(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 firm’s cost of equity.

Register or login for access to this item and much more

All On Wall Street content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access