Morgan Stanley to take Q1 hit

Because of complex methods for valuing certain bonds, Morgan Stanley (MS) will probably lose money in the first quarter.

According toThe Wall Street Journal, "Because of the accounting treatment on some bonds issued by Morgan Stanley before the financial crisis erupted, the New York company is expected to take a hit of $1.2 billion to $1.7 billion." It is ironic that gains in the value of the bonds increases the amount MS may owe investors in the paper.