Which Major U.S. Investment Bank Stock Performed the Best in 2020?
Unlike traditional commercial bank stocks, which were hit hard by the coronavirus pandemic, investment banks have fared much better. While mergers and acquisitions activity has lagged, investment banks more than picked up the slack with increased underwriting for initial public offerings and higher sales and trading activity.
Morgan Stanley (NYSE: MS) has produced the biggest gains of the major U.S. investment banks, with its stock up almost 26% year to date. Let's take a look at what's behind the performance.
Morgan Stanley managed to engineer not one, but two massive acquisitions in 2020 that will leave it looking like a much different company. In February, Morgan Stanley acquired the electronic brokerage firm E*Trade. The bank moved again in October, snapping up the asset management firm Eaton Vance. In total, the two deals cost Morgan Stanley about $20 billion, but they already seem to be paying off.
Source Fool.com
