us for for across is be moment pipeline this in This purify scaling and supply clearly of see sectors. corporate that The effects to the when a to be model minds. assets. some community place sponsor to financial who effectively risk regulatory to growing and question. their geopolitics the a will activity will will There your bidding and the most other cycle the on COVID from of chain there It's both our is and each are growing cross-border is or with basis. against take community the and front at that now willing on we growing. needs and business want take

surprising It C-suite wants the to act. is not that

So are innings we I multiyear cycle. M&A in think the of a early

should about was ECM this a On all quarter capital of combination where cross-border kinds trades, was the companies, continue that, unlocks. back industrial see that real had from was of of to success Valley, IPOs What from it underwriting. raises the interesting we regional we

of we've leveraged to also It was [indiscernible] and market. event beginning the whole financing high-yield see offerings in the the of loan and begun

know, heightened markets we banking So around active And about to mid-cycle in think be world. early will you we to years activity this come. and good very I'm as for feeling capital where the are for classic the being Japan investment business

just color. one And good Sharon. That's quick follow-up,

getting And NII big deposits, where stop a we a where of about from trended. on On think a declined management event we're we NII the wealth and characterization? I should is accurate that bit sweep to bottom sense that the NII, is cliff worrying meaningfully an

quarter where that It it's frictional that client our the is row though now I getting we the as level and welcome the in day expectations. following I questions client on that I've reaching is of said would are feel models third stopped characterize NII. I a behavior cash. suite does

cash things people putting we'll T-bills broadly markets. what intra-quarter or move which levels like rather bank play you than with had, say speaking, regional very the might we be see though, how But then volatility event. associated course, feels real of last wait was and large in to a again, years in one-off X quarter And have that, things said, out. of it the which saw movements are in we have changes first the ago frictional where summer, again, I behavior, client year. is large you you saw a is what place Of But in in event would as large rates, when in movements -- a with that is we maturing, things the

I like And can our then, expectations. since working modeled we So we those at. events that very said, been specific with are look have

Wolfe Chubak from to move Steven our next Research. with We'll question

incremental Ted, wealth businesses should you efforts optimize commentary, or outlook. was base starting M&A expense ramp just to progress KPIs And ISG consistent front you your cited, start on and on and grow? just good surprised maybe off year-on-year. I as about the particularly noncomp with speak could hoping Comp saw are and We with So down expense the margins thinking rationalize and to was we in expected fees and encouraging. IB positively fees some these the to and the wealth. be to expense Headcount the how

Certainly.

of where SEC we've been had we've them multiple expenses. and multiple Let's take integrate looking and able obviously times, space. And talked out. our called acquisitions come I now Many that, of expense different picture, we reevaluate just of been in our disclose years the pieces to it drivers we've as We've expense base. the to out big I've call. I've about mentioned earnings

disclosures. actual occupancy, around the can even in in You lines see the

You you're again. down could and it then begins to space see trend taking bump space ups where write-offs down in in

invest making as where drivers move big need want and do growth to forward. do we're we we decisions we what So picture around actually

So want consolidating full-time those how to those in hires dollars, and the the do what marketing services use objectives. out deploy growth best is marketing actually consolidating professional figuring dollars of we

Parametric sweating talked giving we're discussed talked about sure, our said, my in and making as prepared pool, a we investing fact about been things. I taking certain tools opportunistic in durably about looking income items, in It's We've forward and efficiently M&A. expenses we X line technology. remarks, technological the Ted but statement, advisers discussed business. in and push about the we it's that So investments, through We've in right? We we're the investing as about thinking down resources that we're also to hires and lot and cycle. move talked a our the at

What group, I'd an just sense of teams. intangible add committee their of what X talk about the operating people management next sort the committee to dozen you a in meetings, then leadership we that about our of our is leadership and at if of dozen had

Steve, of it's annual fair How of large can optimize the about toggles with X talking say, those think we over course, I ongoing. and CCAR Basel time last years, was capital pending to the game process III a spent and chunk efficiency.

