Morgan Stanley swept all the major fixed-income derivatives awards for 2003 in Risk magazine's annual year-end review. In an unprecedented decision, Risk named Morgan Stanley Derivatives House of the Year, Interest-Rate Derivatives House of the Year and Credit Derivatives House of the Year.

To help explain its choice, Risk wrote: "Clients -- from Freddie Mac and major European governments to the BBC -- praise Morgan Stanley for understanding their needs and standing up to be counted when the pressure is on.''

U.K.-based Risk magazine is the preeminent publication covering derivatives markets, reaching more than 80,000 financial professionals around the world, according to U.S. regional manager Nat Knight. Unlike other magazines, Risk polls institutional investors and derivative end-users to decide which bank performed best during the year.

"We are particularly proud to have won this credit derivatives award because it is chosen by our clients,'' said Jim O'Brien, co-head of global investment-grade credit in New York. O'Brien heads the group with Jonathan Dorfman, who is based in London. Michael Pohly is head of structured credit trading.

This was the second award that the firm's credit derivatives team won in 2003, after Euromoney named Morgan Stanley the Most Improved Credit Derivatives House in June. Risk said more staff, better penetration and a 'host of contented clients' helped Morgan Stanley snag its award.

"Nobody is even close to Morgan Stanley's commitment to a liquid and transparent market,'' commented Andrew Feldstein, head of structured credit hedge fund Blue Mountain. "It is leaps and bounds ahead of the competition,'' Risk quotes Feldstein as saying.

In interest-rate derivatives, the level of service provided to clients, speed of execution and innovation helped raise Morgan Stanley above its competitors, according to Risk . From government debt agencies, such as the Italian treasury, to Freddie Mac, Morgan Stanley was the preferred service provider in 2003.

"Risk management is a critical aspect in our ability to fulfill our mission, and Morgan Stanley have distinguished themselves with a consistency of service that goes beyond day-to-day activity but enables them to understand and anticipate our needs,'' said Louise Herrle, treasurer of Freddie Mac.

Risk singled out the financing packages that Morgan Stanley devised and underwrote for the U.K. state-owned British Broadcasting Corp. and the New Jersey Turnpike Authority as the best examples of the firm's creativity and flawless execution.

In a joint statement, Jim Sandling and Sean Notley, global co-heads of interest-rate trading, said "Winning this award is a testament to the strength of our global team and the depth of our interest-rate franchise, from inflation-linked derivatives to municipal bond swaps.''