On 03 June 2009, Mitsubishi UFJ Financial Group Inc. (MUFJ) decided to raise its stake in Morgan Stanley by participating in its public offering announced on 02 June 2009. Looking ahead, we remain concerned about MUFJ's outstanding exposure to the US mortgage market, rising credit costs and further equity portfolio writedowns anticipated over the next few quarters. Therefore, we maintain our 6-12 month SELL rating....

Mitsubishi UFJ Financial Group Inc. (MUFJ) is reportedly planning to sell an undisclosed amount of perpetual subordinated bonds in Japan in a bid to boost its upper tier-2 capital. Looking ahead, we remain concerned about MUFJ’s outstanding exposure to the US mortgage market, rising credit costs and further equity portfolio writedowns anticipated over the next few quarters. Therefore, we maintain our 6-12 month SELL rating. We will reassess our common stock rating in our next update…

On 13 May 2009, Mitsubishi UFJ Financial Group Inc. (MUFJ) announced that it has decided to revise its common-for-preferred stock swap arrangement with Morgan Stanley, while enhancing the size of the deal after Morgan Stanley exercised an overallotment option. Meanwhile, Nikkei reports that MUFJ has canceled its planned acquisition of Citigroup’s Japanese trust banking unit. Looking ahead, we remain concerned about MUFJ’s outstanding exposure to the US mortgage market…