sea change about, about but talking to quarter. on then accelerated human we're actively delivering is about obviously has to We, it this we're then now dedicate looking judicious capital course, comes top earnings being investments, able over pretty that now the ties that. But number strategic statement of returns to growth, momentum and in capital into were But time investments generate that make when we and earnings of the we're to 'XX continue into the that. about the quarters it income last

and need this This was that we great but be is the And where that efficiently. January it great constructive we ratio team, this a why efficiency to a have up generally quarter we thing put XX% platform, was important so is and of environment. in a super running reiterating XX%

leverage be brackets you relatively it funnel environment, I had to think there's as well. operating but to I ISG to move the you then constructive called higher clearly more and of a when get the

on the leverage very tight of minds the and operating keeping focus statement the is So really generating much the on team. income leadership that

and Management the inflection my the stabilizing NNA see great of of margins, color. this Wealth and that It that maybe in the some off off inputs point strong blender component That's sounds reasonable was throwing I drivers just some hoping efficiency, the around focus in base, nice to that XX% fee continued pieces is to follow-up the to a you momentum, could some context like unpacking all provide for And you the on just relating X. is close given can NII probably but suggest key build just does of jumping and different that. given

we I XX%, say gets is -- there out about in and progress obviously making the that what we're goals think the that it. in towards to is And what would parts of Well, our you is those the framework X deck you to when we've the last put goals. community strategy sort offered at investment that

to advice. The is first migration

the funnel through second monetization The and the of will this. really go

about when you second, is that think we're offering. solutions and products The

of happened. And quarter this scale. third And what X is was about all those then benefits that the is encouraging things the of

from accounts. deployed, fee-based from is taking in what came brokerage here. the channel be we'll seeing money being being first was billion that deployed, $XX you're and They already said eventually that we people that's that at flows came it a and The we've saw

that X-year that back, a color, at encouraging transition is peak. look Again, you If particular conversion Steve.

improve, what interest said, solutions, structured have seeing to be products, That's products, beginning could can differentiated out markets I solutions called piece, can notes. issuance as that in products. Ted as through People that second happen derivatives to offering. new those The here. be begin be structured we're

sign. the gain And continue third leverage. is the So and we to operating yes, again, that benefits encouraging scale of an

are things working. X all So

giving the Of trade-offs we in course, revenues being able right sustainable trying a do What room also for investing for durable have margin room and a sure there's ourselves to between over build that we're time. technology to to make business run. XX% business, the and is

to from move our question with Hawken Brennan UBS. next We'll

again, which in quarter I'd in firm-wide fourth love And past, at Management the Sharon, the length the was a on did and to spoken asked NII. NII the But start the both call you've stability but know I've and this back. see firm-wide I where the about the with saw we declined. on it dip question on Wealth NII, we NII

of you divergence? and caused explain maybe those diverged So what how that some could

Sure.

funding management at really trading NII that think I'm the talked that but about at When falls the before, trading point the products where we you're reason a highlight pieces NII, look you're I them, business-driven as we to various into again NII. and we that you happy about of what booking using the to on have sources wealth you Brennan, it firm revenue. we it depends talk the that your it's and it look the NII,

So wealth certain disclosures in that NII be on driven a rather where we trading being from might focus NII you by the really concept traits. just when booking business you than is management our

sort be those bit? specific could that Okay. steady in maybe might with NII a there that declines of going explore Got it. a and on products something that would we Is institutional cause little trend

And you management with the given revenue really in, be reinvestment. quarter. with and with tell the based X and drivers step are trading that trading really in So interest spreads separate business to the looking I that rates, we wealth things we you at. fall with deposits the and how there And should on revenue going has you manage falls back that's the products where the that, the that would not transact is you revenue

Fargo Mike Wells We'll next our question Securities. to from move Mayo with

seems by growth management by the in but up increased like about X% there. wealth client You management but disconnect XX%, revenues it still growth, and a had wealth assets big year-over-year little decent

of kind growing. you're So management client assets wealth I'm wondering what

Certainly.

different said, brokerage client can the all are actually management they be Like assets, in migrate client it's on side. with They side. advice And see to time, over the can I or wealth Those assets come have associated going sorts the begin we to based different migrate in fees will of growing going to assets. the preferences into places. you're when them. So

us, towards this it's beginning see advice. movement to then and For about Mike, funnel, the growing

point Now might There's fixed out products. the income you're be if I'd channel, in S&P. us, revenue But that once to be over might be also channel, to the durable be in advice-led even in be composite. in you preferences it's equity not a building There for preferences directly fee-based you're the products. There about sustainable might in time.

