Morgan Stanley (MS) Morgan Stanley European Financials Conference 2026 summary

Market environment and capital markets resilience

• Despite recent volatility from AI, geopolitics, and private credit headlines, capital markets have shown strong resilience, with robust M&A activity and capital raising continuing even amid uncertainty.

• MSCI World index is up over 40% in two years, heightening risk awareness among investors and asset allocators.

• AI's transformational productivity is seen as a major driver of value and efficiency, benefiting both clients and shareholders.

• Recent large transactions include $6B for Galderma, $3B for Medline, and $75B in hyperscaler debt, indicating strong market receptivity.

• M&A volumes are recovering toward trend lines, supported by functioning credit markets and regulatory factors.

Private credit and asset management trends

• Private credit risk is viewed as an asset management issue, not systemic, with software being the most exposed sector.

• About a quarter of the private credit market is in software; higher defaults may impact returns but not create systemic risk.

• Public credit markets remain robust, supporting M&A ambitions even if private credit slows.

• Wealth management flows into private markets rose over 35% in March, with real assets also seeing strong inflows.

• The shakeout in private credit is expected to differentiate disciplined asset managers, not cause widespread disruption.

Strategic opportunities and global footprint

• Institutional advisory business spans public and private multi-asset classes, leveraging global reach and technology.

• Ability to deploy best-in-class technology and advice in markets like Brazil, China, India, and Japan has driven market share gains.

• Asia, EMEA, and LatAm businesses are growing faster than the Americas, with India highlighted as a key IPO market.

• Offshore wealth management and private banking in Hong Kong, Singapore, and Miami enable global asset deployment.

• U.S. assets remain attractive for global clients seeking security and high-quality advice.