According to BusinessInsider Morgan Stanley is up today after the firm eased investors' concerns about its exposure to French banks, for one.
If you recall gentle reader, back in September, Zerohedge called attention to Morgan Stanley's 2010 10-k, which said that Morgan had $39 billion in exposure to French banks. Morgan shrunk these gross exposures by $17.4bn during 1Q11 to $21.6b billion, according to an analyst note, however rumors continued to hammer the bank. Traders were sending Morgan's CDS prices (how much it costs to insure Morgan's debt) so high that it became incredibly expensive for Morgan to hedge and issue debt, causing even more pain because it means doing less business with clients and less credit trading.
CDS was trading at 317 basis points on September 20th, and rose to over 400 basis points on September 22, the day Zerohedge posted its article, until peaking at 582.655 on October 3rd. Now they're at 304 down from 315 yesterday, meaning if they're insuring a million dollars, it costs around $30,000.
Now, Morgan Stanley's stock price is also rising, for a few reasons….
Read more at http://www.businessinsider.com/morgan-stanley-french-bank-exposure-3q-2011-10
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