(Reuters) - Analysts at Morgan Stanley said the credit crisis fallout would extend into 2009, and that mortgage asset overhangs will drive additional write-downs as brokers struggle to de-risk their balance sheets. “Risk management failures stemming from the credit crisis will continue to weigh on the group as brokers try to draw down illiquid assets, deleverage balance sheets, and fortify liquidity and capital positions,” analysts Patrick Pinschmidt and Avi Ghosh said. They initiated coverage of the U.S. brokers’ sector with an “in-line” view, and said they favor U.S. brokers over U.S. large-cap banks and European universal banks. More
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