Morgan Stanley's (MS.N) commodity market buying and selling
chance measure, called fee-at-hazard (VaR), fell to its lowest in at least 3
years in the 3 months to end-March, the financial institution said on Monday.
The bank's VaR indicator become $eleven million inside the
first zone, down from $12 million within the prior 3 months and $19 million
inside the year-in the past length.
The drop got here as the financial institution's internet
revenues from fixed income and commodities sales and buying and selling sank
extra than 50 percent to $873 million from a 12 months ago because of depressed
electricity charges and the sale of its oil merchanting commercial enterprise
on the quit of 2015.
The consequences also reflect slower consumer pastime in
charges and foreign exchange, and challenging credit score markets, it stated.
Sliding commodity and oil expenses, concerns approximately
the chinese economy and uncertainty about U.S.
hobby costs brought about risky markets in January and February, scaring off
investors, traders and corporations hoping to listing on inventory exchanges.
The VaR is a risk-reward indicator that measures the
commodities exposure of Wall avenue
banks, which usually group commodities revenue underneath the fixed income
category and do no longer break out the arena.
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