Morgan Stanley 2010 Annual Report Download - page 121

Industry Exposure. The Company also monitors its credit exposure to individual industries for credit exposure
arising from corporate loans and lending commitments as discussed above and current exposure arising from the
Company’s OTC derivative contracts.
The following tables show the Company’s percentage of credit exposure from its primary corporate loans and
lending commitments and OTC derivative products by industry at December 31, 2010:
Corporate Lending Exposure
At December 31,
2010Industry
Energy ............................................................... 13%
Utilities .............................................................. 11
Financial institutions(1) ................................................. 10
Chemicals, metals, mining and other materials ............................... 8
Technology ........................................................... 7
Media-related entities ................................................... 6
Telecommunications services ............................................. 6
Food, beverage and tobacco .............................................. 5
Pharmaceutical and healthcare ............................................ 5
Insurance ............................................................. 4
Capital goods .......................................................... 4
Real estate ............................................................ 3
Other ................................................................ 18
Total ............................................................ 100%
OTC Derivative Products
At December 31,
2010Industry
Financial institutions(1) .................................................... 31%
Banks .................................................................. 13
Sovereign governments .................................................... 11
Insurance ............................................................... 9
Utilities ................................................................. 8
Regional governments ..................................................... 6
Energy ................................................................. 5
Chemicals, metals, mining and other materials .................................. 3
Pharmaceutical and healthcare ............................................... 3
Other ................................................................... 11
Total ............................................................... 100%
(1) Percentage reflects credit exposures from special purpose entity vehicles, other diversified financial service entities and mutual and
pension funds, exchanges and clearing houses, and private equity and real estate funds.
Global Wealth Management Group Activities.
The principal Global Wealth Management Group activities that result in credit risk to the Company include
margin lending, non-purpose securities-based lending, commercial lending, and residential mortgage lending.
Customer margin accounts, the primary source of retail credit exposure, are collateralized in accordance with
internal and regulatory guidelines. The Company monitors required margin levels and established credit limits
daily and, pursuant to such guidelines, requires customers to deposit additional collateral, or reduce positions,
when necessary. Margin loans are extended on a demand basis and are not committed facilities. Factors
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