Morgan Stanley Uses Capital Format Big Lenders Avoided for Years.

Morgan Stanley is offering a type of bank capital security that has been neglected by the country's biggest lenders for almost two years. The bank aims to raise $250 million through a perpetual preferred share issue that pays a fixed rate for life. This type of note, which targets retail investors with $25 dollar chunks, has gained prominence among regional lenders as a way to raise capital while giving small investors a way to profit when interest rates drop. Morgan Stanley and other banks involved in the deal can rely on their strong retail networks. [Extracted from the article]