BDCs have had a rough year so far. Yet, Q3 earnings data points indicate that the tide could be turning. While there are some tangible improvements in BDC business environment, many risks remain open.
Morgan Stanley launched a dedicated private company research page on Tuesday, according to an internal memo seen by Reuters, as investors' interest in high-growth startups rises.
Goldman Sachs and Morgan Stanley expect 10% to 20% correction in equity markets over the next 1-2 years. IMF, Fed Chair Powell and Bank of England Governor Bailey have warned of overvalued equities.
Morgan Stanley remains a well-managed financial institution with robust earnings and strong preferred dividend coverage. Q3 results showed a 30% sequential and 40% year-over-year pre-tax income increase, with preferred dividends requiring less than 4% of net profit. Despite the high 7.125% yield on MS.PR.E, the rising call risk due to falling interest rates prompts me to sell my position.
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