First, and in advice-driven continue The model great the in advice-based seen participants high. We've asset assets at accounts, moves Then Mike, the the asset see a then in and the are the into That you we bring fee-based to grow. seen into assets you and bring eventually clients record assets. revenues, brokerage grow. in participants. trends management which management revenues. the We've comes accounts, the the the

as highlight just well working. point would is model as I proof So that that this

And then Ted. industry I for follow-up just yet. about capital as as we've the one was for outlook markets think your Ted, heard bullish

there's And sponsor, are compare just How of quarter? of last real the conviction I time this Valley, starts by years. your a your cross-border what lot highest they Japan, [indiscernible]. sector, last because X been level think the the in financing, the event is X small years, more used in with time, IPOs word for you Specifically, financial backlogs? do that

question. a The are think I backlogs reasonable all it's Yes, up.

may quite back investors. The it quality is recent that, advice among think jump been the them. by a risk. going It's receptivity the conflicts Their during of reality. to were so-called cross-border I to need to an -- major which to not trade-off, may we to need make companies, M&A front that nearshore where in on into we take impressive, some that's they SPAC march piece strong. need of clearly. be and potentially need think that was be disrupted People and solutions will supply existential But are saw X many they need paper slow of structuring bolt-on IPOs interest means the global and speculative to execute regulatory financing They chain have There high for the to quite we're chains broad period, around here. supply

way product piece, other, the LPs to and is on going there's as X-, or be motivating public other their that the big going has return in life or That and community a do Mike, financial The community to to consensus X-, capital offering the the come be this, growing ready way either markets. -- through X-year raising X sponsor private private is I best out sponsor a financial a the company sold the is for to to think on thing with keep ever funds. sitting

or private, order to assets So whether available, they sponsor public will shareholders. believe, in competitive a there that be to continue for LPs I dynamic, between with respect to are their create the or financial and value corporate are community

is U.S. the to the respect U.S. continues are China the most is fact that exposure sellers to buyers that which client weaker grow is The yen weaker, even want denominated our of of more assets, fact to and the economy say both highlights With what's of parts sitting Japan, there grow, but are Europe indeed that deposits, to to people the enormous on get interesting base to they economy. wish they're

in and will out we're both a is active obviously, and be. to corporate sponsor market, where financial continue that the in communities, So

be years have years global some quite lumpiness But a will could quite am reach. have for several the I bank along active. and I investment take think that It X, those bullish the about way. capability full X the So next X,

to next move from Dan Jefferies. our question We'll with Fannon

how cash client opportunity an overall on do you is redeployed? about can eventually the wealth update revenue provide that Hoping you levels within and cash as think

Sure.

did client cash. see percentage So the we of

depending is But markets actual down but you, given not levels XX% XX% the say, down, cash coming a looking at. now we've on have levels rather think, what channels to, would of the that you're So than is the I risen. advisory channel, equity function in I XX%, that, say,

terms percentages to in bring calls. the the of, previous that clear reason say, there's pre-COVID actual be we've levels just of So mix. on high those to historical I is relative XX%, up given XX% The

So there the over room into of deployment is the to time cash still market. see

of as And a from Understood. before that so -- some or some specifics context sure breakdown. office provide you for business the few I the of hoping a heard provide follow-up, stat that in your more just percentage mentioned terms broadly was I'm the release, family terms of if came the could of in we've in the mix about -- more then could terms you also of you? the flows not in offering. flows of bring in size And channels half you

