Morgan Stanley Investment Management Raises Over $600 Million for TALF Strategy

New York —

Morgan Stanley Investment Management (MSIM) today announced that it has raised over $600 million in capital from qualified high net worth and institutional investors for a strategy investing primarily in securities eligible to serve as collateral under the Term Asset-Backed Securities Loan Facility (the "TALF") offered by the Federal Reserve Bank of New York. 

The $600 million in total capital raised exceeded MSIM's initial $500 million target.

The FRBNY and the U.S. Treasury announced the creation of the $200 billion TALF with the goal to stimulate the consumer and small business lending markets by facilitating issuance of asset-backed securities in October 2008, and later announced the launch of the TALF program in March 2009.

Randy Takian, Head of the Morgan Stanley Retail and Intermediary business for MSIM said, "We are very pleased to give clients the ability to take advantage of this limited opportunity to invest in TALF eligible securities along with the non-recourse financing being offered through the program."    

"Morgan Stanley has been investing in the ABS market since its inception in 1985 and our team has extensive experience conducting security selection and credit work, sourcing collateral and providing industry-wide access to deal flow, and providing ongoing portfolio oversight," said Sanjay Verma, lead Portfolio Manager of MSIM's TALF strategy.  "We are proud to participate in a program designed to facilitate available credit to households and small businesses, while also giving our investors access to a unique opportunity to invest in high quality securities."

MSIM's TALF strategy involves capitalizing on market disruptions by sourcing undervalued credits and attractive cash flows inherent in securities eligible to serve as collateral under TALF.  The TALF strategy will predominantly invest in auto, credit card, small business and student loans, all of which have a AAA rating from two or more agencies.

Morgan Stanley Investment Management, together with its investment advisory affiliates, has nearly 1,000 investment professionals around the world and approximately $356 billion in assets under management or supervision as of March 31, 2009.  By leveraging its global ‘community of boutiques' structure and the strength of Morgan Stanley, MSIM strives to provide outstanding long-term investment performance, service and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide.

Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services.  The Firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 600 offices in 36 countries.  For further information about Morgan Stanley, please visit www.morganstanley.com.

This document has been prepared solely for informational purposes and is not an offer, or a solicitation of an offer, to buy or sell any security or instrument or to participate in any strategy. 

 

All investments involve risks, including the possible loss of principal.  The TALF facility involves borrowing funds from the Federal Reserve Bank of New York and pledging TALF Eligible Collateral to secure that borrowing. Leverage may increase volatility and risk of loss.

Media Relations Contact: Erica Platt, 212.762.6848