Morgan Stanley's asset management division has successfully raised $2.3 billion for private equity co-investments, reaching a hard cap with its third co-investment fund. The funds will be allocated to invest alongside other managers in small companies across North America and Europe. The announcement follows a positive reception from investors towards fresh debt offerings from both Morgan Stanley and JPMorgan, indicating a hopeful outlook in the credit markets. Bill Eigen, a bond portfolio manager at J.P. Morgan Asset Management, has begun deploying cash reserves after a prolonged period of holding, as signs of instability emerge in the credit market.