Morgan Stanley is expecting to record its highest-ever income from Japan as bets on a shift in the nation’s monetary policy fuel a trading revival.
The Bank of Japan’s steps toward loosening its grip on bond yields over recent quarters have helped enliven the fixed-income market, Alberto Tamura, chief executive officer of the Wall Street firm’s majority-owned joint venture with Mitsubishi UFJ Financial Group, said in an interview. If the central bank proceeds to scrap negative interest rates in place since 2016, it could spur even more client activity, he said.
All that may boost the bank’s ambition with its partner to overtake Nomura Holdings as the top broker in the country.