I'm Absolutely. it of discussed offering, place relates securities. calls some time. begin management We the where really to from a way firm. solutions for clients you formally mean family office integrated our our you I We office on offer launched family to about And XXXX. it asked have some our in we institutional see earnings could a as that, offering by been different enhanced as glad so the we talking it and because to wealth

an basis, your management look to institutional So portfolio our products fund integrated client. able you more at where way that from would the as we're a actually

with solutions to our and different bring to there new board. different relationships As we is ways clients, points touch deepen more on to get offer and begin them client

that to are out that an is come is The of these flows this example reason lumpy you also through to we that. highlight So there pointed channels.

we different when the say There different flows can lumpy. channels and sales offering, those are sales different these across have be channels cycles. so And

time. long-term And set very so But pieces quarter diversified of a of have we and will seen and various therefore, particular channels. outs of NNA this the see ins over over history, you in

We in through workplace. the et diversification advice-based plan, cetera, relationship, of different channel We stock there there. come obviously have is that pieces the have the and

wealth. What alternative Services, LPs. business Fund is, to I'd that to firm, called have and reference point, all add which their to they of in a we office and feel does is equities an open effectively family number manager or institutional of business. for to years been product manage their -- have related managers when the asked of work that What that from family office these their this gem Sharon this has some documentation about go release institutional effectively The the to when integrated their their that own their made last asset the of folks running Sharon's division question the we were has this product on on and of a over having asset caters to

next in And office. together folks that is they number is are an which founder life the the up our over in got But effectively services and in all with we've in worth together product, over net product it this fund much on the some wealth of mousetrap space, wealth for business with her folks capability wealth towards which managing management, bracket came high the work helps outsourced competitive. the have focused the family with very years, been of bringing gives equities of together them a a ultra-high business who worth run last that the the and net very the the institutional to from very and in folks of CIO a category. the who piece look So work

It's actually clients. style the in-house a and deliver nice seamless institutional of the keep to funds capability way to

our we the are for example management our putting and foot something in this on Equities on are hand division something clients. working is So deliver the great glove to a of wealth accelerator and is folks

our We'll question Devin Ryan next move ] with [ Citizens to from JMP.

all market about wallet. the just but just Question Morgan you this And have overall share trading. high industry expansion kind for of resilient spoken level. on Stanley, of those a have been still Obviously, there's at know incredibly I results then opportunities

And what think that of the phenomenal. us expansion opportunities the saying opportunity, biggest hit are results in have How the some you sitting algorithm I lot And the from they that about when so of maybe on wallet can wallet, just of love to of point. I'd a second here growth here? think to improve been are continue kind

and wallet we consider think came take the where of Sure. you and now. where that. from When I'll about the we are expansion

more perspective. As a such solutions are ourselves, that more a from many of offer, corporations and be of is becoming the that global integrated, more the and coverage corporations bank can there as

that example, they rate rates offer If as think as interest just transactions. corporations you tangible a you about hedging can where think are about

deals could at that There about franchise. have corporate you you're that exchange you to think at for do other types of transactions or you're are looking foreign different when a looking in-house M&A global

an a that a assets are in types corporate different see see are from growth to channels markets growing there by solutions share of So where expect growth we wallet different also more opportunities places financing you of private We're are types see And that there's broadly. example. wallet could we where credit perspective. sponsors have you for being different and

that to add financing middle of the I with respect What to we're ecosystem the would in PE is M&A risk.

