NEW YORK (Reuters) - Morgan Stanley (MS.N) Chief Executive Officer James Gorman said on Tuesday that in recent years the bank’s fixed-income group has had the greatest opportunity for delivering growth.
Speaking at a conference hosted by the Wall Street bank in New York, Gorman said that in 2015, he thought that the fixed income division, one of the bank’s smallest, was its “most attractive business” because it stood to see rapid growth if interest rates rose and there was more volatility in markets.
“I thought actually fixed income is the most exciting business if (those) two things happen,” Gorman said.
Indeed, Morgan Stanley’s fixed income group has seen positive returns in recent quarters. Last year, the bank set a target to produce $1 billion in quarterly fixed-income revenue, on average, each year.
Gorman, who is also chairman of Morgan Stanley, added the U.S. bank will move 400-500 employees out of the United Kingdom to other European nations as a result of Britain’s vote to leave the European Union.
Reporting by Elizabeth Dilts in New York; editing by Matthew Lewis