Morgan Stanley said it is buying fund manager Eaton Vance Corp. for $7 billion, continuing the Wall Street firm’s shift toward safer businesses like money management. Its pivot mirrors a broader shift in power and profits on Wall Street. The trading profits of the 2000s are long gone, sapped by new regulations and shifting investor preferences. By acquiring Eaton Vance, it will join the club of $1 trillion money managers and bulk up in specific products where it is weaker, such as municipal bonds and sustainable investing. Morgan Stanley is paying $56.50 per Eaton Vance share in cash and stock, roughly 40% above the fund manager’s closing price Wednesday.

Source: Wall Street Journal October 08, 2020 12:25 UTC