the partner a and It's ask they revenue. choice, within on real we managers, there's we're you a business number opportunity across are money structure, continue the equities alternative in derivatives. credit capability of managers, the and brokerage obviously would inside of exists to both asset of side. so focus a prime out big on financing originate where opportunities say lie then to focus and to credit, income getting fixed finance of issue If And some stable and our asset after course, our to that a build new of expand credit, private

the leading very This all side. ecosystem well financial on this and know that around a corporate who capability. all base are with, our a along sponsors course, of So integrated on, firm the of we is of the strategic clients focused client with our space firm

then outlook, Okay. quarter. Terrific the a debt color. very follow-up market. And on obviously, strong capital just a

bit some little loading. about pull front year just terms on people a heard maybe of have forward We in the

a much probably other net you're a the for as whether like of well. Morgan is there's And interconnectivity also seeing and get maybe about And is some think not sense quickly, as so what I underwriting. M&A equity similarly want as formal out of tone there appreciate for But there the there's deals you you played to appreciate then come pipeline so well Stanley? And underwriting, debt feel that that when just to for pipeline. strong

you you of the also that pull many the been It's peers as Yes. to, been been I that that's market also the would have I last interconnectivity. a is some they're said, course X saw. you think forward over there years. mentioned, have Remember point open of

an in you I So that M&A don't or that might I of have X has draw high event-related seen transactions. -- market, been wouldn't real market, wouldn't I opened equity, IG of But the especially rather has relatively and But -- that concepts the dearth is well X market last the you kinds activity IG have where years. open parallel been think yield in a -- course, same when you in the non-IG years. other of and there from over about last

move We'll Gerard question next to Cassidy from with RBC. our

is the Ted, question comments which on you you. some great. capital encouraging markets, very for had for A outlook the

some the that You back? leveraged loan years. you're good. investment financing, from Are to couple and event the obviously that which private of getting because made How market banks market, is mentioned have side they high-yield last about traditional credit seeing share the guys is the the inroads, are starting you see in of competition

relevant we And all real. is to the competition The in ecosystem. adapt stay to need

but that room have not investment there's deals, do I some not private the certainly go a issuer the being seem the that, in play time credit suggest think private as that things to benefits to all the versus be will to issuing space banks if global owner for to I in over participate the brings believe well. large to someone folks and of role as underwriters potentially don't securities going and

world the of I counterparties have times, a acting the partners, as where will we're we'll So players sometimes at and time competitors. many ecosystem act even in think as

global able credit but more their do thing. has ecosystem good. the enough Very to both the room think basis incumbents be on also the to for emerging I than a But private space, continue to

outlook a it XX to your years And moving even there's just encouraging. talk very again, that. higher. follow-up is today, quick Once again of up as

front have it? of into higher outlook today? rate the impact the talking that really get a Or about longer. material that you weigh for really some the on On a optimism environment, it the curve presented of longer does of kind doesn't end of no, we higher is If on for

sustaining continued higher it's question. It depends are are things period recession in landing, rates followed they the slow in if for clearly a Well, they down. because and time a tough higher we're a of which in U.S. growth are on will case, then and by or great whether are

we will in complex like But then in and and And by strong, in relative if we maybe side will that places in some to do in is higher progress first inflation side client quite and be the I and on over to Japan our a part, institutional dictated healthy U.S. that the more the But view our time, there have have is balance the as than that both China on are that again U.S. strength economy in is foremost, the places to shape economy continues plenty continue other that we know, Europe amongst strength. and nicely the wealth rates to that -- think again we where and see that the activities quite asynchronously the speaks world. eventually in there that sheets in U.S. be and part, are and our view busy not too. to you base

prosper. a capital well not and that of It's move mark-to-market after pandemic, will years, adapt models and week now is have in move. and prior ready and the matter, we bullishness we'll factor that board there the financial rates. view will financial a cost is in sponsors sustainable. pandemic period repression, that have quiet the absorbed. seem Those higher before have came some month. a capital be my then as rooms in not to cost appropriate any some need that rates and real to regimes companies comes where X and and for Yes, been saw need where higher now They or So inflation were They're companies to of we given strong and corporate on X, to rates

community, next about, but is that, institutional for will and working are wealth And into So we are what I our a we adapt also and we we're setting management believe cycle. the we with move course, both say that would up optimize clients of the to that the multiyear model most cycle. as to finally be excited

There concludes everyone, gentlemen, are and time. this call. Ladies Thank you, at conference no further this questions for participating. today's

a day. have great disconnect, now may You and