2023 marks the third consecutive year that Morgan Stanley's loan balance has risen since it returned to recruiting veteran advisors. According to an annual filing, the firm's hunger for hiring veteran advisors resulted in a ten percent increase in its recruiting loan balance last year. 

At the close of 2022, Morgan Stanley owed its advisors $4.12 billion, up from $3.73 billion in 2021. At least $97 million of those loans are held by advisors no longer at the firm and are more than 90 days past due, according to AdvisorHub.  

Morgan Stanley executives have cited the firm's net positive recruiting of experienced advisors as a critical factor in growing assets. However, CEO James Gorman disapproves of the cost of the recruiting deals. Gorman believes that the firm's net positive recruiting was primarily due to increased retention and not because of recruiting deals.  

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