Morgan Stanley's CEO, Ted Pick, has expressed optimism about the recovery of the IPO market, suggesting that it will gradually work its way back. In a series of interviews and statements, Pick highlighted the bank's strong third-quarter performance and its strategic positioning in global markets as key factors driving future growth.

In an interview with Bloomberg, Pick discussed Morgan Stanley's better-than-expected revenue for the third quarter, which led to a significant rise in the company's stock price. He emphasized the bank's consistent performance across its wealth and investment management segments, noting a sequential increase in earnings per share and improved operating leverage. Pick also pointed out the growing activity in investment banking, particularly in underwriting and mergers and acquisitions, as a positive sign for the future.

During a CNBC interview, Pick elaborated on the changes in the IPO market, noting that the era of zero interest rates and financial repression is over. He suggested that while the volume of IPOs might not return to the levels seen in 2020 and 2021, there will be opportunities for larger, sponsor-backed companies to go public. This shift, he argued, is part of a broader global trend of re-equitization, with significant activity in regions like Japan, India, and the Middle East.

Morgan Stanley's strong performance was further underscored by a 32% profit surge in the third quarter, driven by a 13% increase in trading revenue. The bank's wealth management unit also reported record revenue, contributing to the overall positive outlook. Chief Financial Officer Sharon Yeshaya noted that the bank is only beginning to capitalize on the strengthening capital markets, with expectations for continued growth.

Overall, Morgan Stanley's leadership remains bullish on the investment banking franchise, viewing it as being in the early stages of a growth cycle. The bank's strategic investments in global markets and its focus on leveraging technology and AI are expected to enhance productivity and efficiency, positioning Morgan Stanley to seize new opportunities as the IPO market recovers.