(Bloomberg) -- Morgan Stanley has a plan to boost return on equity in fixed-income trading above its cost of equity after four of the five units failed to meet that metric last year, Chief Executive Officer James Gorman said.
The credit-trading unit can earn a 15 percent return and interest rates and foreign-exchange trading can each top 10 percent, Gorman, 54, said today at a conference sponsored by the New York-based bank. All had returns on equity of more than 5 percent last year, said Gorman, who cited 10 percent as the firms cost of equity.
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